New Voluntary Retirement Savings Plan (VRSP)
This communiqué concerns you if you have plan members residing in Quebec.
The Quebec government announced, in its 2012–2013 Budget tabled on March 20, that it plans to introduce the Voluntary Retirement Savings Plan (VRSP) as of January 1, 2013. The VRSP is a brand-new retirement savings plan designed by the government to encourage more Quebecers to save for their retirement.
WHO WILL HAVE TO OFFER A VRSP?
Companies regulated by the Quebec government, that do not already offer their employees the possibility of contributing to a retirement savings plan and that have at least five eligible employees, are required to offer a VRSP as of January 1, 2013. Employers are not obligated to contribute to the VRSP. For their part, employees will be automatically enrolled in the plan, with an ability to opt out.
WHAT ARE THE NEXT STEPS?
The Quebec government will soon introduce a bill regulating registration for and administration of the VRSP. The regulatory framework will determine whether you are affected by this new plan—and if so, what to do next.
WHO CAN DISTRIBUTE VRSPs?
As a financial institution, Industrial Alliance will offer VRSPs as soon as the plan comes into force. Since we already offer all other types of group retirement plans, the VRSP will complete our existing offer. We are developing a solution to meet your need for a simple, effective plan that will be quick and easy to set up.To find out more about the VRSP and the solution offered by Industrial Alliance, see the press release dated March 21, 2012:
If you have any questions regarding this matter, please contact your benefits advisor or your Industrial Alliance group account executive.