The government of Quebec has passed a legislation for pooled registered pension plans (PRPPs). Quebec’s version, called Voluntary Retirement Savings Plans (VRSPs), will require all companies in the province with five or more full-time employees to offer a workplace retirement plan.
“VRSPs will have a profound effect on the retirement savings of Quebecers by giving almost all workers easy access to a low-cost workplace retirement plan,” says Frank Swedlove, president of the Canadian Life and Health Insurance Association.
He adds, “In taking this approach Quebec is demonstrating great leadership in Canada, and we believe that Quebecers will be well ahead of their counterparts in other provinces in retirement savings in the years to come.”
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Quebec joins Ottawa, Alberta and Saskatchewan in passing PRPP legislation. Ontario announced a public consultation late last week.
“Given its predominance in pension regulation, we strongly urge Ontario to fast track its legislation to ensure its workers can also benefit from access to workplace retirement plans as soon as possible,” notes Swedlove. “PRPPs should not be tied up in discussions on CPP and QPP. Any delays in the implementation of PRPPs affects the ability of workers to build up the necessary capital for retirement.”