Federal Register / Vol. 87, No. 75 / Tuesday, April 19, 2022 / Notices 23245 

CHART I—Continued 

Supplier Product name Form Application 

date 

RTI International ...................... 145074A, 163970A, 176045A, 215129A, 225392A, 235273A, 

248657A, 271067A, 308576A, 311993A, 321160A, 

363272A, 378254A, 382246A, 451805A, 470383A, 

500607A, 534405A, 551494A, 578227A, 591070A, 

742302A, 743822A, 750765A, 765628A, 833310A, 

837447A, 916631A.

HDPE bottles: 35 mL .............. 9/14/2021 

RTI International ...................... 197765A, 428493A, 455083A, 790360A, 792562A, 961635A HDPE bottles: 35 mL .............. 9/14/2021 

RTI International ...................... 256338A, 262674A, 270370A, 296287A, 299248A, 327468A, 

347682A, 395285A, 403259A, 441123A, 471182A, 

546403A, 590341A, 596455A, 645571A, 653977A, 

656203A, 706251A, 706784A, 749478A.

HDPE bottles: 35 mL .............. 9/14/2021 

RTI International ...................... 361580A, 438138A, 634629A, 690620A, 760765A, 863003A HDPE bottles: 35 mL .............. 9/14/2021 

The Deputy Assistant Administrator 

has found that each of the compounds, 

mixtures, and preparations described in 

Chart II below is not consistent with the 

criteria stated in 21 U.S.C. 811(g)(3)(B) 

and in 21 CFR 1308.23. Accordingly, the 

Deputy Assistant Administrator has 

determined that the chemical 

preparations or mixtures generally 

described in Chart II below and 

specifically described in the application 

materials received by DEA, are not 

exempt from application of any part of 

the CSA or from application of any part 

of the CFR, with regard to the requested 

exemption pursuant to 21 CFR 1308.23, 

as of the date that was provided in the 

determination letters to the individual 

requesters. 

CHART II 

Supplier Product name Form Application 

date 

Absolute Standards, Inc .......... Chloral hydrate, 5000 ug/ml, in MTBE .................................... Glass ampoule: 1 ml ............... 10/21/2021 

Cayman Chemical Company .. Custom Phytocannabinoid Mixture (CRM)—Adams Independent Testing.Glass ampule: 1 mL ............... 10/7/2021 

LGC GmbH .............................. ((-)-delta9-THC (Dronabinol)) for 1.0 mg/mL in Methanol ....... Glass Vial: 1 mL ..................... 12/7/2021 

LGC GmbH .............................. Fentanyl 1.0 mg/ml in methanol .............................................. Glass vial: 1 mL ...................... 12/10/2021 

LGC GmbH .............................. LSD (Lysergic Acid Diethylamide) 1.0 mg/ml in acetonitrile .... Glass vial: 1 mL ...................... 12/10/2021 

Lipomed Inc ............................. Iso LSD 0.1 mg/1 mL acetonitrile ............................................ Amber ampule: 1 mL .............. 7/23/2021 

Lipomed Inc ............................. Iso LSD 1 mg/1 mL acetonitrile ............................................... Amber ampule: 1 mL .............. 7/23/2021 

Lipomed, Inc ............................ Iso LSD 0.1 mg/1 mL acetonitrile ............................................ Amber ampule: 1 mL .............. 7/23/2021 

Lipomed, Inc ............................ Iso LSD 1 mg/1 mL acetonitrile ............................................... Amber ampule: 1 mL .............. 7/23/2021 

Purisys, LLC ............................ Tetrahydrocannabinolic acid in dimethylsulfoxide (10 mg/mL) Sealed ampule: 1 mL ............. 8/30/2021 

Purisys, LLC ............................ Tetrahydrocannabinolic acid in dimethylsulfoxide (5 mg/mL) .. Sealed ampule: 1 mL ............. 8/30/2021 

Purisys, LLC ............................ D9-Tetrahydrocannabinol in dimethylsulfoxide (10 mg/mL) ..... Sealed ampule: 1 mL ............. 8/30/2021 

Purisys, LLC ............................ D9-Tetrahydrocannabinol in dimethylsulfoxide (5 mg/mL) ....... Sealed ampule: 1 mL ............. 8/30/2021 

Siemens Healthcare 

Diagnostics Inc.

IMMULITE Estradiol Diluent ..................................................... Plastic container: 0.5L–3L ...... 10/11/2021 

Opportunity for Comment 

Pursuant to 21 CFR 1308.23(e), any 

interested person may submit written 

comments on or objections to any 

chemical preparation in this order that 

has been approved or denied as exempt. 

If any comments or objections raise 

significant issues regarding any finding 

of fact or conclusion of law upon which 

this order is based, the Deputy Assistant 

Administrator will immediately 

suspend the effectiveness of any 

applicable part of this order until he 

may reconsider the application in light 

of the comments and objections filed. 

Thereafter, the Deputy Assistant 

Administrator shall reinstate, revoke, or 

amend his original order as he 

determines appropriate. 

Approved Exempt Chemical 

Preparations Are Posted on the DEA’s 

Website 

A list of all current exemptions, 

including those listed in this order, is 

available on the DEA’s website at http:// 

www.DEAdiversion.usdoj.gov/ 

schedules/exempt/exempt_chemlist.pdf. 

The dates of applications of all current 

exemptions are posted for easy 

reference. 

* * * * * 

Thomas W. Prevoznik, 

Deputy Assistant Administrator. 

[FR Doc. 2022–08300 Filed 4–18–22; 8:45 am] 

BILLING CODE 4410–09–P 

DEPARTMENT OF LABOR 

Employee Benefits Security 

Administration 

[Prohibited Transaction Exemption 2022– 

02; Exemption Application No. L–12008] 

Exemption From Certain Prohibited 

Transaction Restrictions Involving 

Phillips 66 Company (Phillips 66 or the 

Applicant) Located in Houston, TX 

AGENCY: Employee Benefits Security 

Administration, Labor. 

ACTION: Notice of exemption. 

SUMMARY: This document contains a 

notice of exemption issued by the 

Department of Labor (the Department) 

from certain of the prohibited 

transaction restrictions of the Employee 

Retirement Income Security Act of 1974 


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(ERISA or the Act) and/or the Internal 

Revenue Code of 1986 (the Code). Under 

the exemption, the Phillips 66 Group 

Life Insurance Plan (the Plan) will enter 

into an insurance contract with an 

unrelated A-rated insurance company 

(the Fronting Insurer) that will, in turn, 

enter into a reinsurance contract with 

Spirit Insurance Company (Spirit), an 

affiliate of Phillips 66 (the Reinsurance 

Arrangement). Under the Reinsurance 

Arrangement, Spirit will reinsure the 

Plan’s risks. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Joseph Brennan of the Department at 

(202) 693–8456. (This is not a toll-free 

number.) 

SUPPLEMENTARY INFORMATION: On 

September 20, 2021, the Department 

published a notice of proposed 

exemption in the Federal Register at 86 

FR 52210, permitting: (1) The 

reinsurance of risks; and (2) the receipt 

of premiums by Spirit in connection 

with insurance contracts sold by Zurich 

American Life Insurance Company (or 

any successor Fronting Insurer) to 

provide Group Term Life and 

Accidental Death and Dismemberment 

benefits to Plan participants. 

This exemption provides only the 

relief specified in the text of the 

exemption. It provides no relief from 

violations of any law other the 

prohibited transaction provisions of 

ERISA expressly stated herein. 

The Department makes the requisite 

findings under ERISA Section 408(a) 

based on adherence to all of the 

conditions of the exemption. 

Accordingly, affected parties should be 

aware that the conditions incorporated 

in this exemption are, taken as a whole, 

necessary for the Department to grant 

the relief requested by the Applicant. 

Absent these or similar conditions, the 

Department would not have granted this 

exemption. 

The Applicant requested an 

individual exemption pursuant to 

ERISA Section 408(a) in accordance 

with the procedures set forth in 29 CFR 

part 2570, subpart B (76 FR 66637, 

66644, October 27, 2011). 

Written Comments 

In the proposed exemption, the 

Department invited all interested 

persons to submit written comments 

and/or requests for a public hearing 

with respect to the notice of proposed 

exemption. All comments and requests 

for a hearing were due to the 

Department by November 5, 2021. The 

Department received one written 

comment from the Applicant and three 

calls from Plan participants seeking to 

better understand the proposed 

exemption. The Department did not 

receive any requests for a public hearing 

from any of the commenters. 

Comments From the Applicant 

I. Text of Exemptive Relief in Section II 

Section II of the proposed exemption 

at 86 FR 52215 states: ‘‘The exemption 

would provide relief from the 

prohibited transactions provisions of 

ERISA sections 406(a)(1)(A), (D), and 

406(b)(1) and (b)(3), and the excise tax 

imposed by Code section 4975(a) and (b) 

(due to the operation of parallel 

prohibited transaction provisions 

contained in Code section 4975(c)(1)(A), 

(D), (E), and (F)) with respect to . . .’’ 

The Applicant notes that it requested 

exemptive relief from ERISA Sections 

406(a)(1)(A), (C) and (D), and 406(b)(1), 

(2), and (3), along with the parallel 

provisions of the Code. 

The Applicant requests that the 

Department either directly state that it 

does not need relief from ERISA 

Sections 406(a)(1)(C) and 406(b)(2) 

because the Reinsurance Arrangement 

would not violate those sections, or 

broaden the exemption in Section II to 

include relief from ERISA Sections 

406(a)(1)(C) and 406(b)(2). 

Department’s Response: The 

Department intended to include 

exemptive relief from ERISA Section 

406(b)(2) in Section II of the proposed 

exemption and has revised that section 

of the exemption accordingly. However, 

the Department is not revising the 

proposed exemption to include relief 

from ERISA Section 406(a)(1)(C). Such 

relief is available to the Applicant to the 

extent it meets the requirements of 

ERISA Section 408(b)(2), a statutory 

exemption that provides exemptive 

relief from the prohibitions of ERISA 

Section 406(a) for, among other things, 

contracting or making reasonable 

arrangements with a party in interest for 

services necessary to operate the plan. 

Relief in the statutory exemption is 

conditioned on certain requirements 

being met that are not included in the 

conditions of this exemption. The 

Department could not make a finding 

that the exemption would be in the 

interest of the Plan if the Department 

provided the Applicant with exemptive 

relief from ERISA Section 406(a)(1)(C) 

without requiring it to meet the 

additional protections afforded by 

ERISA Section 408(b)(2) and the 

requirements set forth in Department’s 

regulations issued thereunder (29 CFR 

2550.408b–2). 

Department’s Note: Since the Plan is 

not subject to the provisions of Title II 

of ERISA, the Department has revised 

the scope of relief in the exemption by 

removing references to Code Sections 

4975(c)(1)(A), (D), (E) and (F). 

II. Limitations on the Use of 

Participant-Related Data or 

Information 

Section III(o) of the proposed 

exemption states that: ‘‘Neither Phillips 

66 nor any related entity may use 

participant-related data or information 

generated by or derived from the 

Reinsurance Arrangement in a manner 

that benefits Phillips 66 or a related 

entity . . . .’’ Preamble Section 5 of the 

proposed exemption states: ‘‘The 

Department developed this proposed 

exemption based on the Applicant’s 

representation that Phillips 66 is not 

expected to receive any benefit from the 

Reinsurance Arrangement other than the 

net income increase described herein, 

which must be verified annually by the 

Independent Fiduciary.’’ 

The Applicant states that, while it 

does not object to the Department’s 

concept of an express prohibition on 

misuse of participant data, it is 

concerned that the specific language of 

the prohibition in Section III(o) is too 

broad, and may prohibit activity the 

Department did not intend to prohibit. 

The Applicant further states that the 

Preamble description explaining Section 

III(o) is even broader than the actual text 

of Section III(o), stating that ‘‘. . . any 

participant-related data . . .’’ from the 

Reinsurance Arrangement cannot be 

used ‘‘. . . in any manner . . .’’ that 

‘‘benefits’’ Phillips 66 or an affiliate. 

The Applicant reiterates that Phillips 

66 intends to derive no additional 

benefit from the Reinsurance 

Arrangement other than what it has 

already disclosed, and states that the 

proposed exemption’s broad language 

could be read to prevent Phillips 66 

from using participant data and 

information in perfectly appropriate 

ways related to better plan 

administration. For example, the 

Applicant asserts that claims data may 

be used to improve claims processing 

and risk mitigation or to determine 

whether and how to enhance benefits. 

The Applicant states that these purposes 

would benefit participants but might 

also be seen to benefit Phillips 66. 

Accordingly, the Applicant requests 

the following modification to Section 

III(o): ‘‘Neither Phillips 66 nor any 

related entity may benefit from the use 

of participant-related data or 

information generated by or derived 

from the Reinsurance Arrangement for 

purposes unrelated to Phillips 66’s role 

as a plan sponsor and/or 

employer. . . .’’ The Applicant states 

that this language achieves the 

Department’s objectives without 


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unintentionally limiting the appropriate 

use of plan and participant data. 

Department’s Response: The 

Department declines to make the 

Applicant’s requested revisions. The 

prohibition against the use of 

participant-related data by Phillips 66 is 

intentionally expansive in order to 

protect the interest of each affected Plan 

participant as required by ERISA section 

408(a). The Applicant has not 

demonstrated that the Plan’s 

participants and beneficiaries would, in 

all instances, be adequately protected if 

Phillips 66 were to use plan-related data 

in its role as a plan sponsor and/or 

employer. However, the Department has 

revised Section III(o) to clarify that the 

condition does not preclude Phillips 66 

from using participant-related data 

solely to improve the administration of 

the Plan, or to enhance the Plan’s 

benefits. Phillips 66 may contact the 

Office of Exemption Determinations to 

the extent it is unsure whether its 

potential future use of participantrelated data would violate this 

condition. 

III. Technical Edits 

The Department has revised the 

exemption consistent with two nonsubstantive edits identified by the 

Applicant involving the numbering and 

lettering of certain paragraphs and subparagraphs. For clarity, the Department 

added a new definition, which defines 

the term ‘‘Plan’’ as the Phillips 66 Group 

Life Insurance Plan. 

Accordingly, after considering the 

entire record developed in connection 

with the Applicant’s exemption 

application and comment letter, the 

Department has determined to grant the 

exemption described below. 

The complete application file (L– 

12008) is available for public inspection 

in the Public Disclosure Room of the 

Employee Benefits Security 

Administration, Room N–1515, U.S. 

Department of Labor, 200 Constitution 

Avenue NW, Washington, DC 20210. 

For a more complete statement of the 

facts and representations supporting the 

Department’s decision to grant this 

exemption, refer to the notice of 

proposed exemption published on June 

28, 2021, at 86 FR 34048. 

General Information 

The attention of interested persons is 

directed to the following: 

(1) The fact that a transaction is the 

subject of an exemption under ERISA 

Section 408(a) does not relieve a 

fiduciary or other party in interest from 

certain requirements of other ERISA 

provisions, including any prohibited 

transaction provisions to which the 

exemption does not apply and the 

general fiduciary responsibility 

provisions of ERISA Section 404, which, 

among other things, require a fiduciary 

to discharge his or her duties respecting 

the plan solely in the interest of the 

plan’s participants and beneficiaries and 

in a prudent fashion in accordance with 

ERISA Section 404(a)(1)(B). 

(2) As required by ERISA Section 

408(a), the Department hereby finds that 

the exemption is: (a) Administratively 

feasible; (b) in the interests of affected 

plans and of their participants and 

beneficiaries; and (c) protective of the 

rights of participants and beneficiaries 

of such plans. 

(3) This exemption is supplemental 

to, and not in derogation of, any other 

ERISA provisions, including statutory or 

administrative exemptions and 

transitional rules. Furthermore, the fact 

that a transaction is subject to an 

administrative or statutory exemption is 

not dispositive of determining whether 

the transaction is in fact a prohibited 

transaction. 

(4) The availability of this exemption 

is subject to the express condition that 

the material facts and representations 

contained in the application accurately 

describe all material terms of the 

transactions that are the subject of the 

exemption. 

Accordingly, the following exemption 

is granted under the authority of ERISA 

Section 408(a), and in accordance with 

the procedures set forth in 29 CFR part 

2570, subpart B (76 FR 66637, 66644, 

October 27, 2011): 

Exemption 

Section I. Definitions 

(a) An ‘‘affiliate’’ of Phillips 66 or 

Spirit includes: (1) Any person or entity 

who controls Phillips 66 or Spirit or is 

controlled by or under common control 

with Phillips 66 or Spirit; (2) any 

officer, director, employee, relative, or 

partner with respect to Phillips 66 or 

Spirit; and (3) any corporation or 

partnership of which the person in (2) 

of this paragraph is an officer, director, 

partner, or employee; 

(b) The term ‘‘Benefit Enhancements’’ 

means the following benefits, unless 

adjusted in a manner that is consistent 

with the terms of this exemption: 

(i) The New Care Advocacy Service 

Benefit. Under this new benefit, master’s 

degree-level licensed social workers will 

proactively find participants needing 

specialized assistance, including those 

diagnosed with a terminal or chronic 

illness or who are managing a chronic 

condition that has confined them to 

their home or a rehabilitation center. 

Care Advocacy support service includes 

participant education and assistance 

with respect to available community 

resources, and assistance with 

scheduling and navigating doctor’s 

appointments, completing forms, and 

coordinating care with doctors and 

specialists. 

(ii) The Enhanced Funeral Concierge 

Service Benefit. Under this 

enhancement, the Plan would extend its 

existing Funeral Concierge Service 

Benefit to provide coverage for Plan 

participants’ family members. 

(iii) The Enhanced Accelerated Death 

Benefit. The Plan currently provides an 

Accelerated Death Benefit for 

terminally-ill participants with life 

expectancy of 24 months or less to 

receive an accelerated life insurance 

benefit payment in advance of death of 

up to 50 percent of the participant’s 

total life insurance benefit amount. 

Under this enhancement, the amount of 

the Accelerated Death Benefit will 

increase to 80 percent of a participant’s 

life insurance benefit. 

(iv) The Enhanced Accidental Death 

& Dismemberment Benefit. The Plan 

currently provides that if a participant 

suffers an injury resulting in 

Hemiplegia, the Plan would pay such 

participant a benefit equal to 66 percent 

of the participant’s incurred losses from 

such injury. Under this enhancement, 

the payment will increase to 75 percent 

of the participant’s incurred losses from 

such injury. 

(v) The New Accidental Death & 

Dismemberment Benefit. Under the 

current terms of the Plan, if a 

participant dies in an automobile 

accident while seated in an air bagprotected position and such air bag 

system deployed during the accident, 

the Plan would not pay any additional 

benefit to the participant. Under this 

enhancement, the Plan will provide a 

new benefit that pays ten percent of the 

principal sum, up to $25,000, upon the 

occurrence of this event. 

Further, under the current terms of 

the Plan, if a participant dies 100 miles 

away from his or her primary place of 

residence, the Plan would not cover 

costs incurred to transport the 

participant’s body from the place of 

death to a mortuary near the 

participant’s primary residence. Under 

this enhancement, the Plan will provide 

a new benefit of up to five percent of the 

AD&D policy amount, up to a maximum 

of $5,000, for the cost associated with 

transporting the deceased participant’s 

body to a mortuary near his or her 

primary residence. 

Finally, the Plan currently does not 

cover medical costs incurred by a 

participant who suffers third degree 

burns. Under this enhancement, the 


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1Under ERISA Section 3(14)(G), a corporation is 

a ‘‘party in interest’’ with respect to an employee 

benefit plan if 50 percent or more of the combined 

voting power of all classes of the corporation’s stock 

entitled to vote, or the total value of shares of all 

classes of stock of the corporation, is owned by an 

employer any of whose employees are covered by 

the employee benefit plan. 

Plan will enhance the AD&D benefit by 

paying a percentage of the principal 

sum based on the body area(s) and the 

percentage of the body surface affected. 

(c) The term ‘‘control’’ means the 

power to exercise a controlling 

influence over the management or 

policies of a person other than an 

individual; 

(d) The term ‘‘Independent Fiduciary’’ 

means a person who: 

(1) Is not Phillips 66 or an affiliate of 

Phillips 66 or Spirit and does not hold 

an ownership interest in Phillips 66, 

Spirit or affiliates of Phillips 66 or 

Spirit; 

(2) Was not a fiduciary with respect 

to the Plan before its appointment to 

serve as the Independent Fiduciary; 

(3) Has acknowledged in writing that: 

(i) It is a fiduciary and has agreed not 

to participate in any decision with 

respect to any transaction in which it 

has an interest that might affect its best 

judgment as a fiduciary; and 

(ii) Has appropriate technical training 

or experience to perform the services 

contemplated by the exemption; 

(4) For purposes of this definition, no 

organization or individual may serve as 

Independent Fiduciary for any fiscal 

year if the gross income received by 

such organization or individual from 

Phillips 66, Spirit, or their affiliates for 

that fiscal year exceeds two percent of 

such organization’s or individual’s gross 

income from all sources for the prior 

fiscal year. This provision also applies 

to a partnership or corporation of which 

such organization or individual is an 

officer, director, or 10 percent or more 

partner or shareholder and includes as 

gross income amounts received as 

compensation for services provided as 

an independent fiduciary under any 

prohibited transaction exemption 

granted by the Department; 

(5) No organization or individual that 

is an Independent Fiduciary and no 

partnership or corporation of which 

such organization or individual is an 

officer, director or ten percent or more 

partner or shareholder may acquire any 

property from, sell any property to, or 

borrow any funds from Phillips 66, 

Spirit, or affiliates of Phillips 66 or 

Spirit while the individual serves as an 

Independent Fiduciary. This prohibition 

would continue for a period of six 

months after either: (i) The party ceases 

to be an Independent Fiduciary or (ii) 

the Independent Fiduciary negotiates on 

behalf of the Plan during the period that 

such organization or the individual 

serves as an Independent Fiduciary; and 

(6) In the event a successor 

Independent Fiduciary is appointed to 

represent the interests of the Plan with 

respect to the subject transaction, no 

time should elapse between the 

resignation or termination of the former 

Independent Fiduciary and the 

appointment of the successor 

Independent Fiduciary; 

(e) The term ‘‘Plan’’ means the 

Phillips 66 Group Life Insurance Plan. 

Section II. Covered Transactions 

The restrictions of ERISA Sections 

406(a)(1)(A) and (D), and 406(b)(1), 

(b)(2) and (b)(3), shall not apply to: (1) 

The reinsurance of risks; and (2) the 

receipt of premiums by Spirit in 

connection with insurance contracts 

sold by Zurich (or any successor 

Fronting Insurer) to provide Group 

Term Life and Accidental Death and 

Dismemberment benefits to Plan 

participants. In order to receive such 

relief, the conditions in Section II must 

be met in conformance with the 

definitions set forth in Section I. 

(a) Phillips 66 must improve the Plan 

with the Benefit Enhancements that are 

funded solely by Phillips 66 in 

compliance with (b) through (e) below; 

(b) For every dollar that Phillips 66 

and its related parties directly and 

indirectly benefit from the Captive 

Reinsurance arrangement, Phillips 66 

must pay at least $0.51 towards the 

Benefit Enhancements, as may be 

adjusted under condition (e) below (the 

Primary Benefit Test); 

(c) The Independent Fiduciary must 

determine whether the Primary Benefit 

Test has been met with respect to each 

successive five-year period covered by 

the exemption. The Independent 

Fiduciary must report its determinations 

as part of the Independent Fiduciary’s 

next annual report. For purposes of the 

initial five-year period, the Independent 

Fiduciary may test only the costs and 

benefits that inure to Phillips 66 during 

years two through five of the initial fiveyear period. 

(d)(1) If the Primary Benefit Test has 

not been met with respect to a five-year 

period, Phillips 66 must reduce the 

participants’ portion of the Plan’s 

premium in the next consecutive year 

by an amount that is at least equal to the 

amount by which the prior five-year 

Primary Benefit Test was not met, plus 

an additional payment of interest on the 

shortfall, at the Code’s federal 

underpayment rate set forth in Code 

Section 6621(b). The premium 

reduction must benefit all plan 

participants equally, be fully 

implemented during the course of the 

year following the last year of the fiveyear period to which it relates, and be 

verified by the Independent Fiduciary; 

(2) If the captive reinsurance 

arrangement is terminated before the 

end of a five-year period (a Shorter 

Term), and if the Primary Benefit Test 

has not been met during the Shorter 

Term, Phillips 66 must reduce the 

participants’ portion of the Plan’s 

premium in the following year by an 

amount at least equal to the amount by 

which the Shorter Term Primary Benefit 

Test was not met. The premium 

reduction must benefit all plan 

participants equally, be fully 

implemented during the course of the 

year following the last year of the 

Shorter Term, and be verified by the 

Independent Fiduciary. Relief in this 

proposed exemption does not extend to 

prohibited transactions described in this 

proposed exemption that occur during 

the Shorter Term unless the 

requirements in this Subsection (d)(2) 

have been met. The Independent 

Fiduciary must ensure the premium 

reduction was properly implemented, 

notwithstanding that the Reinsurance 

Arrangement has already been 

terminated; 

(e) Phillips 66 may adjust the Benefit 

Enhancements to the Plan at any time, 

if such adjustment is approved in 

advance by the Independent Fiduciary 

after the Independent Fiduciary first 

determines that each adjusted Benefit 

Enhancement is in the interest of the 

Plan’s participants and beneficiaries and 

available to them on an equal basis. The 

cost incurred by Phillips 66 to fund the 

Benefit Enhancement may be used to 

determine whether the Primary Benefit 

Test has been met. A complete 

description of any new Benefit 

Enhancements and the Independent 

Fiduciary’s rationale and 

determinations regarding such 

enhancements must be included in the 

next Independent Fiduciary report 

submitted to the Department. 

(f) Spirit must: 

(1) Be a party in interest with respect 

to the Plan based on its affiliation with 

Phillips 66 that is described in ERISA 

Section 3(14)(G); 1

(2) Be licensed to sell insurance or 

conduct reinsurance operations in the 

Vermont; 

(3) Have obtained a Certificate of 

Authority from the insurance 

commissioner of Vermont to transact 

business as a captive insurance 

company. Such certificate must not 

have been revoked or suspended; 

(4) Have undergone a financial 

examination (within the meaning of the 


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law of its domiciliary State of Vermont) 

by the Insurance Commissioner of 

Vermont within five years before the 

end of the year preceding the year in 

which the reinsurance transaction 

occurred; 

(5) Have undergone, and continue to 

undergo, an examination by an 

independent certified public accountant 

for its last completed taxable year 

immediately before the taxable year of 

the Reinsurance Arrangement covered 

by this exemption; and 

(6) Be licensed to conduct reinsurance 

transactions by a state whose law 

requires that an actuarial review of 

reserves be conducted annually by an 

independent firm of actuaries and 

reported to the appropriate regulatory 

authority; 

(g) In each year of coverage provided 

by a Fronting Insurer, the formulae used 

by the Fronting Insurer to calculate 

premiums will be similar to formulae 

used by other insurers providing 

comparable life insurance coverage 

under similar programs. Furthermore, 

the premium charges calculated in 

accordance with the formulae will be 

reasonable and comparable to the 

premiums charged by the Fronting 

Insurer and its competitors with the 

same or a better financial strength rating 

providing the same coverage under 

comparable programs; 

(h) The Plan must pay no 

commissions with respect to the sale of 

such contracts or the Reinsurance 

Arrangement; 

(i) The Fronting Insurer must have a 

financial strength rating of ‘‘A’’ or better 

from A.M. Best Company (A.M. Best) or 

an equivalent rating from another rating 

agency; 

(j) The Reinsurance Arrangement 

between Spirit and Zurich or any 

successor Fronting Insurer must be 

indemnity insurance only. The 

arrangement must not relieve a Fronting 

Insurer from any responsibility or 

liability to the Plan, including liability 

that would result if Spirit fails to meet 

any of its contractual obligations to 

Zurich or any successor Fronting 

Insurer under the Reinsurance 

Arrangement; 

(k) Phillips 66 will not offset or 

reduce any benefits provided to Plan 

participants and beneficiaries in relation 

to its implementation of the Benefit 

Enhancements; 

(l) The Independent Fiduciary must: 

(1) In compliance with the fiduciary 

obligations of prudence and loyalty 

under ERISA Sections 404(a)(1)(A) and 

(B) (i) review the Reinsurance 

Arrangement and the terms of the 

exemption; (ii) obtain and review all 

current objective, reliable, third-party 

documentation necessary to make the 

determinations required of the 

Independent Fiduciary by the 

exemption; and (iii) confirm in writing 

that all of the exemption’s terms and 

conditions have been met (or, due to 

timing requirements, can reasonably be 

expected to be met consistent with the 

terms of this proposed exemption) and 

send this confirmation to the 

Department’s Office of Exemption 

Determinations at least 30 days before 

Phillips 66 engages in the Reinsurance 

Arrangement. The confirmation must 

include copies of each document relied 

on by the Independent Fiduciary and 

the steps the Independent Fiduciary 

took to make its confirmation; 

(2) Monitor, enforce and ensure 

compliance with all conditions of this 

exemption, in accordance with its 

obligations of prudence and loyalty 

under ERISA Sections 404(a)(1)(A) and 

(B), including all conditions and 

obligations imposed on any party 

dealing with the Plan, throughout the 

period during which Spirit’s assets are 

directly or indirectly used in connection 

with a transaction covered by this 

exemption. 

(3) Report any instance of noncompliance immediately to the 

Department’s Office of Exemption 

Determinations; 

(4) Take all appropriate actions to 

safeguard the interests of the Plan; 

(5) Review all contracts pertaining to 

the Reinsurance Arrangement, and any 

renewals of such contracts, to determine 

whether the requirements of this 

exemption and the terms of Benefit 

Enhancements continue to be satisfied; 

(6) Submit an annual Independent 

Fiduciary Report to the Department 

certifying under penalty of perjury 

whether each term and condition of the 

exemption is met over the applicable 

period. Each report must be: (i) 

Completed within six months after the 

end of the twelve-month period to 

which it relates (the first twelve-month 

period begins on the effective date of the 

exemption grant); and (ii) submitted to 

the Department within 60 days 

thereafter. The relevant report must 

include all of the objective data 

necessary to demonstrate that the 

Primary Benefit Test has been met; 

(m) Neither Phillips 66 nor any 

related entity may use participantrelated data or information generated by 

or derived from the Reinsurance 

Arrangement in a manner that benefits 

Phillips 66 or a related entity. 

Notwithstanding the above, this 

condition does not preclude Phillips 66 

from using participant-related data 

solely to improve the administration of 

the Plan or to enhance the Plan’s 

benefits; 

(n) No amount of Spirit’s reserves that 

are attributable to the Plan participants’ 

contributions may be transferred to 

Phillips 66 or a related party; 

(o) All the facts and representations 

set forth in the Summary of Facts and 

Representation must be true and 

accurate; and 

(p) No party related to this exemption 

request has or will, indemnify the 

Independent Fiduciary, in whole or in 

part, for negligence and/or for any 

violation of state or federal law that may 

be attributable to the Independent 

Fiduciary in performing its duties under 

the captive reinsurance arrangement. In 

addition, no contract or instrument may 

purport to waive any liability under 

state or federal law for any such 

violations. 

Effective Date: This exemption will be 

in effect on the date that this grant 

notice is published in the Federal 

Register. 

Signed at Washington, DC. 

Timothy P. Hauser, 

Deputy Assistant Secretary for Program 

Operations, Employee Benefits Security 

Administration, U.S. Department of Labor. 

[FR Doc. 2022–08305 Filed 4–18–22; 8:45 am] 

BILLING CODE 4510–29–P 

DEPARTMENT OF LABOR 

Employee Benefits Security 

Administration 

[Prohibited Transaction Exemption 2022– 

01; Exemption Application No. D–12065] 

Exemption for Certain Prohibited 

Transaction Restrictions Involving 

Credit Suisse Group AG (CSG or the 

Applicant), Located in Zurich, 

Switzerland 

AGENCY: Employee Benefits Security 

Administration, Labor. 

ACTION: Notice of exemption. 

SUMMARY: This document is a notice of 

exemption issued by the Department of 

Labor (the ‘‘Department’’) from certain 

of the prohibited transaction restrictions 

of the Employee Retirement Income 

Security Act of 1974 (‘‘ERISA’’) and the 

Internal Revenue Code of 1986 (the 

‘‘Code’’). The exemption allows entities 

with specified relationships to Credit 

Suisse AG (‘‘CSAG’’) and Credit Suisse 

Securities (Europe) Limited (‘‘CSSEL’’) 

to continue to rely on the exemptive 

relief provided by Prohibited 

Transaction Class Exemption 84–14, 

notwithstanding the judgments of 

conviction against CSAG and CSSEL, 

described below. 


lotter on DSK11XQN23PROD with NOTICES1