Voluntary Fiduciary Correction Program

[katieinny]

An employer is submitting under the VFCP to correct the late deposit of employee deferrals. A small amount of money will be deposited to employee accounts as part of the correction process. Is there a requirement that employees be notified of the submission? I know that some employers have sent e-mails or included a note with paystubs, but I'm not finding anything that says an employer MUST notify employees.

[Belgarath]

No, they don't have to. Several years ago, there was a participant notice requirement, but the DOL dropped that - can't tell you when, offhand.

What I'm not sure of is if a participant gets wind of it somehow, and requests information, whether or not the employer would be required to give it to them. I read somewhere, sometime, in some forgotten source, that they had to, but I've never looked into it because it has fortunately never come up!

[katieinny]

I traced the notices back to the Interim VFC program back in 2000 and found the participant notice requirement there, but then it doesn't appear in the 2002 or the 2005 versions. We'll take the high road and assume that if anyone asks for information (if they even notice the small increase in the account balance), the employer must provide it.

Thank you for your reply.