diff --git a/eras/shelley/impl/src/Cardano/Ledger/Shelley/LedgerState.hs b/eras/shelley/impl/src/Cardano/Ledger/Shelley/LedgerState.hs
index f954cc508c6..228fa4d603b 100644
--- a/eras/shelley/impl/src/Cardano/Ledger/Shelley/LedgerState.hs
+++ b/eras/shelley/impl/src/Cardano/Ledger/Shelley/LedgerState.hs
@@ -1260,7 +1260,7 @@ applyRUpd ::
   EpochState era ->
   EpochState era
 applyRUpd ru es =
-  let (es', _) = applyRUpd' ru es
+  let (es', _, _, _) = applyRUpd' ru es
    in es'
 
 applyRUpd' ::
@@ -1268,15 +1268,21 @@ applyRUpd' ::
   ) =>
   RewardUpdate (Crypto era) ->
   EpochState era ->
-  (EpochState era, Map (Credential 'Staking (Crypto era)) (Set (Reward (Crypto era))))
+  ( EpochState era,
+    Map (Credential 'Staking (Crypto era)) (Set (Reward (Crypto era))),
+    Map (Credential 'Staking (Crypto era)) (Set (Reward (Crypto era))),
+    Set (Credential 'Staking (Crypto era))
+  )
 applyRUpd'
   ru
-  es@(EpochState as ss ls pr pp _nm) = (EpochState as' ss ls' pr pp nm', registered)
+  es@(EpochState as ss ls pr pp _nm) =
+    (EpochState as' ss ls' pr pp nm', registered, eraIgnored, unregistered)
     where
       utxoState_ = lsUTxOState ls
       delegState = lsDPState ls
       dState = dpsDState delegState
-      (registered, totalUnregistered) = filterAllRewards (rs ru) es
+      (registered, eraIgnored, unregistered, totalUnregistered) =
+        filterAllRewards (rs ru) es
       registeredAggregated = aggregateRewards pp registered
       as' =
         as
@@ -1302,9 +1308,13 @@ filterAllRewards ::
   ) =>
   Map (Credential 'Staking (Crypto era)) (Set (Reward (Crypto era))) ->
   EpochState era ->
-  (Map (Credential 'Staking (Crypto era)) (Set (Reward (Crypto era))), Coin)
+  ( Map (Credential 'Staking (Crypto era)) (Set (Reward (Crypto era))),
+    Map (Credential 'Staking (Crypto era)) (Set (Reward (Crypto era))),
+    Set (Credential 'Staking (Crypto era)),
+    Coin
+  )
 filterAllRewards rs' (EpochState _as _ss ls pr _pp _nm) =
-  (registered, totalUnregistered)
+  (registered, eraIgnored, unregistered, totalUnregistered)
   where
     delegState = lsDPState ls
     dState = dpsDState delegState
@@ -1313,7 +1323,8 @@ filterAllRewards rs' (EpochState _as _ss ls pr _pp _nm) =
         (\k _ -> eval (k ∈ dom (rewards dState)))
         rs'
     totalUnregistered = fold $ aggregateRewards pr unregRU
-    registered = filterRewards pr regRU
+    unregistered = Map.keysSet unregRU
+    (registered, eraIgnored) = filterRewards pr regRU
 
 decayFactor :: Float
 decayFactor = 0.9
diff --git a/eras/shelley/impl/src/Cardano/Ledger/Shelley/Rewards.hs b/eras/shelley/impl/src/Cardano/Ledger/Shelley/Rewards.hs
index 38644d95d25..dc2919e9c7b 100644
--- a/eras/shelley/impl/src/Cardano/Ledger/Shelley/Rewards.hs
+++ b/eras/shelley/impl/src/Cardano/Ledger/Shelley/Rewards.hs
@@ -187,11 +187,15 @@ filterRewards ::
   (HasField "_protocolVersion" pp ProtVer) =>
   pp ->
   Map (Credential 'Staking crypto) (Set (Reward crypto)) ->
-  Map (Credential 'Staking crypto) (Set (Reward crypto))
+  ( Map (Credential 'Staking crypto) (Set (Reward crypto)),
+    Map (Credential 'Staking crypto) (Set (Reward crypto))
+  )
 filterRewards pp rewards =
   if HardForks.aggregatedRewards pp
-    then rewards
-    else Map.map (Set.singleton . Set.findMin) rewards
+    then (rewards, Map.empty)
+    else
+      let mp = Map.map Set.deleteFindMin rewards
+       in (Map.map (Set.singleton . fst) mp, Map.filter (not . Set.null) $ Map.map snd mp)
 
 aggregateRewards ::
   forall crypto pp.
@@ -200,7 +204,7 @@ aggregateRewards ::
   Map (Credential 'Staking crypto) (Set (Reward crypto)) ->
   Map (Credential 'Staking crypto) Coin
 aggregateRewards pp rewards =
-  Map.map (foldMap' rewardAmount) $ filterRewards pp rewards
+  Map.map (foldMap' rewardAmount) $ fst $ filterRewards pp rewards
 
 data LeaderOnlyReward crypto = LeaderOnlyReward
   { lRewardPool :: !(KeyHash 'StakePool crypto),
diff --git a/eras/shelley/impl/src/Cardano/Ledger/Shelley/Rules/NewEpoch.hs b/eras/shelley/impl/src/Cardano/Ledger/Shelley/Rules/NewEpoch.hs
index bc112444523..eb033bfd992 100644
--- a/eras/shelley/impl/src/Cardano/Ledger/Shelley/Rules/NewEpoch.hs
+++ b/eras/shelley/impl/src/Cardano/Ledger/Shelley/Rules/NewEpoch.hs
@@ -78,6 +78,7 @@ instance
 
 data NewEpochEvent era
   = DeltaRewardEvent (Event (Core.EraRule "RUPD" era))
+  | RestrainedRewards EpochNo (Map.Map (Credential 'Staking (Crypto era)) (Set (Reward (Crypto era)))) (Set (Credential 'Staking (Crypto era)))
   | TotalRewardEvent EpochNo (Map.Map (Credential 'Staking (Crypto era)) (Set (Reward (Crypto era))))
   | EpochEvent (Event (Core.EraRule "EPOCH" era))
   | MirEvent (Event (Core.EraRule "MIR" era))
@@ -156,7 +157,8 @@ newEpochTransition = do
       let updateRewards ru'@(RewardUpdate dt dr rs_ df _) = do
             let totRs = sumRewards (esPrevPp es) rs_
             Val.isZero (dt <> (dr <> toDeltaCoin totRs <> df)) ?! CorruptRewardUpdate ru'
-            let (es', regRU) = applyRUpd' ru' es
+            let (es', regRU, eraIgnored, unregistered) = applyRUpd' ru' es
+            tellEvent $ RestrainedRewards e eraIgnored unregistered
             -- This event (which is only generated once per epoch) must be generated even if the
             -- map is empty (db-sync depends on it).
             tellEvent $ TotalRewardEvent e regRU
diff --git a/eras/shelley/test-suite/test/Test/Cardano/Ledger/Shelley/Rewards.hs b/eras/shelley/test-suite/test/Test/Cardano/Ledger/Shelley/Rewards.hs
index ecad4482614..cb1a1058dc8 100644
--- a/eras/shelley/test-suite/test/Test/Cardano/Ledger/Shelley/Rewards.hs
+++ b/eras/shelley/test-suite/test/Test/Cardano/Ledger/Shelley/Rewards.hs
@@ -782,7 +782,7 @@ eventsMirrorRewards events nes = same eventRew compRew
             (completed, lastevent) = complete pulser
     total = getMostRecentTotalRewardEvent events
     aggevent = aggIncrementalRewardEvents events
-    (aggFilteredEvent, _) = filterAllRewards aggevent (nesEs nes)
+    (aggFilteredEvent, _, _, _) = filterAllRewards aggevent (nesEs nes)
     same x y = withMaxSuccess 1 $ counterexample message (x === y)
       where
         message =