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Comments on the Voluntary Fiduciary Correction Program
Introduction

Set forth below are the comments of individual members of the Section of Taxation on the Voluntary Fiduciary Correction Program (the "Program") issued by the Department of Labor (the "Department") on March 15, 2000 (65 Fed. Reg. 14164).

We welcome the adoption of the Program, which should serve to promote compliance with the ERISA fiduciary rules by encouraging voluntary and timely correction of certain fiduciary breaches. It will enable parties to assure that they have resolved those types of fiduciary breaches to the satisfaction of the Department, avoiding potentially costly investigative and enforcement actions as well as statutory penalties. In particular, we appreciate the issuance of guidance on the Department’s views as to what constitutes "correction" of a breach of fiduciary duty under Title I of ERISA, which will provide added certainty in future dealings with the Department, including matters outside the bounds of the Program itself.

However, there are aspects of the Program in its current form that will limit or discourage its use. Our comments address those aspects of the Program.

We appreciate the opportunity to comment on the Program, and would be happy to meet with the Department to discuss any of the issues raised in this letter. If you have any questions or would like to arrange such a meeting, please contact us.

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