As of 2006, the Department of Labor (DOL) made it easier to participate in its Voluntary Fiduciary Correction Program (VFCP), which exists to “help plan sponsors and others voluntarily fix breaches of the fiduciary responsibility outline in ERISA.” VFCP may also provide relief from the DOL’s 5% and 20% violation penalties and potentially the 15% IRS excise tax on these transactions.
The VFCP is specifically designed to facilitate and encourage plan compliance; however, there are several important factors to keep in mind if you plan to participate in the Voluntary Fiduciary Correction Program. This article from Standard & Poor’s outlines the basics of the VFCP and provides important words of caution about the program.
One thing is clear: The Department of Labor has become increasingly vigilant in monitoring and enforcing the ERISA fiduciary responsibilities. The Robin S. Weingast & Associates team specializes in plan compliance. We can work closely with you to ensure that your plan is compliant, and we can walk you through the process if you need to participate in the Voluntary Fiduciary Correction Program (VFCP).
Robin Weingast and her team can also assist you in providing ancillary “retirement” benefits to select groups of key employees and/or owners, without including all of the employees and to “Legally Discriminate” to include any one you want to participate in the plan. Contact Robin S. Weingast and Associates to learn more.