- posted 10 years ago
I was looking up misc. 401k plans on brightscope.com and had a few questions about interpreting the data.
That plan has $32 billion in assets and a fidelity bond of $110 million.
That plan has almost a million in assets and a fidelity bond of half a million.
My question is... what is a fidelity bond in this context? If the IBM 401k went completely insolvent would that mean that they'd split $110 million up among the 220,000 people enrolled in the plan, or does it mean that individual plans with up to a $110 million account balance would reimbursed for that full amount? If the latter that would seem to suggest that that's a good estimation as to the size of the largest single account balance (probably the CEO or something).
That plan has zero enrollees, total assets of $3 million, and a fidelity bond of $10 million. How is that possible?