The new demographic and social realities, as well as the workforce shortage, compel employers and employees to realize the importance of establishing a group retirement plan.
This is mainly why the bill no. 39 on Voluntary Retirement Savings Plans (VRSP) was adopted by the National Assembly on December 3rd, 2014 and made its entry on July 1st, 2014. This law states that any company with five “eligible” employees or more will have to offer a group savings plan allowing payroll deductions. The deadline to comply with this new law varies according to the number of “eligible” employees at work:
December 31st, 2016, if they have 20 or more eligible employees on June 30th, 2016;
December 31st, 2017, if they have 10 to 19 eligible employees on June 30th, 2017;
The date determined by the government, which cannot be prior to January 1st, 2018, if they have 5 to 9 eligible employees.
Please refer to our VRSP memo for more details.
In order to facilitate the compliance to this new law for employers, the government created a new retirement product named the Voluntary Retirement Savings Plan (VRSP). This plan can be administered by an insurer, an investment fund manager, a trust company or a corporation described by law.
Group Censeo believes that this new product may be appropriate for some companies. However, depending on the size of your business, your needs and your goals, it may not suit you and create more administrative tasks than a standard group retirement plan (RRSP, DPSP, SPP, TFSA). In addition, the VRSP does not offer the same level of flexibility as other group retirement plans and some features have been withdrawn.
At Group Censeo, we use a personalized approach to assist you in this process and help you make the right decisions.
Our service proposal is summarized as follow: