Pub. 4 2015 Issue 6

l e a d i n g a d v o c a t e f o r t h e b a n k i n g i n d u s t r y i n k a n s a s 10 M ANY KANSAS banks sponsor 401K plans for their employees. A few also have ESOPs. While many of our banks use a third party administrator to administer their plans, the role of a fiduciary cannot be delegated to someone else. Because some bank officers and directors could be considered a fiduciary or a “party-in-interest” as defined by the Department of Labor (see www.dol.gov/EBSA/Publications and scroll down to Retirement and Meeting Your Fiduciary Responsibilities), there is a need for those banks that have a retirement plan and/or an ESOP to consider the purchase of fiduciary liability insurance. Fiduciary liability insurance typically can be added to a bank’s directors and officers liability policy, or can be purchased as a stand-alone policy. Since ERISA requires that plans have a fidelity bond, some believe that the bond protects the fiduciaries of the plan. It does not. The fidelity coverage to meet ERISA requirements (usually included in the Banks Financial Institution Bond) provides coverage if someone steals from the plan, not liability coverage. If you have questions about fiduciary liability or how to obtain fiduciary liability coverage, please call or e-mail Herb Iams, KBA Insurance, Inc. President at 785 232-3444; cell 785 224-1835; e-mail hiams@ksbankers.com. KBA LEADERS LEDGER By Herb Iams, President, KBA Insurance, Inc. Shawn Eidson 316-383-1368 | Dan Heinz 316-383-1415 | David White 316-383-1435 | Quinton Smith 316-383-1900 We’re a family-owned, Midwest financial institution, and we’ve helped community banks just like yours provide customers with financial services to rival even the biggest banks. Because we call many of the same communities home, we’re perfectly suited to help your bank – and your community – thrive. Our roots share the same soil. Client: Intrust Ad Title: Correspondent - Ranch Member FDIC I ©2015 INTRUST Bank intrustbank.com 33458_Correspondent_Flag_KansasBanker.indd 1 6/29/15 11:03 AM