Tax Season is the perfect time to adjust ERISA Surety Bond amounts in accordance with 2012 year end assets.
LOS ANGELES, California (PRWEB) April 12, 2013
The 2012 Tax Deadline is April 15th and A1SuretyBonds.com reminds Retirement /401(k) Plan Administrators to adjust ERISA bond amounts in accordance with 2012 year-end plan assets.
ERISA, the common acronym for Employee Retirement Income Security Act of 1974, requires all employers that establish pension, retirement, or 401(k) plans. This establishes financial security in the form of an ERISA Surety Bond for the protection of its plan participants against the dishonest acts of plan administrators. Losses covered under an ERISA Bond include but are not limited to: larceny, theft, embezzlement, forgery, misappropriation, wrongful abstraction, wrongful conversion and willful misapplication.
There are two types of ERISA plans, Qualifying Asset Plans and Non-Qualifying Asset plans.
Qualifying Asset Plans, wherein the plan assets are held by a bank, insurance company, mutual fund or other regulated entity. These plans require an ERISA Surety Bond in an amount not less than 10% of the plan assets or $1,000 (whichever is greater).
Non-Qualifying Asset Plans, wherein assets are held in real estate, artwork, investments in other corporations and other non-regulated investments. These plans require an ERISA Surety Bond in an amount of 100% of the plan assets or $1,000 (whichever is greater).
These plans will fluctuate from year to year and need to have the ERISA Bond adjusted in order to assure that plan assets are properly covered in accordance with the ERISA Act.
April is Tax season and that is the perfect time to re-evaluate your coverage and adjust your ERISA Bond accordingly. While many ERISA Bonds have an Inflation Guard in place to prevent momentary coverage shortage, it is always best to keep your bonding current with your annual plan levels and maintain compliance. ERISA Surety Bonds can be written for a single year or for multiple years, which results in a discounted premium for pre-payment. A1SuretyBonds.com highly recommends taking advantage of this discount when purchasing ERISA coverage.
A1SuretyBonds.com offers a free evaluation and rate comparison on your ERISA Surety Bond(s).
A1SuretyBonds.com is a leading provider of surety bond procurement services, utilizing a web-based platform and application system. This provides an ease of use and timely response in order to meet the needs of the client. According to staff, getting an ERISA bond has never been easier. Applicants can apply online or contact an underwriter directly for a free, no obligation, price quote. Most bonds are issued within 24 hours or less. They are only written with A-rated, Treasury Listed Surety companies, as per the requirements of the ERISA Act of 1974. For additional information on surety bonding or to get a quote for your ERISA Surety Bond, contact one of the underwriters at A1SuretyBonds.com at 800-737-4880, info(at)A1SuretyBonds(dot)com or visit: http://www.a1suretybonds.com/surety-bonds/erisa-pension-plan-surety-bonds.]