ERISA

Invest in Your Retirement Plan to Gain Financial Success

06.06.2019

Even with the United States economy booming and consistently expanding, more than two thirds of earners would be unable to cover an unexpected $1,000 expense. According to Barron’s, Americans simply seem to be having a hard time saving money. So how can you invest now to ensure a brighter financial future?

Investing in your retirement plan is one way you and your family can set yourselves up for long term success. Placing a percentage of your annual salary into a retirement account such as a 401(k) plan or an individual retirement account is a solid first step as many employers will match a percentage of your contributions; your company is essentially paying you to invest in your retirement.

Any type of retirement plan, however, needs to be protected. It’s up to the plan sponsor, or the company owner, to ensure that the assets remain in the plan and are not dispersed incorrectly.

How can you protect your plan and plan beneficiaries?

While the ERISA fidelity bond, a Department of Labor requirement, is obtained to protect the participants of the plan, it does not, however, protect YOU, the owner, or the company as the fiduciary.

Colonial Surety Company is a Treasury Listed surety that provides ERISA fidelity bonds that can be packaged with fiduciary liability insurance along with cyber liability insurance. We make it easy to obtain your bond instantly while also allowing you to purchase retroactive coverage for previous years that the plan may not have been bonded.

Under the laws of ERISA, fiduciaries, or any persons who make any decisions regarding the plan, may be held personally liable for any breach of their responsibilities in that role. Specifically, under ERISA 410, the plan cannot relieve you of any responsibility that is breached, however, Fiduciary Liability Insurance would provide you protection in the event of a breach. Fiduciary Liability Insurance coverage gives you peace of mind. Learn how to bundle your ERISA fidelity bond with fiduciary liability insurance and cyber liability insurance for a discounted rate.

Colonial’s cyber insurance provides a service-based solution to help plan sponsors manage data breaches successfully. These services include a dedicated team of cyber breach professionals who assist plan sponsors at every stage of incident investigation and breach response. These professionals coordinate with the carefully vetted forensics experts and specialized lawyers to help plan sponsors establish what has been compromised; assess plan sponsor responsibility; and, notify those individuals affected. In addition, these services will also coordinate credit or identity monitoring, and PR advice to help the plan sponsor safeguard its reputation. Of course, Colonial’s cyber insurance also indemnifies and defends plan sponsors from covered lawsuits or regulatory actions, the risk of which may be reduced by a well-coordinated breach response, but can never be completely eliminated.

If you would like to learn more about purchasing an ERISA fidelity bond, or an ERISA fidelity bond package including fiduciary liability insurance and cyber liability insurance, call 888-383-3313 or email ERISADept@colonialsurety.com. Learn more about becoming a Pension Professional Partner here.