The default mandatory employee contribution rate to Quebec Voluntary Retirement Savings Plans (VRSP) will increase from 3 percent to 4 percent on 1 January 2019. Employers who do not have a corporate retirement plan are required to enroll their staff working in Quebec in a VRSP funded by employee contributions.
The VRSP requirement has been phased in according to the number of employees working in Quebec and currently applies to employers with 10 or more eligible employees. The implementation date for employers with five to nine eligible employees has yet to be announced. Employer contributions are not required. Eligible employees are automatically enrolled in a VRSP and will be able to opt out, reduce or stop their contributions. The employer must offer to eligible noncontributors the opportunity to join the plan or resume contributions every two years following the date the eligible employee had opted out, reduced or stopped contributions to the plan.