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Compliance April 18, 2006
DoL Updates Voluntary Correction Program
April 18, 2006 (PLANSPONSOR.com) - The Department of
Labor (DoL) has announced it has expanded and simplified the
Voluntary Fiduciary Correction Program (VFC) that allows
employers and professional advisors to voluntarily correct
violations of the law pertaining to employee benefit
plans.
Reported by
Rebecca Moore
According to the announcement, the update to the VFC program 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.
A final amendment to add the sale of illiquid assets and certain settlor expense violations to the existing VFC Program’s class exemption also will be included in the update.
The update will be published in the April 19 Federal Register and will be effective thirty days after publication.