Voluntary Retirement Savings Plan (VRSP)

Voluntary Retirement Savings Plan (VRSP)

The VRSP or voluntary retirement savings plan allows employees and the self-employed to save for retirement.
This plan was designed by Retraite Québec so that an employer who does not wish to contribute to a group retirement plan acts as a facilitator to offer this savings opportunity together with an administrator.

Please note that the application deadline varies according to the number of employees in the company:

• Groups of 20 employees or more by June 30th 2016 : the 31st of December 2016
• Groups of 10 to 19 employees by June 30th 2017 : The 31st of December 2017
• Groups of 5 to 9 employees : to be determined but not before 31st of December 2017

Advantages

• Contributions are voluntary for both employees and the employer
• If the employer decides to contribute to the VRSP, then the employer’s contributions are tax deductible from income and exempt from payroll
• There are no fees or payments for the employer if he does not contribute
• It can be set up in 4 easy steps for the employer
• Deductions from the employee’s salary are deducted before tax and are deductible from taxable income
• It allows for personalization of each plan depending on employee preferences