Your opportunity

Whether you are a veteran of the group business or looking to gain a foothold in this expanding marketplace, the VRSP and PRPP present excellent opportunities to grow your business.

In Quebec, the VRSP offers a special opportunity because, as of July 1, 2014, it will be mandatory for small- to medium-size Quebec businesses with 5 or more eligible employees (subject to the phase in period referred to above), who do not already have the opportunity to contribute via payroll deduction to a registered retirement savings plan or tax-fee savings account and are not members of a registered pension plan, to offer a VRSP. According to Statistics Canada, as of 2012, there were a total of over 95,000 such businesses in Quebec1. That represents a significant “captive” market with an urgent need for a VRSP or other retirement savings product.

In the rest of Canada, the PRPP opens the door to new or renewed conversations about group retirement plans. The media attention invites discussion with any group benefit clients who, for whatever reason, felt that employer-sponsored retirement savings plans were beyond their resources. And if your focus is the individual market, you may find you have a number of clients who own small- to mid-size businesses whose employees would definitely benefit from a PRPP.

If you're active in the group retirement services market, you'll find a growing need for your advice. 

Even though the core VRSP / PRPP plan designs will be set by regulation, employers will need help choosing a provider. As we help you to address those needs, chances are you'll find other opportunities to add value – first through your advice and then by providing additional products and services.

Your clients will appreciate the many advantages we offer as Canada's leading supplier of group retirement services:

  • A turn-key product that is easy for employers and employees to understand
  • Complete administration support every step of the way
  • Award-winning education and communication services for plan members
  • Financial strength, stability and a tradition of excellence

And both you and your clients can rest assured that the solution we provide – whether it's a VRSP, PRPP or more traditional retirement savings plan – will meet the legislative requirements.

It's also important to remember that every group account you have is made up of individual people. People who need advice. The closer they get to retirement, the more focused they are on building savings. They want to preserve their capital and they need tailored strategies to generate predictable retirement income. By providing seminars and other value-added services you can easily market to this prime audience.

If you're active in the group benefits or individual markets, the VRSP and PRPP can help you branch out into new and lucrative territory.

Today, employers of all sizes compete for good employees. And they'll continue to do so as boomers retire in ever greater numbers. With their flexibility and ease of administration, a Sun Life Financial VRSP or PRPP will be an effective addition to the benefit plans of any small-scale employer.

If you're in Quebec and have group benefit or individual clients who own small- to medium-size businesses, the mandatory VRSP is a great opportunity. By helping your clients meet their legislated obligation you're providing a service they simply have to have. And by presenting the Sun Life Financial solution, you'll be sharing the best design solutions from the industry's leading provider.

A winning plan – Advantages for everyone

Employers Employees Advisors
Minimal administration
Most of the administration will be done by Sun Life Financial. We'll produce all the necessary legal documents, forms and reports - which means your clients won't need to divert scarce resources to the plan administration.
Accessible plan
Employees of small businesses and self-employed workers will now have easy and affordable access to a retirement savings plan.
A big new market
Over 500,000 Canadian businesses currently do not offer any kind of employee workplace savings plan2. This is an unprecedented opportunity to expand existing group business or branch out into the group market. More specifically, in Quebec, there are over 95,000 businesses who must offer a VRSP, and over one million employees who could benefit from the retirement savings opportunity offered by the VRSP.
Quick and easy implementation
Enrolment of employees can be done online, with no required employer contributions. Default contribution rates will be set by regulation for the VRSP and by the plan administrator for the PRPP. We'll streamline the choice of investment options. All this means starting a VRSP or PRPP will be quick and easy for employers.
Low management fees
The economies of scale that exist in a plan with a large pool of assets will mean low management fees for plan members.
Cross-selling opportunities
There are over 7.6 million employees in companies all over Canada that do not currently offer a workplace savings plan. Wouldn't it be great to have their employer endorse you by working with you to put their retirement savings plan in place?
Tax advantage
All contributions are tax deductible and are not subject to payroll taxes. Combined member and employer contributions are subject to the same annual limit as RRSPs (i.e., max total 18% of previous year's earned annual income).
Automatic enrolment, automatic contribution deductions, automatic contribution increases and a default investment option makes saving easier.
Deepening relationships
For individual clients (who are also business owners) and for group benefit clients, the VRSP / PRPP are your key to a deeper relationship. If you don't start the conversation with them, someone else will. And nobody has a better story to tell than we do.
Competitive edge
With a VRSP / PRPP, small businesses – especially those who require highly-skilled and educated workers – will be well placed to compete. In Quebec, the mandatory VRSP will help to level the playing field between small- and medium-size businesses and larger businesses when it comes to competing for talent.
Members will be able to choose their contribution rate and investments options, or opt out of the plan, giving them direct control over their savings.
A receptive audience
The really good news is that almost 70% of small- and mid-size business owners and executives without workplace retirement savings plans are already interested in offering the VRSP / PRPP option to their employees3. And in Quebec, 100% of small businesses with 5 or more eligible employees, who do not already have the opportunity to contribute via payroll deduction to a registered retirement savings plan or tax-free savings account and are not members of a registered pension plan, will be required to offer a VRSP.
Employees can continue contributing to the Sun Life Financial plan, even if they change employers or they can transfer their assets to their new employer's VRSP or PRPP.

1 Statistics Canada,
2 Statistics Canada, Canadian Business Patterns Database, December 2010.
3 Canadian Life and Health Insurance Association.