Other Government Correction Programs for Retirement Plans
U.S. Department of Labor Correction Programs
The Employee Benefits Security Administration (EBSA) office of the Department of Labor protects the integrity of retirement, health and other employee benefit plans. Among the key areas EBSA oversees are the fiduciary responsibility, prohibited transaction, and reporting and disclosure requirements of the Employee Retirement Income Security Act (ERISA).
One of EBSA's goals is to educate and assist employers, plan officials, service providers and others in achieving and maintaining compliance. Among its compliance assistance initiatives, EBSA has two programs that encourage voluntary compliance through self-correction.
The Delinquent Filer Voluntary Compliance Program (DFVC) provides plan administrators with a way to comply with the annual reporting requirements by coming up to date with corrected filings of Form 5500s.
The Voluntary Fiduciary Correction Program (VFCP) gives plan sponsors and service providers the chance to self-correct fifteen specific financial transactions that violate ERISA, such as delinquent participant contributions.
Pension Benefit Guaranty Corporation
The Pension Benefit Guaranty Corporation (PBGC) insures traditional private-sector defined benefit pension plans, the kind that promise to pay a specified monthly benefit at retirement, commonly based on salary and years on the job. PBGC was created by the Employee Retirement Income Security Act of 1974 to encourage the continuation and maintenance of defined benefit plans, provide timely and uninterrupted payment of pension benefits, and keep pension insurance premiums at a minimum. PBGC receives no funds from general tax revenues. Operations are financed by insurance premiums paid by companies that sponsor defined benefit pension plans and by PBGC’s investment returns.
To learn more about premium payment policies and regulations and self-correction for late payment of PBGC premiums, visit the PBGC web site.