I asked at my airline and got the real answer to this question. My airline has an exemption. We don't need the PIC requirement if we are upgrading here. The exemption is specific to the airline I work for. Other airlines have their own exemptions. Some don't. Some airlines needed this exemption back in 2007 because the FO's didn't have the PIC time and they needed captains ASAP. They will need it again in a few years because there are still a lot of FO's without the PIC time. You know how it is....if it is going to cost the airlines money, the FAA usually caves and helps the airlines out by relaxing the rules.