Federal ERISA Policy Ohio Bond
Overview
The bonding rule for Ohio employee benefit plans is federal, and it is specific: section 412 of ERISA, codified at 29 U.S.C. 1112, requires every fiduciary of an employee benefit plan and every person who handles funds or other property of the plan to be bonded. The statute fixes the bond at not less than 10 percent of the amount of funds handled, with a minimum of $1,000 and a general maximum of $500,000 per plan — rising to $1,000,000 for plans that hold employer securities. The U.S. Department of Labor's Field Assistance Bulletin 2008-04 walks through these requirements in detail for plan officials and their advisers.
Who Needs This Bond?
Under 29 U.S.C. 1112(a), every fiduciary of an ERISA-covered employee benefit plan and every person who 'handles' plan funds or other property must be bonded — trustees, administrators, and employees whose duties give them access to plan money or the power to direct it. Ohio employers sponsoring 401(k), pension, profit-sharing, and similar plans fall under this federal mandate exactly as employers in any other state do. The statute prohibits any such person from receiving, handling, disbursing, or otherwise exercising custody or control of plan funds without the bond in place.
What is this Bond For?
The ERISA bond protects the plan — not the bonded individual — against loss by reason of acts of fraud or dishonesty on the part of the persons covered, whether acting directly or through connivance with others, as the statute puts it. If a bonded plan official embezzles or otherwise dishonestly diverts plan assets, the bond provides the plan a source of recovery. DOL Field Assistance Bulletin 2008-04 emphasizes that this fidelity bond is distinct from fiduciary liability insurance, which protects the fiduciary rather than the plan.
When is it Required?
The bond must be in place from the moment a person begins handling plan funds — the statute makes receiving or disbursing plan money without a bond unlawful. The amount is set at the beginning of each plan year at not less than 10 percent of the funds handled during the preceding year, subject to the $1,000 statutory minimum. Because plan assets change, plan officials should re-check the calculation annually so the bond amount keeps pace with the funds handled.
Where Does it Apply?
This is a federal requirement that applies uniformly nationwide, including to Ohio-based plans and the Ohio businesses that sponsor them — there is no separate Ohio bonding statute layered on top. The bond must be placed with a surety or reinsurer named on the U.S. Department of the Treasury's listing of approved sureties, and the plan must be named or otherwise identified so it can recover under the bond, points the Department of Labor's guidance addresses directly.
How to Buy Online
Click 'Buy This Bond Online' on this page and the secure surety portal opens in a new tab. Calculate at least 10 percent of the plan funds handled in the preceding plan year — that figure, within the statutory minimum and maximum, is the amount your bond must cover. Complete the short application, review the documents, and pay online; your executed bond satisfies the ERISA section 412 requirement for the covered individuals.
Why Bond Titan?
Bond Titan is powered by The Southern Agency, a licensed surety agency, and this page cites the ERISA bonding statute and the Department of Labor's own field guidance in the Official Sources section below, so you can verify every figure against the federal sources. The fully online process makes annual compliance quick for busy plan sponsors.
Official Sources
The requirements described on this page are verified against the official sources below.
- Bonding required for fiduciaries and persons handling plan funds; not less than 10% of funds handled; $1,000 minimum; $500,000 maximum ($1,000,000 for plans holding employer securities); fraud-or-dishonesty condition: ERISA §412, 29 U.S.C. §1112 (Bonding) (verified July 16, 2026)
- DOL guidance on ERISA fidelity bonding: definition of handling, approved sureties, distinction from fiduciary liability insurance: U.S. Department of Labor, Field Assistance Bulletin 2008-04 (verified July 16, 2026)