Exemption From Certain Prohibited Transaction Restrictions Involving Memorial Sloan Kettering Cancer Center (MSKCC or the Applicant) Located in New York, New York
Published Date: 1/15/2025
Notice
Summary
Memorial Sloan Kettering Cancer Center (MSKCC) got special permission to use its own insurance company to help manage pension plan risks and receive premiums. This change starts January 15, 2025, and aims to protect the pension plan members while making the process smoother and more efficient. It affects MSKCC’s pension plan participants and ensures their benefits stay safe under new rules.
Analyzed Economic Effects
6 provisions identified: 5 benefits, 0 costs, 1 mixed.
Permanent 5.55% Pension Increase
If you are a participant or beneficiary in the Memorial Sloan Kettering Cancer Center Pension Plan, your monthly pension benefit will receive a permanent increase currently expected to be 5.55 percent. The increase is presented as a one-time enhancement with a present value of $66,408,000 for all participants and beneficiaries and will continue for the remainder of recipients' lives.
Fronting Insurer Keeps Unconditional Liability
The unrelated Fronting Insurer will remain fully and unconditionally responsible for paying Plan benefits during both the Buy-In and Buy-Out phases of the annuity arrangement, even if the captive fails to pay. During the Buy-In phase the Fronting Insurer pays the Plan and seeks quarterly reimbursement from the captive; during the Buy-Out phase the Fronting Insurer issues annuity certificates and pays annuitants directly.
Plan Assets Used to Buy Single Premium Annuity
The Plan will use current Plan assets (including possible in-kind transfers) to pay a one-time premium to purchase a single premium group annuity contract (GAC) from the Fronting Insurer. Under the Buy-In phase the GAC will be a Plan asset and quarterly reimbursements flow from the captive to the Fronter for benefits the Fronter pays.
Independent Fiduciary Oversight and $1,968,000 Add‑On
Milliman will act as the Plan's Independent Fiduciary to confirm that participants receive the majority of benefits and to report to the Department; the Department allowed the Independent Fiduciary to step aside after plan termination only if MSKCC adds $1,968,000 (the present value of the fiduciary's expected fees) into the GAC as a permanent additional benefit. That $1,968,000 produces an additional 0.18% permanent monthly pension increase as part of the total 5.55% enhancement.
Captive Collateralization; Vermont Oversight After Termination
The captive (MSK EB) will be collateralized and capitalized by MSKCC in accordance with Vermont law, with parental guarantees separate from Plan assets; the Vermont Department of Financial Regulation (Vermont DFR) will audit the captive annually and conduct a thorough exam at least once every five years, and the Department will receive Exam Reports. After plan termination, Vermont DFR oversight and state insurance regulation of the Fronting Insurer will provide ongoing supervision of annuities.
Limits on Data Use and Prohibition on Captive Distributions
MSKCC and related entities may not use participant or beneficiary data from the reinsurance arrangement for purposes unrelated to the administration, funding, or security of the GAC, Reinsurance Arrangement, or Plan. MSKCC is also prohibited from receiving dividends or distributions from the captive at any point during the Reinsurance Arrangement.
Your PRIA Score
Personalized for You
How does this regulation affect your finances?
Sign up for a PRIA Policy Scan to see your personalized alignment score for this federal register document and every other regulation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.
Key Dates
Related Federal Register Documents
2026-12299 — Presidential Declaration Amendment of a Major Disaster for Public Assistance Only for the Commonwealth of Kentucky
The President has updated the disaster declaration for Kentucky’s severe winter storm from January 23-27, 2026, adding Adair and Casey counties to the list of areas eligible for public assistance. This means more communities can get help recovering, with physical loan applications due by July 28, 2026, and economic injury loans available until March 1, 2027. If you’re in these counties, now’s the time to apply and get the support you need!
2026-12235 — Advisory Committee; Science Board to the Food and Drug Administration; Renewal
The FDA is renewing its Science Board for two more years, keeping expert advice flowing to help ensure safe and effective drugs and products. This renewal affects scientists and public health folks who guide the FDA’s big decisions, with the new term lasting until June 26, 2028. No extra costs or delays are expected—just more smart brains working for your health!
2026-12238 — Agency Information Collection Activities; Submission for Office of Management and Budget Review; Comment Request; Current Good Manufacturing Practice in Manufacturing, Packaging, Labeling, or Holding Operations for Dietary Supplements
The FDA is asking for public feedback by July 20, 2026, on their rules that keep dietary supplements safe and made right. These rules affect companies that make, package, label, or store supplements, helping ensure products are high quality without adding extra costs. This review keeps the safety standards up-to-date and clear for everyone involved.
2026-12241 — Agency Information Collection Activities: Submission for OMB Review; Comment Request
NARA wants to renew approval for a form that helps the FOIA Ombuds office get your okay before sharing info to solve Freedom of Information Act requests. This affects anyone asking for government records and means you might soon be able to submit consent forms online, making the process smoother. Comments on this plan are open until July 20, 2026, with no new costs involved.
2026-12285 — 737th Meeting of the Advisory Committee on Reactor Safeguards (ACRS)
The Advisory Committee on Reactor Safeguards (ACRS) is meeting July 8-10, 2026, to focus on updating how nuclear reactors get licensed and checked for safety. They’re trimming down their work to only the most important and new issues, thanks to a recent government order. This means faster, smarter reviews that affect nuclear plant operators and the public, with meetings open for remote participation and no big cost changes expected.
2026-12336 — PacifiCorp; Notice of Application Accepted for Filing, Intent To Waive Scoping, Soliciting Motions To Intervene and Protests, Ready for Environmental Analysis, and Soliciting Comments, Recommendations, and Terms and Conditions
PacifiCorp wants to keep running its Ashton Hydroelectric Project on the Snake River in Idaho without a full license, and the government is ready to review the environmental impact. Local communities, environmental groups, and energy users can share their thoughts or raise concerns by August 14, 2026. This move could speed up clean energy production while protecting the river, with decisions and replies wrapping up by late September.
Previous / Next Documents
Previous: 2025-00812 — Exemption From Certain Prohibited Transaction Restrictions Involving UBS AG (UBS), Located in Zurich, Switzerland
The Department of Labor is letting UBS asset managers keep using a special exemption from certain rules from June 12, 2023, through June 11, 2029, even though some UBS-related companies had legal troubles. This helps protect retirement plans and accounts managed by UBS from disruption or harm. So, if you have a retirement plan with UBS managing it, things will keep running smoothly for the next five years.
Next: 2025-00814 — Proposed Withdrawal and Opportunity for Public Meeting for the Sloan Utility and Transportation Corridor; Clark County, NV
The government wants to protect over 1,000 acres in Clark County, Nevada, by stopping mining and leasing activities there for 20 years. This land will be saved for future roads, utilities, and public services, making sure nothing gets in the way of important projects. People have until April 15, 2025, to share their thoughts or ask for a public meeting.