6 reasons to offer your employees the RRSP+ via payroll deduction

Simple to implement and easy to manage, the RRSP+ via payroll deduction is a winning solution for both employers and their employees.

By Fonds de solidarité FTQ

According to Retraite Québec, an average of one in two workers does not have access to a retirement savings plan through work. As income from public pension programs is generally not enough for retirees to maintain their standard of living and meet their new retirement needs, company group plans make all the difference.

Retirement is a major concern for many workers. If you're an employer, offering a savings plan by payroll deduction can help you stand apart from the competition and attract talent in situations of labour shortage. If you have the means to offer your employees the Fonds de solidarité FTQ RRSP+ payroll deduction solution, it can also be a way to offer staff bonuses! Read on to discover some of the many advantages of the RRSP+ via payroll deduction.

1. It's a saving solution that gives more to your employees

By setting up an RRSP+ via payroll deduction, you can help your employees save for retirement, buy a house thanks to the Home Buyers' Plan (HBP), or finance their studies thanks to the Lifelong Learning Plan (LLP). It's a great way to support them in the realization of their biggest life projects. The RRSP+ is especially advantageous for your employees, as a $1,000 contribution will generally cost them only $425, or $8.17 per week, for an annual taxable income of $40,000.1 With its automatic payroll deduction and additional 30 percent tax credit,2 the RRSP+ lets you give your employees more. Employees can choose the amount of their deduction and change or interrupt their contributions at any time.

The RRSP+ can also be an excellent complement to your current group RRSP. It's up to each employee to determine the amount of their contributions based on their financial situation and objectives. There is no minimum requirement.

2. It's a good alternative to a voluntary retirement savings plan (VRSP)

The Voluntary Retirement Savings Plan Act (VRSP) states that a company with 10 or more employees has to provide its employees with some means of saving for retirement. By opting for the RRSP+ via payroll deduction, you can avoid the management fees and lengthy setup process that come with a VRSP.

3. It's simple and quick to set up

The RRSP+ via payroll deduction can be set up in just one to two business days. You don't need to sign a contract or pay any management fees. The solution works with your payroll system and can easily be administered online. Employers receive personalized assistance as well as dedicated corporate client support. A Fonds agent will be happy to visit your offices to present the Fonds de solidarité FTQ RRSP+ and answer any questions your employees may have.

4. It's easy to manage

The Fonds de solidarité FTQ RRSP+ via payroll deduction is administered through the employers extranet, a secure site that can be accessed 24/7. Features:

  • Quick and easy online remittance management
  • Training guides and videos
  • Option to order promotional material to better equip your employees
  • Technical support

Some 96 percent of employers have confirmed that setting up the RRSP+ via payroll deduction was easy.3

5. It helps build employee loyalty

As an employer, you are not required to contribute to your employees' RRSP+ via payroll deduction. Keep in mind, however, that employer contributions are not included in the company's payroll and are therefore not subject to the associated payroll taxes. This means that contributing to your employees' retirement savings could be a cost-effective way to pay bonuses. What's more, it gives you a valuable competitive advantage in your employee retention strategy.

6. It contributes to Québec's economic growth

The Fonds de solidarité FTQ has been helping the Québec economy prosper for more than 35 years. With footholds throughout the province, it brings together the RRSP contributions of thousands of investors to boost business growth and contribute to wealth creation for all Québecers. Today, more than 10,000 companies in Québec are enjoying the benefits of the RRSP+ via payroll deduction. When you choose this retirement savings solution for your employees, you're also

  • maintaining, creating, and safeguarding over 215,000 jobs in Québec4and
  • investing in our local economy and in the Fonds's 3,126 partner companies.4

The RRSP+ via payroll deduction is beneficial not only for you and your employees, but also for our society. Enroll now! It takes only a few minutes.

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  • 1
    Example for the 2025 taxation year, based on a person with a $40,000 taxable annual income with a marginal tax rate of 26.5%, receiving 52 paychecks per year and benefits from a tax refund on each paycheck. These amounts are estimates that could vary depending on your taxation status.
    2

    The subscription for shares of the Fonds de solidarité FTQ may give rise to labour-sponsored fund tax credits. The tax credits amount to 30%, namely 15% at the Quebec level and 15% at the federal level, and are limited to $1,500 per fiscal year, which represents a $5,000 subscription for shares of the Fonds de solidarité FTQ.

    Please read the prospectus before subscribing for shares of the Fonds de solidarité FTQ. Copies of the prospectus may be obtained on the Website fondsftq.com, from a local representative or at the offices of the Fonds de solidarité FTQ. The shares of the Fonds de solidarité FTQ are not guaranteed, their value changes and past performance may not be repeated.

    3
    A customer satisfaction survey was conducted with business employers who had implemented the RRSP+ via payroll deduction solution. When asked how difficult it was to set up payroll deductions, 56 percent of respondents said “Very easy” and 40 percent said “Easy.”
    4
    As of September 30, 2019.