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Voluntary Retirement Savings Plans (VRSPs) : No need to panick !

June 26, 2014
Category :  Articles

COMING INTO FORCE OF THE ACT RESPECTING VOLUNTARY RETIREMENT SAVINGS PLANS

The Act respecting voluntary retirement savings plans takes effect on July 1, 2014.  However, while enterprises can offer VRSPs as of July 1, 2014, this plan will become mandatory as of December 31, 2016 or thereafter. The number of employees will determine when your enterprise must offer the VRSP.

WHEN SHOULD THE VRSP BE OFFERED TO YOUR EMPLOYEES?

NUMBER OF EMPLOYEES THE VRSP MUST BE OFFERED
AT THE LATEST BY
20 or more eligible employees (on June 30, 2016) December 31, 2016
10 to 19 eligible employees (on June 30, 2017) December 31, 2017
5 to 9 eligible employees The date determined by the government (which cannot be prior to January 1, 2018)
Less than 5 employees On a voluntary basis

  
 

 

 

 

 

 

 

 

 

 

 

The program is mainly for employees who do not have access to a group retirement savings plan offered by their employer. The purpose of the VRSP is to encourage employees to save for retirement and to enable them to do so with source deductions from their salary.

Employees must be 18 or over and have at least one year of uninterrupted service with the enterprise.  Eligible employees will automatically be signed up for the program.

For more information on VRSPs, please contact your FBL expert  or consult the following links:

  • Ready or not, here comes the voluntary retirement savings plan (VRSP)
  • RRQ VRSP
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