2013-2016 Fidelity Bonding Increased to $5,000
For APWU Local and State Unions
(07/01/13) Section 502(a) Labor Management Reporting and Disclosure Act of 1959, as amended, requires local unions to be bonded for not less than 10% of liquid assets and receipts of the local. This fidelity bond is a local’s insurance policy against theft of union funds by an officer(s) or member(s).
Although the law only requires that 10% of the liquid assets and receipts be covered by the bond, the Secretary-Treasurer Department recommends that local officers obtain bond coverage for 100% of their local’s liquid assets (including checking and savings accounts, stocks and bonds, credit card limits, etc.).
In previous years, all APWU locals and affiliates were bonded for at least $2,500 by the National Union. This three year premium [cost chart-PDF] is paid by the National Union. After negotiations with our national bonding company, the 2013-2016 base bond coverage has been increased to $5,000, without charge to the local or state unions. This base bond coverage will be automatically renewed for each union.
Local or state affiliates that require coverage for more than $5,000 of coverage are responsible for paying the additional premium. The additional premium owed will be deducted from your DCO and should not be recorded as funds received by the union.
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
If you have any questions concerning your local bond or an additional premium, please contact my office and speak with Roosevelt Stewart, Executive Assistant to the Secretary-Treasurer, at (202) 842-4215.