Benefits

Access to retirement savings

Once all employers required to offer VRSPs have put them in place, two million workers will have access to a supplemental pension plan. The coverage rate in Quebec will thus increase from 40% today to about 95%.

The VRSP is therefore a flexible and affordable solution to encourage savings by Quebecers.

Maintaining the same standard of living at retirement

Thanks to the VRSP, more wage earners will receive retirement income that enables them to maintain a standard of living similar to the one they enjoyed during their working years.

Limited involvement

The VRSP is relatively uncomplicated for employers, who are not required to contribute. In addition, all of the administrative burden is taken on by iA Financial Group.

Tax advantages

If an employer chooses to contribute to the VRSP, their contributions are exempt from payroll taxes and are deductible from the company’s taxable income.

Positioning relative to competitors

In the event of a labour shortage, the VRSP has an additional advantage for employers who do make contributions. It can help them to attract and retain talented employees.

Easy to set up

Setting up the Industrial Alliance VRSP is quick and easy, thanks to our online form and the explanatory materials available to employees.

Universality

All VRSP members enjoy the same benefits, regardless of who their employer is.

Accessibility

Enrolment in the plan is automatic for eligible employees. They are not required to take any action.

Other employees simply need to inform their employer of their desire to enrol in the VRSP.

Simplicity

Contributions are deducted directly from the employee’s pay. This way, savings habits easily become ingrained.

Default provisions are provided to lighten the burden of managing an investment strategy, namely:

• A default investment option that suits everyone, as it's based on a "life cycle" approach
• A default contribution rate

Low cost

The government wants to provide VRSP members with the opportunity to benefit from economies of scale for management fees by pooling their savings.

This advantage means better returns on investments and, consequently, potentially higher retirement income for members.

Tax savings

Like RRSPs

• Member contributions to the VRSP are tax deductible for the member
• Contributions are deducted net of taxes from the employee's pay, which means that the tax savings apply right away.
• Contributions and investment income are not taxed for the member until withdrawn from the plan

Better than RRSPs

• Employer contributions are not a taxable benefit for the employee

Flexibility

Members can change their contribution rate or amount if they want, or set it to zero, under certain conditions. They can also opt out of the plan within 60 days of being informed by iA Financial Group that they have been enrolled.

All VRSP members can continue contributing to the same VRSP even if they change employers.

Employees can withdraw the accumulated value of their contributions at any time, whereas employer contributions can only be transferred when the member turns 55.

Universality

All VRSP members enjoy the same benefits.

Accessibility

The request for a VRSP (enrolment) can be done directly on our IA VRSP website.

Simplicity

iA Financial Group withdraws contributions directly from the member’s bank account based on their choice of frequency. This way, savings habits easily become ingrained.

A default investment option is provided to lighten the burden of managing an investment strategy. Since it’s based on a "life cycle" approach, it always suits the plan member’s situation.

Low cost

The government wants to provide VRSP members with the opportunity to benefit from economies of scale for management fees by pooling their savings.

This advantage means better returns on investments and, consequently, potentially higher retirement income for members.

Tax savings

• Member contributions to the VRSP are tax deductible for the member
• Contributions and investment income are not taxed for the member until withdrawn from the plan

Flexibility

Members 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.