by: Brenda Jewell-Swartz
McDonough & Keegan Insurance Agency, Inc.

WHAT IS "ERISA"?
The Employee Retirement Income Security Act of 1974 (ERISA) was enacted to protect employee benefit plans against loss by acts of fraud or dishonesty. The statute instituted a fidelity bond requirement for plan trustees, and it defined the coverage limits requirements. The Employee Retirement Income Security Act of 1974, or ERISA, protects the assets of millions of Americans so that funds placed in retirement plans during their working lives will be there when they retire. The ERISA Fidelity bond must equal 10 percent of the funds handled by a Trustee or Fiduciary with a minimum bond limit of $1,000 per plan and a maximum bond limit of $1,000,000 per plan.

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by: Mark Larsen

Tillinghast-Towers Perrin

Liability under ERISA
The passage of the Employee Retirement Income Security Act of 1974 (ERISA) substantially increased the liabilities of fiduciaries in the United States. It also better defined some of the responsibilities and associated liabilities of fiduciaries.
As its name suggests, ERISA was created to help protect the interests of pension and employee benefit plan beneficiaries. Under ERISA, an individual (or organization) is deemed a fiduciary if that person (or entity) exercises any discretionary authority or control over the management of any type of employee benefit plan. In particular, any person responsible for the investment, control, or disposition of assets held by the plan would be considered a fiduciary. ERISA broadly defines "employee benefit plans" as:

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Sincerely,

McDonough & Keegan Insurance Agency, Inc.