VRSP: a prospection tool of choice

Tuesday, September 13, 2016

The first deadline for some employers to offer a voluntary retirement savings plan (VRSP) is fast approaching. Employers with 20 or more employees have until December 31, 2016 to offer a VRSP^[1] to their employees. As a result, whether you are a financial security, group insurance advisor or group annuities advisor, there is certainly a business opportunity coming your way this fall. 

Are you a financial security advisor?

You can propose the VRSP to companies until December 31, 2017. This is a significant cross-selling opportunity. For example, when you sell a VRSP to a company with 20 employees, you have access to 20 potential clients to whom you can offer other financial products.^[2]

You can also offer the VRSP to individuals at any time. Your existing clients (self-employed workers or individuals) could also take advantage of the benefits related to a group pension plan (e.g., low cost).  

Are you a group insurance advisor?

The VRSP Act authorizes you to offer this pension plan to companies until December 31, 2017. Why should you look into the VRSP?

1. To retain your clients: There are surely several of your existing clients who are required to set up a VRSP in the coming years. Because you have already built a relationship of trust with them, you are the best person to provide support in this undertaking, thereby preventing other financial advisors from taking advantage of the situation.
2. To attract new clients: Approximately 90,000 companies must offer a VRSP in the coming years. By using the VRSP to establish contact with these companies, you can then offer them your group insurance services. 

Are you a group annuities advisor?

The arrival of the VRSP is an unprecedented opportunity for you to begin discussion with potential clients about group pension plans. While the VRSP is the doorway to these clients, it is not necessary to offer them this particular pension plan. In fact, by properly assessing your client's situation, you can offer another type of plan that would better meet its needs while removing the obligation of setting up a VRSP.

To help you identify the plan that best meets your client’s needs, we have designed a dynamic table that compared several pension plans based on their various features. You can find this tool at iapension.com.

To assist you

We wish to remind you that various documents (brochures, information sheets, PowerPoint presentations, etc.) are available to you in the Toolbox at iapension.com.

For additional information, please feel free to contact the VRSP team:

By phone: 1-855-823-VRSP (8777)

By email: vrsp@ia.ca