NACC Unveils Innovative Cannabis 401(k) Solution
The North American Companies Council, Inc. (The NACC™) has introduced an exciting new 401(k) Pooled Employer Plan (PEP) tailored specifically for cannabis businesses. This initiative is a major leap forward in retirement savings options for the cannabis industry.
Revolutionizing Retirement Savings for Cannabis Workers
As the first fully vetted and transparent 401(k) choice available to legal cannabis companies, the NACC PEP is becoming essential for the industry. It's designed to offer the much-needed retirement savings platform for a sector that has historically struggled to find compliant financial solutions.
Perspectives from NACC Board Members
Jeff Mayhall, a Board Member at The NACC™, highlighted the critical need for retirement savings among both businesses and employees. He mentioned that providing access to a straightforward and dependable retirement plan is vital for the financial wellbeing of workers in the cannabis sector. The NACC™ has spent years crafting this unique solution, demonstrating its commitment to addressing the specific requirements of legal cannabis enterprises.
Breaking Barriers for Employees
Shawn West, the Founder and ERISA Director of CuraFin Advisors, who oversees the PEP as the 3(38) investment manager, pointed out that this plan aims to dismantle obstacles for around 500,000 employees eager to save for retirement. With this initiative, employees can start planning confidently for their future.
The Importance of Service Providers
Successful implementation of this PEP depended on collaboration with various dedicated service providers. Pete Swisher, Managing Partner at Group Plan Systems, LLC (GPS), remarked that all partners worked together to reimagine the solution, ensuring its functionality and effectiveness. This innovative mindset was key to making the unique PEP possible.
Administrative Oversight and Custodial Support
The recordkeeping and third-party administration for the PEP are handled by AmericanTCS’s American Trust Retirement, while the custodial duties fall to AmericanTCS’s American Trust Custody. Bankwell (Nasdaq: BWFG) has been confirmed as the custodian for these funds, laying a strong financial foundation for this new retirement option. Additionally, compliance with AML, FinCEN, and OFAC regulations is managed by Green Check Verified, Inc.
What is The NACC™?
The North American Companies Council, Inc. (The NACC™) is a not-for-profit organization classified under 501(c)(6). Managed by a member-led Board, its mission is to promote sustainable growth in the North American cannabis industry. The NACC™ focuses on transparency and collaboration within its network, ensuring that members receive standardized and reliable service tailored to the unique challenges of operating in the cannabis sector.
This collaborative approach aims to foster strong partnerships built on thorough due diligence and mutual agreements, ultimately providing exceptional service with no hidden surprises for members involved in the cannabis business.
Frequently Asked Questions
What is the purpose of the NACC’s new 401(k) PEP?
The NACC's 401(k) PEP offers a transparent and compliant retirement savings option specifically created for cannabis-related businesses, improving financial security for their employees.
Who can benefit from the NACC PEP?
About 500,000 employees in the legal cannabis industry stand to gain from this initiative, enabling them to save and invest effectively for retirement.
Which organizations are involved in managing the NACC PEP?
The management of the NACC PEP involves multiple organizations, including CuraFin Advisors as the investment manager and Group Plan Systems, LLC as the pooled plan provider, with custodial services provided by Bankwell (Nasdaq: BWFG).
How long did it take to develop the NACC retirement plan?
The NACC dedicated several years to the development of this retirement savings offering, ensuring it meets the distinct needs of cannabis businesses and their employees.
Where can I find more information about The NACC™?
For further details about The NACC and its initiatives, you can visit their website at www.GetTheNACC.org.
