New Canadian Bill Introduced to give Pensions secure status in the event of bankruptcy

There was a new bill introduced in the Senate Dec 14 2009 to give pension funds secure status in the event of bankruptcy. Earlier, a similar amendment was proposed to be included in Bill-51 but was declared out of order.

The new bill has had first reading in the Senate on 14 December. The bill proposes to ensure that unfunded pension plans' liabilities are accorded the status of secure debts, plus other items.

http://www.liberalsenateforum.ca/In-The-Senate/Bill/8067_S-245--Unfunded-pension\-plan-liabilities


Bill S-245 - An Act to amend the Bankruptcy and Insolvency Act and other Acts
(unfunded pension plan liabilities)
Sponsor: Senator Pierrette Ringuette

SUMMARY

This enactment amends the Bankruptcy and Insolvency Act and the Companies' Creditors Arrangement Act to ensure that unfunded pension plans' liabilities are accorded the status of secure debts in the event of bankruptcy proceedings.

The enactment also amends the Canada Business Corporations Act to provide an efficacious procedure by which former employees of a bankrupt corporation who are owed amounts by the corporation can proceed with claims against its directors.

As well, the enactment amends the Employment Insurance Act to specify that payments made to a claimant out of the proceeds realized from the property of a bankrupt or by a government in the event of bankruptcy will not be deducted from benefits payable to an employment insurance claimant.

Finally, the enactment amends the Wage Earner Protection Program Act to include proposals, compromises and arrangements.

For more information, visit LEGISinfo

Text of the Bill available at:
http://www2.parl.gc.ca/content/Senate/Bills/402/public/S-245/S-245_1/S-245_text-\
e.htm


Status of the Bill
The bill has had a first reading in the Senate. It has a long way to go before it can ever become law. At this point we need as many people as possible to write to their MPs and the Prime Minister to support passage of this bill as quickly as possible with retroactive application to January 1st 2009.