Voluntary Retirement Savings Plans (VRSPs)

VRSPs are mainly for employees who do not have access to a group retirement savings plan offered by their employers. Employees must be 18 or over and have at least one year of uninterrupted service, as defined in the Act Respecting Labour Standards.

Employees are automatically enrolled in a VRSP and do not have to take any additional steps. Self employed workers and any other interested parties will also be able to sign up for VRSPs by contacting an authorized administrator.

Employers subject to the Voluntary Retirement Savings Plans Act must offer a VRSP or a group retirement savings plan by:

• 31 December 2016, for employers with at least:
  • 5 eligible employees on 31 December 2015; and
  • 20 or more eligible employees on 30 June 2016;
    
• 31 December 2017, for employers with at least:
  • 5 eligible employees on 31 December 2016; and
  • 10 or more eligible employees on 30 June 2017.
    
• Until the date to be determined by the government, an employer with at least 10 eligible employees on 30 June of a given year will have to offer a VRSP as of 31 December of that year, at the latest, if the employer had at least 5 eligible employees on 31 December of the previous year.
  
• As of the date to be determined by the government, an employer with at least 5 eligible employees on 31 December of a given year will have to offer a VRSP as of 31 December of the following year, at the latest.

Other employers can offer a VRSP on a voluntary basis.

Instead of a VRSP, employers can offer a group retirement savings plan that meets certain conditions. For more information, see section 45 of the Voluntary Retirement Savings Plans Act .

Worth knowing about...

The Commission des normes, de l'équité,de la santé et de la sécurité du travail  ensures that employers meet their obligation to offer a retirement plan that meets the conditions set out in the Voluntary Retirement Savings Plans Act.

Default contribution rate:

• 2% of gross salary until the end of 2017;
• 3% of gross salary as of 1 January 2018;
• 4% of gross salary as of 1 January 2019.

The default contribution rate applies to employees who participate in voluntary retirement savings plans (VRSPs) offered by their employer. It does not apply to individuals who enrolled themselves in one or employers who decide to make contributions for their employees.

The default contribution rate applies to employees who do not choose how much to contribute within the 60 days following the date on which the notice concerning their participation is sent.