On Jan. 15, DoL revised the voluntary fiduciary correction program.
DoL announced adoption of improvements to voluntary fiduciary correction (VFC) program, self-correction tool to remedy delays in sending participant contributions.
VFC Program Improvements
Most significant changes to VFC Program involve two new self-correction features.
The first new self-correction component is for certain failures to timely transmit participant contributions (and participant loan repayments) to pension plans.
Second is for certain participant loan failures self-corrected under US IRS's EPCRS.
Other program amendments include clarifying existing transactions eligible for correction under program; expand scope of certain transactions eligible for correction.
Revisions also simplified certain administrative or procedural requirements for participation in the VFC Program and correction of transactions under the program.
Amended Voluntary Fiduciary Correction Program class exemption, prohibited Transaction Exemption 2002-51, so plan officials can avoid imposition of excise taxes.
Effectiveness
Revisions to voluntary fiduciary correction program become effective on Mar. 17, 2025.
Regulators
DoL
Entity Types
CNSM; Corp; Fiduciary; Ins; Pension
Reference
90 FR 4192, 1/15/2025; PR 24-2474-NAT, 1/14/2025
Functions
Compliance; HR; Legal; Reporting; Tax
Countries
United States of America
Category
State
N/A
Products
Corporate; Insurance; Insurance-Health; Loan; Pensions; Retirement Plan
