Which of the following statements about an ERISA Fidelity Bond is correct?

The correct statement regarding an ERISA Fidelity Bond is that the minimum bond amount is the greater of $1,000 or 10% of the asset amount under the control of the plan fiduciary. This requirement ensures that plan fiduciaries are adequately covered against losses resulting from fraudulent or dishonest acts. By setting the bond amount in relation to the total assets being managed, ERISA aims to provide a level of protection that is proportional to the size and complexity of the plan. This approach reflects the importance of safeguarding plan assets and maintaining the integrity of the fiduciarial relationship.

In contrast, stating that the minimum amount is fixed at $5,000 does not align with ERISA's flexible requirement based on asset value. Likewise, having fidelity bonds be optional for all plan fiduciaries contradicts ERISA’s mandate that fidelity bonding is a requirement to safeguard participant assets. Lastly, suggesting that bonds must be held for a fixed period of two years is inaccurate, as ERISA does not impose a minimum duration for retaining a bond but rather requires that bonds remain in effect as long as they are required by the circumstances of the plan's asset management.