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Release Date: 04/05/2005
Release Number: 05-577-NAT
Contact Name: Gloria Della
Phone Number: 202.693.8664
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Washington, DC - The U.S. Department of Labor
today expanded and simplified its Voluntary Fiduciary Correction Program (VFCP)
that helps employers and their professional advisors voluntarily correct
violations of the law for employee benefit plans. The new program is
effective immediately and will be available during the comment period. |
Assistant
Secretary of Labor Ann L. Combs said, “The Voluntary Fiduciary Correction Program
encourages employers to
correct violations, improving compliance and enhancing workers’
retirement and health security. Expanding the program will allow us to
target our enforcement resources even more effectively.” |
Proposed
amendments to the Voluntary Fiduciary Correction Program include: |
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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;
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simpler methods and an online
calculator for figuring out the amount to be restored to plans;
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streamlined documentation and
clarified eligibility requirements, and
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a model application form.
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The Voluntary Fiduciary Correction Program allows employers to 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. An amendment
to add the sale of illiquid assets to the existing Voluntary Fiduciary Correction Program
class exemption is
simultaneously proposed and will not be effective until finalized. |
The
proposed amendments and exemption are to be published in the April 6, 2005
Federal Register. Comments should be addressed to the U.S. 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. |
For
more information about the Voluntary Fiduciary Correction 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 page at www.dol.gov/ebsa. |
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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. |
