Bond Coverage and Protecting Local Assets

The Labor Management Reporting and Disclosure Act (LMRDA) requires local unions to secure bonding in order to safeguard their funds. Although the LMRDA requires coverage for just 10 percent of a local’s assets, the APWU recommends that local officers obtain bond coverage for 100 percent of their local’s liquid assets. The amount of coverage should be based on the value of all checking and savings accounts, stocks and bonds, the credit limit on any local credit cards, and any other assets that can be easily be converted to cash.

The national APWU automatically provides all APWU locals with bonding valued at $2,500, but locals are responsible for any additional costs for increased coverage. The premiums are paid every three years, and the fee for additional protection can be automatically deducted from the local’s Dues Check-Off payments.

Locals are urged to purchase coverage sufficient to protect 100 percent of the local’s assets: Remember, union members expect their funds to be safeguarded.

To make a change in the amount of the local bond, local presidents and secretary-treasurers should complete the attached form [PDF] and return it to:

Elizabeth Powell, Secretary-Treasurer
American Postal Workers Union
1300 L Street NW
Washington DC 20005

For additional information, contact the Secretary-Treasurer’s office at 202-842-4215.

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