Quebec workers' fund manager announces return of lump-sum contributions

MONTREAL — The Fonds de solidarité FTQ says shareholders will be able to resume lump-sum contributions in the 2024-25 fiscal year.

Announced at its annual meeting as the Quebec workers' fund manager celebrates its 40th anniversary, the lump-sum payments aim to allow more people to save for retirement after contributions were suspended during the COVID-19 pandemic.

Janie Béïque, CEO of the fund manager, says reinstating lump-sum contributions next year will allow it to reach even more Quebecers looking to ensure dignity in retirement.

Some 40 per cent of retirees in Quebec receive the federal Guaranteed Income Supplement, which is reserved for low-income people.

In the next five years, the fund manager says it aims to sign up 100,000 new shareholders who have no savings or an income below the provincial average.

Quebecers have typically been able to buy fund shares, which are eligible for the Registered Retirement Savings Plan, via lump-sum payments, preauthorized withdrawals or payroll deductions at unionized companies or government bodies.

This report by The Canadian Press was first published Sept. 17, 2023.

The Canadian Press