Pension Plans and profit sharing programs are managed by appointed individuals known as plan fiduciaries. The Pension Reform Act of 1974 ERISA (Employee Retirement Income Security Act) requires that plan officials who manage, oversee, recommend or handle funds or other property of an employee benefit plan must be covered by a personal fidelity bond for at least 10 percent of the funds he/she handles. If a plan official commits fraudulent or dishonest acts, his/her bond ensures that the pension or health fund can recover some of its losses.