Manulife Financial Corp. (TSX:MFC) says the Régie des rentes du Québec has approved the firm’s Voluntary Retirement Savings Plan (VRSP) product.
The new plans, which are Quebec’s version of pooled registered pension plans (PRPPs), require all companies in the province with five or more full-time employees to offer a workplace retirement plan.
“Our research shows that over 40 per cent of workers in Quebec are without a workplace savings plan and Manulife’s VRSP can help fill the gap,” said Robert Tellier, regional vice president, in a release.
“With Manulife’s VRSP and its innovative, online eApplication process, organizations can offer a workplace savings plan to their employees that is simple, affordable and easy to maintain. Most of the administrative work is with Manulife, not the employer.”
Manulife has developed two distinct sales models for its more than 2,200 group and life-licensed advisors in Quebec to choose from when selling the VRSP.
The introduction model allows an advisor to reach out to clients about the VRSP, and then forward the contact information of all interested clients to Manulife to complete the sale. The full-service model enables an advisor to manage the entire application process with their clients. Advisors can select the model that meets their own specific needs, with compensation either way.
In preparation for the VRSP product launch, Manulife has set up a sale support centre in Montreal with staff who are trained to manage day-to-day plan administration, advisor and consumer phone support, and a team of VRSP consultants to help advisors and employers who need face-to-face support.
In September 2013, Manulife was the first Canadian company to be issued a license to be a PRPP administrator by the Office of the Superintendent of Financial Institutions (OSFI).