Banks get more time to shuffle pension cash legally
Published Date: 2/21/2025
Notice
Summary
The Department of Labor wants to extend special permission for Royal Bank of Canada and Northern Trust Corporation to keep doing certain financial transactions until September 2025, instead of stopping in March. This extension depends on them meeting some conditions. If approved, it helps these companies keep managing money for retirement plans without interruption.
Analyzed Economic Effects
4 provisions identified: 3 benefits, 1 costs, 0 mixed.
Risk of Defaults, Liquidation, and Transition Costs if No Extension
The notice states that, without timely extension of relief, plan clients could face counterparties declaring defaults or voiding transactions (including ISDA agreements), triggering lump-sum payments, forced liquidations, transition costs, and the inability to enter new hedging trades. These events could harm ERISA-covered plans and their participants if the temporary exemptions lapse on March 4, 2025.
Short-term Extension to Avoid 'Gap' Relief
The Department proposes to extend the temporary exemptions for Royal Bank of Canada (PTE 2016-10) and Northern Trust (PTE 2016-11) that are scheduled to expire on March 4, 2025, so they would remain in effect until the earlier of September 4, 2025, or the date the Department issues a final agency action on related five-year exemption notices. If granted, this extension is meant to protect ERISA-covered plans and their participants from disruptions while the Department decides on longer-term relief.
Exemption Period Increased to 18 Months
The proposed amendments change language in both PTE 2016-10 and PTE 2016-11 to allow the temporary exemptive relief to run for up to 18 months beginning on the Conviction Date (instead of up to 12 months). This increases the maximum time the QPAM relief can cover eligible transactions starting at the Conviction Date.
Recordkeeping and 30-Day Production Requirement
Under the proposed amendments, the RBC and Northern QPAMs must keep records proving they satisfied every condition of their exemptions during the extended effective period and must provide those records to the Department within 30 days after a Department request. This is an added condition for continued reliance on the exemptions during the extension.
Personalized for You
How does this regulation affect your finances?
Personalize government policy and PRIA will tell you what this federal register document means for your household, plus every other regulation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Key Dates
Department and Agencies
Related Federal Register Documents
2026-20447, Transparency in Coverage
Starting soon, health plans and insurers must share clearer, easier-to-understand price info for medical services and drugs. This helps you see what in-network and out-of-network costs really look like, with more details and better updates. These changes affect most group and individual health plans and kick in with new reporting rules to make healthcare pricing more transparent and fair.
2026-17622, Federal Independent Dispute Resolution Operations; Correction
This document corrects typographical errors and omissions in the final rule that appeared in the June 4, 2026, Federal Register titled "Federal Independent Dispute Resolution Operations" (referred to hereafter as the "IDR final rule"). The effective date of the IDR final rule was August 3, 2026.
2026-14917, Electronic Disclosure by Group Health Plans Under ERISA
Group health plans can soon share important info online instead of paper, making it easier and cheaper for everyone. If this rule passes, plan administrators must notify members about electronic disclosures but still offer paper copies if requested. This change affects anyone in group health plans under ERISA and aims to save time and money starting after the rule is finalized.
2026-11140, Federal Independent Dispute Resolution Operations
Starting soon, health plans and insurers must share clearer info when they pay or deny surprise medical bills. They’ll use special codes to explain these decisions, especially when dealing with folks they don’t have contracts with. This helps patients and providers understand bills better and speeds up fixing disputes, with no extra costs for most people.
2026-05492, Retirement Security Rule: Definition of an Investment Advice Fiduciary: Notice of Court Vacatur
The court has canceled the Department of Labor’s 2024 rule that changed who counts as a trusted investment advisor for retirement plans. Starting April 20, 2026, the old rules from 2020 will be back in charge, affecting financial advisors and retirement plan managers. This means advisors should review their practices to stay on the right side of the law and avoid costly mistakes.
2025-14281, Pooled Employer Plans: Big Plans for Small Businesses
Small businesses get a big boost with new guidance on pooled employer plans (PEPs), which help them offer better, cheaper retirement savings options. The government is asking for feedback to create clear rules that make joining these plans easier and more affordable. Starting soon, these changes aim to save workers money and help small employers attract great employees.
Previous / Next Documents
Previous: 2025-02929, U.S. Integrated Ocean Observing System (IOOS®) Advisory Committee Public Meeting
The U.S. Integrated Ocean Observing System (IOOS) Advisory Committee is holding a public meeting from March 12-14, 2025, both online and in Houma, Louisiana. This meeting affects ocean scientists, policymakers, and anyone interested in ocean data, as they’ll discuss new members, a fresh work plan, and updates from NOAA. It’s a great chance to join the conversation and help shape how we watch and protect our oceans!
Next: 2025-02933, Combined Notice of Filings #1
Several solar and energy storage companies told the government they’re officially ready to sell power wholesale, which means more clean energy could be coming your way. Plus, Duke Energy and PJM Interconnection filed new electric rates and agreements that might affect energy prices starting soon. If you want to comment or keep an eye on these changes, mark your calendar for early March deadlines!