The Santa Clarita Valley Chamber of Commerce recently announced the launch of its new SCV Chamber Member 401(k) Retirement Plan, which is designed to save local businesses time and money in the administration of a 401(k) program for their employees, while creating individual, customized plans.
“Being a member of the chamber means you’re part of a business community that works together and shares opportunities and successes,” Nancy Starczyk, chair of the chamber board, said in a prepared statement. “The SCV Chamber’s new 401(k) program brings businesses together to create the ability for small and medium sized businesses to offer cost-effective 401(k) retirement plans for their employees with substantially fewer administrative responsibilities.”
Beginning June 30, 2021, California is set to require all businesses with more than 50 employees to offer their employees a retirement savings program. Then, by June 30, 2022, companies with five or more employees are set to be required to provide a retirement plan.
The Chamber Member 401(k) Retirement Plan has a goal to create a minimum $25 million fund within the next year, after having already secured $5 million in retirement accounts from local businesses prior to launch.
“The SCV Chamber understands that a company’s retirement plan can be one of the most valued employee benefits that supports retention and attracts top talent,” Ivan Volschenk, managing partner at Evolve Business Strategies, which manages the SCV Chamber, said in the statement. “The SCV Chamber continues to evolve and develop greater member benefits that are designed to support our local businesses and help them be successful.”
The SCV Chamber has partnered with Lincoln Financial Group to oversee the Multiple Employer Aggregation Program, or MEAP, including the plan’s important administrative, recordkeeping and fiduciary services.
Locally, LBW Insurance and Financial Services is expected to serve as the preferred local agent for the plan, helping to get more businesses enrolled in the plan to help them reduce overhead expenses and meet new state requirements.
“We feel this plan puts the chamber on the forefront of a new movement towards large group retirement plans,” Todd Lerner, financial advisor for LBW Insurance, said in the statement. “Whether a member company has a large 401(k) or is looking to set one up for the first time, this is a compelling and powerful option. And the state of California has started to require employers to offer retirement savings plans for their employees. The SCV Chamber is getting ahead of these requirements and creating a cost-effective and simple way for employers to comply with these new regulations.”
The plan is open for all chamber-member agents to participate, and businesses seeking more information on the new SCV Chamber Member 401(k) Retirement Plan can attend one of the chamber’s virtual workshops to help educate members and financial agencies on the new plan. For more information, visit scvchamber.com or email [email protected].