WASHINGTON, January 20, 20223 – The ERISA Industry Committee (ERIC) today submitted comments broadly supporting and recommending improvements to the U.S. Department of Labor’s (DOL) proposed rule amending and restating its Voluntary Fiduciary Correction Program (VFCP), published on November 21, 2022, in the Federal Register.
“The DOL proposed rule amending its Voluntary Fiduciary Correction Program will make it simpler for employers to comply with the complex rules governing employee benefit plans,” said Andy Banducci, Senior Vice President of Retirement and Compensation Policy. “While we strongly support the proposal, DOL can improve it further by adding additional flexibility and working to harmonize with related Internal Revenue Service rules.”
In its letter to the DOL, ERIC recommended increasing the proposed “cap” on correction amounts, allowing more time for corrections, and eliminating or providing additional information regarding an unnecessary notice to the DOL. Additionally, ERIC proposed expanding the correction program to issues related to missing participants and further coordinating the DOL program with the Internal Revenue Service’s Employee Plans Compliance Resolution System. ERIC urged the DOL to include these important recommendations in its final rule.
“This proposal, when coupled with related provisions in the recently enacted SECURE 2.0 Act, shows that policymakers understand how hard plan sponsors work to comply with the myriad rules and regulations affecting employee benefits. We urge the Department to enhance and quickly finalize the proposal,” Banducci added.
