In this installment of our Employee Benefits and Executive Compensation Considerations in Mergers and Acquisitions podcast series, Partners Jeffery Banish and Joshua Gelfand discuss many of the complex issues surrounding employee benefits and executive compensation in M&A transactions. They cover key concerns, common pitfalls, and best practices relating to matters that are likely to arise in M&A transactions. Understanding and addressing benefit issues is critical to ensuring that the parties identify the risks and liabilities they may be assuming relating to benefit matters.

The Internal Revenue Service announced the 2025 cost-of-living adjustments to the dollar limitations for qualified retirement plans and other benefits, and the Social Security Administration announced its own cost-of-living adjustments for 2025. Most of the dollar limits, including the elective deferral contribution limit for 401(k), 403(b) and 457(b) plans, the…

In this installment of our Employee Benefits and Executive Compensation Considerations in Mergers and Acquisitions podcast series, Troutman Pepper Partners Joshua Gelfand and Michael Crumbock discuss current executive compensation trends and issues in the private equity M&A space, including employment contracts, severance, and equity compensation.

In this installment of our Employee Benefits and Executive Compensation Considerations in Mergers and Acquisitions podcast series, Troutman Pepper Partners Jim Earle, Lynne Wakefield, and Lydia Parker discuss the impact of the Supreme Court’s decision in Loper Bright Enterprises v. Raimondo on benefits-related regulations, including the Department of Labor’s Fiduciary Rule; environmental, social, and governance regulations; protections based on sexual orientation and gender identity under the Affordable Care Act; and much more.

On June 20, 2024, the Internal Revenue Service (“IRS”) released Notice 2024-55 (the “Notice”) offering guidance on two (2) new types of distributions exempt from the 10% early withdrawal penalty: emergency personal expense distributions and domestic abuse victim distributions.…

Two Texas federal court decisions have stalled the U.S. Department of Labor’s (“DOL”) “investment advice fiduciary rule” under Section 3(21) of the Employee Income Security Act of 1974, as amended (the “Fiduciary Rule”) from its September 23, 2024 effective date (see our previous alert).…

In a blog post dated May 10, 2024, we discussed the Form 5330, an excise tax return used by certain employers and individuals to pay penalty taxes with respect to employee benefit plans, must be filed electronically for taxable years ending on or after December 31, 2023 if the filer is required to file at least 10 returns of any type. As described further in that blog post, this electronic filing requirement had the potential to create issues for sponsors of qualified retirement plans because there was not an Authorized e-file Provider (“AEP”) with the capability of electronically filing Forms 5330. Without relief from the Internal Revenue Service (“IRS”), employers would not have the option of filing the Forms 5330 by paper even with the lack of AEPs.…

The Consumer Finance Podcast

In this episode of The Consumer Finance Podcast, Chris Willis delves into the renewed focus on incentive compensation by federal financial regulators. Joined by colleagues Sheri Adler and Jina Davidovich from the Employee Benefits and Executive Compensation group, the discussion centers on the implications of Section 956 of the Dodd-Frank Act. The episode explores the historical context, proposed rule changes, and the potential impact on financial institutions and their employees. Key topics include the scope of covered institutions, specific requirements for senior executives and significant risk-takers, and the governance and compliance obligations that may arise if the rules are enacted.

The Consumer Finance Podcast

In this episode of The Consumer Finance Podcast, Chris Willis is joined by Sheri Adler to discuss the implications of the upcoming change in securities law that shortens the settlement period for broker-dealer transactions from T+2 (two business days after the trade date) to T+1 (one business day after the trade date). This change, effective May 28, 2024, has significant implications for employers who offer equity-based compensation to their employees. Adler provides an overview of the history of the settlement cycle, the reasons behind the shift to T+1, and the impact on tax withholding obligations for equity awards. She also offers practical advice for companies to prepare for this change, including potential adjustments to the calculation of fair market value for withholding purposes.

The Form 5330‎, an excise tax return used by certain employers and individuals to pay penalty ‎taxes, must be filed electronically for taxable years ending on or after December 31, 2023. As ‎described below, this may create issues for sponsors of qualified retirement plans.‎…