Protecting Retirement Funds: The ERISA Bond in North Dakota


In the realm of employee benefits and retirement security, the Employee Retirement Income Security Act (ERISA) stands as a crucial federal law. ERISA sets the standards for private employee benefit plans, safeguarding the interests of employees who rely on these plans for their financial future. To fortify the protection of retirement funds and ensure compliance with ERISA regulations, North Dakota mandates the ERISA Bond. In this comprehensive guide, we’ll delve into the intricacies of this bond, its significance, requirements, and the pivotal role it plays in securing the retirement nest eggs of North Dakota’s workers.

Unveiling the ERISA Bond in North Dakota

ERISA Bond - North Dakota

The ERISA Bond, or Employee Retirement Income Security Act Bond, is a financial guarantee that employers with ERISA-covered benefit plans must obtain. This bond serves as a symbol of trust and accountability, assuring plan participants that their retirement funds are protected.

Understanding the Bond’s Purpose

The primary purpose of the ERISA Bond is to safeguard the assets of employee benefit plans covered by ERISA. These plans, including pension plans, 401(k) plans, and health and welfare plans, hold significant financial assets on behalf of employees. The bond acts as a protective measure, ensuring that fiduciaries and plan administrators manage these assets honestly and ethically.

Who Needs the Bond?

Employers and organizations that sponsor employee benefit plans covered by ERISA are generally required to obtain the ERISA Bond. This requirement applies to a wide range of plans, including those providing retirement, health, and other benefits to employees. Plan sponsors must secure this bond to protect the interests of plan participants and beneficiaries.

Bond Amount and Cost

The bond amount for ERISA Bonds in North Dakota is determined based on the value of plan assets managed by the employer or plan administrator. The bond amount must meet specific regulatory guidelines, and employers should consult with the U.S. Department of Labor (DOL) to determine the exact requirement. The cost of the bond premium depends on factors such as the bond amount, the employer’s financial stability, and creditworthiness. Employers can obtain ERISA Bonds from authorized surety bond providers.

The Application Process

ERISA Bond - North Dakota

  • Determine Bond Amount: Employers must calculate the appropriate bond amount based on the value of plan assets under their management, as specified by the DOL.
  • Select a Bond Provider: Employers should choose a reputable surety bond provider authorized to issue ERISA Bonds.
  • Complete the Bond Application: Employers fill out the bond application, providing necessary financial information and documentation.
  • Underwriting Process: The bond provider evaluates the employer’s financial health and creditworthiness to determine the bond premium rate.
  • Bond Issuance: Once approved, the bond provider issues the ERISA Bond, which the employer must submit to the DOL as part of their compliance with ERISA regulations.

Safeguarding Retirement Security

Obtaining the North Dakota ERISA Bond is more than a regulatory requirement; it’s a commitment to protecting the retirement security of employees. Employers and plan administrators play a pivotal role in ensuring that employee benefit plans adhere to ERISA guidelines and manage plan assets with integrity.


The ERISA Bond in North Dakota is a vital instrument in preserving the retirement security of workers and the integrity of employee benefit plans. By understanding its purpose, requirements, and application process, employers and plan sponsors can fulfill their fiduciary responsibilities with confidence, knowing they are part of a system designed to protect the financial future of North Dakota’s workforce. Compliance with bonding regulations and ERISA standards is not just a legal obligation but a commitment to securing the retirement nest eggs of countless individuals and families across the state.


Frequently Asked Questions

Are small businesses with a limited number of employees and a relatively small employee benefit plan still required to obtain an ERISA Bond in North Dakota?

Yes, the requirement to obtain an ERISA Bond applies irrespective of the size of the business or the number of employees participating in the benefit plan. North Dakota, like the federal ERISA law, mandates that any employer or organization sponsoring an ERISA-covered benefit plan must secure an ERISA Bond. The bond’s amount is typically determined based on the value of plan assets, and small businesses with relatively modest plans are not exempt from this requirement. Employers should consult with the U.S. Department of Labor to determine their specific bond amount based on plan assets.

Can multiple benefit plans sponsored by the same employer or organization be covered by a single ERISA Bond in North Dakota?

Generally, each ERISA-covered benefit plan must have a separate ERISA Bond to comply with North Dakota’s requirements. However, there may be exceptions or situations where multiple plans can be covered under a single bond. Employers or plan administrators should consult with authorized surety bond providers and the U.S. Department of Labor to explore options and ensure compliance with bonding regulations. It’s essential to clarify bond coverage for each specific plan to avoid potential compliance issues.

What happens if an employer or plan administrator fails to obtain the required ERISA Bond for an employee benefit plan in North Dakota?

Failure to obtain the required ERISA Bond for an employee benefit plan in North Dakota can have serious legal and financial consequences. The U.S. Department of Labor and other regulatory agencies can take enforcement actions against non-compliant employers and plan administrators. This may include fines, penalties, and legal actions. Additionally, non-compliance can jeopardize the financial security of plan participants and beneficiaries. Employers and plan sponsors should ensure they meet all bonding requirements to protect both themselves and plan participants.

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