Workplace retirement plans with late participant contributions or loan repayments could self-correct those errors without launching a formal US Labor Department application process, according to a new agency proposal.
The proposed rule, released Friday, marks the first time the department has added a self-correction component to its Voluntary Fiduciary Correction Program—a significant development that officials said will streamline the corrections process and lead to a better response rate from retirement plan officials called fiduciaries.
“When people correct violations through the VFCP, that frees up resources that we can devote to other matters,” said Lisa M. Gomez, assistant secretary ...
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