Setting up a VRSP is simple. Here are the five steps your clients need to follow to implement the plan.
Step 1 – Notify employees
- Notify their employees in writing at least 30 days before they enter into a VRSP contract with London Life. Our VRSP specialists can provide them with a template that has all the information they need.
- Once they notify their employees, VRSP legislation requires that employers wait at least 30 days before the plan can become effective and then implemented in their workplace. If employers want confirmation whether their employees who work in, or outside, Quebec are eligible under the plan, they may contact the Commission des normes, de l’équité, de la santé et de la sécurité du travail at 1-844-838-0808.
Step 2 – Complete participation agreement
Once the 30-day waiting period is complete:
- Employers may fill out the participation agreement and return it to their VRSP specialist by mail, fax or email. They use the date field in the participation agreement to select the plan’s effective date, which is at least 30 days after they notified their employees in writing.
- Two separate letters will be mailed from London Life including:
- The employer’s Access ID as plan administrator
- Password confirmation – the employer will then be prompted to change it by choosing their own password
Step 3 – Enrol employees
Employers will receive:
- A welcome email from their customer service specialist, which will provide them with information on how to enrol their eligible employees* and how to complete the implementation process.
*Eligible employees are those at least 18 years old and have been working for the company for one year or more. If employers aren’t sure an employee is eligible under the plan, they may contact the Commission des normes, de l’équité, de la santé et de la sécurité du travail at 1-844-838-0808. Other employees can ask, in writing, to join.
Step 4 – Welcome packages for employees
Once the employer has enrolled their employees:
- Employees will receive a welcome package from their employer’s customer service specialist in the mail including:
- Information about how the plan works
- Instructions on how they can choose and change their contribution amount and information on when a default contribution amount applies
- Their investment options
- Before the employer starts their employee’s contributions through payroll deductions, employees have 60 days to opt out of the plan, starting from the date the welcome package was mailed. If employees choose to opt out, they’ll be required to send their opt-out form to the employer, which they’ll keep for their records, and the employer will need to confirm this information with their customer service specialist.
Step 5 – Input contribution information
- Fill out the pre-authorized chequing form and return it to your customer service specialist by mail, fax or email.
- Let us know if payroll contributions will be deducted from more than one bank account, which will allow us to set up your online contribution feature to meet your needs.
- Contributions begin after the 60-day opt-out period ends. The email employers received in Step 3 contains detailed contribution instructions.
- For each pay period, employers use our online contributions feature on GRS Access to:
- Enter or edit how much each employee is contributing
- Submit online contributions for their members, which will allow us to debit the total contribution amount from the company’s bank account and deposit them to the employees’ VRSP accounts.
The employer is now done – their plan is now set up. They’ll receive a financial statement regarding the plan on a quarterly basis, which will also be available to them online, along with other information and reports about the plan. Members will also be mailed statements annually showing their personal account information.