In its 2026 budget, the Quebec government said it intends to enhance the appeal of voluntary retirement savings plans amid low uptake of the savings vehicle.
This includes the introduction of a minimum contribution rate of two per cent of salary and the possibility of closing inactive accounts in certain situations, according to a statement by Normandin Beaudry.
The government also intends to increase the management fee cap to 1.50 per cent for all existing investment options, up from 1.25 per cent for the default investment option, while introducing new investment options that require an employer contribution of at least two per cent of salary, with management fees of up to 1.75 per cent.
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To offer greater flexibility to employers and administrators, the government will allow annual enrolment for employees with less than one year of seniority, replacing the mandatory reminder with the submission of a document produced by Retraite Québec and clarifying guidance on contract terminations.
According to a press release from Aon, the government said it’s also considering implementing a public VRSP and increasing oversight of employer compliance with the Voluntary Retirement Savings Plans Act.
VRSPs were introduced in 2013 as an alternative to defined contribution pension plans and group registered retirement savings plans.
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