DOL Updates Voluntary Fiduciary Correction Program and Adds Self-Correction Features

Published January 14, 2025

The Department of Labor (DOL) Employee Benefits Security Administration (EBSA) has released an amended and restated Voluntary Fiduciary Correction Program (VFCP) under Employee Retirement Income Security Act of 1974 (ERISA). VFCP is designed to encourage correction of fiduciary breaches and compliance with the law by permitting persons to avoid potential civil enforcement actions and civil penalties if they voluntarily correct eligible transactions in a manner that meets the requirements of the program.

The updates simplify and expand VFCP to make it easier to use and more useful for employers and others who access of the relief provided. 

The amendments add a self-correction feature for:

  • Delinquent transmittal of participant contributions and loan repayments to a pension plan under certain circumstances 
  • Certain participant loan failures self-corrected under the IRS Employee Plans Compliance Resolution System (included in the SECURE 2.0 Act of 2022).

In addition, the updates: 
  • Clarify some existing transactions eligible for correction under the program
  • Expand the scope of other transactions currently eligible for correction
  • Simplify certain administrative or procedural requirements for participation in and correction of transactions under the program.

In connection with VFCP updates, DOL released an amendment to  the Prohibited Transaction Exemption 2002-51 to Permit Certain Transactions Identified in the Voluntary Fiduciary Correction Program.

Additional Information

The amendments are effective March 17, 2025.