Listen to this articleWith the end of the year approaching, it’s a ripe—If not necessary—time for employers to examine retirement (and other) benefits they provide their employees, with a raft of changes and evolving employee needs that could put them on the spot, Long Island benefit experts say.
New adjustments to federal and state rules for employer retirement savings programs are unfolding, but the right approach to working with benefit advisors and workers can actually boost a business.
Communication with a business’ third-party advisor for retirement and its workforce are key.
“I always remind business leaders that benefits like retirement accounts can be a tool to recruit and retain employees —but only if employees actually know about those benefits,” said Alan Petrilli, JPMorganChase’s managing director, commercial banking region manager for Long Island.
“One of the most common mistakes is employees simply not taking advantage of benefits because they don’t know they exist—often because employers don’t communicate about their benefits clearly and effectively,” he added.
Petrilli pointed to J.P. Morgan’s 2024 DC Plan Participant Survey, which found only 35 percent of retirement plan participants will seek the advice of a financial advisor, and 45 percent will seek the advice of a retirement plan provider.
He said a good chunk of the rest rely on their own research.
A consensus from experts: reaching out for expertise to avoid gaps, missed opportunities or regulatory mistakes. And those conversations on retirement planning and related issues shouldn’t wait.
“Employers with 10 or more employees should talk to their third-party administrators, planners, and accountants now, especially with new regulations and changes coming up,” said Barry Shapiro, a certified financial fiduciary and president of BShapiro Financial in Jericho. “Early preparation ensures they know what’s required and helps avoid surprises down the road.”
Experts advise employers to update retirement plans to align with regulatory changes, including mandatory auto-enrollment and expanded eligibility for part-time employees. Offering tax-advantaged options such as Roth IRAs can help offset potential tax increases. Clear communication on maximizing contributions and understanding tax benefits is essential to promote long-term savings.
Christine Parisi, senior wealth manager at R.W. Rogé & Company in Bohemia, suggests employers consider “hosting engaging educational workshops to help employees understand the bigger picture of their retirement savings.” Direct engagement with a business’s third-party administrator is equally essential, providing structure and clarity for employers and employees.
With frequent updates to regulations, staying informed is crucial. The IRS has announced that 2025 contribution limits for 401(k) plans have increased to $23,500, with catch-up contributions at $7,500 for those over 50. Under the SECURE Act 2.0, employees aged 60 to 63 will see a new, higher catch-up retirement savings limit of $11,250.
The agency also warns of changes outlined in SECURE Act 2.0, urging businesses to prepare for potential tax adjustments as the Tax Cuts and Jobs Act sunsets in 2026.
The SECURE Act 2.0, enacted in December 2022, introduced automatic enrollment for new 401(k) plans, faster eligibility for part-time employees, and increased catch-up contributions for workers aged 60-63, all to enhance retirement savings. Other updates include increased tax credits for small businesses, mandatory auto-enrollment, and additional catch-up contributions for certain age groups.
Employers in New York State should also be aware of state-specific requirements. “If your business doesn’t offer a retirement plan, you might have to enroll in the New York State Secure Choice Savings Program,” notes Parisi. “This is aimed at broadening retirement savings access, so be sure to stay on top of these requirements to avoid penalties.”
Shapiro emphasizes that carefully evaluating each employee’s fit within the retirement plan, in light of new rules and limitations is critical. For instance, knowing ahead of time that an employee qualifies for the enhanced “catch-up” savings will allow an employer to proactively provide that information—or at least be prepared if the employee asks about it.
“This is what I’m talking to people about right now: ‘You may not like this, but pay attention.’ We have to make sure which box an employee fits in and what their options are,” Shapiro said. “
JPMorganChase’s Petrilli advises that employers prioritize programs that can quickly pay off for their workers.
“Employers should focus on developing programs that can have an immediate impact on their employees’ finances, like emergency savings accounts; coaching and priority setting for savings goals, including retirement; education and coaching on debt consolidation; and student loan debt-matching (in other words, saving for retirement or other financial goals like buying a home, while simultaneously paying off education debts),” Petrilli said.
All of that is empowered by a business that is thriving or understands potential opportunities or challenges that can be addressed simultaneously.
Parisi reinforces that a comprehensive year-end financial review is essential. By examining cash flow, updating budgets and planning expenses, businesses can consider reinvestment or retirement contributions that enhance both immediate financial health and long-term stability.
“Conducting a comprehensive review of your company’s financials not only optimizes your retirement plan,” Parisi shared, “but also lays a strong foundation for future success.”