DOL Updates Voluntary Fiduciary Correction Program

The U.S. Department of Labor (“DOL”) has finalized its 2005 revisions to the Voluntary Fiduciary Correction Program (“VFC Program”) with a number of changes. A summary of the 2005 revisions can be viewed in our April 12, 2005, Management Alert at www.seyfarth.com/MA041205. The updates (“2006 Update”) to the VFC Program include:

• a narrower definition of “under investigation” to permit more persons to qualify for the VFC Program; 
• additional transactions eligible for correction; 
• coordination with the Voluntary Correction Program of the IRS’ Employee Plans Compliance Resolution System (“EPCRS”); 
• new correction methods for party in interest transactions; and 
• expanded scope of relief.