New legislation passed this week requiring all Quebec companies with five or more full-time employees to offer workplace retirement plans should be an example for the rest of Canada, says the head of the nation’s life and health insurer’s association.
“VRSPs (Voluntary Retirement Savings Plans) will have a profound effect on the retirement savings of Quebecers by giving almost all workers easy access to a low-cost workplace retirement plan,” said Frank Swedlove, president of the Canadian Life and Health Insurance Association. “In taking this approach Quebec is demonstrating great leadership in Canada, and we believe that Quebecers will be well ahead of their counterparts in other provinces in retirement savings in the years to come.”
Quebec’s approach to pooled registered pension plans (PRPPs), called VRSPs, will require all companies in the province with five or more full-time employees to offer a workplace retirement plan.
Quebec joins Ottawa, Alberta and Saskatchewan in passing PRPP legislation. The industry encourages other provinces to move as quickly as possible. Ontario announced a public consultation late last week.
“Given its predominance in pension regulation, we strongly urge Ontario to fast track its legislation to ensure its workers can also benefit from access to workplace retirement plans as soon as possible,” said Swedlove. “PRPPs should not be tied up in discussions on CPP and QPP. Any delays in the implementation of PRPPs affects the ability of workers to build up the necessary capital for retirement.”
The life and health insurance industry administers more than two-thirds of pension plans for Canada's small and medium-sized businesses and the vast majority of group RRSPs.
