Safe Harbor Rolls Out PEP Built for Cannabis Employers
The Safe Harbor Retirement Plan, a pooled employer 401(k) plan designed specifically for state-legal cannabis businesses and the companies that serve them, was launched today by SHF Holdings, Inc., d/b/a Safe Harbor, a fintech platform serving the banking, lending, and financial services needs of the regulated cannabis and hemp industries.
The plan provides access to a broad 401(k) investment portfolio and utilizes collective investment trusts structured to support participation by cannabis-related businesses within a framework that is intended to be compliant with applicable laws.
The company notes that many traditional 401(k) providers are not structured to support cannabis-related businesses, creating uncertainty for employers and employees alike. In some cases, cannabis businesses have experienced sudden plan terminations or service disruptions with limited notice. In certain situations, this can result in early withdrawal penalties and tax implications for participants, depending on individual circumstances and applicable regulations.
“For years, cannabis operators have tried to offer retirement benefits to their employees while navigating uncertainty around plan stability.”
Safe Harbor CEO Terry Mendez
The Safe Harbor Retirement Plan is designed to provide a more durable path forward for the employees and employers impacted by these issues. The plan is structured to support cannabis-related businesses directly, helping reduce the risk of disruption and supporting long-term continuity for employers and employees.
“For years, cannabis operators have tried to offer retirement benefits to their employees while navigating uncertainty around plan stability,” said Terry Mendez, CEO of Safe Harbor. “This solution is designed to provide a more consistent path forward. It reflects the same approach we’ve taken across banking and financial services, building infrastructure that aligns with the realities of this industry and supports the people behind it.”
Expanding its platform
The Retirement Plan launch represents an important step in Safe Harbor’s continued expansion into a broader financial solutions platform for the cannabis industry.
Safe Harbor has built infrastructure to support the full employee financial lifecycle for cannabis operators:
Employee Banking: compliant banking solutions that give cannabis employees access to stable personal banking services.
Payroll & HR: Through the acquisition of 420 IT Solutions and partnerships with cannabis-focused payroll providers, Safe Harbor supports core workforce operations.
Retirement: The Safe Harbor Retirement Plan adds long-term savings infrastructure, extending support beyond day-to-day operations into financial stability for employees.
The plan is designed to support a wide range of participants. Operators with both cannabis and non-cannabis businesses can enroll employees across entities under a single plan. Companies that serve or invest in cannabis businesses may also participate, expanding access to compliant retirement solutions.
The first adopting member of the new PEP is Safe Harbor itself.
Additional information is available at https://shfinancial.org/retirement-solutions-401k.
SEE ALSO:
• Advisors List Reduced Fiduciary Risk, Administrative Burden for Growing PEP Interest
• Equitable Launches 403(b) PEP Aimed at Nonprofits
• GreenPath 401k Debuts as ‘First Fully Vetted and Transparent’ Plan for Cannabis Industry
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.