Voluntary Fiduciary Correction Program

Summary

This practice note describes the Voluntary Fiduciary Correction Program (VFCP) administered by the Employee Benefits Security Administration (EBSA), an agency within the U.S. Department of Labor (DOL). The VFCP offers employers and fiduciaries of employee benefit plans subject to the Employee Retirement Income Security Act (ERISA) the opportunity to self-correct certain delineated fiduciary violations. Applicants can voluntarily apply for EBSA approval of the corrections to avoid certain penalties, excise taxes, and governmental enforcement actions. This practice note sets forth the specific violations covered by the VFCP, methods for correcting violations, including calculation of plan restitution amounts, and describes the VFCP application process. It also describes changes to the VFCP recently finalized in 90 Fed. Reg. 4,691 (Jan. 15, 2025) (2025 Amendments), which includes a self-correction component (SCC) program for certain violations of small amounts.