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DOL/EBSA

RIN: 1210-AA76

Publication ID: Spring 1999

Title: ●Voluntary Fiduciary Correction Program
Abstract: Section 409 of ERISA provides that an employee benefit plan fiduciary who breaches any of the responsibilities, obligations, or duties imposed upon him or her by part 4 of title I of ERISA shall be personally liable to make good to such plan any losses to the plan resulting from each such breach, and to restore to such plan any profits that such fiduciary may have made through use of assets of the plan. The Department has the authority under section 504 of ERISA to conduct investigations to deter and correct violations of title I of ERISA and under section 502(a)(2) and 502(a)(5) to bring civil actions to enforce the provisions thereof. Section 502(l) of ERISA requires the assessment of a civil penalty in an amount equal to 20 percent of the applicable recovery amount with respect to any breach of fiduciary responsibility under (or other violation of) part 4 by a fiduciary. To encourage and facilitate voluntary correction of certain breaches of fiduciary responsibility, PWBA is considering a Voluntary Fiduciary Correction Program (VFC Program) that would be implemented on a pilot basis. Under this VFC Program, plan officials would be relieved of the possibility of investigation and civil action by the Department and imposition of civil penalties, to the extent that plan officials satisfy the conditions for correcting breaches to be described in the Program. PWBA anticipates that the Program would assist plan officials in understanding the requirements of part 4 of title I of ERISA and their legal responsibilities in correcting fiduciary breaches. PWBA intends to invite public comment on the VFC Program prior to its implementation on a pilot basis.
Agency: Department of Labor(DOL)	Priority: Substantive, Nonsignificant
RIN Status: First time published in the Unified Agenda	Agenda Stage of Rulemaking: Proposed Rule Stage
Major: Undetermined	Unfunded Mandates: No
CFR Citation: Not Yet Determined (To search for a specific CFR, visit the Code of Federal Regulations.)
Legal Authority: 29 USC 1132 29 USC 1134

Timetable:

Action	Date	FR Cite
NPRM	06/00/1999
NPRM Comment Period End	08/00/1999

Regulatory Flexibility Analysis Required: Undetermined	Government Levels Affected: Undetermined
Included in the Regulatory Plan: No
Agency Contact: Elizabeth A. Goodman Senior Pension Law Specialist Department of Labor Employee Benefits Security Administration Room N5669, 200 Constitution Avenue NW., FP Building, Room N5655, Washington, DC 20210 Phone:202 693-8500 Fax:202 219-7219