In 2017, STIIIZY began as an ambitious Los Angeles-based cannabis startup. Today, they are a multi-state operator and one of the best-selling cannabis brands in the country, known particularly for their flavorful distillate vape pods.

“STIIIZY’s vision is to bring cannabis culture to the world,” said STIIIZY Human Resources Vice President Lena Song.

Part of bringing cannabis to the world is taking the stigma out of it, Song said. That’s one of the main reasons STIIIZY strives to offer their 2000+ employees the same sort of benefits they would get in a more traditional industry.

“It’s one of our goals to become an employer of choice in the cannabis industry,” said Song.

But, as STIIIZY sought to deliver an enticing employee 401(k) plan, they encountered a few challenges such as coordinating employer match and connecting with their plan provider.

“When you go into a cannabis company, you don’t expect there to be a 401(k) plan because cannabis is still federally illegal, right? There are a lot of hurdles that we need to jump through, especially with banking,” said Song. 

Finding the Right Fit

3 years ago, STIIIZY began their 401(k) benefit journey by taking part in California’s state-sponsored CalSavers program. While they were elated to be able to offer employees some retirement benefits, the fact that the program didn’t offer an employer match sent them looking for another cannabis 401(k) provider that offered more plan features.

They found one, but things didn’t go as they hoped. Communication wasn’t as consistent as they had expected, and the overall experience didn’t fully align with the level of partnership and service they were aiming for. Rather than accepting that outcome, STIIIZY mobilized quickly to secure a new solution, kept the 401k plan running without interruption, and delivered the stability their team deserved.

STIIIZY put the word out that they were looking for a new 401(k) provider. Their broker and one of the most highly regarded insurance brokerages in the U.S., HUB international, recommended they try Leading Retirement Solutions (LRS).

“To have a trusted partner in the space recommend LRS, it made us feel that much more comfortable in exploring working with them,” Song said.

The LRS Commitment

Right away, Song said it was apparent that LRS was prepared to step in as a true partner and guide them through the transition with confidence. When things needed ironing out, LRS made themselves available for phone chats without requiring Song to file a ticket or wait on hold.

“I really appreciate their timeliness with their communication. The fact that we were able to get on a call in such a short turnaround was impressive.” Song said. “Communication is just so important here, because our business moves at the speed of light.”

LRS is a national retirement plan third-party administrator and recordkeeper serving both traditional industries and the cannabis industry. It provides compliant and transparent cannabis 401(k) plan solutions through strategic partnerships with legal firms, fund companies, investment advisors, and custodians that are fully committed to supporting cannabis employers.

Beyond tackling compliance issues, LRS delivered a top-notch experience to their workforce.

“LRS took care of our employees, responding to them in a timely manner, and making sure that they have the information they need to make the right choices for their account,” Song said.

Of course, there were usual implementation bumps along the way as STIIIZY transitioned into a new 401(k) provider and a new payroll provider at the same time. But, LRS was readily available to talk through complexities and triage any issue that arose.

“They were awesome,” Song said. “They gave awesome guidance and even signed off on some of the information that we were about to send to employees. It did feel like a true partnership.”

Undeniable Results

Today, nearly a year into their relationship with LRS, there are 1,723 accounts with balances in their 401(k) plan, meaning approximately 86% of their employees are enrolled.  

What’s more, employee financial information, including their deductions, is all handled through seamless payroll integration, a feature that takes a significant amount of work off the Payroll Department’s desk.

“I would hate to have to go through any manual deductions. That would be a nightmare,” said Song.

As LRS supports her work and ensures STIIIZY’s 401(k) plan is stable and compliant, Song said she has “no feedback” for LRS and that she would “100%” recommend LRS to others.

“In cannabis, you don’t always get to offer benefits that match what you would see in traditional industries,” Song said. “So, just being able to deliver something that truly helps employees build their futures feels like a win for everybody.”