ERISA

The Importance of Communicating About Employee Benefit Plans

09.26.2020

Employees lack trust in benefit plans. As a business owner—and plan sponsor,  take action to respond to their needs. A great first step: provide more information.

What Do Employees Want to Know About Benefit Plans?

The Hartford Business Journal reports:

A growing number of Americans are losing faith in their employee benefits since COVID-19 began to spread across the country in March, a new study shows.

Jonathan Bennett, head of group benefits at The Hartford, which conducted the study, explained:

As employee familiarity with benefits also declined, our research uncovered an opportunity for employers to increase trust by focusing more on communication, including education about their available benefits and what they cover.

Increase Employee Trust: Communicate More

Start by talking more about your retirement plan. The current economic crisis underscores the importance of saving—even modestly. Unfortunately, so many big businesses have hit the news for the wrong reason: incidents of fraud and dishonesty which have impacted retirement funds. Think about how often your employees are encountering news of corporate corruption. No wonder their trust is decreasing! Reassure your employees that your company’s retirement plan is protected.

Importantly, as a plan sponsor, make sure that you take a few minutes to renew your ERISA fidelity bond. An ERISA bond protects the plan against losses caused by acts of fraud and dishonesty. Examples include theft, forgery, and misappropriation of funds.

Colonial Surety Company makes it easy to obtain an ERISA fidelity bond. Remember, only companies named on the Department of Treasury’s listing of approved sureties are able to provide these fidelity bonds. In addition, Colonial offers Fiduciary Liability Insurance and Cyber Liability Insurance for Plan Sponsors with our 2-3 year ERISA bonds packages, you can obtain now. 

Good to Know

The US Department of Labor (DOL) provides a convenient one-page overview of your fiduciary responsibilities as a plan sponsor. Use it to refresh your knowledge—then you can even provide it to your employees as part of your campaign to increase trust through information sharing. Download the DOL’s information page here: Getting It Right.

How Can You Obtain Your ERISA Fidelity Bond Quickly?

Colonial Surety Company is licensed in all 50 states and US Territories. Our unique, direct to consumer approach means that you can purchase, download and print your ERISA bond instantly!

You can choose a stand-alone ERISA Bond or get even more cost savings with a package including important fiduciary and cyber liability protection too.

Get your ERISA Bond here now: Colonial Surety ERISA Bond.