ERISA requires plan sponsors purchase a pension plan bond equal to 10 percent of plan assets.
The below chart lists typical premiums you could expect for 3-year pension plan bonds.
Pension Plan Bond Sample Premiums for a 3-Year Term | ||
Bond Amount | For Plans With Assets Up To... | Premium |
$10,000 | $100,000 | $93 |
$12,500 | $125,000 | $97 |
$15,000 | $150,000 | $108 |
$17,500 | $175,000 | $118 |
$20,000 | $200,000 | $123 |
$25,000 | $250,000 | $138 |
$30,000 | $300,000 | $148 |
$35,000 | $350,000 | $160 |
$40,000 | $400,000 | $169 |
$45,000 | $450,000 | $176 |
$50,000 | $500,000 | $183 |
$75,000 | $750,000 | $235 |
$100,000 | $1,000,000 | $264 |
$125,000 | $1,250,000 | $312 |
$150,000 | $1,500,000 | $360 |
$200,000 | $2,000,000 | $456 |
$250,000 | $2,500,000 | $552 |
$300,000 | $3,000,000 | $648 |
$325,000 | $3,250,000 | $698 |
$350,000 | $3,500,000 | $748 |
$375,000 | $3,750,000 | $798 |
$400,000 | $4,000,000 | $848 |
$425,000 | $4,250,000 | $898 |
$450,000 | $4,500,000 | $948 |
$475,000 | $4,750,000 | $998 |
$500,000 | $5,000,000 | $1,048 |