Voluntary Retirement Savings Plan (VRSP)

Monday, April 28, 2014

Offered in Quebec only

The Quebec government wants to encourage Quebecers to save more for their retirement by making it easier to access user-friendly savings programs. That’s why it introduced a bill in December 2013 requiring all Quebec businesses with five or more employees to offer a retirement savings plan or a tax-free savings account (TFSA) to their employees.

Starting on July 1, 2014, and within a prescribed timeframe determined by the number of employees that work for them, employers will be required to:

  • choose a service provider for their VRSP
  • offer the VRSP to all their employees and educate them about the features of the plan
  • enroll all their eligible employees in the plan
  • deduct employee contributions at source (i.e. payroll deductions)

The deadlines for setting up a VRSP are as follows:

  • Employers with 20 employees or more can start offering VRSPs to their employees on July 1, 2014. They will have until December 31, 2016 to comply with the Act.
  • Employers with 10 to 19 employees can start offering VRSPs to their employees on July 1, 2014. They will have until December 31, 2017 to comply with the Act.

At a later date, the government will specify the compliance deadlines for employers with 5 to 9 employees. However, this group of employers will probably not be obliged to comply before January 1, 2018.

Desjardins Insurance will be offering VRSPs to Quebec businesses as soon as the Act permits, i.e. starting on July 1, 2014 at the latest. To keep up to date on developments, visit our web page at Desjardins.com/vrsp or call us toll free at 1-855-702-VRSP (8777).