Search Results for keywords:"Voluntary Fiduciary Correction Program"

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Search Results: keywords:"Voluntary Fiduciary Correction Program"

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  • 2025-00327 — Voluntary Fiduciary Correction Program
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    Type:Rule
    Citation:90 FR 4192
    Reading Time:about 3 hours

    The Department of Labor has updated the Voluntary Fiduciary Correction Program (VFC Program) to simplify the process of correcting fiduciary breaches under the Employee Retirement Income Security Act (ERISA). These updates add a self-correction feature for common plan issues like late participant contributions, streamline procedures for program participation, and incorporate changes from the SECURE 2.0 Act allowing self-correction for certain participant loan failures. The goal is to make the program more user-friendly for employers and other plan fiduciaries, encouraging compliance with the law and avoiding potential civil penalties.

    Simple Explanation

    The Department of Labor has made it easier for people who manage retirement plans to fix mistakes without getting in trouble, by letting them fix problems by themselves when certain rules are followed. This update is like giving plan managers a way to clean up their messes, so they don't face penalties, but it's still a bit tricky and needs careful following of the new rules.

  • 2025-00328 — Prohibited Transaction Exemption (PTE) 2002-51 To Permit Certain Transactions Identified in the Voluntary Fiduciary Correction Program
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    Type:Rule
    Citation:90 FR 3667
    Reading Time:about 29 minutes

    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.