Company preparing to partner with Québec organizations to help employees use a VRSP to save for retirement
MONTREAL, July 4, 2014 /CNW/ - Morneau Shepell Asset & Risk Management, a wholly-owned subsidiary of Morneau Shepell, has received approval from the Autorité des marchés financiers to administer a Voluntary Retirement Savings Plan (VRSP). A VRSP is a new retirement saving vehicle that became available in Québec on July 1. It is designed to help employees without access to other workplace plans grow their retirement savings.
"It is mandatory for employers that meet certain criteria to make a VRSP available to their employees," said Jean Bergeron, partner and practice leader for Morneau Shepell's investment consulting practice. "VRSPs are, however, voluntary in the sense that employees can decide whether or not they want to participate in the VRSP that is made available to them by their employer. They can also choose their contribution rate and investment options."
Employers with five or more targeted employees working in Québec that do not already offer a group registered retirement savings plan, group tax-free savings account, or registered pension plan must set up a VRSP for their employees in accordance with the provincial government's timeline. These deadlines vary depending on the number of Québec-based targeted employees who are working for the organization:
- Employers with 20 or more targeted employees have until December 31, 2016 to make a VRSP available;
- Those with 10 to 19 employees have until December 31, 2017; and,
- The deadline for employers with five to nine employees has yet to be determined by the government but it will not be before January 1, 2018.
"Many employers will want to consider offering a VRSP earlier than these deadlines," said Pierre Chamberland, Morneau Shepell's Executive Vice President of Administrative Solutions. "There are a number of advantages for employers and employees in offering a VRSP as an alternative to traditional group RRSP plans."
For more information about the Morneau Shepell VRSP, please visit vrsp.morneaushepell.com.
About Morneau Shepell Asset & Risk Management Ltd.
Established in 2012, Morneau Shepell Asset & Risk Management was launched as an extension of Morneau Shepell's asset and risk services department to help achieve targeted investment outcomes for clients and provide pension plan sponsors with a new investment approach and asset allocation. By pioneering the outcome-oriented style of investing, Morneau Shepell Asset & Risk Management assists investors by emphasizing downside protection, reduced volatility, and controlled risk.
About Morneau Shepell Inc.
Morneau Shepell is the largest company in Canada offering human resources consulting and outsourcing services. The Company is the leading provider of Employee and Family Assistance Programs, as well as the largest administrator of retirement and benefits plans and the largest provider of integrated absence management solutions in Canada. Through health and productivity, administrative, and retirement solutions, Morneau Shepell helps clients reduce costs, increase employee productivity, and improve their competitive position. Established in 1966, Morneau Shepell serves more than 20,000 clients, ranging from small businesses to some of the largest corporations and associations in North America. With approximately 3,500 employees in offices across North America, Morneau Shepell provides services to organizations across Canada, in the United States, and around the globe. Morneau Shepell is a publicly-traded company on the Toronto Stock Exchange (TSX: MSI). For more information, visit morneaushepell.com.
SOURCE Morneau Shepell Inc.