Notice2022-21578
Notice of Withdrawal of Proposed Exemptions
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
October 5, 2022
Issuing agencies
Labor DepartmentEmployee Benefits Security Administration
Abstract
This document provides notice of the withdrawal of three proposed individual exemptions from certain prohibited transaction restrictions of the Employee Retirement Income Security Act (ERISA) and the Internal Revenue Code (the Code). The proposed exemptions were issued by the Department of Labor on August 24, 2022.
Full Text
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<title>Federal Register, Volume 87 Issue 192 (Wednesday, October 5, 2022)</title>
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[Federal Register Volume 87, Number 192 (Wednesday, October 5, 2022)]
[Notices]
[Pages 60417-60418]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-21578]
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DEPARTMENT OF LABOR
Employee Benefits Security Administration
[Exemption Application Nos. D-12042, D-12039, and D-12049]
Notice of Withdrawal of Proposed Exemptions
AGENCY: Employee Benefits Security Administration, Labor.
ACTION: Notice of withdrawal of proposed exemptions.
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SUMMARY: This document provides notice of the withdrawal of three
proposed individual exemptions from certain prohibited transaction
restrictions of the Employee Retirement Income Security Act (ERISA) and
the Internal Revenue Code (the Code). The proposed exemptions were
issued by the Department of Labor on August 24, 2022.
FOR FURTHER INFORMATION CONTACT: Joseph Brennan of the Department at
(202) 693-8456. (This is not a toll-free number.)
Withdrawal of Proposed Exemption
The Department published notices of proposed exemption from certain
prohibited transaction provisions of ERISA and the Code in the Federal
Register on August 24, 2022, for the following applicants: Triple-S
Management Corporation, Blue Cross and Blue Shield of Kansas City, and
the National Account Service Company LLC.\1\ As described more fully in
the proposed exemptions, the applicants sponsor defined benefit plans
that have (or had) filed legal action and claims against Allianz Global
Investors U.S. LLC (Allianz) and Aon Investments USA Inc. (Aon)
regarding certain investment losses the plans incurred during the first
quarter of 2020.
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\1\ Triple-S Management Corporation (87 FR 52168); Blue Cross
and Blue Shield of Kansas City (87 FR 52124); National Account
Service Company LLC (87 FR 52174).
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The proposed exemptions would have permitted the applicants to make
payments to their respective plans in order to offset the investment
losses the plans incurred, and, if the plans received litigation
proceeds from the claims, to transfer the lesser of the ligation
proceeds amounts or the payments to the applicants. Without an
exemption, the plans' receipt of payments from the applicants in
exchange for the plans' transfer of litigation proceeds to the
applicants would violate certain prohibited transaction provisions of
ERISA and the Code. The applicants represented to the
[[Page 60418]]
Department that the plans have received litigation proceeds from the
claims.
After the publication of the proposed exemptions in the Federal
Register, the applicants informed the Department that they have decided
not to pursue the proposed exemptions due to changed circumstances and
requested the Department to withdraw their exemptions. Therefore, the
Department is withdrawing the proposed exemptions from the Federal
Register as requested.\2\ As a result, the applicants may not receive
repayments for any amounts they paid to their respective plans in
connection with the plans' receipt of litigation proceeds from the
claims, because such repayments would constitute a violation of certain
prohibited transaction provisions of ERISA and the Code.
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\2\ In withdrawing the proposed exemptions, the Department is
not expressing an opinion regarding the merits of any claim against
Allianz and Aon or whether the plans' fiduciaries met their
fiduciary duties with respect to plan assets that are the subject of
the claims. Further, in withdrawing the proposed exemptions, the
Department is not limiting any party's claim, demand, and/or cause
of action arising from the plans' 2020 first quarter losses in any
way.
Signed in Washington, DC.
George Christopher Cosby,
Director, Office of Exemption Determinations, Employee Benefits
Security Administration, U.S. Department of Labor.
[FR Doc. 2022-21578 Filed 10-4-22; 8:45 am]
BILLING CODE 4510-29-P
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</html>Indexed from Federal Register on October 5, 2022.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.