The U.S. Department of Labor (DOL) recently announced several programs designed to help employers, unions, and pension plans voluntarily assess and improve their compliance with federal labor laws. The release also provides a link the new on-line self-correction program of the Voluntary Fiduciary Correction Program. The self-audit programs, which include new and updated offerings, aim to enhance worker protections while reducing the likelihood of formal investigation or litigation.
The Employee Benefits Security Administration offers two key self-correction programs for fiduciaries and benefits plan administrators: the Voluntary Fiduciary Correction Program, which encourages employers and plan officials to voluntarily correct violations of the Employee Retirement Income Security Act, and the Delinquent Filer Voluntary Compliance Program, which encourages voluntary compliance with ERISA’s annual reporting requirements and offers incentives to late filers, including paying lower penalties.
The Voluntary Fiduciary Correction Program (VFCP) is a helpful resource for employers and plan officials to voluntarily correct violations of the Employee Retirement Income Security Act (ERISA). By participating in the VFCP, Plan sponsors can:
Correct transactions to prevent potential legal issues with the Department of Labor.
Gain a better understanding of their legal duties.
Enhance the safety of workers’ retirement and health benefits.
Additionally, the program provides conditional relief from certain taxes when corrections are made through the VFCP.
