Recently, the Sixth Circuit issued a significant ERISA preemption ruling for employers and pharmacy benefit managers (PBMs). The court held that Tennessee’s PBM laws, which require “any willing” pharmacy access and limiting incentives that steer members to plan‑favored pharmacies, are
Employee Benefits
Reporting developments affecting employee benefits and executive compensation
The Employee Benefits blog published by Troutman Pepper Locke focuses on legal developments and regulatory updates affecting employee benefit plans and executive compensation. Topics include changes to retirement plan contribution limits, ERISA preemption issues in litigation involving out-of-network providers, fiduciary duties and governance requirements for plan sponsors, and compliance with new state laws impacting employee bonuses and repayment obligations. The blog also covers IRS announcements on cost-of-living adjustments for qualified plans, health savings accounts, and flexible spending accounts. It provides guidance on practical steps employers and plan sponsors should take to adapt to evolving legal requirements and court decisions in the employee benefits arena.
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Latest from Employee Benefits
Ninth Circuit Upholds Administrator’s Denial of Residential Mental Health Benefits Under ERISA
In an unpublished memorandum decision, the Ninth Circuit in R.R. v. California Physicians’ Service d/b/a Blue Shield of California, affirmed the insurer and administrator’s denial of benefits for a dependent’s residential mental health treatment under an ERISA‑governed plan. The…
Trump Touts Trump Accounts
By James Earle
James Earle, leader of Troutman Pepper Locke’s Tax + Benefits Practice Group, was quoted in the February 4, 2026 Pensions & Investments article, “Trump Touts Trump Accounts.”…
House Passes HR 7148, Advancing New PBM Transparency and Compensation Rules
On January 22, the U.S. House of Representatives passed on a bipartisan basis HR 7148, the Consolidated Appropriations Act, 2026 (HR 7148). If it also wins passage in the Senate, the bill would, among other Trump administration priorities, impose new…
Coming Soon in 2026: Trump Accounts for Children Under Age 18
By James Earle
What Are Trump Accounts?
A Trump account is a type of individual retirement account (IRA) established for the exclusive benefit of a child and designated as a “Trump account” at inception. Created by the One Big Beautiful Bill Act (the…
Supreme Court Declines Review in Guardian Flight, Leaving Intact Fifth Circuit Ruling That No Private Right of Action Exists to Enforce IDR Awards
Mandatory Roth and Optional Super Catch-Up Contributions
In this installment of our Employee Benefits and Executive Compensation Preparing For 2026 series, hosts Constance Brewster and Jeff Banish walk employers through the new rules on mandatory Roth catch-up contributions and the optional “super catch-up contributions,” as we approach…
Ninth Circuit Reaffirms Broad ERISA Preemption Regardless of Concurrent ERISA Claim
On November 24, the Ninth Circuit issued an unpublished memorandum disposition in Dedicato Treatment Center, Inc. v. Aetna Life Insurance Co., affirming dismissal of an out-of-network provider’s state-law claims as preempted by ERISA’s remedial scheme. The panel’s brief decision…
IRS Announces 2026 Retirement Plan Limits: Modest Increases
The Internal Revenue Service (IRS) announced the 2026 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 2026. Most of the dollar limits, including the…
New California Requirements for Signing Bonuses Subject to Repayment Upon Early Termination
By David Kaplan
California recently enacted Section 16608 of the California Business and Professions Code, which bans agreements that require employees to pay a “penalty, fee or cost” upon termination, effective January 1, 2026.
Bonuses that are subject to repayment will be…