>The program, which allows employers and their advisors to voluntarily correct violations of the Employee Retirement Income Security Act (ERISA), if effective immediately and is available during the comment period, according to a news release from the DoL.
>The proposed amendments to the program include:
- three new eligible transactions dealing with delinquent participant loan repayments, illiquid plan assets sold to interested parties, and participant loans that violate certain plan restrictions on such loans.
- simpler methods and an online calculator for figuring out the amount to be restored to plans.
- streamlined documentation and clarified eligibility requirements.
- a model application form.
>The program allows the voluntary correction of any violation of ERISA. Applicants must correct all violations, restore lost plan assets, and distribute any supplemental benefits. If this is done, a “no action” letter will be sent by the DoL.
>An amendment to add the sale of illiquid assets to the existing program class exemption has also been proposed, but will not be effective until finalization, according to the news release.
Any comments on the proposals should be sent to the US Department of Labor, Employee Benefits Security Administration, Room N-5669, 200 Constitution Ave., N.W., Washington, D.C. 20210, Attention: Voluntary Fiduciary Correction Program, or electronically to e-ORI@dol.gov .
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