Simplified and Expanded Voluntary Fiduciary Correction Program

The Employee Benefits Security Administration (ESBA) recently proposed changes to the Voluntary Fiduciary Correction (VFC) Program. Although the changes are not yet final, plan fiduciaries can use the revised and expanded VFC program immediately.

The VFC program provides relief from ESBA enforcement actions and certain penalties for employers, plans and plan fiduciaries for specific fiduciary breaches under the Employee Retirement Income Security Act of 1974 (ERISA). The program describes the specific violations for which relief is available, the acceptable methods to correct such violations and the VFC application procedures. The proposed changes are designed to encourage employers, plans and fiduciaries to take advantage of the program.