Have You Reviewed Your Fidelity Bond Coverage? Should You?

A Third Party Administrator (TPA) must collect plan information from Plan Sponsors each year in order to complete the valuation and required filings. Providing accurate information to your TPA is critical, but one area often overlooked is reporting accurate fidelity bond information. The fidelity bond is required to protect the plan and participants from fraud. Check out the Fidelity Bond Coverage Requirements blog post to learn more about the fidelity bond requirements. I’d like to highlight that if a company offers more than one employee benefit plan, all plans must be accounted for on the fidelity bond. This means the fidelity bond must list each plan (defined benefit and defined contribution plans) and assets in all the plans must be considered to determine the amount of the bond required.

Please contact Watkins Ross if you have questions regarding the fidelity bond coverage.

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