Montreal, QC (July 14, 2014) – Standard Life in Canada has announced that it has obtained all necessary approvals to offer Voluntary Retirement Savings Plans (VRSP) to Québec workers.
“We have developed a simple VRSP solution that is easy to set up and manage for Québec employers and advisors — it only takes about 15 minutes to join online,” said Philippe Toupin, Vice President, Group Solutions, at Standard Life. “We believe the plan’s compulsory membership for companies and freedom of choice for employees will make this new retirement savings vehicle successful in helping to ensure a retirement income for many more Québec workers.”
Standard Life recognizes the leadership of the Government of Québec in providing near universal pension coverage to workers. Standard Life continues to call on other provincial and territorial finance ministers to develop similar initiatives that include compulsory sponsorship and automatic enrolment so that the retirement outcomes of many more Canadian workers can be improved.
Standard Life’s VRSP
The Voluntary Retirement Savings Plan Act came into effect on July 1, 2014. In Quebec, almost 1.9 million workers (47%) do not participate in any type of group retirement plan¹. VRSP is targeted to these workers.
Employers will have to subscribe to a VRSP and enrol their eligible employees², unless they already offer them a Group RRSP or Group TFSA for which payroll deductions may be made or a registered pension plan for which the employer is party, by the following deadlines:
- December 31, 2016 if they have at least 20 eligible employees on June 30, 2016;
- December 31, 2017 if they have 10 to 19 eligible employees on June 30, 2017;
- By a date to be determined, but not before January 1, 2018, if they have 5 to 9 eligible employees.
¹ Source: Régie des Rentes du Québec.
² Employees who are at least 18 years old and have one year of uninterrupted service.
Pension in a Box
Standard Life has long been concerned about financial security at retirement and has an impressive track record in retirement savings plan innovation. In addition to VRSPs, Standard Life offers a wide range of retirement savings solutions, including Pension in a Box, which is also designed for small and medium-sized companies.
About Standard Life
Standard Life provides long-term savings, investment and insurance solutions to more than 1.4 million Canadians, including group retirement and insurance plan members. It has 2,000 employees, and the main operating subsidiaries in Canada are The Standard Life Assurance Company of Canada and Standard Life Mutual Funds Ltd.
The Canadian operation of Standard Life plc, its parent company, is the largest outside the United Kingdom. Headquartered in Scotland, Standard Life plc has around 6 million customers worldwide and operates in the UK, Canada, Europe, Asia and the Middle East.
Standard Life plc had $456 billion in assets under management, including $50 billion in Canada, as at March 31st, 2014.