labor lawAdivision of labor law center

The EBSA is conducting a free seminar for Massachusetts employers that could save employers thousands of dollars in penalties and taxes.

 

Employers that violate regulations of the Employee Retirement Income Security Act or ERISA must face appropriate consequences such as excise taxes, and often IRS penalties.

 

To avoid these consequences, employers can follow the criteria and procedures of the Voluntary Fiduciary Correction Program or VFCP. This program permits businesses to correct violations of the ERISA, voluntarily, and avoid prosecution. VFCP applies to employers, officials, benefit plan sponsors and parties in interest.

 

The VFCP program was updated and simplified in 2006, making it easier for employers to use.

 

The free Boston-area workshop will be held in Conference Room E-275B at the JFK Federal Building, 15 New Sudbury Street in Boston.

 

There are two half-day sessions that will cover the same material – employers need attend only one. The morning session runs from 9:30 am to noon. The afternoon session runs from 1:30 pm to 4 pm.

 

Enrollment is limited, so registration is required. Employers can use this simple online form to register, or RSVP kitoski.christopher@dol.gov.

 

Any company that might be responsible for ERISA violations of a fiduciary nature may be eligible to use VFCP.

 

VFCP began in 2002, and was simplified and extended in 2006. Under this program, employers can correct past errors in nineteen types of transactions regarding employee retirement plans. These transaction types include:

 

·         Participant Loans Failing to Comply with Plan Provisions for Amount, Duration, or Level Amortization

·         Defaulted Participant Loans

·         Sale of Assets by Plans to Parties in Interest

·         Sale and Leaseback of Property to Sponsoring Employers

·         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

·         Below Market Interest Rate Loans With Parties in Interest

·         Below Market Interest Rate Loans With Non-Parties in Interest

·         Below Market Interest Rate Loans Due to Delay in Perfecting Security Interest

 

The VFCP isn’t a free ride for employers, though. The Program has specific protocols and criteria to correct past violations. Companies must follow all the specified steps and completely rectify all violations with 100% accuracy. In addition, the employer must supply evidence that the corrections have been made. ERISA Sections 502 (I) and 502 (i) detail enforcement actions against companies that fail to comply.

 

Last 10 posts by Amelia

• Colorado Reduces Minimum Wage in 2010 - November 20th, 2009
• New Law Expands FMLA and NDAA for Military Families - October 30th, 2009
• California Approves Exempt Salary Reduction - October 16th, 2009
• 3 New Illinois Laws - October 9th, 2009
• New Definition of Disability - September 25th, 2009
• E-Verify Regulations - September 18th, 2009
• New USERRA Regulations - September 2nd, 2009
• E-Verify News - August 26th, 2009
• New Tennessee Workers’ Compensation Law - August 19th, 2009
• Louisiana Minimum Wage - August 3rd, 2009