ERSOP® Plans are ERISA Plans. Trustees of ERISA Plans need to be bonded against casualty and theft, but not investment loss. The amount of the bond is 10% of Trust assets, in most cases, with a $10,000 minimum and a $500,000 maximum. Some assets must be bonded at 100%. Qualifying Employer Securities are exempt from the 100% bonding requirement. The existence and the amount of the bond must be disclosed each year on the Form 5500. Plans with only owner-employee Participants are exempt from the bonding requirement. Please contact SDCooper to see if you are exempt from the bonding requirement.


One of the problems that used to arise was for the assets to appreciate in value during the year and for the amount of the bond to fall below the 10% threshold unnoticed. Bonds are now available that solve this potential problem.


For a lot of reasons, the risk to the insurer is not very great and the premiums are small. ERISA bonds are available begrudgingly through your casualty insurance agent [there is but a tiny commission] or near instantaneously over the internet.