Employers can quickly self-correct sure retirement plan contribution errors, due to federal rules revealed Wednesday.
Starting March 17, employers could use a self-correction instrument to “treatment delays in sending participant contributions, akin to worker payroll deductions, and participant mortgage repayments to retirement plans,” in accordance with a U.S. Division of Labor announcement.
When the change was proposed two years in the past, a business-side lawyer stated employers would seemingly welcome the choice to self-correct as it will streamline the method.
The correction program could enable employers and different plan officers to keep away from sure civil enforcement actions and penalties below the Worker Retirement Revenue Safety Act and the Inside Income Code, DOL stated.
“The Worker Advantages Safety Administration is happy to supply these enhancements to our Voluntary Fiduciary Correction Program in order that employers and different plan officers can benefit from streamlined instruments to appropriate authorized violations, and America’s staff get full safety for his or her hard-earned advantages,” stated Assistant Secretary for Worker Advantages Safety Lisa M. Gomez in a press release.