ABBOTT LABORATORIES: TURNING BIG IDEAS INTO ACTIONABLE PLANS - McDermott Will & Emery

ABBOTT LABORATORIES: TURNING BIG IDEAS INTO ACTIONABLE PLANS

THE CHALLENGE

Faced with an increasingly competitive labor market, long-term client
Abbott Laboratories wanted to develop a creative way to build a sustainable
talent pipeline while addressing the heavy burden of student loan debt on
early-career professionals.

THE SOLUTION

We partnered with Abbott in developing an innovative student loan repayment
benefit as part of Abbott’s 401(k) plan: if employees contribute at least 2% of their
salary to paying off student loans, Abbott provides a tax-exempt 5% retirement
contribution that mirrors its 401(k) match. Our skilled employee benefits lawyers
secured a private letter ruling from the Internal Revenue Service granting Abbott
permission to launch this ground-breaking benefit, which differentiates Abbott in
the talent market and contributes to its culture of employee loyalty.