[Code of Federal Regulations]
[Title 29, Volume 9]
[Revised as of July 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR2550.412-1]

[Page 507]
 
                             TITLE 29--LABOR
 
CHAPTER XXV--PENSION AND WELFARE BENEFITS ADMINISTRATION, DEPARTMENT OF 
                                  LABOR
 
PART 2550--RULES AND REGULATIONS FOR FIDUCIARY RESPONSIBILITY--Table of Contents
 
Sec. 2550.412-1  Temporary bonding requirements.

    (a) Pending the issuance of permanent regulations with respect to 
the bonding provisions under section 412 of the Employee Retirement 
Income Security Act of 1974 (the Act), any plan official, as defined in 
section 412(a) of the Act, shall be deemed to be in compliance with the 
bonding requirements of the Act if he or she is bonded under a bond 
which would have been in compliance with section 13 of the Welfare and 
Pension Plans Disclosure Act, as amended (the WPPDA), and with the basic 
bonding requirements of subparts A through E of part 2580, title 29 CFR, 
and with the prohibition against bonding by parties interested in the 
plan contained in subpart G of part 2580 of such title, or would be 
exempt from such bonding requirements because bonding would not be 
required under the exemption provisions contained in subpart F of part 
2580 of such title. Part 2580 of this title incorporates material 
previously designated as subparts A through E of part 464, subpart B of 
part 465 and part 485 of this title of the CFR. The requirements which 
are set forth in the temporary regulations hereby adopted shall be 
applicable to all employee benefit plans covered by the Act, including 
those plans which were not covered by the WPPDA. Thus, for example, the 
regulations so adopted are applicable to plans containing fewer than 26 
participants, although such plans were not covered by the WPPDA.
    (b) For the purpose of this temporary regulation, any bond or rider 
thereto obtained by a plan official which contains a reference to the 
WPPDA will be construed by the Secretary to refer to the Act: Provided, 
That the surety company so agrees.
    (c) For the purpose of this regulation,
    (1) Any reference to section 13 of the WPPDA or any subsection 
thereof in the regulations issued under the WPPDA and which are 
incorporated by reference by this temporary regulation shall be deemed 
to refer to section 412 of the Act, or the corresponding subsection 
thereof,
    (2) Where the particular phrases set forth in the Act are not 
identical to the phrases in the WPPDA and the regulations issued 
pursuant thereto, the phrases appearing in the Act shall be substituted 
by operation of law, and
    (3) Where the phrases are identical but the meaning is different, 
the meaning given such phrases by the Act shall govern. For example, the 
phrase ``administrators, officers, and employees of any employee welfare 
benefit plan or of any employee pension benefit plan subject to this Act 
who handle funds or other property of such plan'' which appears in 
section 13 of the WPPDA and the regulations issued thereunder shall be 
construed to mean, for purposes of this regulation, ``plan officials'', 
which is the term appearing in section 412 of the Act, and the terms 
``employee welfare benefit plan'' and ``employee pension benefit plan'' 
shall be given the meaning assigned to them by the Act, and not the 
meaning set forth in the WPPDA.
    (d) The requirements of this temporary regulation, as set forth in 
paragraphs (a) through (c) of this section, shall remain in effect 
pending the issuance of permanent regulations by the Secretary.

[40 FR 2203, Jan. 10, 1975. Redesignated at 40 FR 20629, May 12, 1975, 
as amended at 50 FR 26706, June 28, 1985]

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