Specialists in ERISA and Employee Benefits Law​

What is VFCP?

Voluntary Fiduciary Correction Program

The DOL offers a correction program, called the Voluntary Fiduciary Correction Program (VFCP), for fiduciary violations under ERISA. 

The general process is for the fiduciary to:

  1. Correct the fiduciary violation under the rules set out under VFCP
  2. Pay any losses or profits, with interest
  3. File an application with the DOL along with evidence of the corrective actions taken.

Note that only specified fiduciary violations are eligible for correction under VFCP. Those are:

  • Delinquent Participant Contributions and Participant Loan Repayments to Pension Plans
  • Delinquent Participant Contributions to Insured Welfare Plans
  • Delinquent Participant Contributions to Welfare Plan Trusts
  • Fair Market Interest Rate Loans to Parties in Interest
  • Below Market Interest Rate Loans to Parties in Interest
  • Below Market Interest Rate Loans to Non-Parties in Interest
  • Below Market Interest Rate Loans Due to Delay in Perfecting Security Interest
  • Participant Loans Failing to Comply with Plan Provisions for Amount, Duration, or Level Amortization
  • Defaulted Participant Loans
  • Purchase of Assets by Plans from Parties in Interest
  • Sale of Assets by Plans to Parties in Interest
  • Sale and Leaseback of Property to Sponsoring Employers
  • Purchase of Assets from Non-Parties in Interest at More Than Fair Market Value
  • Sale of Assets to Non-Parties in Interest at Less Than Fair Market Value
  • Holding of an Illiquid Asset Previously Purchased by Plan
  • Benefit Payments Based on Improper Valuation of Plan Assets
  • Payment of Duplicate, Excessive, or Unnecessary Compensation
  • Improper Payment of Expenses by Plan
  • Payment of Dual Compensation to Plan Fiduciaries

If you have concerns regarding potential fiduciary violations, and the correction options available, please contact one of our experienced attorneys.