Is this a Fidelity Bond?

[apprentice35]

I have a pension plan that allows a lump sum distribution. However, because I was a highly compensated employee, and because the plan is not fully funded, I am required to obtain a surety bond if I take a lump sum (per Code Section 1.401(a)(4)-5(b). What kind of bond is this and what is the estimated cost?

[PT]

Originally Posted by apprentice35

I have a pension plan that allows a lump sum distribution. However, because I was a highly compensated employee, and because the plan is not fully funded, I am required to obtain a surety bond if I take a lump sum (per Code Section 1.401(a)(4)-5(b). What kind of bond is this and what is the estimated cost?

Honestly? We've never heard of such a bond. I did touch base with the Surety our Erisa Bonds are written through and they haven't heard of it either. It appears to be some type of repayment guarantee. If that's the case, it will be extremely difficult to obtain. If you have any kind of paperwork that requests this bond, you could send it over and we'd be happy to take a look at it.