Industrial Alliance has announced that it plans to offer voluntary retirement savings plans (VRSPs), starting on the Quebec government’s target date of Jan. 1, 2013. The introduction of VRSPs were announced in the Quebec budget yesterday.
As of Jan. 1, 2013, companies with at least five eligible employees are required to offer a VRSP; however, employers are not obligated to contribute. Employees will be automatically enrolled in the plan with an ability to opt out.
Companies that already offer all their employees the possibility of contributing to a retirement savings plan through payroll deductions will not be obligated to offer a VRSP.
“We want to ease employers’ administrative burden by making it quick and straightforward to set up a VRSP,” said Renée Laflamme, vice-president, group savings and retirement with Industrial Alliance. “We also want to help workers save by giving them accessible, inexpensive investment options that will make their decision making process easier.”