The final version of the Voluntary Retirement Savings Act regulations (as well as some changes to the Supplemental Pension Plans Act regulations) was published in the Gazette officielle du Québec on June 13, 2014. These regulations represent the last legislative milestone required to launch, as planned, VRSPs on July 1st, 2014.
Minor changes were made to the regulations since the draft version was released on March 12 (see the News and Views April 2014 edition); most of these changes are related to VRSP administrator obligations towards the Autorité des marchés financiers and the Régie des rentes du Québec (RRQ). The following changes will impact employers:
- The contract between employers and administrators must include the contribution remittance method, as well as the consequences in case the employer fails to remit contributions within the prescribed delay.
- Employers will no longer need to provide their employees’ salary as part of the enrollment process, but they now must provide their employees’ language of communication.
This new version of the regulations also defines some administration fees that could be charged by administrators to members, and provides further guidelines on how information about investment options must be communicated.
The Autorité des marchés financiers started issuing VRSP administrator licenses. Those administrators may now submit their VRSP plan text to the RRQ, who is responsible for registering these plans, starting on July 1. Once a plan text is registered by the RRQ, administrators can start marketing their product to Quebec employers and individuals.
Quebec is the second jurisdiction allowing the full deployment of Pooled Registered Pension Plans, following the Federal Government, which implemented its legal framework at the beginning of 2013, applicable to employers in federally controlled sectors, such as banking, communications and transportation. British Columbia, Alberta and Saskatchewan also have PRPP legislation in force, but have not yet finalized their regulations.