My point is that we have an inviolate
fiduciary bond with the public and, because of the impact of corporations on global citizens (see below), our obligation extends to all stakeholders both within and outside the corporate enterprise, including shareholders/bondholders, investors, employees, suppliers, communities where employees live, and the community where the company resides.
Employers who use payroll service providers should ask the provider if it has a
fiduciary bond in place.
The final regulations further add a nonexclusive list of other fiduciary expenses that are not commonly or customarily incurred by individuals: probate court fees and costs,
fiduciary bond premiums, legal publication costs of notices to creditors or heirs, the cost of certified copies of the decedent's death certificate, and costs related to fiduciary accounts.
You will want to know their status as a fiduciary to the plan, and you will want to know what kind of
fiduciary bond they have in place, what it covers, and to what extent.
Although the Secretary of Labor is authorized to exempt plans from the bonding requirement in specified situations, depositing plan-owned assets with the Secretary of Labor in lieu of obtaining a
fiduciary bond from a corporate surety company does not satisfy the bonding requirement of ERISA.
The regulations also provide that certain other fiduciary expenses are not commonly or customarily incurred by individuals and thus are not subject to the 2% floor, including (without limitation) the following: probate court fees and costs,
fiduciary bond premiums, legal publication costs of notices to creditors or heirs, the cost of certified copies of the decedent's death certificate, and costs related to fiduciary accounts [Treasury Regulations section 1.
CNA has become the nation's largest provider of commercial surety bonds, particularly license and permit bonds,
fiduciary bonds and public official and court bonds.
