Nine out of 10 Quebec small-business owners support the concept of the new Voluntary Retirement Savings Plan (VRSP), Quebec’s version of the Pooled Registered Pension Plan (PRPP) that will come into effect July 1, 2014, according to Ipsos Reid poll commissioned by Manulife.
The survey also shows more than half (57%) feel a sense of duty to help their employees save for retirement.
Quebec is the first Canadian province to implement the PRPP, paving the way for other provinces to execute their own plans and fill the nationwide retirement savings gap.
When the VRSP legislation takes effect, thousands of employers in the province will have to provide a workplace savings plan, such as the VRSP, to their employees at a specific point over the next few years.
Most of the Quebec small-business owners surveyed don’t believe their employees are financially prepared for retirement (61%) nor have the financial knowledge to choose proper investments (66%).
The push for the PRPP is picking up across the rest of the country. A number of provinces have either passed or are on their way to passing legislation that will see this workplace savings plan come into effect.
Alberta and Saskatchewan are working toward finalizing their PRPP regulations and selecting launch dates. Once those details are in place, business owners in both provinces will have access to the PRPP and the ability to provide their employees with a means to save for their retirement.
Similar legislation has also passed the final reading stage in British Columbia (B.C.), which means the PRPP will likely soon be an option for millions of workers across the province who don’t currently have access to a workplace savings plan.
Ontario has also indicated its intent to move the PRPP forward when once the provincial budget is passed this summer.