Friday, July 31, 2009

Petition to Canadian Parliament for pensioners

The Canadian bankruptcy system treats retirees of bankrupt companies as unsecured creditors with no priority. This means that under funded pension plans take a back seat to banks and suppliers and other secured creditors. Pensioners stand to lose a lot of their defined benefits if the bankrupt company liquidates. The return may be zero or cents on the dollar.

The Canadian government has done nothing to protect retirees from this dire situation. Unlike the USA and the UK, where government agencies step in to protect retiree's rights, Canada lets its pensioners fall into poverty.

The Nortel Retiree Protection Committee has initiated a petition to fix the process in Canada so that pension trust funds take priority over other creditors. This first step will help many thousands of people who today face the prospects of losing 40% or more of their pension income.

I urge all my readers to download the petition, sign it, and send it in to the NRPC.

The Canadian treatment of pensioners is deplorable. Taking this action may help bring the Canadian government to its senses and approve a bill to correct this shameful situation.

The petition may be found at this web site:

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