In addition to making it easier for more people to have access to a pension plan and encouraging Quebecers to save for retirement, the VRSP offers numerous other advantages all around.
Become a member
By becoming a member of the iA Pension website, you'll have access to detailed descriptions of all the VRSP benefits.
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For employers
Limited responsibility
The employer does not have to contribute to the VRSP, and the administrator carries out all administrative and fiduciary responsibilities.
Tax savings
Employers who contribute to VRSPs benefit from advantageous tax measures: their contributions are exempt from payroll taxes and are tax deductible.
Competitive positioning
Employers who contribute to VRSPs have a competitive advantage over those who do not in terms of recruiting and retaining talented employees.
For employees
Savings discipline
Saving becomes an easy habit: enrolment in the VRSP is automatic, plan member contributions are deducted from earnings and the amount of the contributions is adjusted according to changes in the worker’s wage.
Voluntary participation
Participation in the VRSP is voluntary: although enrolment is automatic, employees can opt out of the plan or set their contribution rate to 0%.
Tax advantages
The tax advantages are greater than those of an RRSP.
Become a member of the iA Pension website to discover all the tax advantages employees can enjoy by contributing to a VRSP.
Default provisions
The VRSP is so simple for employees that they do not have to make any decisions. Default provisions are provided for:
- An investment option based on a “life cycle” approach
- A contribution rate (percentage of salary)
Management fees
Since member contributions are combined in a single group plan, all members benefit from savings on management fees. This advantage means better returns on investments and, consequently, potentially higher retirement income for members.
Flexibility
The VRSP is flexible enough for plan members who wish to play a more active role in managing their retirement savings.
Become a member of the iA Pension website to find out more about VRSP flexibility.
For self-employed workers and individual savers
Universality
All VRSP members enjoy the same benefits. This means that self-employed workers and individual savers enjoy the same benefits as employees, except for employer contributions, to which they are not entitled.
Flexibility
Self-employed workers and individual savers can change their contribution amount if they want, or set it to zero.
Even if their employment status changes, self-employed workers or individual savers can continue to contribute to the same VRSP. If employed by a new employer, they can also enrol in the new employer’s VRSP, if one is offered.
The accumulated value of the plan member’s contributions can be withdrawn at any time.