VCP or VFCP

[ERISAgeek111]

What is the difference between a VCP filing and VFCP filing? I understand one is for operational failures, and the other for fiduciary violations, but can they ever overlap? Are you ever required to file both?

[RatherBeGolfing]

5 hours ago, ERISAgeek111 said:

What is the difference between a VCP filing and VFCP filing? I understand one is for operational failures, and the other for fiduciary violations, but can they ever overlap? Are you ever required to file both?

Voluntary Fiduciary Correction Program (VFCP) is a DOL self correction program for certain fiduciary violations:

1. Delinquent Participant Contributions and Participant Loan Repayments to Pension Plans
2. Delinquent Participant Contributions to Insured Welfare Plans
3. Delinquent Participant Contributions to Welfare Plan Trusts
4. Fair Market Interest Rate Loans to Parties in Interest
5. Below Market Interest Rate Loans to Parties in Interest
6. Below Market Interest Rate Loans to Non-Parties in Interest
7. Below Market Interest Rate Loans Due to Delay in Perfecting Security Interest
8. Participant Loans Failing to Comply with Plan Provisions for Amount, Duration, or Level Amortization
9. Defaulted Participant Loans
10. Purchase of Assets by Plans from Parties in Interest
11. Sale of Assets by Plans to Parties in Interest
12. Sale and Leaseback of Property to Sponsoring Employers
13. Purchase of Assets from Non-Parties in Interest at More Than Fair Market Value
14. Sale of Assets to Non-Parties in Interest at Less Than Fair Market Value
15. Holding of an Illiquid Asset Previously Purchased by Plan
16. Benefit Payments Based on Improper Valuation of Plan Assets
17. Payment of Duplicate, Excessive, or Unnecessary Compensation
18. Improper Payment of Expenses by Plan
19. Payment of Dual Compensation to Plan Fiduciaries

Voluntary Correction Program (VCP) is part of the IRS Employee Plans Compliance Resolution System (EPCRS) for correcting plan errors such as 

1. Maintaining a valid, up-to-date plan document.
2. Following the terms of the plan document while operating the plan.
3. Complying with federal tax law requirements while operating the plan.

[ERISAgeek111]

I got that.  Thanks.  Question was whether there are circumstances when you'd file both.  I imagine yes for example for untimely contributions, but just checking

[RatherBeGolfing]

3 minutes ago, ERISAgeek111 said:

I got that.  Thanks.  Question was whether there are circumstances when you'd file both.  I imagine yes for example for untimely contributions, but just checking

You wouldn't file VCP for a late deferral, but you would (or should) file VFCP