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Notice Required for VFCP


Guest PJTEN
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I have a client who failed to remit employee contributions timely and instead of paying the hefty excise tax reported on Form 5330, I was hoping to file them under the VFCP provided by the DOL. However, one of the requirements is that a Notice to Interested Parties be provided to plan participants. The DOL does not give a model notice and nobody else I have contacted has ever seen one. Is this similar to the IRS Notice To Interested Parties when filing for a determination letter? Anyone have any ideas?

Thanks!

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This is the format I used last time.

NOTICE TO INTERESTED PERSONS

DATE Distributed to Interested Persons

TO: All Interested Parties of the (PLAN’S NAME)

FROM: Plan Fiduciary Seeking Relief under Class Exemption PTE 2002-51 (USUALLY THE COMPANY)

(NAME OF COMPANY) has made a filing under the Department of Labor’s, Employee Benefit Security Administration (EBSA), Voluntary Fiduciary Correction Program (VFC Program) to correct its breach of failing to remit participant contributions and loan repayments to the (NAME OF PLAN) timely for (THE TIME PERIOD, PAYROLL PAY DATES, ETC. INVOLVED).

EXPLAIN HOW CORRECTED – For example:

(THE COMPANY) used the VFC Program on-line calculator to calculate the amount of lost earnings due to the affected participants for its fiduciary breach. Lost earnings totaling ($$) were paid to the Plan on (DATE RECEIVED INTO THE PLAN) and allocated to the affected participants’ accounts. The accounts for the participants affected by this fiduciary breach have been made whole.

Interested persons may provide comments to the appropriate EBSA Regional Office for thirty (30) days from the date of this Notice:

Cincinnati Regional Office

1885 Dixie Highway, Suite 210

Ft. Wright, KY 41011-2664

Telephone (859) 578-4680

Plan assets were not used to pay for the preparation or distribution of this Notice.

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  • 4 months later...

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