Every employee deserves retirement benefits: Leading Cannabis 401(k)’s guiding principle

Despite widespread legalization at the state level, cannabis is still federally illegal, which prevents cannabis companies from accessing federally-controlled banking and financial services. As a result, cannabis companies and their employees often lack access to basic financial services like 401(k)s or retirement savings plans.

This gap in retirement benefit access is unprecedented for a booming industry that employs more than 440,445 full-time equivalent employees, according to the 2024 Vangst Jobs Report. In response, Leading Retirement Solutions developed the first and most compliant cannabis retirement plan, The Leading Cannabis 401(k), tailored to meet the unique needs of companies in this heavily-regulated space.

Last year, the North American Companies Council began offering a 401(k) Pooled Employer Plan and earlier this year, Green Leaf Business Solutions, a HR and payroll solutions company for the cannabis industry, began offering the GreenPath 401k. Both are fully vetted and transparent retirement plan solution tailored specifically for the legal cannabis industry.

However, LRS is “a pioneer in the retirement plan space, with the longest and most consistent track record of serving the cannabis industry,” said Curry. “We’ve built a trusted network of thoroughly vetted financial service providers to deliver retirement plans that are not only compliant and transparent, but also specifically tailored to the unique regulatory landscape of cannabis businesses.

“Unlike many providers that offer short-term, non-compliant solutions, often resulting in service disruptions or provider ejections, our approach is built for long-term sustainability and reliability.
Over the past 12 to 18 months, many alternative options have disappeared as custodial institutions increasingly recognize that most recordkeepers are not equipped to meet the compliance demands of Schedule I commerce, including transaction monitoring and reporting.

“At the same time, cannabis companies and their advisors are becoming more aware of the need for retirement plans that are managed with cannabis-specific oversight. As plan assets grow, so does the importance of rigorous compliance, something we are uniquely positioned to deliver.”

LRS supports cannabis employers of all sizes “from emerging startups with just a few employees to multi-state enterprises with thousands of team members,” said Curry. “We do not impose minimum requirements for employee count or plan asset size. Every cannabis business deserves access to high-quality, compliant retirement solutions, regardless of where they are in their journey.

“It is deeply unjust that employees of the cannabis industry have experienced retirement savings disruption due to service provider ejections,” said Curry. “Our team of experts has worked with numerous cannabis companies, including some of the largest in the country, after being ejected from other 401(k) providers. In every instance, LRS took these ejected retirement plans on and maintained retirement savings continuity for the cannabis companies and their employees. We work tirelessly to help the hundreds of thousands of employees in the cannabis industry access retirement savings benefits through their employer.”

When cannabis employers are finally able to offer a 401(k) plan, “employee response is overwhelmingly positive,” said Curry. “Many workers in this industry are unaware they even have the right to access retirement savings tools, so when the opportunity arises, they’re eager to participate.”

Companies that implement automatic enrollment and escalation features, just like their counterparts in more traditional sectors, “see strong engagement,” she said. “We also work closely with experienced advisors who provide effective education and guidance, helping employees make informed decisions about their financial futures.”