In 2018, a group of friends from the entertainment industry started a cannabis company called Jeeter. Quickly, the California-based manufacturer captured hearts with their high-quality pre-rolls. Jeeter has grown into one of the top cannabis brands in the U.S.

“Our ongoing aim is to create a world-class product offered with uncompromising quality and a people-first culture,” said John Anderson, Jeeter’s Vice President of Human Resources. “We care about operational excellence, great compliance, and community impact.”

Jeeter’s commitment to their products, community, and employees inspired Anderson, a long-time HR professional with a background in Mergers and Acquisitions, to come aboard. But, when he noticed there was no employee 401(k) plan in place, he sought to remedy that quickly and effectively.

“I thought we needed to offer the employees a 401(k) to deliver the best employee experience,” said Anderson. “A 401(k) is essential for employee retention, and it shows that you’re a grown up company that offers their employees top-notch benefits.”

A Stand-Out Provider

After Jeeter leadership gave Anderson the go ahead to scout 401(k) options, Anderson found there weren’t many providers out there that met his must-have criteria—then he found Leading Retirement Solutions.

“?We looked at a few other companies, but LRS really stood out,” said Anderson.

The vast majority of financial and retirement plan providers are discouraged from offering retirement benefits to cannabis companies, even in states where cannabis is recreationally legal, because cannabis is classified as a controlled substance at the federal level. 

With that in mind, Anderson knew Jeeter needed a full-service provider that could handle the legal and administrative complexities of offering fully-compliant 401(k) plans in cannabis. In particular, he wanted a provider he could trust with the tasks of compliance reporting, which is time-consuming, tedious, and, if done incorrectly, can lead to penalties and plan ejections.

“LRS was clearly very? knowledgeable about the cannabis industry, very capable of making the program work for us. And when I have an issue or concern, I can reach out and have a response back within two hours,” he said.

LRS’ expert employee education and payroll integration also played a key part in the successful role-out of Jeeter’s first-ever 401(k). Anderson specifically highlighted LRS’ superior employee education and payroll integration, which ensures compliance by automating the sharing of retirement plan data between the LRS’ payroll system and the 401(k) recordkeeper.

“?We didn’t have to worry about employee notifications, how to send them, how they should read. LRS provided it all to us,” said Anderson. “And payroll integration makes it easier to manage things.”

Retirement Without Guesswork

Since 2024, Jeeter has participated in LRS’s cannabis pooled employer plan (PEP), an innovative type of 401(K) plan that’s designed to reduce administrative burden and costs, minimize fiduciary liability, as well as provide compliant access to financial services and competitive benefits. This plan has been very successful for Jeeter and its employees.

“We get asked a lot, ‘Do you have a 401(k) plan?’ So, for recruitment and retention, it’s been an excellent tool,” said Anderson. “And we?have a pretty young employee base. So, we tell them, ‘hey, you guys are getting this 401(k) and you’re 20 years old. In 40 years, you’re going to have a substantial sum in there.’”

LRS’ metrics reinforce satisfaction with Jeeter’s 401(k) program. From the launch of their plan, until now, the number of active participants in Jeeter’s plan has increased from 44 to 401 employees. Likewise, total employee contributions have increased by 471% during this same period. Overall, the plan has seen an investment gain of 3,976% since 2024.

Anderson says employees are “happy to have the 401(k) program,” and he’d definitely recommend LRS to other companies looking to implement 401(k) and retirement benefits—in cannabis and beyond.

“LRS makes it easy. They take the guesswork out. They have professional documents and professional employees. They’re geared up for success,” he said. “I really believe the way they’re structured, you can’t screw it up. Even if you’re completely new to 401(k) plans, LRS will help you get through it.”