No postponement of ERISA bonding requirements

P/OPINION 75-120


                                                             412


                          June 9, 1975


Dear           :

This is in response to your request for a postponement
of the bonding requirements of section 412 of the
Employee Retirement Income Security Act (Act) as they
may relate to your employee benefit plan. There is
no provision in the Act which authorizes the Secretary
to grant such a postponement.

The Secretary has issued a temporary regulation (29 CFR
2555) which, pending issuance of a permanent bonding
regulation under section 412 of the Act, incorporates
by reference most of the bonding regulations issued under
the Welfare and Pension Plans Disclosure Act and makes
them applicable to plan officials under the Act. A copy
of those regulations is enclosed herewith.

Pending the issuance of permanent regulations with respect
to section 412 of the Act, a fiduciary is not required
to be bonded unless he handles funds or other property
of an employee benefit plan. "Handling" occurs whenever
the duties or activities of a plan official are such that
there is a risk that such funds or other property could
be lost in the event of fraud or dishonesty on the part
of such person, acting either alone or in collusion
with others. For a more detailed treatment of this
subject, reference may be made to 29 CFR 464.7 of the
enclosure.

Sincerely,