The new legislation requires Quebec employers to establish a workplace pension plan.
The Voluntary Retirement Savings Plan (VRSP) is a new retirement savings plan for small and medium-sized businesses and the self-employed.
This plan is mandatory for employers who do not already offer a group retirement plan to their employees. Targeted employers must provide their employees with a Workplace Retirement Savings Plan in accordance with the following schedule:
|Number of employees||Employee count as of||Deadline|
|20 & more||June 30, 2016||December 31st 2016|
|From 10 to 19||June 30, 2017||December 31st 2017|
|From 5 to 9||To be determined by the government||Nor before January 1st 2018|
VRSP Implementation Process
Important note about VRSP
The employer has to do a follow-up with their employees every two years (the ones who opt out) to remind them that a plan is in place and available to them.
We will be discussing alternative VRSP pension plans in our next blog.