The Department of Labor has amended Prohibited Transaction Exemption (PTE) 2002-51, linked to the Voluntary Fiduciary Correction (VFC) Program, which aims to help correct breaches in fiduciary duties without facing penalties. These changes include a new self-correction feature allowing certain plan contributions to be fixed without filing a full application, and updates to improve notice procedures to interested parties while providing an appendix with a model notice. The amendment aims to make it easier and less expensive for employers to correct errors and comply with regulations under the VFC Program.
Simple Explanation
The Department of Labor made some changes to a program that helps people fix mistakes with their retirement plans. Now, it's easier for employers to fix these mistakes without getting in trouble, just like using a safety net when jumping on a trampoline.