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Free VFCP Workshop for Georgia Employers

May 12th, 2008 Posted by Amelia

The Employee Retirement Income Security Act (ERISA) details the rules and laws of how employers should handle employee retirement plans. Violations of these rules can result in fines and penalties for employers.

A program developed in 2002, the VFCP or Voluntary Fiduciary Correction Program, allows companies to rectify violations in 19 different categories and avoid prosecution. The VFCP was extended and streamlined in 2006.

Even with the regulations simplified, VFCP can still be a complex issue. That’s why the U.S. Department of Labor is sponsoring free regional workshops across the nation, to explain VFCP to employers.

In Georgia, the free half-day VFCP workshop is scheduled for Wednesday June 18, 2008 at the Renaissance Hotel Downtown Atlanta, 590 West Peachtree Street NW. The workshop begins promptly at 830 am and will end at noon.

As an extra bonus, ERISA staff will be on hand for one-on-one consultations with employers, at no charge, from noon until 1 pm.

Employers in nearby states are encouraged to attend.

Space for this even is limited, so employers who are interested should register now by completing this simple online form.

Any employer responsible for fiduciary violations under ERISA might be eligible to utilize VFCP. Parties in interest, officials, and benefit plan sponsors are included in this eligibility. In some cases, companies can avoid excise taxes of past errors, and possibly IRS penalties.

VFCP allows employers to correct past violations in nineteen different categories of transactions, such as:

Benefit Payments Based on Improper Valuation of Plan Assets

Payment of Duplicate, Excessive, or Unnecessary Compensation

Purchase of Assets by Plans from Parties in Interest

Payment of Dual Compensation to Plan Fiduciaries

Sale of Assets by Plans to Parties in Interest

Sale and Leaseback of Property to Sponsoring Employers

Delinquent Participant Contributions and Participant Loan Repayments to Pension Plans

Delinquent Participant Contributions to Insured Welfare Plans

Delinquent Participant Contributions to Welfare Plan Trusts 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

Improper Payment of Expenses by Plan

Defaulted Participant Loans

Correcting these violations must be done in a manner specified by VFCP. Employers must meet certain criteria and follow specific procedures to correct all violations, completely and accurately. Companies must also provide proof that the corrections were completely rectified.

Employers who do not comply with VFCP protocols may face consequences as detailed in ERISA Sections 502 (I) and 502 (i).