Steffey Insurance, alongside our partners at Propeller Bonds, now offers ERISA bonds instantly via Credit or Debit card. The entire purchase process takes less than 2 minutes and your bond is able to be downloaded instantly upon purchase. If you’d like to proceed to purchase, please click HERE.
What is an ERISA bond?
ERISA bonds are required by the US Department of Labor for company sponsored 401K and pension plans. The ERISA act requires businesses to carry a bond equal or greater to 10% of the plans assets at the time of purchase. For instance, if there’s $1M dollars in the company plan, you’re required by law to carry a bond amount of $1oo,ooo or greater. The bond must be in the name of the company plan, which usually incorporates the business name. For example, ‘The Steffey Group 401K Plan’ would be the bond holder in our case.
What do I need to purchase the bond?
You’ll simply need to know the name of the 401K or pension plan, as well as the plan’s assets. Our instant quoting system will allow you to see the price of the bond before purchase. You’re able to pay by debit or credit card and download your bond instantly. A copy of the bond will also be emailed to you.
How much do ERISA bonds cost?
Generally speaking, bonds cost anywhere from $100 to $500 depending on the amount needed. Keep in mind, our bonds run for 3 year terms, meaning you wouldn’t have to renew the bond for 3 years. Our bonds ALSO include an escalation clause, so if the plan’s assets increase during the 3 year term, you ARE covered. You simply have to have a bond for 10% of the total plan assets at the time of purchase.
Please feel free to click the link below to continue to purchase your bond. If you have any questions you can always contact our agency for assistance. We’re happy to help you become ERISA compliant!