Theodore Liftman Insurance, Inc. Financial Insurance

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A Message from Theodore Liftman, Chairman of the Board
Liftman Insurance has been in business for over a half-century. Our clients often ask about the secret to our success. Our secret is no secret – it’s plain common sense.

Understanding Insurance Companies' Financial Ratings
Now more than ever, your insurance carrier's financial rating should be a primary concern before purchasing any type of insurance.

In-House Pension Plan Coverage

Every fiduciary responsible for managing a pension, profit sharing or thrift plan and every individual/entity who handles the assets of such plan is required to obtain ERISA and/or In-House Pension Plan ERISA bonds under section 412(a) of the federal Employee Retirement Income Security Act of 1974 (ERISA) in order to protect that plan’s assets from fraudulent activity. The amount of the bond is fixed at the beginning of each fiscal year of the plan. It must be at least $1,000.00 and never less than 10% of the amount of the funds handled by the fiduciary up to a maximum of $500,000.00 per plan.

If the plan holds "employer securities," effective for plan years beginning after December 31, 2007, $1,000,000 is substituted for $500,000. This applies regardless of the extent of the plan's holding of such securities. Employer securities are equity or debt issued by an employer of employees participating in the plan, or by an affiliate of such employer. The term does not, however, include diversified funds like mutual or index funds that also happen to hold some securities of the employer.

A fiduciary is defined to mean any person to the extent such person exercises any discretionary power or control over management of the plan or management and disposition of the funds or other property of any employee benefit fund; provides investment advice for a fee; or has discretion with regard to plan administration.
ERISA Bonds fall into two categories. One type of ERISA Bond covers fiduciaries for claims involving client employee benefit plans. A second type, In-House ERISA Bonds, responds to claims involving the insured’s own employee benefit plans.
An ERISA Bond is an amended FIDELITY BOND that meets the requirements of ERISA law. Both bonds respond to claims involving the dishonest acts of employees but there is one important difference: the loss payee. Under the ERISA Bond, any loss would be paid directly to the client whose assets are managed while under the FIDELITY BOND any loss would be paid to the insured.

Click here to open an In-House Pension Plan ERISA Bond Application (covers claims involving the insured’s own employee benefit plans).

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