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VRSP Creation

First the PRPP...

In order to improve the financial situation of future Canadian retirees, in 2010, the provincial and federal finance ministers agreed on a framework for establishing a new savings vehicle: the pooled registered pension plan (PRPP). The federal PRPP applies only to companies operating under federal jurisdiction and came into force in December 2012. Each province must create its own equivalent plan.

Types of companies whose activities fall under federal jurisdiction:

Telecommunications
Banks
Interprovincial and international transportation
Airports, air transportation
Federal Crown corporations
Naval ship building
Many First Nation activities
Grain elevators and pipelines crossing provincial borders

Then the VRSP...

Subsequently, Quebec was the first province to follow suit by creating the VRSP, the Quebec equivalent of the PRPP, for companies whose activities fall within provincial jurisdiction (Quebec), self-employed workers and other individual savers.

The PRPP and the VRSP are therefore intended to provide workers who do not have access to a group pension plan with a new way to save for retirement that is simple, affordable and beneficial.

VRSP goals

Help Quebecers save more for retirement
Allow all workers access to a private group pension plan
Offer workers a low-cost solution

Highlights of government actions

January2008
May2009
December2009
December2010
March2011
November2011
December2011
March2012
June2012
June2012
August2012
December2012
May2013
December2013
July2014
December2016
December2017

The governments address the issue

The federal and provincial governments begin searching for ways to facilitate access to retirement savings because:

Financial markets are severely stressed
Life expectancy is increasing
Few private-sector workers have access to a pension plan
Establishment of a working group

The Canadian government establishes a joint federal-provincial working group to examine retirement income adequacy.
Working group report

The working group submits its summary report to the provincial and federal finance ministers.
Agreement among finance ministers

The finance ministers agree on a framework for establishing the PRPP.
Quebec announcement regarding the VRSP

Quebec announces its commitment to create the VRSP, the Quebec equivalent of the PRPP.
PRPP bill tabled

The federal government introduces the Pooled Registered Pension Plans Act, which mainly governs PRPPs for employees with jobs under federal jurisdiction.
Publication of tax rules

The federal government releases its proposed PRPP tax rules.
Announcement regarding the creation of the VRSP

The Government of Quebec announces that it has created the VRSP effective January 1, 2013.
VRSP bill tabled

In Quebec, the VRSP bill is submitted to the National Assembly.
The PRPP bill is adopted

Bill C-25 the Pooled Registered Pension Plans Act, is adopted by the House of Commons in Ottawa (federal government).
VRSP bill put on hold

The VRSP bill dies on the Order Paper because elections are called in Quebec.
Coming into force of
Bill C-25

The federal PRPP comes into force on December 14, 2012.
New VRSP bill submitted

In Quebec, a new VRSP bill is submitted to the National Assembly. The target date of entry into force is January 1, 2014.
VRSP Act adopted

Bill 39, the Voluntary Retirement Savings Plans Act, is passed at the Quebec National Assembly and the date of entry into force is set for July 1, 2014.
Coming into force of VRSP Act

The voluntary retirement savings plan (VRSP) comes into force on July 1, 2014.
Implementing a VRSP in businesses with 20 or more eligible employees

Businesses with 20 or more eligible employees must offer a VRSP no later than December 31,
2016.
Implementing a VRSP in businesses with 10 to 19 eligible employees

Businesses with 10 to 19 eligible employees must offer a VRSP no later than December 31,
2017.