Just a few
weeks left
to comply
with VRSP
legislation
The Voluntary Retirement Savings Plan, or VRSP, is a type of retirement plan that favours savings by giving all workers in Quebec access to a simple and affordable plan.
The Voluntary Retirement Savings Plan Act contains a few obligations for employers. Since the VRSP is relatively new, here is an overview to help you make sense of it.
Businesses with 5 or more employees that do not already offer a group retirement savings plan will eventually have to implement a VRSP. However, the deadlines vary according to the number of employees.
Number of employees
20 or more employees
10 to 19 employees
5 to 9 employees
Deadline
December 31, 2016
December 31, 2017
Date to be determined
(January 1, 2018 at the earliest)
Even if your business has a grace period, it is probably to your benefit to implement a VRSP sooner rather than later. Offering a retirement savings plan is an excellent way to attract employees.
The VRSP must be managed by an authorized administrator. The first step is to choose an administrator from the list of VRSPs registered with Retraite Québec.
Next, you must notify your employees in writing of the effective date of the plan. After a certain period, you can sign a contract with the administrator and register in the plan your employees who are age 18 and over who have worked for you for at least one year. Employees have the right to renounce enrolment in the plan.
For more details on the steps to take and deadlines to respect, refer to the document prepared by Retraite Québec.
Get the right tools to manage the VRSP
Implementing and managing the VRSP requires certain adaptations, particularly in the way payroll is processed. To avoid manual input errors and other pitfalls, using payroll software configured to process the VRSP can be a major asset.
To learn more about VRSPs, how to implement them and how to manage them effectively with Acomba, refer to our online training sessions.
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