Increase in default contribution rates for your workplace plan
Thank you for choosing Sun Life as your Voluntary Retirement Savings Plan (VRSP) provider. Since you joined the plan, many of your employees have been contributing at 3% of their gross salary, which is the default rate since January 1, 2018. VRSP legislation requires that this default contribution rate increase to 4% on January 1, 2019. This will be the final default contribution rate increase for the VRSP, based on current legislation.
Please note that the new default rate of 4% will not affect plan members who have actively selected a contribution rate.
We've been tracking your employee contribution rates, but it's your obligation to adjust any payroll deductions affected by this change. You may need to take action to run a new payroll report. To get an updated list of contribution rates for your employees, please visit the plan sponsor website at sunlife.ca/PlanSponsor on or after January 7, 2019 and generate an updated Payroll deduction member report. You can use this report to make the required changes in your payroll system. We're here to help so don't hesitate to contact us for any question or any support you may need.
Your employees will be advised of the default contribution change through a message on their December 31, 2018 statement and on the plan member services website.
Just a reminder that you defined a contribution frequency when setting up the Sun Life VRSP. As a participating employer to the VRSP, you need to send both member and employer contributions by the last day of the month following the day they were collected from payroll. If you are late with your contributions, we'll contact you.
For more information on your plan and the tools available to you and your employees, please visit the VRSP website at www.sunlife.ca/VRSP.
Please contact us with any questions or concerns.
Sun Life Financial Small Business Centre