Here’s a scenario that I’ll bet you never want to face: You have five loyal employees who have helped you build your business to being more than a little successful. They worked late nights and week-ends with you; you ate cold pizza and drank warm colas together; you rotated having company parties at each other’s homes. Then, one bright and sunny day, you discover that the entire retirement program you built for them has “disappeared” due to fraudulent management. There’s no sun in the sky now, as the world has become dark and gloomy – – and, to exacerbate matters, you discovered your fund wasn’t properly covered under the Employee Retirement Income Security Act of 1974 (ERISA).
“Sad hardly describes the situation just described,” Jim Bivona of Bivona Insurance Group, LLC, an Independent Insurance Agency that services the Phoenix Metro area regarding Insurance including Phoenix, Scottsdale, Glendale, and Peoria Arizona to name just a few, offered solemnly. “Thinking you’re covered isn’t good enough when it comes to ERISA,” he added.
As a result, there are a number of things you need to know in regard to the issue of ERISA Fidelity Bonds, including but not limited to:
- The Bond amount cannot be less than $1000 and typically doesn’t need to be for more than $500,000.
- Losses that must be covered include such things as larceny, theft, embezzlement, forgery, and wrongful conversion.
- Bonds cannot have deductibles or similar features.
- Fiduciary Liability Insurance DOES NOT meet the ERISA Bonding requirement.
- ERISA Bonds must be placed with a surety that is named on the Department of the Treasury’s Listing of Approved Sureties.
- Multiple plans can be assured on one Bond.
- Bonds may be written for more than one year, but must include an “inflation guard” clause.As you can see, 7 THINGS GLENDALE BUSINESSES SHOULD KNOW ABOUT INSURING THEIR RETIREMENT PLANS certainly is not something you want to ignore if you ARE, in fact, intent on making sure your Company Retirement Plan is adequately and completely protected! As a result, you should contact Jim Bivona at 623-256-1000 with any questions, and he will be happy to discuss this concept with you in greater detail, and suggest some ways you may be able to improve your Business Coverage.
- To learn more about the BIVONA INSURANCE GROUP, LLC go to www.bivonainsurance.com.
- (To learn more about this issue, check out “ERISA PARAMETERS”)