The Santa Clarita Valley Chamber of Commerce (SCV Chamber) announced on Tuesday the launch of the new 401(k) Retirement Plan, designed to aid local businesses in the administration of retirement programs for their employees. 

Starting June 30, 2021, California is set to require all businesses with 50 or more employees to provide their employees with access to a retirement savings program. This policy is expected to be extended to businesses with 5 or more employees by June 30, 2022. 

The Chamber aims to create a minimum $25 million fund within the first year of its launch, and has already secured $5 million since Tuesday. This fund will go towards the businesses that will be required to provide retirement plans in 2021, helping them to reduce overhead expenses and meet the new state requirements

“The state of California has started to require employers to offer retirement savings plans to 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,” stated Todd Lerner, financial advisor for LBW Insurance. 

SCV Chamber has partnered with Lincoln Financial Group to oversee the Multiple Employer Aggregation Fund. LBW Insurance and Financial Services will also serve as the preferred local agent for the plan in helping to get more businesses enrolled. The plan is open for all Chamber-member agents to participate.

“Being a member of the Chamber means you’re part of a business community that works together and shares opportunities and successes,” said Nancy Starczyk, chair of the Board of Directors in a press release Tuesday. “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.”

Businesses seeking more information on the new SCV Chamber Member 401(k) Retirement Plan can attend the SCV Chamber’s Business After Hours Virtual Mixer on Wednesday, Nov. 18 at 5 p.m.  The Chamber will also be hosting virtual workshops next month to help educate its members and financial agencies on the new plan. 

To learn more about the SCV Chamber, click here.

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