Skip to main content
MENU
Subscribe
  • Login
  • My Account
  • Logout
  • Register For Free
  • Subscribe
  • Topics
    • Alternatives
    • Artificial Intelligence
    • CIOs
    • Consultants
    • Defined Contribution
    • ESG
    • Face to Face
    • Hedge Funds
    • Industry Voices
    • Investing
    • Money Management
    • Partner Content
    • Private Credit
    • Pension Funds
    • Private Equity
    • Real Estate
    • Regulation
    • Special Reports
    • Washington
    • White Papers
  • International
    • U.K.
    • Canada
    • Europe
    • Asia
    • Australia - New Zealand
    • Middle East
    • Latin America
    • Africa
  • Rankings & Awards
    • 1,000 Largest Retirement Plans
    • Top-Performing Managers
    • Largest Money Managers
    • DC Money Managers
    • DC Record Keepers
    • Largest Hedge Fund Managers
    • World's Largest Retirement Funds
    • Best Places to Work in Money Management
    • Excellence & Innovation Awards
    • WPS Innovation Awards
    • Influential Women in Institutional Investing 2024
    • Eddy Awards
  • Resource Guides
    • Active Thematic Global Equities
    • Retirement Income
    • Fixed Income
    • Pension Risk Transfer
    • Pooled Employer Plans (PEPs)
  • ETFs
    • Latest ETF News
    • Fund Screener
    • Education Center
    • Equities
    • Fixed Income
    • Commodities
    • Actively Managed
    • Alternatives
    • ESG Rated
  • ESG
    • Latest ESG News
    • The Institutional Investor’s Guide to ESG Investing
    • ESG Sustainability - Gaining Momentum
    • ESG Investing | Industry Brief
    • Innovation in ESG Investing
    • ESG Rated ETFs
    • Divestment Database
  • Defined Contribution
    • Latest DC News
    • The Plan Sponsor's Guide to Retirement Income
    • DC Money Manager Rankings
    • DC Record Keeper Rankings
    • Innovations in DC
    • DC Plan Design: Improving Participant Outcomes
  • Searches & Hires
    • Latest Searches & Hires News
    • Searches & Hires Database
    • RFPs
  • Research Center
    • The P&I Research Center
    • Earnings Tracker
    • Endowment Returns Tracker
    • Corporate Pension Contribution Tracker
    • Pension Fund Returns Tracker
    • Pension Risk Transfer Database
  • Careers
  • Events
    • View All Conferences
    • View All Webinars
  • Print
Breadcrumb
  1. Home
  2. WASHINGTON
February 13, 2023 12:57 PM

DOL reopens comment period on voluntary correction proposal for plan sponsors

Brian Croce
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    labor_department_sign_granite_1550-main_i.jpg

    The Department of Labor on Monday announced that it will reopen the comment period for a proposed rule to expand its Voluntary Fiduciary Correction Program, which allows ERISA-covered plan sponsors to self-correct errors they make after failing to send employee contributions or participant loan repayments to retirement plans in a timely manner.

    After the Labor Department proposed its rule in November, a bipartisan retirement security package known as SECURE 2.0 was signed into law in December as part of a year-end spending bill. SECURE 2.0 includes a provision related to the VFCP and the Labor Department's Employee Benefits Security Administration wants public feedback before finalizing its rule.

    Related Article
    No slowdown expected in rule-making for SEC and DOL

    "Reopening the comment period will allow the Employee Benefits Security Administration to obtain important public input on implementing the changes mandated by Congress in the SECURE 2.0 Act of 2022 that impact the department's Voluntary Fiduciary Correction Program," Lisa M. Gomez, assistant secretary for employee benefits security, said in a news release.

    The comment period will be reopened 60 days following the announcement's publication in the Federal Register on Tuesday. The initial comment period concluded Jan. 20.

    The VFCP allows plan sponsors to avoid potential civil enforcement actions and civil penalties under ERISA if they voluntarily correct eligible transactions in a manner that meets the program's requirements.

    SECURE 2.0 includes a provision that requires the VFCP to cover certain violations related to participant loans if self-corrected violations align with the IRS' Employee Plans Compliance Resolution System. Specifically, the provision provides for correction of an "eligible inadvertent failure" relating to a loan from a plan to a participant, and furthermore indicates that the Labor Department treat any such loan failures as self-corrected in accordance with applicable requirements as meeting the requirements of the VFCP, although the department may impose reporting or other procedural requirements, according to the Labor Department.

    In reopening the comment period, the Labor Department said it is interested in comments on what revisions, if any, should be made to the VFCP to reflect the treatment of corrections of loans described in SECURE 2.0.

    The Labor Department is proposing to expand the VFCP because while the program is designed to encourage employers to voluntarily comply with ERISA by self-correcting certain violations, employers currently have to fill out an application, provide documentation and wait for EBSA approval in order to rectify a delinquent participant contribution.

    The proposal would allow employers to instead notify EBSA electronically that they have self-corrected certain failures to send participant contributions and loan repayments to retirement plans on time, so long as certain conditions are met, including that the delinquent participant contributions or loan repayments must be remitted to the plan no more than 180 calendar days from the date of withholding or receipt.

    Since the program went live in 2002, the Labor Department's Employee Benefits Security Administration has processed about 27,500 applications and restored $762 million to plans, including fielding 1,374 applications and restoring $5 million in fiscal year 2022, Ms. Gomez said in a November call with reporters.

    Related Articles
    Republican senator floats resolution to overturn Labor Department's ESG rule
    DOL proposes adding electronic notification to voluntary corrections for ERISA plans
    Recommended for You
    Mikie Sherrill speaks during an interview.
    House Democrat introduces bill ensuring DOGE cuts don’t impact Social Security, other benefits
    U.S. Capitol building in Washington with trees in the foreground.
    Bipartisan bill reintroduced to extend accredited investor status based on knowledge, experience
    CFTC logo on the side of a brick building next to a glass entrance.
    CFTC commissioner to become Blockchain Association CEO
    Sponsored
    White Papers
    The State of Lifetime Income Report
    The Next Wave of LDI Evolution
    Retirement security to future income wins, TIAA brings you the latest financial…
    U.S. Public Funds Top Performers: Q2 2024
    Generative AI Investing: Opportunities at a Key Tech Inflection Point
    Research for Institutional Money Management: Advancing Physical Risk Modelling,…
    View More
    Sponsored Content
    Partner Content
    The Industrialization of ESG Investment
    For institutional investors, ETFs can make meeting liquidity needs easier
    Gold: the most effective commodity investment
    2021 Investment Outlook | Investing Beyond the Pandemic: A Reset for Portfolios
    Ten ways retirement plan professionals add value to plan sponsors
    Gold: an efficient hedge
    View More
    E-MAIL NEWSLETTERS

    Sign up and get the best of News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Today
    October 23, 2023 page one

    Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors.

    Subscribe
    Connect With Us
    • RSS
    • Twitter
    • Facebook
    • LinkedIn

    Our Mission

    To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market.

    About Us

    Main Office
    685 Third Avenue
    Tenth Floor
    New York, NY 10017-4036

    Chicago Office
    130 E. Randolph St.
    Suite 3200
    Chicago, IL 60601

    Contact Us

    Careers at Crain

    About Pensions & Investments

     

    Advertising
    • Media Kit
    • P&I Custom Content
    • P&I Careers | Post a Job
    • Reprints & Permissions
    Resources
    • Subscribe
    • Newsletters
    • FAQ
    • P&I Research Center
    • Site map
    • Staff Directory
    Legal
    • Privacy Policy
    • Terms and Conditions
    • Privacy Request
    Pensions & Investments
    Copyright © 1996-2025. Crain Communications, Inc. All Rights Reserved.
    • Topics
      • Alternatives
      • Artificial Intelligence
      • CIOs
      • Consultants
      • Defined Contribution
      • ESG
      • Face to Face
      • Hedge Funds
      • Industry Voices
      • Investing
      • Money Management
      • Partner Content
      • Private Credit
      • Pension Funds
      • Private Equity
      • Real Estate
      • Regulation
      • Special Reports
      • Washington
      • White Papers
    • International
      • U.K.
      • Canada
      • Europe
      • Asia
      • Australia - New Zealand
      • Middle East
      • Latin America
      • Africa
    • Rankings & Awards
      • 1,000 Largest Retirement Plans
      • Top-Performing Managers
      • Largest Money Managers
      • DC Money Managers
      • DC Record Keepers
      • Largest Hedge Fund Managers
      • World's Largest Retirement Funds
      • Best Places to Work in Money Management
      • Excellence & Innovation Awards
      • WPS Innovation Awards
      • Influential Women in Institutional Investing 2024
      • Eddy Awards
    • Resource Guides
      • Active Thematic Global Equities
      • Retirement Income
      • Fixed Income
      • Pension Risk Transfer
      • Pooled Employer Plans (PEPs)
    • ETFs
      • Latest ETF News
      • Fund Screener
      • Education Center
      • Equities
      • Fixed Income
      • Commodities
      • Actively Managed
      • Alternatives
      • ESG Rated
    • ESG
      • Latest ESG News
      • The Institutional Investor’s Guide to ESG Investing
      • ESG Sustainability - Gaining Momentum
      • ESG Investing | Industry Brief
      • Innovation in ESG Investing
      • ESG Rated ETFs
      • Divestment Database
    • Defined Contribution
      • Latest DC News
      • The Plan Sponsor's Guide to Retirement Income
      • DC Money Manager Rankings
      • DC Record Keeper Rankings
      • Innovations in DC
      • DC Plan Design: Improving Participant Outcomes
    • Searches & Hires
      • Latest Searches & Hires News
      • Searches & Hires Database
      • RFPs
    • Research Center
      • The P&I Research Center
      • Earnings Tracker
      • Endowment Returns Tracker
      • Corporate Pension Contribution Tracker
      • Pension Fund Returns Tracker
      • Pension Risk Transfer Database
    • Careers
    • Events
      • View All Conferences
      • View All Webinars
    • Print