Voluntary Retirement Savings Plan
VRSP
Presented by (Advisor name)
Date
© Sun Life Assurance Company of Canada. All rights reserved.
AGENDA
VRSPs in Quebec's retirement
landscape
What is a VRSP?
Opportunities for you
VRSPs
in Quebec's
retirement
landscape
FOUR BIG
REASONS FOR
VRSPs
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Quebecers' lack of savings
Unequal access to workplace retirement plans
Companies have limited ability to contribute more to savings
Poor financial literacy
VRSP ADVANTAGES
Puts workplace savings front and centre throughout Quebec
In time, will compel more than 90,000 SMEs to get on board
Represents a tangible savings experience for hundreds of
thousands of workers
VRSP ADVANTAGES
AFFORDABLE
(low management fees)
EASY TO UNDERSTAND
FOR EMPLOYEES
EASY TO MANAGE
FOR YOU!
What is
a VRSP?
About VRSPs
The VRSP is a simple, low-cost registered savings plan.
It is similar to a Defined Contribution Pension Plan except that it allows employees
of unrelated employers and self-employed persons to pool their assets and
participate in a registered savings product.
Employers with 5 or more eligible employees must put a VRSP in place if they do
not offer a pension plan (RPP), or an RRSP or TFSA with payroll deduction to all
eligible employees. Employers must automatically enrol eligible employees who do
not have access to one of these other plans.
About VRSPs
Employees are eligible if they:
perform work in Quebec (allowing for exceptions),
are age 18 or over,
have at least 1 year of uninterrupted service,
work full-time or part-time (including contract and temporary employment).
ATTENTION
Employers in federally regulated industries (e.g., banks, telecommunications, interprovincial transportation), as well as employers and selfemployed workers in the three territories, are subject to the Pooled Registered Pension Plans Act (PRPP). PRPPs are a new type of defined
contribution pension plan gradually being implemented in Canada.
VRSPs: AVAILABLE SINCE JULY 1, 2014
Deadline depends on employer's number of eligible employees:
Number of eligible employees
Deadline for offering a VRSP
20 or more as at June 30, 2016
December 31, 2016
10 to 19 as at June 30, 2017
December 31, 2017
5 to 9
To be determined, but not before January 1, 2018
VRSP FEATURES
MEMBERSHIP
- Automatic enrolment for eligible employees
- Ability to opt out within 60 days after notice sent by administrator
CONTRIBUTIONS – YOUR EMPLOYEE
- Employee contributions through payroll deductions not locked in
- Lump sum contributions not locked in
- Transfers in of locked-in or not locked-in monies (e.g., RRSP or LIRA) are allowed
- Default contribution rate based on gross salary
2% - July 1, 2014 to December 31, 2017
3% - January 1, 2018 to December 31, 2018
4% - starting January 1, 2019
- Contribution rate may be changed to 0% after contributing for 12 months.
Exceptions apply if:
• The employer contributes to the plan (not a matching contribution), or
• The employee reaches his/her annual contribution limit, or
• The employee makes an additional contribution to the plan which is equal to or greater
than the contributions he/she would have made in a 12-month period.
VRSP FEATURES
CONTRIBUTIONS - YOU AS THE EMPLOYER
Employer contributions not mandatory but allowed
Employer contributions are locked in
Contributions not subject to payroll taxes
INVESTMENT OPTIONS - YOUR ADMINISTRATOR
Default option:
Sun Life Target Date Segregated Funds with the maturity date just prior to the member’s 65th
birthday (lifecycle fund)
Other funds available for employees not wishing to stay in the default
Sun Life Assurance 1, 2, 3, 4 and 5-Year Guaranteed Funds
Sun Life Target Date Segregated Funds*
Sun Life BlackRock Canadian Bond Index Segregated Fund
Sun Life BlackRock Canadian Equity Index Segregated Fund
Sun Life BlackRock Global Equity Index Segregated Fund
*If the member’s planned retirement age is not 65, he or she may select the Sun Life Target Date Segregated Fund with the
maturity date closest to the planned retirement date. The member may choose only one Sun Life Target Date Segregated Fund.
VRSP FEATURES
WITHDRAWALS AND TRANSFERS - YOUR EMPLOYEE
-Withdrawals and transfers of not locked-in assets are permitted at any time
-Transfer of locked-in assets to a prescribed pension plan is permitted
when the employee terminates employment or reaches age 55. Withdrawals of
locked-in assets are also permitted in special circumstances (e.g., disability, nonresident for 2 years)
EMPLOYER ROLES AND RESPONSIBILITIES
Choose your VRSP administrator
Notify employees in writing of your intention to offer a plan at least 30 days
before signing with a VRSP administrator
Enrol all eligible employees in the plan
Notify plan administrator of employees wishing to opt out
Remit employee contributions to the administrator
EMPLOYEE ROLES AND RESPONSIBILITIES
Employee opt-out: within 60 days after notice from administrator
Select investment option among those available (otherwise default fund)
Select contribution rate (otherwise default rate)
APPLICABLE FEES FOR YOUR EMPLOYEES
Investment options and asset-based fees:
•Sun Life Assurance 1, 2, 3, 4 and 5-Year Guaranteed Funds – N/A
•Sun Life Target Date Segregated Funds – 1.25%
•Sun Life BlackRock Canadian Bond Index Segregated Fund - 1.437%
•Sun Life BlackRock Canadian Equity Index Segregated Fund - 1.437%
•Sun Life BlackRock Global Equity Index Segregated Fund - 1.446%
Other service fees, including:
• Partial withdrawal fee: $25.00 per withdrawal
• Transfer fee: $25.00 per partial asset transfer to another financial institution*
• Full withdrawal/transfer fee: $50.00 charge will apply for full withdrawals or transfers to other
financial institutions*
• Transfer of benefits between spouses: $100.00 shared equally between the spouses unless
they have agreed otherwise between themselves
• Statement for purposes of relationship breakdown: $150.00 shared equally between the
spouses unless they have agreed otherwise between themselves
• For a full list of applicable fees, refer to the Sun Life Financial VRSP Plan Text located on the
contracts page at www.sunlife.ca/VRSP
* Note: There are no transfer fees within the Sun Life Financial group of companies
SUN LIFE FINANCIAL'S VRSP
Easy to implement with help from our advisors and the VRSP-focused resources of
our Sun Life Financial Small Business Centre
Simple to manage and understand - our specialized team handles the administrative
work
Attractive investment options
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Depend on Canada's leader in retirement plan solutions!
Benefits Canada, 2013 - Sun Life Financial Group Retirement Services' share of assets under management among the 10 largest defined contribution pension plans in Canada.
Opportunities
for you
What are the benefits for you?
Quick and easy to implement with our Sun Life Financial Small Business Centre
that's focused on serving you
Administration done for you
Information and education for your employees on VRSPs and retirement savings
Your contributions are tax deductible and there are no payroll taxes if you choose to
contribute to the plan
Excellent way to attract and retain talent
Boosts staff loyalty (less turnover)
What are the benefits for your employees?
Easy access to an affordable workplace savings plan
Simple, low-cost investment solutions
Flexible contribution and investment options
Employee contributions are tax deductible up to their RRSP limits
Investment earnings are tax deferred until the benefits are paid
Better retirement planning and ultimately better retirement outcomes
Access to online training and financial planning resources on our plan member services
website at mysunlife.ca
Access to world-class Customer Care Centre for all their questions
If desired, workplace training and education done by an advisor
FOR MORE INFORMATION
sunlife.ca/VRSP
VRSP-focused Sun Life Financial Small Business Centre
1-855-362-3086
RVER@sunlife.com
Read VRSP articles in Les Affaires
Join the conversation at LinkedIn - RVER (French only)
THANK YOU