Quebec’s voluntary retirement savings plan (VRSP)
Quebec began phasing in the voluntary retirement savings plan, or VRSP, on July 1, 2014. The VRSP is another option to help make saving for retirement easy and straightforward for Québec employees.
After it is fully phased-in, employers in Quebec with five or more employees who have completed at least 1 year of continuous service and who do not offer any other type of retirement savings plan (such as a group RRSP, group TFSA, or registered pension plan) will be required to offer their employees the option to participate in a VRSP.
The deadline to comply with the new rules depends on the size of the workplace as follows:
- Workplaces with 20 or more employees, must comply by December 31, 2016.
- Workplaces with 10 to 19 employees, must comply by December 31, 2017.
- For workplaces with five to nine employees, a date has yet to be determined by the province of Québec. However, they have indicated that employers of this size will have to comply after January 1, 2018.
What is a VRSP?
A VRSP is a group savings plan offered by Québec employers to provide their employees with a method to save for retirement. It is governed by the Act respecting voluntary retirement savings plans and its regulations.
The best option for you
There are a range of options that are available to help Quebecers save for their retirement, and the VRSP is a welcome addition. But before you make a decision to enroll, it’s important to know what the best solution is for your organization, and your employees. We’ll help answer questions like:
- What are the tax implications?
- What are my obligations?
- How will this impact our bottom-line?
- How does it compare to other approaches of retirement savings?
Understanding what retirement savings plans works best for your business is key to ensuring you stay competitive, attract and retain top talent, and create goodwill among your employees. Talk to an Investors Group Consultant today to learn more.