Products September 27, 2024

New PEP Brings Retirement Solution to Legal Cannabis Industry

Separately, another new PEP for all employers was announced by California Corporate Retirement Services.

Reported by

The North American Companies Council Inc. announced the introduction of a 401(k) pooled employer plan for its members that the council says is the nation’s first fully vetted and transparent 401(k) solution specifically designed for legal cannabis companies.

“Our goal was to open the doors for the approximately 500,000 employees who were eager to save for their retirement,” Shawn West, founder and ERISA director of CuraFin Advisors, the PEP’s 3(38) investment manager, said in a statement.

The pooled plan provider for the plan is Group Plan Systems LLC, run by managing partner Pete Swisher, who has been an active proponent and creator of PEPs.

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“This was Shawn’s vision, and it took commitment from all the service providers to launch this PEP,” Swisher said in a statement. “All parties had to think differently about the solution to make sure it would work, and GPS is pleased to have been able to play a role alongside so many great partners.”

American Trust Retirement, a division of AmericanTCS, will manage recordkeeping and third-party administration for the PEP, while American Trust Custody, another AmericanTCS entity, will serve as sub-custodian. Bankwell is acting as the custodian, and Green Check Verified Inc. is responsible for AML, FinCEN and OFAC compliance. The North American Companies Council will serve as the trustee.

Meanwhile, California Corporate Retirement Services, a division of World Investment Advisors [formerly Pensionmark], separately unveiled its own PEP, Happy HorizonsPEP, as an option for plan sponsor clients.

Robert Recchia, managing director of CCRS, spearheaded the offering, according to the announcement.

“I’ve been negotiating with service providers to develop a PEP with a strong value proposition for a while, and I’m pleased that this one is now available in the market,” Recchia said in a statement.

Voya is the recordkeeper for the PEP, with Matthews, Gold, Kennedy & Snow, a Phoenix-based firm, acting as the third-party administrator. Group Plan Systems LLC is again serving as the pooled plan provider.

“We are excited about this opportunity to work with Bob and the team at CCRS on this PEP,” Steve Niehoff, chief operating officer at GPS, said in a statement. “We launched a PEP with Voya and MGKS in 2023, and we’re glad to work with those teams again to support CCRS’ clients.”

Along with offering the PEP through CCRS, there are plans to potentially expand its availability through Patriot Growth Insurance Services LLC in the future.