# 2025-00813: Exemption From Certain Prohibited Transaction Restrictions Involving Memorial Sloan Kettering Cancer Center (MSKCC or the Applicant) Located in New York, New York 2025-00813, Exemption From Certain Prohibited Transaction Restrictions Involving Memorial Sloan Kettering Cancer Center (MSKCC or the Applicant) Located in New York, New York, is a Federal Register notice from an unnamed agency published 2025-01-15, effective 2025-01-15 (as of 2026-06-08). - Canonical: https://policyrisk.com/federal-register/2025-00813 - As of: 2026-06-08 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Document number: 2025-00813 - Title: Exemption From Certain Prohibited Transaction Restrictions Involving Memorial Sloan Kettering Cancer Center (MSKCC or the Applicant) Located in New York, New York - Type: Notice - Agencies: unknown - Citation: unknown - Published: 2025-01-15 - Effective: 2025-01-15 - Comments close: not stated - Significant: no - Touches household money: no - Regulation identifier numbers: none - Last updated: 2026-06-08 ## 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. ## Abstract This document contains a notice of exemption issued by the Department of Labor (the Department) from certain prohibited transaction restrictions of the Employee Retirement Income Security Act of 1974 (ERISA or the Act) and/or the Internal Revenue Code of 1986 (the Code). This exemption permits the reinsurance of risks and the receipt of a premium by MSK Employee Benefits IC (MSK EB or the Captive), a captive insurance and reinsurance subsidiary that is wholly-owned by MSKCC, in connection with a single premium group insurance contract sold by an unrelated fronting insurer (the Fronting Insurer or the Fronter) to provide pension annuities to participants and beneficiaries in the Memorial Sloan Kettering Cancer Center Pension Plan (the Plan). The relief provided in the exemption will only be available if the conditions in Section III are met in conformance with the definitions in Section I. ## Effects PRIA read - Permanent 5.55% Pension Increase: benefit, high. 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 p… - Fronting Insurer Keeps Unconditional Liability: benefit, medium. 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 reimbursem… - Plan Assets Used to Buy Single Premium Annuity: mixed, medium. 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 F… - Independent Fiduciary Oversight and $1,968,000 Add‑On: benefit, medium. 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 fiduciar… - Captive Collateralization; Vermont Oversight After Termination: benefit, medium. 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… - Limits on Data Use and Prohibition on Captive Distributions: benefit, low. 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 captiv… ## Related documents - [2026-20724](https://policyrisk.com/federal-register/2026-20724): Notice of Intent To Prepare a Supplemental Environmental Impact Statement for the Sentinel Deployment and Minuteman III Decommissioning and…, 2026-10-09 - [2026-20771](https://policyrisk.com/federal-register/2026-20771): Center for Scientific Review; Notice of Closed Meetings, 2026-10-09 - [2026-20708](https://policyrisk.com/federal-register/2026-20708): Self-Regulatory Organizations; Investors Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Pursuant to IEX…, 2026-10-09 - [2026-20710](https://policyrisk.com/federal-register/2026-20710): Self-Regulatory Organizations; Investors Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Pursuant to IEX…, 2026-10-09 - [2026-20779](https://policyrisk.com/federal-register/2026-20779): Passenger Vehicle and Light Truck Tires From Thailand: Preliminary Results and Rescission, in Part, of Antidumping Duty Administrative Revi…, 2026-10-09 - [2026-20763](https://policyrisk.com/federal-register/2026-20763): National Environmental Policy Act Implementing Procedures: Wintertime Oil and Gas Exploration in the National Petroleum Reserve in Alaska C…, 2026-10-09 ## Sources - [2025-00813 on federalregister.gov](https://www.federalregister.gov/documents/2025/01/15/2025-00813/exemption-from-certain-prohibited-transaction-restrictions-involving-memorial-sloan-kettering-cancer) - [2025-00813 as published (PDF)](https://www.govinfo.gov/content/pkg/FR-2025-01-15/pdf/2025-00813.pdf) ## Related - [Previous: 2025-00812, Exemption From Certain Prohibited Transaction Restrictions Involving UBS AG (UB…](https://policyrisk.com/federal-register/2025-00812) - [Next: 2025-00814, Proposed Withdrawal and Opportunity for Public Meeting for the Sloan Utility an…](https://policyrisk.com/federal-register/2025-00814) - [All Federal Register documents](https://policyrisk.com/federal-register) Source: PRIA, https://policyrisk.com/federal-register/2025-00813 (as of 2026-06-08).