(a) Trustees' fidelity coverage. The board of trustees
must maintain a fidelity bond or a zero-deductible crime policy that
complies with the requirements of §13.568 of this title (relating
to Standards for Fidelity Coverage). The fidelity bond or zero-deductible
crime policy must cover each person responsible for handling or administering
plan assets, including the board of trustees, the approved PEO, its
directors, officers, agents and employees, or any other individual
responsible for servicing the plan.
(b) Errors and omissions insurance. The board of trustees
must purchase an errors and omissions policy in the amount of $500,000
to cover the performance of their duties to the plan and trust. The
policy must be purchased from a company that satisfies the requirements
of §13.568(a)(2) of this title.
(c) Ensuring existence of PEO's fidelity coverage.
The trustees must annually require that the approved PEO provide them
with documentation that it has maintained and is maintaining in effect
fidelity coverage that complies with §13.542 of this title (relating
to PEO's Fidelity Coverage).
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