The Department of Labor (DOL) released a final amendment updating the Voluntary Fiduciary Correction Program (VFCP), along with a final amendment to Prohibited Transaction Exemption (PTE) 2002-51.
Effective March 17, 2025 the VFCP will provide a new Self-Correction Component (SCC) which allows plan sponsors to self-correct certain delinquent participant contributions and loan repayments and eligible inadvertent loan failures without submitting a VFCP application to the DOL. There is a requirement that the plan sponsor provide the Employee Benefits Security Administration (EBSA) with a notice of the self-correction through an online VFCP web tool.
Access fact sheet on the changes.