After letters and testimony from the American Retirement Association, New Jersey has excluded ERISA plan fiduciaries from the state’s upcoming new and expanded fiduciary standards.
ERISA will preempt this regulation, allowing for the single nationwide standard under ERISA to remain intact. Had this regulation gone through without the exemption for ERISA, there would have been a conflict of standards between the state law and ERISA in New Jersey.
Other states, however, such as Nevada, may go ahead with standards differing from those under ERISA in the future for plan fiduciaries.
How can you protect yourself personally in case of a fiduciary breach?
Colonial Surety Company is a Treasury Listed surety company providing ERISA fidelity bonds packaged with fiduciary liability insurance and cyber liability insurance. Colonial is one of the leading providers of ERISA related products, offering bonds approved by the Dept. of Labor. We make it easy to obtain your bond instantly as well as allowing you to purchase retroactive insurance for the years the plan was not previously covered.
Under ERISA, fiduciaries may be held personally liable for breaches of their responsibilities in the administration or handling of employee benefit plans. Under ERISA 410, the plan cannot relieve you of this responsibility with indemnification language, however, it specifically permits persons with personal liability to purchase Fiduciary Liability Insurance. Covering yourself with Fiduciary Liability Insurance gives you peace of mind that you are protected. Learn how to bundle your ERISA bond and fiduciary liability insurance and cyber liability insurance for a discounted rate.
If you would like to learn more about purchasing an ERISA fidelity bond, or an ERISA fidelity bond package including fiduciary liability insurance or cyber liability insurance, call 877.650.9661 or email ERISADept@colonialsurety.com. Learn more about becoming a Pension Professional Partner here.