DOL Improves Voluntary Fiduciary Correction Program

The U.S. Department of Labor’s Voluntary Fiduciary Correction Program (“VFC Program”) provides a voluntary correction program for persons potentially liable for civil actions and civil penalties for violating certain fiduciary requirements under ERISA. The VFC Program is intended to encourage voluntary correction by employers and plan fiduciaries and has been in effect since March 2002. If the VFC Program requirements are satisfied, the applicant receives relief from enforcement action and certain penalties from the U.S. Department of Labor (“DOL”) for the specified fiduciary breach. The DOL has now expanded and simplified the VFC Program effective as of April 6, 2005, with comments due by June 6, 2005, followed by a final adoption of the changes. The DOL intends these design changes to further encourage the use of the VFC Program.