Doug Johnston
Aug 22 2001, 11:14 AM
Can a plan pay the premium for the ERISA required fidelity bond? I have reviewed the recent DOL guidance, and while it doesn't appear to mention bond premiums, it seems that the premiums would be a "fiduciary" expense which can be paid from the plan.
Belgarath
Aug 22 2001, 02:49 PM
I agree. This would not normally be considered a "settlor" expense, and the plan can pay it.
Kirk Maldonado
Aug 23 2001, 12:08 AM
The plan may purchase the bond on its behalf. DOL Reg. Section 2509.75-5, FR-9.
willow
Aug 24 2001, 08:09 AM
Along the lines of the bond, can a plan sponsor have the employees pay for the plan audit expense? If the answer is yes, then I would think they would do this through forfeitures. Any thoughts on this?? Thanks!!!!
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