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DOL/EBSA

RIN: 1210-AA76

Publication ID: Fall 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 implementing a Voluntary Fiduciary Correction Program (VFC Program). 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.
Agency: Department of Labor(DOL)	Priority: Substantive, Nonsignificant
RIN Status: Previously published in the Unified Agenda	Agenda Stage of Rulemaking: Final Rule Stage
Major: No	Unfunded Mandates: No
CFR Citation: 29 CFR 2560
Legal Authority: 29 USC 1132 29 USC 1134

Legal Deadline: None

Timetable:

Action	Date	FR Cite
Interim Final Rule	11/00/1999
Interim Final Rule Comment Period End

Regulatory Flexibility Analysis Required: No	Government Levels Affected: None
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