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Posted by Jimmy Carbonneau, Group insurance and group annuity plans advisor, July 28 2016
Group Retirement Savings Plan
Setting up a VRSP in less than 5 minutes!


You have not set up a VRSP for your business yet? Urgent action is required! You only have a few weeks left to comply and thus avoid several thousand dollars in penalties.

All Quebec businesseswith 20 or more employees as of June 30, 2016 must offer a VRSP to their employees starting December 31, 2016 (or another eligible type of plan).

The Voluntary Retirement Savings Plan (VRSP) must not be seen as a necessary evil, but rather as an opportunity for your employees, who will be able to save money for their retirement through payroll contributions that will make retirement saving much easier.

What is the cost?

The VRSP comes at no cost for the employer. Indeed, it won’t cost you anything unless you decide to make contributions for your employees.

In a VRSP, the applicable fees are charged to the member accounts and paid from their assets. These management fees are limited by law and amount to approximately 1.25%. This is a highly competitive rate, as employees would generally pay twice as much for personally held mutual fund investments.

How long does it take to set up your VRSP?

Although the implementation process is very fast, you must comply with minimum legal time requirements. For example, you must give your employees 30 days notice before implementing the VRSP. Once employee enrolment is completed, you have 60 days to start payroll deductions.

In order to avoid the year-end rush, we strongly suggest that businesses act promptly and set up their VRSP as soon as possible.

Does your business have less than 20 employees?

Eventually, all businesses with 5 or more employees will have to offer a VRSP. As the VRSP is a highly effective retirement saving tool with zero cost for the employer, we strongly suggest that you offer it right now. It will give you a significant competitive edge over businesses that are not providing it at this time.

Do you already offer a retirement plan to your employees?

Good news! If you already provide a group RRSP, a group TFSA or a pension plan to your employees, you are exempt from offering a VRSP. But to benefit from this exemption, your plan must meet certain criteria, including the following:

  • Employee contributions must be made through payroll deductions
  • The plan must be offered to all employees:
    • Including part-time, temporary, etc.

If these requirements are not met, you must offer a VRSP to your employees or amend your current plan to make it compliant with the new legislation.

The broker – an expert at your service

Any questions? Your broker can help you select the product best tailored to the needs of your business and employees, and will assist you in selecting the financial institution that will most aptly meet your requirements.

Contact an AGA advisor today to get answers to your questions on VRSPs and set up your plan!

Set up your VRSP in 5 minutes

Are you ready? You can set up a VRSP right now by clicking here. It only takes a few minutes!

1. Some exceptions apply. Please contact your broker.


Jimmy brings overs 20 years of experience in pension plans. After starting his pension career at the Ontario Teachers’ Pension Plan, he worked as DC Consultant for a large actuarial firm and two insurance companies before joining AGA. With his extensive pension experience, he has developed an acute expertise in the selection, the design and the implementation of pension plans. Jimmy provides his clients with both expertise and insight on their employee benefits.
Jimmy Carbonneau, Group insurance and group annuity plans advisor