Increase in Maximum Bond Amount
The Pension Protection Act of 2006 increases the bond requirement for people handling private retirement plan money.
All individuals with control over retirement plan assets and other plan fiduciaries must be bonded. The bond, which must represent at least 10 percent of a plan's assets, is used to protect the plan from fraud committed against the plan by trustees and other plan officials. Under prior law, the maximum amount of such a bond was $500,000. Under the new law, if a plan holds stock issued by the employer sponsoring the plan, the maximum amount will increase to $1 million.
The increase in the maximum bond amount takes effect on January 1, 2008.
Read Section 622 of the Pension Protection Act of 2006 (Public Law 109-280)
Looking for help with your retirement plan?
If you have a problem with your retirement plan, free help may be available from the U.S. Administration on Aging's network of Pension Counseling and Information Projects. Find help now.
PensionHelp America connects people who need help with their pension, 401(k), and other retirement plans with the pension counseling projects, legal services providers, and government agencies that can help answer their questions. Visit www.pensionhelp.org.
Retirement USA
Retirement USA is a national initiative that is working for a new retirement system that, along with Social Security, will provide universal, secure, and adequate income for future retirees. Visit the website.
