Learn the criteria...
The amount of the bond must be fixed at the beginning of each Plan Year in an amount that is not less than 10% of the amount of funds being handled. The amount of the bond may not be less than $1,000, even if 10% of the amount of funds being handled would permit a smaller dollar amount, and need not be greater than $500,000, even if 10% of the amount of funds being handled would otherwise require a larger dollar amount. A blanket bond may be purchased that covers all persons who handle funds.
When purchasing your bond, plan ahead. Estimate as closely as possible the value of the plan in 3 years as most bonds are issued in 3 year blocks.
The Pension Protection Act of 2006 increased the maximum bond amount to $1 million for a plan that holds employer securities, effective for plan years beginning in 2008 or later. The 10% rule would still apply, so the amount of the bond would be the lesser of 10% or $1 million.
See your insurance agent to see if they offer ERISA or Fiduciary Bonds or click here to purchase a bond.