By creating the voluntary retirement savings plan (VRSP), the Government of Quebec is striving to generate stable, predictable retirement income for all workers. Several stakeholders are required to work together to achieve these objectives.
Regulatory agencies
Retraite Québec
This is the agency that is responsible for registering and overseeing VRSPs. It ensures that the plans are administered and operated in accordance with VRSP legislation.
- Observance of laws and regulations
- Compliance of plans
- Monitoring of “low cost” concept
Autorité des marchés financiers (AMF)
This agency is responsible for granting authorizations to VRSP administrators and licences/certificates to financial advisors.
- Granting of authorizations, licences and certificates
- Framework for distribution activities
Commission des normes, de l'équité, de la santé et de la sécurité du travail
The Commission ensures that employers who are required to subscribe to a VRSP do so within the prescribed time frame.
- Satisfaction of requirement to offer the VRSP
- Handling of complaints
Canada Revenue Agency (CRA)
The CRA approves VRSPs, thus recognizing that they have been set up with the ultimate goal of providing a retirement income for individuals.
Other players
VRSP administrators
In order to offer a VRSP, administrators are required to obtain authorization from the Autorité des marchés financiers (AMF) and their plan must be registered with Retraite Québec and the Canada Revenue Agency (CRA). iA Financial Group (Industrial Alliance Insurance and Financial Services Inc.) administers a VRSP.
The administrator manages the plan and its assets in accordance with the provisions of the law and is responsible for determining a default investment option and the other options available to members, as well as the costs related to the plan.
Financial advisors
In order to maximize the VRSP’s chances of success, the Government of Quebec allows various representatives authorized by the Autorité des marchés financiers (AMF) to sell VRSPs to employers during the period between July 1, 2014 and December 31, 2019.
The following table outlines the authorizations required to sell VRSPs offered by insurers:
| Activity | Representatives authorized to sell VRSPs |
|---|
| Selling to an employer up to December 31, 2021 |
Group Insurance and Group Annuity Plans Advisor
or
Group Insurance Plans Advisor
or
Group Annuity Plans Advisor
or
Financial Security Advisor |
| Selling to an employer after December 31, 2021 |
Group Insurance and Group Annuity Plans Advisor
or
Group Annuity Plans Advisor |
| Selling to self-employed workers and individual savers at any time |
Financial Security Advisor |
| Selling to a professional order, association or other group at any time |
Group Insurance and Group Annuity Plans Advisor
or
Group Annuity Plans Advisor |
| Transferring a VRSP from one administrator to another at any time |
Group Insurance and Group Annuity Plans Advisor
or
Group Annuity Plans Advisor |
Actuaries (Fellows) who, within the scope of their activities, offer group life and health insurance products or group pension products are not considered representatives and do not require authorization from the AMF to sell VRSPs.
Employers
Employers choose the administrator of the VRSP in which they register all of their eligible employees. They must inform their employees of their intention to subscribe to a VRSP at least 30 days in advance.
Plan members (employees, self-employed workers or individual savers)
Plan members define their plan contribution rate or amount and choose the investment options in which they wish to invest their contributions. A default contribution rate and investment option is used for members who do not communicate their choices.
Employees can change their contribution amount if they want, or set it to zero, under certain conditions. Self-employed workers or individual savers may set it zero at any time.