The settlement of the PLMBS lawsuit is non-taxable income to begin with: Damages awarded for loss of an income-producing asset, not loss of income.
Welcome to the Separate Account plan.
In case you were wondering, these are the 18 financial institutions sued. The number 18 missing, is UBS. Totalling, a $202B PLMBS portfolio. They are called: "The allies (in fraud)".