Voluntary Retirement Savings Plans (VRSP)
Simplify implementation in accordance with legal obligations set out in Act 39
The government of Quebec has made retirement savings one of its priorities. Employers have the obligation to implement a voluntary retirement savings plan (VRSP) in the next three years, unless an equivalent plan is already in place:
- 20 employees or more: December 31, 2017
- 10 - 19 employees: December 31, 2017
- 5 - 9 employees: not until 2018
Our VRSP consulting expertise
- Explanation of available options
- Explanation of the VRSP, your obligations, the participants’ obligation, the choice of investments, conditions and advantages.
- Needs analysis based on your objectives
- Proposal of a plan and identification of a supplier
- Solicitation of employee participation
- Implementation support
What is a VRSP?
A VRSP is a group retirement savings plan offered by the employer and administered by an authorized administrator. It is subject to the Voluntary Retirement Savings Plans Act.
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Objectives of the VRSP
- Help Quebec residents save more towards retirement
- Offer a low-cost solution to workers
- Gives all workers access to a private group plan
50% of workers do not have access to a retirement plan at their workplace (2 million workers in Quebec)
30% of workers have no savings at all
VRSP = Simplicity
- Administered by a third party, which significantly lowers the administrative burden and responsibility for the employer
- Default parameters that facilitate decision-making
- Limited number of investment options
- Employees automatically registered by the employer offering the VRSP
VRSP = Flexibility
- The employer is not obligated to make contributions
- The employer and employees can choose and modify their rate/amount of contribution
- Employees can opt out of the plan
- Employees can keep contributing even after changing employers
- Employee contributions can be withdrawn at any time