The Quebec National Assembly has passed legislation creating voluntary retirement savings plans (VRSPs) in the province.
The new plans are Quebec’s version of pooled registered pension plans (PRPPs).
VRSPs require all companies in the province with five or more full-time employees to offer a workplace retirement plan, will be gradually implanted effective from July 1, 2014.
“VRSPs will have a profound effect on the retirement savings of Quebecers by giving almost all workers easy access to a low-cost workplace retirement plan,” said Frank Swedlove, president of the Canadian Life and Health Insurance Association.
Quebec joins Ottawa, Alberta and Saskatchewan in passing PRPP legislation.
“Implementing the VRSP will allow 2 million workers to have access to simple and inexpensive vehicle to save for their retirement,” said Agnès Maltais, employment and social solidarity minister, in a release.
The introduction of the VRSP will allow workers, mostly employees of small- and medium enterprises or self-employed, to save for retirement at low-cost, while enjoying benefits reserved for group plans.