What exactly is a VRSP?
The VRSP is a group retirement savings plan. Most employers are required to comply with the Voluntary Retirement Savings Plan (VRSP) Act and, depending on the size of the business, gradually begin offering their employees a way to save for retirement.
Offering your employees the option to contribute to an RRSP+ with the the Fonds de solidarité FTQ through payroll deductions will exempt you from having to set up a VRSP. Why not consider this alternative; it's simple and advantageous for both you and your employees.
01 TURNKEY SERVICE
Our team will be there to help you set up the solution directly with your payroll department and will make sure you have access to reference guides, phone support and, if necessary, in-person meetings with your employees, all free of charge.
02 AN ADDITIONAL 30%* IN TAX SAVINGS
In addition to the standard tax credits the governments grant, Fonds shareholders also get tax credits of 15% at the provincial level and 15% at the federal level.
03 PAYROLL DEDUCTIONS
Payroll deductions make it possible for your employees to contribute automatically on their paycheque.
04 SUPPORT FOR QUEBEC'S ECONOMY
More than 8,000 Quebec businesses currently contribute to the Quebec economy by offering the RRSP+ with payroll deductions.
THE RRSP+ A TURNKEY SOLUTION
|FOR YOUR BUSINESS|
|A quick option to set up|
|A free and easy option that adapts to your payroll process|
|The employees benefit from an additional 30%* in tax savings derived from your voluntary employer's contribution.|
|Your employer contribution isn't recorded in the total payroll.|
|FOR YOUR EMPLOYEES|
|30%* more tax savings than a VRSP on each paycheque|
|The possibility to set the payroll deduction amount themselves|
|The option to modify or stop their payroll deductions at any time|
*The tax credits granted to the shareholders of the Fonds are 15% at the federal level and 15% at the provincial level. Tax credits are capped at $1,500 per tax year, which corresponds to purchases of Fonds de solidarité FTQ shares having a value of $5,000.
For businesses that employ 20 people or more
If you don't offer a registered pension plan and haven't implemented a VRSP since December 31, 2016, your company doesn't comply with the law. With the RRSP+ at the Fonds de solidarité FTQ, meeting the law's requirements is fast and easy. Call us, and we'll help you get set up.Call us 1 844 667-7517
Frequently asked questions
I already offer the payroll deduction RRSP+ with the Fonds. Do I still need to set up a VRSP?
No. If you already offer your employees the option of contributing to payroll deduction RRSP+ with the Fonds, your business need not set up a VRSP.
Only employers who do not already offer a registered retirement plan or the possibility of contributing to a registered retirement savings plan or a tax-free savings account (TFSA) through payroll deduction to all their employees are required to do so.
Are there certain conditions in the Voluntary Retirement Savings Plans (VRSP) Act that I must respect if I offer the payroll deduction RRSP+ with the Fonds instead of a VRSP?
Yes. There are two simple requirements:
- Let your employees know you offer the payroll deduction RRSP+ with the Fonds as an alternative to the VRSP.
- Register the employees who want to contribute to an RRSP+ with the Fonds.
What's the deadline for complying with the Voluntary Retirement Savings Plans (VRSP) Act?
You must set up a solution and register your employees before the deadline outlined in the Voluntary Retirement Savings Plans (VRSP) Act. This date varies based on the number of people your business employs.
Deadlines for companies that employ:
- 20 employees or more: December 31, 2016
- 10 to 19 employees: December 31, 2017
- 5 to 9 employees: by a date set by the government that may not be prior to January 1, 2018
- Fewer than 5 employees: on a voluntary basis
What are the benefits of implementing an RRSP+ with the Fonds de solidarité FTQ rather than a VRSP?
The RRSP+ with the Fonds can be set up in less than 24 hours. By contrast, the VRSP can take up to three months to implement. Moreover, employees benefit from an additional 30%* in tax savings on their contributions. Check the table for a comprehensive view of the RRSP+'s advantages.