Compliance Stuff

The Department of Labor on March 18 issued a model notice for applicants to the Voluntary Fiduciary Correction Program to use in letting plan participants know that the plan has applied to use the program. The Department of Labor (DOL) on March 18 issued a model notice for applicants to the Voluntary Fiduciary Correction Program (VFCP) to use in letting plan participants know that the plan has applied to use the program.   The DOL notes that the model notice is only intended for applicants to use. It is not intended for those employing self-correction to use in order to fix errors. The DOL’s Employee Benefits Security Administration (EBSA) estimates that it will take plan administrators an average of approximately one hour to complete the notice. The model notice comes after EBSA  released its final rule  this past January regarding changes to the VFCP. The changes were initially proposed in November 2022. The VFCP allows fiduciaries to send certain administrative errors ...

  Fiduciary Responsibility If your small business offers a 401(k) plan to employees, you know that staying compliant with federal regulations is critical. However, mistakes happen—perhaps you deposited employee contributions late or processed a loan incorrectly. The good news is that the U.S. Department of Labor (DOL) has a program to help employers correct these errors before they turn into major problems. It’s called the  Voluntary Fiduciary Correction Program (VFCP) , and understanding how it works can help you avoid penalties, legal risks, and protect your employees’ retirement savings. In this post, we’ll break down what the VFCP is, who can use it, the most common errors corrected through the program, and changes that took effect in 2025 that make it even easier for you to stay compliant. What Is the Voluntary Fiduciary Correction Program (VFCP)? The VFCP allows small business owners to voluntarily correct certain violations of the  Employee Retirement Income Securi...