Eighty-five percent of small business owners in Quebec support the concept of the new voluntary retirement savings plan (VRSP), according to a survey.
The Ipsos-Reid poll, conducted on behalf of Manulife, also finds that 57% feel a sense of duty to help their employees save for retirement.
“The survey results confirm to us that there is great support amongst Quebec small business owners for the VRSP, and that they want to play a role in helping their employees save for the future,” says Robert Tellier, regional vice-president, group benefits and retirement solutions, in Quebec.
VRSPs, the province’s version of pooled registered pension plans, are mainly for employees who do not have access to a group retirement savings plan with source deductions 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.
Most companies can introduce a VRSP as early as July 1, but the deadline for introducing one depends on the size of the company. They are not required to make employer contributions.
Organizations covered by the act must offer a VRSP at the latest by the following dates:
- Dec. 31, 2016, if they have 20 or more eligible employees on June 30, 2016;
- Dec. 31, 2017, if they have 10 to 19 eligible employees on June 30, 2017; or
- a date determined by the government, which cannot be prior to Jan. 1, 2018, if they have five to nine eligible employees.
Other companies can offer a VRSP on a voluntary basis.
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