The Pension Protection Act of 2006 increased the amount of the required ERISA bond from $500,000 to $1,000,000 for plans that hold employer securities. The change is effective for plan years beginning on and after January 1, 2008.

The Department of Labor has not yet issued any guidance on questions related to this statutory change. Nevertheless, the legislative history indicates that the increased amount would not be required when the employer securities are held in a widely diversifi ed fund of assets, such as a mutual or index fund.