What is CalSavers?


In 2016, the state of California passed legislation requiring private sector employers to provide a retirement savings program for their employees. CalSavers is the state-sponsored plan imposed on private sector employees who don’t have an alternative provided.

How does the CalSavers program affect my faith-driven organization?

If your organization has more than five employees and does not currently offer a retirement savings plan, you will be required to participate in CalSavers. The best alternative is a CalSaved Retirement Plan. While some religious organizations are exempt, here is the opportunity to review your retirement plan and access a faith driven, cost effective option.

CalSavers is a state-managed retirement plan, which means your church’s values are not considered when determining where retirement contributions are invested.

What does it mean to be a faith-based alternative to the CalSavers program?

As a faith-based alternative, the CalSaved retirement plan is built on biblically responsible investing. Every fund used for retirement investments of CalSaved participants is rigorously screened to ensure that your money is stewarded in a way that aligns with your values.

Are there other benefits to choosing CalSaved?

In addition to being built upon biblically responsible investing, CalSaved provides more flexible benefits to your church and employees, such as:

  • 3x the maximum allowable contribution: CalSaved allows up to $19,500 in annual contributions, over three times more than the CalSavers maximum of $6,000 for participants under the age of 50.

  • Tax deductible contributions: CalSaved is a 403(b)(7) or (9), which means contributions can be tax deductible. CalSavers defaults you to a Roth IRA, which means contributions are made after tax.

  • High income participation: CalSavers accounts are Roth (post tax) IRAs, and those with higher incomes may not be eligible to contribute. If you earn more than the Roth IRA income limits set by the federal government, you may need to re-characterize to a Traditional IRA. CalSaved is not an IRA and is designed specifically for Churches & Faith-Based Organizations.

  • Optional employer contributions: CalSaved allows employers to make contributions to employee retirement plans, which is not an option with CalSavers.

  • Tailored plan design and ongoing guidance: CalSaved was created by Envoy Financial, a leading name in church retirement planning. You’ll receive guidance from people who understand the unique needs of church retirement plans, rather than the one-size-fits all state mandated CalSavers plan.

How can I learn more about CalSaved?

CalSaved is created and implemented by Envoy Financial, a leading provider of faith-based retirement plans. If you would like to learn more about CalSaved, please contact us today. Our specialists will be happy to answer any questions you may have about enrolling your organization in CalSaved.

Are you a Ministry Leader?

We have some great ways to promote Biblical Financial Stewardship to your staff.

To explore this, connect with us.