Voluntary RSPs arrive in Quebec

In his first budget Quebec’s minister of finance has announced planning for legislation establishing voluntary retirement savings plans (VRSPs).

The plan, which was launched by the Liberal government, was shelved because of the election of the Parti Québécois.

Read: PRPPs don’t undercut financial advice

Minister Nicolas Marceau said a bill establishing VRSPs will be filed “in the coming months,” following the report of the committee of experts chaired by Alban D’Amours in the spring of 2013.

“As soon as we receive recommendations, in consultation with all stakeholders, we will act,” the minister said.

Read: An advisor’s guide to the PRPP The minister also stressed that the government “continues to reflect on improvements that could be made to the basic public plans.”

Reactions

The Canadian Federation of Independent Business (CFIB) said the decision to support the creation of VRSPs is interesting.

“However, we remain vigilant about the ensuing regulations,” said Martine Hébert, vice-president, Quebec, CFIB. “When you know two-thirds of Quebec companies have annual revenues of less than $500,000, it would be catastrophic to force employers to contribute to a new tax on payroll. In this sense, VRSPs must be truly voluntary, as the name implies.”

Read: Vik’s pick: PRPP detractors are missing the point

Hébert adds: “We will also closely watch potential plans regarding the RRQ [Régie des rentes du Québec].”

François Vaudreuil, president of the Congress of Democratic Trade Unions, observes that “[the VRSP] is not creating a new individual savings vehicle that will encourage more people to save.

“These are group plans, public and private, which should be encouraged or subsidized; collective strategies always provide the best results.”

This story originally appeared on our sister site, Avantages.