Quebec City-based Industrial Alliance Insurance and Financial Services Inc. said Wednesday it plans to offer the voluntary retirement savings plan (VRSP), a new retirement savings plan created by the Quebec government to encourage more Quebecers to save for retirement.
The province announced in the budget it unveiled yesterday that it wants to bring the VRSP into force on Jan. 1, 2013.
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As of this date, companies with at least five eligible employees are required to offer a VRSP. Employers are not obligated to contribute to the VRSP. 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.
Quebec is asking that the VRSP be accessible to everyone, simple to set up and administer, and offered at a reasonable cost.
Industrial Alliance (TSX:IAF) says its solution will meet the needs of small businesses for simplicity and efficiency.
“Industrial Alliance will focus on simplicity above all. We want to ease employers’ administrative burden by making it quick and straightforward to set up a VRSP. We also want to help workers save by giving them accessible, inexpensive investment options that will make their decision making process easier,” stated Renée Laflamme, vice president, group savings and retirement.