Voluntary Fiduciary Correction Program

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, you can:

• Correct transactions to prevent potential legal issues with the Department of Labor.
• Gain a better understanding of your 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.

The VFCP was first adopted by the Employee Benefits Security Administration in 2002 and has been updated several times, with the latest update in 2025.

The 2025 update introduces a new self-correction feature for specific transactions, making it simpler for users. These changes, including updates to the related Prohibited Transaction Exemption (PTE) 2002-51, are effective starting March 17, 2025.

The Self-Correction Component (SCC) is a valuable resource for plan officials looking to fix certain transaction errors quickly and minimize the risk of penalties. The SCC empowers administrators to address specific issues and maintain legal compliance.

To get started, check if your transaction is eligible for correction.