Montréal, May 13 2014 – As of July 2014, most companies with five or more employees will have to comply with the Voluntary Retirement Savings Plan Act (VRSP) and offer their workers a way to save for retirement. However, those who offer them the opportunity to make contributions to the Fonds de solidarité FTQ RRSP through payroll deduction will be exempt from this obligation, as stated in section 45 of the Act.
“Saving with the Fonds de solidarité FTQ’s RRSP through payroll deduction is the simple alternative to the VRSP,” says Denis Leclerc, Executive Vice-President, Shareholder Services, of the Fonds de solidarité FTQ. “Our solution, which is already offered by 6,500 companies in Québec, gives employees an extra 30% in tax savings, and what’s more, the service is free for employers, easy to use and adapted to their needs.”
Indeed, the Fonds’ process can be adjusted to work with any payroll system and allows the employer to send the list of employee contributions and corresponding payments electronically.
Payroll deduction is an extremely effective way to save. Simple and easy, it has the added bonus of allowing workers to receive immediately the tax savings back on each pay, thereby greatly reducing their outlay.
“In addition to its many advantages, implementing the Fonds de solidarité FTQ’s payroll deduction plan will exempt employers from having to set up a VRSP,” concluded Mr. Leclerc.
About the Fonds de solidarité FTQ
The Fonds de solidarité FTQ helps drive our economy. With net assets of $9.7 billion as of November 30, 2013, the Fonds is a development capital investment fund that channels the savings of Quebecers into investments in all sectors of the economy to help further Québec's economic growth. Its investments, in all sectors of the economy, contribute to the creation and maintenance of businesses and development in Quebec. The Fonds is a partner, either directly or through its network members, in close to 2,400 companies. With its more than 615,000 owner-shareholders, it has helped, on its own or with other financial partners, to create, maintain and protect more than 170,000 jobs. For more information, visit www.FondsFTQ.com.
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Informations for employers on the Fonds’ payroll deduction plan:
On the Web : http://www.FondsFTQ.com/rver
Phone : 1-888-385-3723
Information for media representatives only:
Patrick McQuilken
Senior Advisor, Media Relations and Communications
Fonds de solidarité FTQ
Phone: 514 850-4835
Mobile : 514 703-5587
Email: pmcquilken@fondsftq.com