What it does
Under the 06 22 forms, ERISA plan losses are covered only under Insuring Agreement 1.b., ERISA Plan Official Dishonesty, and the insured is responsible for selecting a limit for each plan at least equal to the ERISA minimum: 10% of funds handled, not less than $1,000 and not more than $500,000 ($1,000,000 if the plan holds employer securities). CR 25 50 lets the limit be scheduled plan by plan.
Who needs it
Every employer that sponsors a 401(k), 403(b), pension, profit-sharing or ERISA welfare plan. ERISA requires each person handling plan funds to be bonded, and the plan sponsor's crime policy is a common way to meet the requirement.
How it fits the policy
This endorsement changes the base crime or fidelity form it is attached to and is listed with the other endorsements on the declarations. Schedules in the endorsement (names, positions, amounts or dates) control how it applies, so confirm the schedule is complete before binding. ISO's forms index lists the current edition for 52 jurisdictions.
Quoting and selling notes
- Get each plan's name and asset value from Form 5500 or the plan administrator.
- No deductible may apply to the required ERISA amount; the base form already waives it for this agreement.
- Non-ERISA plans (church or governmental plans) use CR 25 51.
