The U.S. Department of Labor's Employee Benefits Security Administration reopened the public comment period on changes to its Voluntary Fiduciary Correction Program and the proposed amendment to the Prohibited Transaction Exemption 2002-51.
The program aims to help plans comply with the Employee Retirement Income Security Act and the Internal Revenue Code by encouraging self-correction of law violations, according to a Feb. 13 news release.
“Reopening the comment period will allow the Employee Benefits Security Administration to obtain important public input on implementing the changes mandated by Congress in the SECURE 2.0 Act of 2022 that impact the department’s Voluntary Fiduciary Correction Program,” Assistant Secretary of Labor for Employee Benefits Security Lisa Gomez said in the release.
Plans that voluntarily correct eligible transactions and meet specific requirements can avoid potential civil enforcement actions and penalties, the release reported.
The reopening of the comment period is due to changes mandated by Congress in the SECURE 2.0 Act of 2022, which includes provisions related to retirement and other plans, according to the release. The proposals and invitation for comments were published Nov. 21, 2022, with the comment period ending Jan. 20.
The Consolidated Appropriations Act of 2023 was signed into law after the proposals were published, the release reported. It requires the program to cover certain violations related to participant loans if they align with the IRS’ Employee Plans Compliance Resolution System.
EBSA is reopening the comment period for 60 days to gather more comments on issues related to amending the program to implement the act's requirements, according to the release. The notice of the reopening was published in the Federal Register Feb. 14.
