Voluntary retirement savings plans (VRSPs) should be quickly introduced in Quebec, says a report issued by a committee led by Alban D’Amours, former president and CEO of Desjardins Group. The recommendation has won the praise of the life and health insurance industry.
“Adding VRSPs to the catalogue of retirement savings choices for working Quebecers will be a major step forward in improving the retirement savings landscape in this province,” says Yves Millette, senior vice president, Quebec Affairs for the Canadian Life and Health Insurance Association.
“This is also an opportunity for small and medium-sized businesses to attract the best employees as they will be able to take advantage of low-cost pension plans now currently only feasible for the largest employers,” he adds.
Read: Voluntary RSPs coming in Quebec
Almost 2 million workers (47%) in Quebec are not participating in any type of pension plan at the workplace.
The industry also priased the intention expressed by Premier Marois to introduce legislation for VRSPs before May 15.
The report’s recommendation to delay the requirement to convert RRSPs to RRIFs from age 71 to age 75 was also welcomed by the industry.