An Act to amend the Bankruptcy and Insolvency Act, the Companies’ Creditors Arrangement Act and the Pension Benefits Standards Act, 1985
Pension Protection Act. Royal assent April 27, 2023 (S.C. 2023, c. 6). Conservative private member's bill sponsored by Marilyn Gladu (MP for Sarnia-Lambton). Amends the Bankruptcy and Insolvency Act and the Companies' Creditors Arrangement Act to give pension-plan unfunded liabilities and severance owing to employees super-priority status in corporate insolvency, ranking ahead of secured creditors. Response to high-profile pension shortfalls in cases like Sears Canada (2017, leaving 18,000 retirees with reduced pensions) and Nortel Networks. Passed unanimously in the Commons (third reading vote 318-0) after multi-party negotiation.
Status
Quick learn
Moves unpaid pension and severance obligations ahead of other unsecured creditors when a company goes bankrupt. Protects workers and retirees of failed firms from losing their pensions to the kind of liquidation that hit Sears Canada and Nortel retirees. Conservative private member's bill that passed with cross-party support.
Issues this bill touches
- Workers' Rights & Labour
Pension Protection Act. Pension and benefit obligations now rank ahead of secured creditors in BIA / CCAA insolvency.
Legislative history
- First reading
First reading in the House of Commons.
View source - Second reading
Second reading in the House of Commons.
View source - Third reading
Third reading in the House of Commons.
View source - First reading
First reading in the Senate.
View source - Second reading
Second reading in the Senate.
View source - Third reading
Third reading in the Senate.
View source - Royal assent
Royal assent received.
View source
Sponsored by
Marilyn GladuLIBERALOfficial source
Read full text on Parliament of Canada