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Decentralized Democracy

House Bill

Bill C-228

44th Parl. 1st Sess.
April 18, 2023
Pension Protection Act
  • This bill, called the Pension Protection Act, aims to make changes to the Bankruptcy and Insolvency Act, the Companies’ Creditors Arrangement Act, and the Pension Benefits Standards Act, 1985. The purpose of this bill is to prioritize the payment of claims related to unfunded liabilities or solvency deficiencies of pension plans and claims related to employers' participation in group insurance plans in the event of bankruptcy proceedings. Additionally, the bill requires an annual report on the solvency of pension plans to be tabled in Parliament. The bill also includes transitional provisions for employers and companies participating in prescribed pension plans.
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  • RA
  • Yea (335)
  • Nay
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SteelmanSpren in Favour

  • A steelman argument in favor of this act would argue that prioritizing the payment of claims in respect of unfunded liabilities or solvency deficiencies of pension plans and claims relating to the cessation of an employer's participation in group insurance plans in the event of bankruptcy proceedings is necessary to protect the financial security and well-being of employees and pensioners. 1. Protecting employee and retiree interests: By giving priority to claims related to pension plans and group insurance plans in bankruptcy proceedings, this act ensures that employees and retirees are not left financially vulnerable. It recognizes the importance of these benefits in providing for individuals' livelihood and well-being, especially in retirement. 2. Encourages responsible pension management: By requiring employers to make special payments to liquidate unfunded liabilities or solvency deficiencies in pension plans, this act promotes r

SteelmanSpren Against

  • Steelman argument opposing the Pension Protection Act: The Pension Protection Act, which prioritizes the payment of claims in respect of unfunded liabilities and solvency deficiencies of pension plans in the event of bankruptcy proceedings, may have unintended negative consequences. By giving pension claims priority, it could potentially discourage investment and lending to struggling businesses, as creditors may be less willing to provide the necessary funds if they are at a higher risk of being negatively impacted in the case of bankruptcy. This could lead to the liquidation of businesses and the loss of jobs for employees. Furthermore, prioritizing pension claims may disadvantage other creditors who have also invested in the company, such as suppliers or lenders, potentially leading to a domino effect and a higher likelihood of economic instability. Instead of providing preferential treatment to pension claims, bankruptcy proceedings
Royal Assent
  • April 27, 2023, 2 p.m.
  • Read

Senate Debates

44th Parl. 1st Sess.
April 18, 2023

Senate Debates

44th Parl. 1st Sess.
March 30, 2023

Senate Debates

44th Parl. 1st Sess.
March 28, 2023

Senate Debates

44th Parl. 1st Sess.
March 21, 2023

Senate Debates

44th Parl. 1st Sess.
March 07, 2023
Senate Second Reading
  • March 7, 2023, 2 p.m.
  • Passed

Senate Committee

44th Parl. 1st Sess.
March 07, 2023
Banking, Commerce and the Economy (BANC)
Re. Bill C-228, An Act to amend the Bankruptcy and Insolvency Act, the Companies’ Creditors Arrangement Act and the Pension Benefits …
  • Sixth Report

  • The Standing Senate Committee on Banking, Commerce and the Economy has the honour to present its

    SIXTH REPORT

    Your committee, to which was referred Bill C-228, An Act to amend the Bankruptcy and Insolvency Act, the Companies’ Creditors Arrangement Act and the Pension Benefits Standards Act, 1985, has, in obedience to the order of reference of December 14, 2022, examined the said bill and now reports the same without amendment but with certain observations, which are appended to this report.

    Respectfully submitted,

    PAMELA WALLIN

    Chair

    Observations to the Sixth Report of the Standing Senate Committee on Banking, Commerce and the Economy (Bill C-228)

    Your committee heard concerns that multi-employer pension plans could become liable for any pension deficits upon the insolvency of an employer. However, your committee was convinced by a breadth of testimony that supported the position of the Bill C-228 sponsor, Marilyn Gladu, M.P., that these types of pension plans fall outside the scope of the bill and that only employers who are legally responsible to backstop a pension plan fund are liable to provide due payment to their employees upon bankruptcy.

    Your committee also observes that multi-employer pension plans offer many advantages to both employers and employees and suggests that allowing federally regulated employers to establish such pension plans may be beneficial.

    Lastly, your committee observes that there have been instances where agreements have been reached between companies, unions or employee groups and pensioners for settlement with respect to pension plan deficits outside the normal insolvency proceedings and that this path could be pursued to achieve a fair settlement as intended by this legislation.

  • Hear!
  • Rabble!
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Senate First Reading
  • Nov. 24, 2022, 2:22 p.m.
  • Passed

Senate Debates

44th Parl. 1st Sess.
November 24, 2022
House Third Reading
  • Nov. 23, 2022, 3:20 p.m.
  • Passed