Labor Department Updates Voluntary Fiduciary Compliance Program

Archived News Release — Caution: Information may be out of date.

Washington, DC - The U.S. Department of Labor today expanded and simplified the Voluntary Fiduciary Correction Program (VFCP) that helps employers and their professional advisors voluntarily correct violations of the law for employee benefit plans. The updated program is effective thirty days after publication in the April 19 Federal Register.

Assistant Secretary of Labor Ann L. Combs said, “The VFCP encourages employers to correct violations, improves compliance and enhances workers’ retirement and health security. Our changes expand the program and make it more user-friendly, while allowing us to more effectively target our enforcement resources.”

This update to the VFCP reflects public comments and includes:

• expansion and simplification of eligible transactions;

• streamlined documentation and clarified eligibility requirements;

• a model application form;

• clarification of what constitutes “under investigation” allowing more entities to qualify for the program, and

• relief from civil penalties for transactions involving health and welfare plans.

Under the program, employers may voluntarily correct specific violations of the Employee Retirement Income Security Act. Applicants must fully correct any violations, restore to the plan any losses or profits with interest, and distribute any supplemental benefits owed to eligible participants and beneficiaries. A “no action” letter is given to plan officials who properly correct violations. A final amendment to add the sale of illiquid assets and certain settlor expense violations to the existing VFCP’s class exemption also will be published April 19 and will be effective thirty days after publication.

For more information about the program and other compliance assistance activities, contact a local regional office of the Employee Benefits Security Administration through its toll-free number, 1.866.444.EBSA (3272) or Web site at www.dol.gov/ebsa.

U.S. Department of Labor news releases are accessible on the Department's Newsroom page. The information in this news release will be made available in alternate format upon request (large print, Braille, audio tape or disc) from the COAST office. Please specify which news release when placing your request at 202.693.7765 or TTY 202.693.7755. The U.S. Department of Labor is committed to providing America's employers and employees with easy access to understandable information on how to comply with its laws and regulations. For more information, please visit the Department's Compliance Assistance page.

Archived News Release — Caution: Information may be out of date.

Contact Name: David James/Gloria Della
Phone Number: 202.693.4676/202.693.8666