§ 1112. Bonding

Footnotes

1. 1 So in original. The period probably should be “, and”.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1974

   Employee Retirement Income Security Act of 1974

   Pub. L. 93–406 title I § 412 · 88 Stat. 829

   Enacted · 29 U.S.C. § 1112

   Pub. L. 93–406, title I, § 412, Sept. 2, 1974, 88 Stat. 888

   Source evidence

   Code source credit
   Pub. L. 93–406, title I, § 412, Sept. 2, 1974, 88 Stat. 888

   Enacted provision · exact public law section
   Sec. 412. bonding (a) Every fiduciary of an employee benefit plan and every 29 USC 1112. person who handles funds or other property of such a plan (hereafter in this section referred to as “plan official”) shall be bonded as provided in this section; except that— (1) where such plan is one under which the only assets from which benefits are paid are the general assets of a union or of an employer, the administrator, officers, and employees of such plan shall be exempt from the bonding requirements of this section, and (2) no bond shall be required of a fiduciary (or of any director, officer, or employee of such fiduciary) if such fiduciary— (A) is a corporation organized and doing business under the laws of the United States or of any State; (B) is authorized under such laws to exercise trust powers or to conduct an insurance business; (C) is subject to supervision or examination by Federal or State authority; and (D) has at all times a combined capital and surplus in excess of such a minimum amount as may be established by regulations issued by the Secretary, which amount shall be at least $1,000,000. Paragraph (2) shall apply to a bank or other financial institution which is authorized to exercise trust powers and the deposits of which are not insured by the Federal Deposit Insurance Corporation, only if such bank or institution meets bonding or similar requirements under State law which the Secretary determines are at least equivalent to those imposed on banks by Federal law. The amount of such bond shall be fixed at the beginning of each fiscal year of the plan. Such amount shall be not less than 10 per centum of the amount of funds handled. In no case shall such bond be less than Limitation. $1,000 nor more than $500,000, except that the Secretary, after due notice and opportunity for hearing to all interested parties, and after consideration of the record, may prescribe an amount in excess of $500,000, subject to the 10 per centum limitation of the preceding sentence. For purposes of fixing the amount of such bond, the amount of funds handled shall be determined by the funds handled by the person, group, or class to be covered by such bond and by their predecessor or predecessors, if any, during the preceding reporting year, or if the plan has no preceding reporting year, the amount of funds to be handled during the current reporting year by such person, group, or class, estimated as provided in regulations of the Secretary. Such bond shall provide protection to the plan against loss by reason of acts of fraud or dishonesty on the part of the plan official, directly or through connivance with others. Any bond shall have as surety thereon a corporate surety company which is an acceptable surety on Federal bonds under authority granted by the Secretary of the Treasury pursuant to sections 6 through 13 of title 6, United States Code. Any bond shall be in a form or of a type approved by the Secretary, including individual bonds or schedule or blanket forms of bonds which cover a group or class. (b) It shall be unlawful for any plan official to whom subsection (a) applies, to receive, handle, disburse, or otherwise exercise custody or control of any of the funds or other property of any employee benefit plan, without being bonded as required by subsection (a) and it shall be unlawful for any plan official of such plan, or any other person having authority to direct the performance of such functions, to permit such functions, or any of them, to be performed by any plan official, with respect to whom the requirements of subsection (a) have not been met. (c) It shall be unlawful for any person to procure any bond required by subsection (a) from any surety or other company or through any agent or broker in whose business operations such plan or any party in interest in such plan has any control or significant financial interest, direct or indirect. (d) Nothing in any other provision of law shall require any person, required to be bonded as provided in subsection (a) because he handles funds or other property of an employee benefit plan, to be bonded insofar as the handling by such person of the funds or other property of such plan is concerned. (e) The Secretary shall prescribe such regulations as may be necessary Regulations. to carry out the provisions of this section including exempting a plan from the requirements of this section where he finds that (1) other bonding arrangements or (2) the overall financial condition of the plan would be adequate to protect the interests of the beneficiaries and participants. When, in the opinion of the Secretary, the administrator of a plan offers adequate evidence of the financial responsibility of the plan, or that other bonding arrangements would provide adequate protection of the beneficiaries and participants, he may exempt such plan from the requirements of this section.

2. 2006

   Pub. L. 109–280 § 622(a) · 120 Stat. 780

   Substituted · 29 U.S.C. § 1112(a)

   Pub. L. 109–280, § 622(a), inserted at end of concluding provisions “In the case of a plan that holds employer securities (within the meaning of section 1107(d)(1) of this title), this subsection shall be applied by substituting ‘$1,000,000’ for ‘$500,000’ each place it appears.”

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 109–280, § 622(a), inserted at end of concluding provisions “In the case of a plan that holds employer securities (within the meaning of section 1107(d)(1) of this title), this subsection shall be applied by substituting ‘$1,000,000’ for ‘$500,000’ each place it appears.”

   Enacted provision · exact public law section
   (a) In General.— Section 412(a) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1112), as amended by section 611(b), is amended by adding at the end the following: “In the case of a plan that holds employer securities (within the meaning of section 407(d)(1)), this subsection shall be applied by substituting ‘$1,000,000’ for ‘$500,000’ each place it appears.”.

3. 2006

   Pub. L. 109–280 § 611(b) · 120 Stat. 780

   1. Added · 29 U.S.C. § 1112(a)(2); 29 U.S.C. § 1112(a)(3)

      Pub. L. 109–280, § 611(b), added par. (2)

   2. Redesignated · 29 U.S.C. § 1112(a)(2); 29 U.S.C. § 1112(a)(3)

      Pub. L. 109–280, § 611(b), redesignated former par. (2) as (3)

   Source evidence

   Code amendment note
   Subsec. (a)(2), (3). Pub. L. 109–280, § 611(b), added par. (2) and redesignated former par. (2) as (3).

   Enacted provision · exact public law section
   (b) Bonding Relief.— Section 412(a) of such Act (29 U.S.C. 1112(a)) is amended— (1) by redesignating paragraph (2) as paragraph (3), (2) by striking “and” at the end of paragraph (1), and (3) by inserting after paragraph (1) the following new paragraph: “(2) no bond shall be required of any entity which is registered as a broker or a dealer under section 15(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78o(b)) if the broker or dealer is subject to the fidelity bond requirements of a self-regulatory organization (within the meaning of section 3(a)(26) of such Act (15 U.S.C. 78c(a)(26)).” .

4. 2019

   Department of Labor Appropriations Act, 2020

   Pub. L. 116–94 div. O title I § 101(c)(2) · 133 Stat. 2534

   Inserted · 29 U.S.C. § 1112(a)

   Pub. L. 116–94, in concluding provisions, inserted “or in the case of a pooled employer plan (as defined in section 1002(43) of this title)” after “section 1107(d)(1) of this title”

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 116–94, in concluding provisions, inserted “or in the case of a pooled employer plan (as defined in section 1002(43) of this title)” after “section 1107(d)(1) of this title”.

   Enacted provision · exact public law section
   Sec. 101. None of the funds appropriated by this Act for the Job Corps shall be used to pay the salary and bonuses of an individual, either as direct costs or any proration as an indirect cost, at a rate in excess of Executive Level II.

   Effective date note
   Amendment by Pub. L. 116–94 applicable to plan years beginning after Dec. 31, 2020, see section 101(e) of Pub. L. 116–94, set out as a note under section 408 of Title 26, Internal Revenue Code.

5 of 5 references resolved to an enrolled provision