Feb. 3, 2022
MP Marilyn Gladu introduces Private Member’s Bill to enhance pension protection
OTTAWA, ON— Sarnia—Lambton MP Marilyn Gladu is proud to introduce her Private Member’s Bill for the 44th Parliament, which enhances pension protection for Canadians.
The Bill is called Bill C-228, An Act to amend the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act (pension plans and group insurance plans) and the Pension Standards Act, 1985.
There have been several examples of companies falling into bankruptcy that are then unable to pay their employees the pensions to which they are entitled, sometimes pennies on the dollar— companies such as Eaton’s, Sears, and Nortel, among others.
MP Gladu’s Bill includes provisions to prevent funds from becoming insolvent, to protect the funds by providing mechanisms to make them solvent, and to prioritize pensions in the event of bankruptcy.
The Bill will require an annual report on the solvency of the pension fund prepared by the fund manager and sent to the superintendent who currently reviews this information, as defined in the Pension Benefits Act. This report will be tabled in Parliament for greater transparency.
MP Gladu’s Bill will require steps taken in advance to ensure employees are protected in the event of company collapse. If a fund is insolvent, the company must either declare bankruptcy and give priority to pension payout, or transfer funds into the pension plan to make it solvent, or, acquire third-party insurance for the unfunded plan amount while it is restored to solvency.
“At a time when inflation is at record levels, and Canadians are experiencing financial volatility across the board, pension protection is more important than ever. Millions of Canadians who have worked hard all their lives are at risk of not being able to retire and afford to live, due to fiscal irresponsibility on the part of their employers— I will not allow this to happen. My goal with this Bill is to protect Canadians, their families, and their livelihoods, well into their retirement and beyond, while at the same time ensuring that lenders and supplies receive due consideration, ” says MP Gladu. “Several attempts at similar legislation have been unsuccessful. This Bill combines the elements of others that came before, and I am hopeful we will receive all-party support to protect Canadians going forward.”
"Most older Canadians have fixed incomes but face rising costs, growing inflation, an unpredictable economy and retirement savings that suffer as a result. The Canadian Association of Retired Persons (CARP) believes it is vital that the Federal Government protect pensioners by giving them ‘priority’ status and creates a pension insurance program that insures 100% of pension liabilities. This proposal would go a long way in making that happen," says Bill VanGorder, Chief Operating Officer of the Canadian Association of Retired Persons (CARP).
“I look forward to stewarding this Bill through the legislative process and am hoping for the support of all parties. I will keep Canadians updated on its progress,” says MP Gladu.