Protecting the personal assets of plan fiduciaries
New ERISA Bond Requirements Effective
12/31/07
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Applicable to all plans that offer company stock
effective 12/31/07
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Minimum bond
requirement increased from $500k to $1MM
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SEC. 622. INCREASE
IN MAXIMUM BOND AMOUNT.
(a) IN
GENERAL.—Section 412(a) of the Employee Retirement Income Security Act
of 1974 (29 U.S.C. 1112), as amended by section 611(b), is amended by
adding at the end the following: ‘‘In the case of a plan that holds
employer securities (within the meaning of section 407(d)(1)), this
subsection shall be applied by substituting ‘$1,000,000’ for ‘$500,000’
each place it appears.’’(b) EFFECTIVE DATE.—The amendment made by this
section shall apply to plan years beginning after December 31, 2007.
