2025 Open Enrollment Checklist
August 2, 2024
2025 Open Enrollment Checklist

To get ready for open enrollment, employers who sponsor group health plans should be aware of compliance changes affecting the design and administration of their health plans for plan years beginning on or after Jan. 1, 2025. These changes include limits that are adjusted for inflation each year, such as the Affordable Care Act’s (ACA) affordability percentage and cost-sharing limits for high deductible health plans (HDHPs). Employers should review their health plan’s design to confirm that it has been updated, as necessary, for these changes.


In addition, any changes to a health plan’s benefits for the 2025 plan year should be communicated to plan participants through an updated summary plan description (SPD) or a summary of material modifications (SMM).


Health plan sponsors should also confirm that their open enrollment materials contain certain required participant notices, such as the summary of benefits and coverage (SBC), when applicable. Some participant notices must also be provided annually or upon initial enrollment. To minimize costs and streamline administration, employers should consider including these notices in their open enrollment materials.


Plan Design Changes

ACA Affordability Standard

The ACA requires ALEs to offer affordable, minimum-value health coverage to their full-time employees (and dependents) or risk paying a penalty to the IRS. This employer mandate is also known as the “pay-or-play” rules. An ALE is an employer with at least 50 full-time employees, including full-time equivalent employees, during the preceding calendar year.


An ALE’s health coverage is considered affordable if the employee’s required contribution for the lowest cost self-only coverage that provides minimum value does not exceed 9.5% (as adjusted) of the employee’s household income for the taxable year. For plan years beginning in 2024, the adjusted affordability percentage is 8.39%.


The affordability percentage for plan years beginning on or after Jan. 1, 2025, has not been released yet. Going forward, ALEs should take the following steps:


  • Monitor future developments for the IRS’ release of the affordability percentage for 2025; and
  • Once the affordability percentage is released, confirm that at least one of the health plans offered to full-time employees satisfies the ACA’s affordability standard. Because an employer generally will not know an employee’s household income, the IRS has provided three optional safe harbors that ALEs may use to determine affordability based on information that is available to them: the Form W-2 safe harbor, the rate-of-pay safe harbor and the federal poverty line safe harbor.


Out-of-Pocket Maximum Limits

Non-grandfathered health plans and health insurance issuers are subject to limits on cost sharing for essential health benefits (EHB). EHBs reflect the scope of benefits covered by a typical employer plan and must include items and services in 10 general categories, including emergency services, hospitalization, ambulatory patient services, prescription drugs, pregnancy, maternity and newborn care, mental health and substance use disorder services, rehabilitative and habilitative services, laboratory services, preventive and wellness services and chronic disease management, and pediatric services.


The annual limits on total enrollee cost sharing for EHB for plan years beginning on or after Jan. 1, 2025, are $9,200 for self-only coverage and $18,400 for family coverage. With this in mind, employers should take the following steps:


  • Review the out-of-pocket maximum limits for the health plan to ensure they comply with the ACA’s limits for the 2025 plan year; and
  • Keep in mind that the out-of-pocket maximum limits for HDHPs compatible with HSAs must be lower than the ACA’s limits. For the 2025 plan year, the out-of-pocket maximum limits for HDHPs are $8,300 for self-only coverage and $16,600 for family coverage.


Preventive Care Benefits

The ACA requires non-grandfathered health plans and issuers to cover a set of recommended preventive services without imposing cost-sharing requirements, such as deductibles, copayments or coinsurance, when the services are provided by in-network providers. The recommended preventive care services covered by these requirements are:


  • Evidence-based items or services with an A or B rating in recommendations of the U.S. Preventive Services Task Force;
  • Immunizations recommended by the Advisory Committee on Immunization Practices for routine use in children, adolescents and adults;
  • Evidence-informed preventive care and screenings in guidelines supported by the Health Resources and Services Administration (HRSA) for infants, children and adolescents; and
  • Other evidence-informed preventive care and screenings in HRSA-supported guidelines for women.


Health plans and issuers are required to adjust their first-dollar coverage of preventive care services based on the latest preventive care recommendations. In general, coverage must be provided for a newly recommended preventive health service or item for plan years beginning on or after the one-year anniversary of when the recommendation was issued. For example, health plans and issuers must cover screenings for anxiety disorders in adults, including pregnant and postpartum patients, effective for plan years beginning on or after June 30, 2024 (e.g., the plan year beginning Jan. 1, 2025, for calendar-year plans). More information on the recommended preventive care services is available at www.HealthCare.gov.


Before the beginning of the 2025 plan year, employers should take the following step:


  • Confirm the health plan covers the latest recommended preventive care services without imposing any cost sharing when the care is provided by in-network providers.


Health FSA Contributions

The ACA imposes a dollar limit on employees’ pre-tax contributions to a health FSA. This limit is indexed each year for cost-of-living adjustments. An employer may set their own dollar limit on employees’ contributions to a health FSA as long as the employer’s limit does not exceed the ACA’s maximum limit in effect for the plan year. For plan years beginning in 2024, the health FSA limit is $3,200. The IRS has not yet released the health FSA limit for plan years beginning in 2025. Moving forward, employers with health FSAs should take these steps:


  • Monitor future developments for the release of the health FSA limit for 2025;
  • Once the IRS releases the health FSA limit, confirm that employees will not be allowed to make pre-tax contributions in excess of the limit for the 2025 plan year; and
  • Communicate the health FSA limit to employees as part of the open enrollment process.


HDHP and HSA Limits

The IRS limits for HSA contributions, HDHP minimum deductibles and HDHP maximum out-of-pocket expenses all increase for 2025. The HSA contribution limits will increase effective Jan. 1, 2025, while the HDHP cost-sharing limits will increase effective for plan years beginning on or after Jan. 1, 2025. Looking ahead, employers should take these steps:



  • Check whether HDHP cost-sharing limits need to be adjusted for the 2025 limits; and
  • Communicate HSA contribution limits for 2025 to employees as part of the enrollment process.


The following table contains the HDHP and HSA limits for 2025 compared to 2024. It also includes the catch-up contribution limit that applies to HSA-eligible individuals age 55 and older, which is not adjusted for inflation and stays the same from year to year.

HDHPs: Expiration of Design Options

To be eligible for HSA contributions for a month, an individual must be covered under an HDHP as of the first day of the month and have no other impermissible coverage. In general, except for preventive care benefits, no benefits can be paid by an HDHP until the minimum annual deductible has been satisfied. However, there are a few narrow exceptions to the minimum deductible requirement, including the following exceptions that are expiring:


  • For plan years ending after Dec. 31, 2024, an HDHP is no longer permitted to provide benefits for COVID-19 testing and treatment without a deductible (or with a deductible below the minimum deductible for an HDHP); and
  • For plan years beginning on or after Jan. 1, 2025, an HDHP is no longer permitted to provide benefits for telehealth or other remote care services before plan deductibles have been met.


Due to these changes, employers with HDHPs should take these steps for plan years beginning in 2025:


  • Confirm that HDHPs will not pay benefits for COVID-19 testing and treatment before the annual minimum deductible has been met;
  • Confirm that HDHPs will not pay benefits for telehealth or other remote care services (except for preventive care benefits) before the annual minimum deductible has been met; and
  • Notify plan participants of any changes for the 2025 plan year regarding COVID-19 testing and treatment and telehealth services through an updated SPD or SMM.


EBHRA Limit

An excepted benefit health reimbursement arrangement (EBHRA) is an employer-funded health care account that reimburses employees for their eligible medical expenses on a tax-free basis. Employers can use EBHRAs to supplement their traditional group health plan coverage and help employees with their out-of-pocket medical expenses, including deductible, copayment and coinsurance amounts. Employers of all sizes may offer EBHRAs. Although an employer must offer a traditional group health plan, employees are not required to enroll in the employer’s group coverage (or any other type of coverage) to be eligible for the EBHRA.


Only employers can contribute to HRAs, including EBHRAs. EBHRAs are subject to a maximum amount that may be made newly available for the plan year. This maximum amount is adjusted annually for inflation. For 2024 plan years, the contribution limit is $2,100. This limit increases to $2,150 for plan years beginning in 2025.


Employers that sponsor EBHRAs should take the following steps:


  • Decide how much will be contributed to the EBHRA for eligible employees for the 2025 plan year, up to a maximum of $2,150; and
  • Communicate the EHBRA’s annual benefit amount to employees as part of the open enrollment process.


Mental Health Parity – Required Comparative Analysis for NQTLs

The Mental Health Parity and Addiction Equity Act (MHPAEA) requires parity between a group health plan’s medical/surgical benefits and its mental health or substance use disorder (MH/SUD) benefits. These parity requirements apply to financial requirements and treatment limits for MH/SUD benefits. In addition, any nonquantitative treatment limitations (NQTLs) placed on MH/SUD benefits must comply with MHPAEA’s parity requirements. For example, NQTLs include prior authorization, step therapy protocols, network adequacy and medical necessity criteria.


MHPAEA requires health plans and issuers to conduct comparative analyses of the NQTLs used for medical/surgical benefits compared to MH/SUD benefits. This analysis must contain a detailed, written and reasoned explanation of the specific plan terms and practices at issue and include the basis for the plan’s or issuer’s conclusion that the NQTLs comply with MHPAEA. Plans and issuers must make their comparative analyses available to specific federal agencies or applicable state authorities upon request. In recent years, the U.S. Department of Labor (DOL) has made MHPAEA compliance a top enforcement priority, with a primary focus being MHPAEA’s parity requirements for NQTLs. Considering this information, employers should take the following step:


  • Reach out to health plan issuers (or third-party administrators) to confirm that comparative analyses of NQTLs will be updated, if necessary, for the plan year beginning in 2025.


Prescription Drug Benefits – Creditable Coverage Determination

The Inflation Reduction Act of 2022 (IRA) includes several cost-reduction provisions affecting Medicare Part D plans, which may impact the creditable coverage status of employer-sponsored prescription drug coverage beginning in 2025. For example, effective for 2025, Medicare enrollees’ out-of-pocket costs for prescription drugs will be capped at $2,000.


Employers that provide prescription drug coverage to individuals who are eligible for Medicare Part D must inform these individuals and the Centers for Medicare and Medicaid Services (CMS) whether their prescription drug coverage is creditable, meaning that the employer’s prescription drug coverage is at least as good as Medicare Part D coverage. These disclosures must be provided on an annual basis and at certain other designated times, including when there is a change to a prescription drug benefit’s creditable coverage status.


Previously, CMS stated that one of the methods for determining whether coverage is creditable (the “simplified determination” method) would no longer be valid as of calendar year 2025, given the significant changes made to Medicare Part D by the IRA. However, CMS subsequently decided that it will continue to permit the use of the simplified determination methodology, without modification, for calendar year 2025 for group health plan sponsors who are not applying for the retiree drug subsidy.


Due to these developments, employers should take the following steps:


  • Confirm whether their health plans’ prescription drug coverage for 2025 is creditable or noncreditable as soon as possible to prepare to send the appropriate Medicare Part D disclosure notices; and
  • Continue to utilize the simplified determination method for determining whether prescription drug coverage is creditable for 2025, if applicable.


Open Enrollment Notices

Employers who sponsor group health plans should provide certain benefits notices in connection with their plans’ open enrollment periods. Some of these notices must be provided at open enrollment time, such as the SBC. Other notices, such as the WHCRA notice, must be distributed annually. Although these annual notices may be provided at different times throughout the year, employers often choose to include them in their open enrollment materials for administrative convenience.


In addition, employers should review their open enrollment materials to confirm that they accurately reflect the terms and cost of coverage. In general, any plan design changes for 2025 should be communicated to plan participants either through an updated SPD or an SMM.


Summary of Benefits and Coverage

The ACA requires health plans and health insurance issuers to provide an SBC to applicants and enrollees each year at open enrollment or renewal time. Federal agencies have provided a template for the SBC, which health plans and issuers are required to use. To comply with the SBC requirements, employers should include an updated SBC with open enrollment materials.


Take note that the plan administrator is responsible for providing the SBC for self-funded plans. For insured plans, the issuer usually prepares the SBC. If the issuer prepares the SBC, an employer is not required to also prepare an SBC for the health plan, although they may need to distribute the SBC prepared by the issuer.


Medicare Part D Notices

Group health plan sponsors must provide a notice of creditable or noncreditable prescription drug coverage to Medicare Part D-eligible individuals covered by, or who apply for, prescription drug coverage under the health plan. This creditable coverage notice alerts individuals about whether their prescription drug coverage is at least as good as the Medicare Part D coverage. The notice generally must be provided at various times, including when an individual enrolls in the plan and each year before Oct. 15 (when the Medicare annual open enrollment period begins). Model notices are available on the Centers for Medicare and Medicaid Services’ website.


Annual CHIP Notices

Group health plans covering residents in a state that provides a premium subsidy to low-income children and their families to help pay for employer-sponsored coverage must send an annual CHIP notice about the available assistance to all employees residing in that state. The DOL has provided a model notice. Employers should confirm they are using the most recent model notice, as the DOL updates it regularly.


Initial COBRA Notices

COBRA applies to employers with 20 or more employees who sponsor group health plans. Group health plan administrators must provide an initial COBRA notice to new participants and certain dependents within 90 days after plan coverage begins. The initial COBRA notice may be incorporated into the plan’s SPD. A model initial COBRA notice is available from the DOL.


SPDs

Plan administrators must provide an SPD to new participants within 90 days after plan coverage begins. Any changes made to the plan should be reflected in an updated SPD booklet or described to participants through an SMM. Also, an updated SPD must be furnished every five years if changes are made to SPD information or the plan is amended. Otherwise, a new SPD must be provided every 10 years.


Notices of Patient Protections

Under the ACA, group health plans and issuers that require the designation of a participating primary care provider must permit each participant, beneficiary and enrollee to designate any available participating primary care provider (including a pediatrician for children). Additionally, plans and issuers that provide obstetrical/gynecological care and require a designation of a participating primary care provider may not require preauthorization or referral for such care. If a health plan requires participants to designate a participating primary care provider, the plan or issuer must provide a notice of these patient protections whenever the SPD or similar description of benefits is provided to a participant. If an employer’s plan is subject to this notice requirement, they should confirm that it is included in the plan’s open enrollment materials. This notice may be included in the plan’s SPD. Model language is available from the DOL.


Grandfathered Plan Notices

If an employer has a grandfathered plan, they should make sure to include information about the plan’s grandfathered status in plan materials describing the coverage under the plan, such as SPDs and open enrollment materials. Model language is available from the DOL.


Notices of HIPAA Special Enrollment Rights

At or before the time of enrollment, an employer’s group health plan must provide each eligible employee with a notice of their special enrollment rights under HIPAA. This notice may be included in the plan’s SPD.


HIPAA Privacy Notices

The HIPAA Privacy Rule requires covered entities (including group health plans and issuers) to provide a Notice of Privacy Practices (or Privacy Notice) to each individual who is the subject of protected health information (PHI). Health plans are required to send the Privacy Notice at certain times, including to new enrollees at the time of enrollment. Also, at least once every three years, health plans must either redistribute the Privacy Notice or notify participants that the Privacy Notice is available and explain how to obtain a copy.


Self-insured health plans must maintain and provide their own Privacy Notices. However, special rules apply for fully insured plans, where the health insurance issuer, not the plan itself, is primarily responsible for the Privacy Notice.


Special Rules for Fully Insured Plans

The sponsor of a fully insured health plan has limited responsibilities with respect to the Privacy Notice, including the following:


  • If the sponsor of a fully insured plan has access to PHI for plan administrative functions, they are required to maintain a Privacy Notice and provide the notice upon request; and
  • If the sponsor of a fully insured plan does not have access to PHI for plan administrative functions, they are not required to maintain or provide a Privacy Notice.


A plan sponsor’s access to enrollment information, summary health information and PHI that is released pursuant to a HIPAA authorization does not qualify as having access to PHI for plan administration purposes.


Model Privacy Notices are available through the U.S. Department of Health and Human Services.


WHCRA Notices

Plans and issuers must provide a notice of participants’ rights to mastectomy-related benefits under the WHCRA at the time of enrollment and on an annual basis. The DOL’s compliance assistance guide includes model language for this disclosure.


SARs

Plan administrators required to file Form 5500 must provide participants with a narrative summary of the information in Form 5500, called a summary annual report (SAR). Group health plans that are unfunded (that is, benefits are payable from the employer’s general assets and not through an insurance policy or trust) are not subject to the SAR requirement. The plan administrator generally must provide the SAR within nine months of the close of the plan year. If an extension of time to file Form 5500 is obtained, the plan administrator must furnish the SAR within two months after the close of the extension period. A model notice is available from the DOL.


Wellness Program Notices

Group health plans that include wellness programs may be required to provide certain notices regarding the program’s design. As a general rule, these notices should be provided when the wellness program is communicated to employees and before employees provide any health-related information or undergo medical examinations. These notices are required in the following situations:


  • HIPAA Wellness Program Notice—HIPAA imposes a notice requirement on health-contingent wellness programs offered under group health plans. Health-contingent wellness plans require individuals to satisfy standards related to health factors (e.g., not smoking) to obtain rewards. The notice must disclose the availability of a reasonable alternative standard to qualify for the reward (and, if applicable, the possibility of waiver of the otherwise applicable standard) in all plan materials describing the terms of a health-contingent wellness program. The DOL’s compliance assistance guide includes a model notice that can be used to satisfy this requirement.
  • Americans with Disabilities Act (ADA) Wellness Program Notice—Employers with 15 or more employees are subject to the ADA. Wellness programs that include health-related questions or medical exams must comply with the ADA’s requirements, including an employee notice requirement. Employers must give participating employees þ a notice that tells them what information will be collected as part of the wellness program, with whom it will be shared and for what purpose, as well as includes the limits on disclosure and the way information will be kept confidential. The U.S. Equal Employment Opportunity Commission has provided a sample notice to help employers comply with this ADA requirement.


ICHRA Notices

Employers may use individual coverage health reimbursement arrangements (ICHRAs) to reimburse their eligible employees for insurance policies purchased in the individual market or for Medicare premiums. Employers with ICHRAs must provide a notice to eligible participants about the ICHRA and its interaction with the ACA’s premium tax credit. In general, this notice must be provided at least 90 days before the beginning of each plan year. Employers may provide this notice at open enrollment time if it is at least 90 days prior to the beginning of the plan year. A model notice is available for employers to use to satisfy this notice requirement.


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Workplace Safety: 4 Risks Employers Shouldn't Overlook

June 17, 2026
Every June, National Safety Month serves as a reminder that workplace safety is about far more than compliance. Organized by the National Safety Council, the annual campaign encourages organizations to focus on injury prevention, employee well-being, and creating safer work environments. While safety conversations often center around preventing accidents, many employers overlook the broader impact safety has on their business. Workplace injuries can affect productivity, employee morale, absenteeism, workers' compensation costs, turnover, and even an organization's reputation. The good news is that meaningful improvements do not always require major investments or large-scale initiatives. In many cases, the most effective safety improvements come from identifying everyday risks before they become larger problems. Here are four areas employers should evaluate as they work to strengthen workplace safety and reduce risk. 1. Review Hazards That Have Become "Normal" One of the biggest challenges in workplace safety is that regular exposure can make certain risks feel normal. A cluttered walkway, a damaged handrail, or poor lighting in a warehouse aisle may not seem urgent if employees navigate around them every day without incident. But the risks that become part of the daily routine are often the easiest to overlook. Over time, employees may learn to work around the hazard instead of reporting it, which increases the chance that a preventable issue eventually turns into an injury. Walk through your workplace with fresh eyes and ask supervisors and employees what concerns they see but have gotten used to. Some of the most valuable safety improvements come from addressing the issues everyone has quietly accepted as “just how things are.” 2. Look Beyond Physical Safety When people think about workplace safety, they often picture hard hats, warning signs, and protective equipment. Physical safety is critical, but employee well-being extends beyond preventing physical injuries. Fatigue, stress, burnout, and mental health challenges can all contribute to workplace incidents. Employees who are distracted, exhausted, or overwhelmed are more likely to make mistakes, miss warning signs, or take shortcuts that increase risk. National Safety Month's focus on holistic worker health reflects a growing recognition that employee well-being and workplace safety are closely connected. Employers can support both by encouraging reasonable workloads, promoting work-life balance, providing access to employee assistance resources, and fostering a workplace culture where employees feel comfortable speaking up when they need support. 3. Don't Ignore Your Driving Exposure Many organizations underestimate how much risk exists outside the walls of their workplace. Employees who drive for work, whether occasionally or daily, create exposure that can have significant financial and operational consequences. If employees operate company vehicles or drive on company business, consider reviewing: Driver qualification requirements Vehicle inspection procedures Distracted driving policies Motor vehicle record review practices Accident reporting procedures Even organizations that do not maintain a fleet often have employees traveling between locations, visiting clients, or running business-related errands. Safe driving practices should be part of every organization's overall safety strategy. 4. Pay Attention to the Small Incidents Many serious injuries are preceded by smaller incidents, near misses, or repeated unsafe behaviors. Unfortunately, these warning signs are often dismissed because no one was hurt. A near miss is valuable information, and provides an opportunity to identify risks and make corrections before an injury occurs. Encourage employees to report hazards, close calls, and safety concerns without fear of blame. The goal is not to assign fault, but to learn from small incidents before they become larger ones. Organizations that consistently track and address near misses often gain valuable insight into patterns that might otherwise go unnoticed. Safety Is a Business Strategy Strong safety programs help protect employees, but they also support broader business goals. Fewer injuries can mean lower workers' compensation costs, reduced absenteeism, improved productivity, and stronger employee retention. Employees who feel safe at work are often more engaged, more productive, and more likely to stay with an organization long term. Safety shouldn't be viewed as a once-a-year initiative. The most successful organizations treat it as an ongoing process of identifying risks, improving procedures, and supporting employees. Questions to Ask This Month As National Safety Month approaches, consider discussing these questions with your leadership team: Are there workplace hazards we've become accustomed to? Do employees feel comfortable reporting safety concerns? How are we supporting employee well-being beyond physical safety? Are our driving and vehicle-related risks being addressed? What recent near misses can help us improve? Sometimes the most valuable safety improvements begin with a simple conversation. At Simco , we work with organizations to help align HR, benefits, payroll, compliance, and commercial insurance strategies that support a safer, more productive workplace. Whether you're reviewing workplace policies, evaluating risk management practices, or preparing for future growth, taking a proactive approach to safety can benefit both your employees and your business.

Hosting a Graduation Party or Summer BBQ? What Upstate NY Homeowners Should Know About Liability

June 5, 2026
June in Upstate New York has a way of bringing everyone outside. Graduation parties fill backyards, grills get fired up, pools open for the season, and weekends start revolving around family, friends, neighbors, and good weather. Most homeowners think about the fun parts of hosting: food, seating, parking, decorations, and whether the weather will cooperate. Insurance is usually not at the top of the checklist. But when you invite people onto your property, you also take on a certain level of responsibility for their safety. That does not mean you should be afraid to host. It simply means it is worth understanding how liability works, where common risks show up, and when it may be a good idea to review your homeowners insurance before summer gatherings begin. What does liability mean for homeowners? Liability, in the context of homeowners insurance, generally refers to your financial responsibility if someone is injured or their property is damaged and you are found legally responsible. For example, a guest could trip on uneven patio stones, fall on a wet pool deck, get bitten by a dog, or be injured during a backyard game. In some situations, the liability portion of a homeowners policy may help with expenses such as legal defense costs, settlements, or medical-related claims, depending on the details of the situation and the terms of the policy. Every policy is different, and coverage depends on the facts of the claim. Still, liability coverage is one of the most important parts of a homeowners policy, especially for people who regularly host guests. Summer gatherings can create more exposure than homeowners realize A typical backyard party may feel casual, but from an insurance perspective, there are a lot of moving pieces. Guests may be walking through your yard, driveway, garage, deck, patio, or pool area. Children may be running around. People may be using stairs, outdoor furniture, grills, fire pits, trampolines, or playsets. If alcohol is served, the level of responsibility can become even more complicated. In Upstate NY, summer entertaining often includes properties with larger yards, older homes, uneven walkways, detached garages, rural driveways, lake access, pools, docks, or recreational vehicles. These features can make a home a wonderful place to gather, but they can also create risks that should be managed thoughtfully. The key question is not, “Could something go wrong?” The better question is, “Have I taken reasonable steps to make the property safe, and do I understand what my insurance may or may not cover?” Common hosting risks to think about before guests arrive Some risks are easy to overlook because they are part of everyday life at home. A loose step you have learned to avoid may not be obvious to a first-time guest. A dog that is comfortable around your family may react differently in a crowded backyard. A pool that feels routine to you may be a major attraction for children at a party. Before hosting, it is worth walking your property the way a guest would. Look for uneven walkways, loose railings, poor lighting, wet surfaces, cluttered stairs, exposed extension cords, unstable outdoor furniture, or areas where children could wander unsupervised. If you have a pool, trampoline, fire pit, grill, pond, dock, or other attractive feature, think carefully about supervision and access. These are often the areas where accidents happen quickly. You don't need to make your home perfect. But taking a few practical steps before a party can reduce the chance of injury and help show that you took safety seriously. Alcohol adds another layer of responsibility Many graduation parties, BBQs, and summer gatherings include alcohol. For hosts, this is an area where caution matters. New York has laws that can create consequences for providing alcohol to minors. Even beyond legal concerns, alcohol can increase the chance of falls, arguments, poor decisions, or unsafe driving after a party. If alcohol will be served, hosts should think about how it will be monitored, especially at graduation parties where underage guests may be present. Keep alcohol in a controlled area, avoid self-serve access for minors, and consider having non-alcoholic options readily available. It is also wise to pay attention to guests who may need a ride or should not be driving. This is not just a legal issue. It is a safety issue, a community issue, and potentially an insurance issue. Are pools, trampolines, and backyard features covered? Many homeowners assume that if something is on their property, it is automatically covered under their policy. That is not always the case. Certain features, such as pools, trampolines, diving boards, treehouses, docks, or recreational equipment, may need to be disclosed to your insurance carrier. Some companies have specific eligibility rules, safety requirements, exclusions, or underwriting guidelines around these risks. For example, an insurer may want to know whether a pool is fenced, whether a trampoline has a safety net, or whether there are certain structures on the property. If your home has changed since your policy was written, your coverage may not reflect your current situation. This is one reason a summer insurance review can be so valuable. If you added a pool, built a deck, installed a fire pit, bought a trampoline, added a dog, or started hosting more often, it may be time to check in with your agent. Why your liability limit matters Homeowners insurance policies include liability limits. That limit is the maximum amount the policy may pay for a covered liability claim, subject to the policy terms. The challenge is that serious injuries can become expensive quickly. Medical bills, legal fees, lost wages, and settlement costs can add up, especially if an accident results in long-term injury. Many homeowners have not looked at their liability limit in years. Some may have selected a limit when they first bought the home and never revisited it. But life changes. Home values change. Assets change. Families grow. Teen drivers, pets, pools, boats, camps, and frequent entertaining can all change your overall risk picture. A higher homeowners liability limit may be available, and some households may also benefit from a personal umbrella policy. When an umbrella policy may be worth discussing A personal umbrella policy provides additional liability protection above the limits of certain underlying policies, such as homeowners, auto, or recreational vehicle insurance. It is designed for larger liability claims where the underlying policy limit may not be enough. For summer hosts, an umbrella policy can be especially worth discussing if you have a pool, own a boat or recreational vehicle, have teen drivers, entertain often, own a rental or seasonal property, or simply want additional protection for your assets. Umbrella coverage is not a replacement for a homeowners policy. It works alongside eligible underlying policies, and it has its own terms, limits, and exclusions. But for many households, it can be a practical way to strengthen their overall protection. Do renters and condo owners need to think about liability too? Yes. Liability is not just a concern for traditional homeowners. If you rent a home or apartment and host friends for a summer gathering, renters insurance may include personal liability coverage. If you own a condo or townhouse, your condo policy may include liability coverage as well. However, the details can vary, and shared spaces may introduce additional considerations. For example, if a guest is injured inside your rented apartment, on your balcony, or in an area you are responsible for maintaining, your policy may come into play. If the injury occurs in a common area, the situation may involve the landlord, property owner, HOA, or condo association. The main point is simple: if you host guests, liability coverage is worth understanding, regardless of whether you own a house. A few simple steps before your next gathering Before your next graduation party, BBQ, pool day, or backyard get-together, take a little time to prepare your property. Make sure walkways are clear, stairs are well lit, railings are secure, and outdoor areas are free of obvious hazards. Keep pets separated if they may become overwhelmed. Supervise pools and play areas. Be thoughtful about alcohol, especially when minors are present. Check that grills, fire pits, and extension cords are placed safely. It is also smart to review your homeowners, renters, or condo insurance before hosting season gets into full swing. Ask about your liability limit, medical payments coverage, any exclusions that may apply, and whether an umbrella policy makes sense for your household. Hosting should feel enjoyable, not stressful Summer gatherings are part of what makes this season special in Upstate NY. Whether you are celebrating a graduate, inviting neighbors over for a cookout, or opening the pool for the first time, a little preparation can go a long way. Insurance may not be the most exciting part of party planning, but it can be one of the most important. Understanding your liability coverage helps you host with more confidence, protect your guests, and avoid surprises if something unexpected happens. Before the guests arrive, take a few minutes to look around your property and review your coverage. It is a small step that can make a big difference. If you are unsure whether your current policy fits your summer plans, our Personal Insurance Team at Simco Insurance & Wealth Management can help you review your options and understand what coverage may make sense for you and your family.

5 Questions to Ask About Your 401(k) Administration Process

May 15, 2026
For many employers, managing a 401(k) plan has become more time-consuming than expected. What should feel like a straightforward administrative process often turns into ongoing coordination between payroll systems, retirement providers, HR teams, and compliance partners. The challenge usually is not the retirement plan itself. More often, the friction comes from the systems and processes supporting it. Manual uploads, delayed updates, repeated reconciliation work, and disconnected data flows can quietly create extra administrative burden over time. Because these issues develop gradually, many organizations begin treating them as “just part of the process.” But they do not have to be. As retirement administration continues to evolve, employers are taking a closer look at the operational side of their plans and asking whether their current processes are truly efficient, scalable, and aligned. Here are five questions worth asking about your organization’s 401(k) administration process. 1. Are We Still Manually Uploading Payroll Files? One of the most common inefficiencies in retirement administration is still surprisingly widespread: manually extracting payroll data and uploading files from one system to another every pay period. While this process may seem manageable, it creates unnecessary administrative work and introduces opportunities for error. Payroll teams often spend time formatting files, validating contribution data, and confirming whether updates were successfully processed. Over time, those extra steps add up. Modern payroll integrations can automate much of this process by securely transferring contribution, eligibility, and employee census data directly between systems. That reduces repetitive manual work while helping ensure retirement information stays current and accurate. If your team still relies heavily on manual uploads each pay cycle, it may be worth evaluating whether your current process is creating more administrative lift than necessary. 2. How Many Systems Need to Be Checked to Confirm an Update Went Through? This is where many employers begin to feel the operational strain of disconnected systems. An employee updates their deferral amount. A payroll change is processed. A loan repayment adjustment is made. Then someone has to verify whether the update actually flowed correctly between platforms. In environments where systems are not fully connected, HR and payroll teams often become the “checkpoint” between vendors, manually confirming updates and troubleshooting discrepancies after the fact. This is also where the difference between one-way and two-way integrations becomes important. A one-way, or 180° integration, typically sends payroll information outward to the retirement provider but does not automatically sync updates back into the payroll or HCM system . A two-way, or 360° integration, allows updates to move between systems automatically, helping reduce duplicate work and missed changes. The less time teams spend double-checking systems, the more time they can spend supporting employees and broader business priorities. 3. Could We Easily Pull Accurate Data for Compliance Testing and Reporting? Retirement plans operate within a highly regulated environment, and compliance depends heavily on accurate, timely data. Annual testing and reporting often require employers to provide detailed information including compensation data, contribution amounts, hire dates, demographic information, eligibility records, and more. For organizations using disconnected systems, collecting that information can become a time-intensive process. Missing fields, outdated data, or formatting inconsistencies often lead to repeated file requests and last-minute corrections during annual testing periods. This creates stress not only for HR and payroll teams, but also for plan administrators, TPAs, and recordkeepers responsible for maintaining compliance standards. Integrated payroll and retirement systems help streamline this process by automatically capturing and syncing data throughout the year, improving visibility and reducing the need for manual data gathering when reporting deadlines approach. 4. How Much Time Is HR Spending Fixing Preventable Errors? Many retirement administration issues do not start as major problems. More often, they begin as small discrepancies that require manual follow-up, whether it is a contribution that does not align with payroll data, an incorrect eligibility date, a delayed deferral update, or an incomplete census file. On their own, these issues may seem relatively minor. Over time, however, they create a significant amount of reactive work for HR and payroll teams that are left validating information, correcting inconsistencies, and coordinating between systems and providers. What makes this especially frustrating is that many of these issues are preventable. They are often the result of disconnected systems, delayed synchronization, or processes that rely too heavily on manual intervention. When teams spend large portions of their time validating data, reconciling discrepancies, and coordinating between providers, it becomes harder to focus on strategic priorities like employee engagement, workforce planning, and benefits strategy. Reducing friction behind the scenes can have a meaningful impact on both operational efficiency and the employee experience. 5. Is Our Current Process Built to Scale as We Grow? Processes that work for a smaller workforce can quickly become difficult to manage as an organization grows. More employees mean more payroll activity, more contribution data, more eligibility tracking, and more opportunities for inconsistencies across systems. Without connected infrastructure, administrative complexity tends to grow alongside headcount. That is why many employers are reevaluating whether their current retirement administration processes are sustainable long term. The goal is not simply to “manage” the workload, but to create systems that scale efficiently without increasing manual effort at the same pace. Connected payroll, HR, and retirement systems can help organizations reduce administrative burden, improve accuracy, and create a more streamlined experience for both employers and employees. A More Connected Approach to Retirement Administration A well-run 401(k) plan should not require constant oversight to function smoothly. When payroll, HR, and retirement administration systems work together, organizations gain better visibility into data, fewer manual touchpoints, improved reporting efficiency, and greater confidence in their processes overall. At Simco , we help employers simplify workforce management by aligning payroll, HR, benefits, and retirement administration through more connected systems and support models. For organizations evaluating their current retirement administration process, sometimes the most valuable first step is simply asking the right questions. Looking Ahead Retirement administration will likely continue becoming more data-driven, integrated, and compliance-focused in the years ahead. Employers that take time now to evaluate how information flows between payroll, HR, and retirement systems will be better positioned to reduce operational friction, support employees more effectively, and scale with greater confidence over time.

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