New Legal Developments (Quebec)

  • January 02, 2014

(a) Voluntary Retirement Savings Plan (VRSP)

On December 3, 2013, Bill 39 aimed at creating the Quebec version of the pooled registered pension plan was passed. The Voluntary Retirement Savings Plan Act will come into force on July 1, 2014. The legislation will gradually require corporations that do not already offer a group RRSP or TFSA or a registered pension plan, to offer VRSPs to their employees depending on the size of the corporation:

  • Corporations with 20 or more eligible employees must offer a VRSP by December 31, 2016;
  • Corporations with 10 to 19 eligible employees must offer a VRSP by December 31, 2017; and
  • Corporations with 5 to 9 eligible employees must offer a VRSP by a date yet to be determined by the government.

For more information, please visit the Régie des rentes Québec website.

(b) D’Amours report on pension plan reform in Québec

In April 2013, the report on Innovating for a Sustainable Retirement System Рa Social eContract to Strengthen the Financial Security of all Qu̩bec Workers was released. The report was based on a study by a committee mandated by the R̩gie des rentes Qu̩bec and contains numerous recommendations to ensure the sustainability of the Quebec retirement system.

For a summary of the report, visit Innovating for a Sustainable Retirement System Summary.

To read the full report, visit Innovating for a Sustainable Retirement System Full Report.

(c) Action Plan for the Sustainability of Pension Plans

In response to the D’Amours Report, on December 12, 2013 the government unveiled an action plan aimed at ensuring the sustainability of defined benefit (DB) pension plans in Quebec. The action plan seeks to establish a framework for restructuring DB plans as well as amending the funding rules for DB plans. A detailed timeline is set out in the action plan. It describes the process that will be followed over the next two years. Legislation is expected to be tabled this spring to formalize the time-lines and restructuring process and additional legislation in the fall of 2014 is contemplated to facilitate the solutions proposed during the next few months.

For more information, please visit the Sustainable development action plan.