Voluntary retirement savings plans (VRSPs) allow workers to save for retirement within a structured framework. They were created under an act by the Quebec government passed in 2013 to democratize pension plan access for Quebec workers.
Who Does This Act Apply To?
Under the Voluntary Retirement Savings Plans Act, on June 30 of a given year, any business with 10 or more employees not offering a pension plan must comply with the act by December 31 of the same year.
As an employer subject to this act, your responsibilities can be summed up in 4 steps :
Choose a VRSP provider
Let your employees know about the plan’s implementation
Register employees for plan
Withhold payroll deductions
VRSP contributions are optional for the employer.
VRSPs: Advantageous for SMEs!
For small businesses, voluntary retirement savings plans are highly beneficial for three main reasons. They’re :
