Glossary term
Delinquent Filer Voluntary Compliance Program (DFVCP)
The Delinquent Filer Voluntary Compliance Program is a Department of Labor correction program that lets eligible employee benefit plan administrators file overdue annual reports and pay reduced civil penalties.
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What Is the Delinquent Filer Voluntary Compliance Program?
The Delinquent Filer Voluntary Compliance Program, often shortened to DFVCP or DFVC Program, is a Department of Labor correction program for certain employee benefit plan administrators that missed required annual reporting. It lets eligible filers submit overdue reports and pay reduced civil penalties instead of facing the full penalty exposure that can attach to late or missing filings.
The program is most closely associated with delinquent Form 5500 and Form 5500-SF filings for plans subject to Title I of ERISA. It is not a general amnesty for every retirement, welfare, IRS, or PBGC filing problem. Its value is narrower and more practical: it gives plan sponsors a formal path to get annual plan reporting back into compliance before the Department of Labor has already moved against them.
Key Takeaways
- DFVCP is a voluntary Department of Labor correction program for certain late or missing employee benefit plan filings.
- Eligible filers generally use it before receiving a Department of Labor notice about the failure to file.
- The program can reduce civil penalties, but it does not erase every possible IRS, PBGC, or plan-compliance consequence.
- For employers and plan administrators, the program is a risk-control tool after a reporting lapse.
How the Program Works
A plan administrator using DFVCP generally files the missing annual report through EFAST2, marks the filing for the DFVC Program where required, and pays the calculated penalty through the program's online payment process. The Department of Labor's rules and tools determine the penalty amount and applicable caps.
The sequence matters because DFVCP is built around voluntary correction. A plan administrator that waits until enforcement contact may lose access to the reduced-penalty path. That makes the program especially important after an employer discovers an old plan, a missed filing year, an administrative handoff problem, a vendor mistake, or an unfiled welfare plan obligation.
Who Typically Uses It
DFVCP is usually relevant to employers, plan administrators, benefits consultants, third-party administrators, and advisers reviewing whether a plan has kept up with annual reporting. It can also surface during mergers, acquisitions, plan terminations, payroll audits, or retirement-plan cleanups when old filing gaps become visible.
The program is not limited to large companies. Small plans can have filing obligations too, and smaller employers may be more likely to discover a lapse after a personnel change or provider transition. The financial consequence is that a late filing problem can keep growing if it is ignored, while a voluntary correction program can put a cap on at least part of the exposure.
What It Does Not Fix
DFVCP should not be read as a full compliance cure. It focuses on Department of Labor annual reporting penalties. It does not automatically solve incorrect plan operations, missed participant disclosures, unpaid contributions, prohibited transactions, or separate tax-code and PBGC penalty issues. Those may require separate analysis and, in some cases, other correction procedures.
That distinction keeps the program in its proper place. It is a filing correction tool, not a substitute for full plan administration. A sponsor using the program should still understand why the filing lapse happened and whether the same process gap affected notices, remittances, participant records, or plan documents.
The Bottom Line
The Delinquent Filer Voluntary Compliance Program gives eligible plan administrators a structured way to correct overdue employee benefit plan filings and reduce Department of Labor civil penalties. It is most useful when a filing failure is discovered early enough to correct voluntarily and when the sponsor treats the filing fix as part of a broader benefits-compliance review.