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Bill C-253 (Historical)

An Act to amend the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act (pension plans and group insurance plans)

This bill is from the 43rd Parliament, 2nd session, which ended in August 2021.

Sponsor

Marilène Gill  Bloc

Introduced as a private member’s bill. (These don’t often become law.)

Status

Report stage (House), as of June 21, 2021
(This bill did not become law.)

Summary

This is from the published bill.

This enactment amends the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act to ensure that 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 are paid in priority in the event of bankruptcy proceedings.

Similar bills

C-384 (42nd Parliament, 1st session) An Act to amend the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act (pension plans and group insurance programs)
C-372 (42nd Parliament, 1st session) An Act to amend the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act (pension plans and group insurance plans)

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from Parliament. You can also read the full text of the bill.

Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-253s:

C-253 (2022) Bank of Canada Accountability Act
C-253 (2016) Recognition of Charlottetown as the Birthplace of Confederation Act
C-253 (2013) An Act to amend the Access to Information Act (response time)
C-253 (2011) An Act to amend the Access to Information Act (response time)

Votes

May 12, 2021 Passed 2nd reading of Bill C-253, An Act to amend the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act (pension plans and group insurance plans)

Debate Summary

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This is a computer-generated summary of the speeches below. Usually it’s accurate, but every now and then it’ll contain inaccuracies or total fabrications.

Bill C-253 aims to amend bankruptcy laws to prioritize pension payments and group insurance plans to workers and retirees when companies face bankruptcy or restructuring.

Bloc

  • Protects pensions and insurance: Bill C-253 amends bankruptcy laws to ensure workers do not lose their pension plans and group insurance during company bankruptcy or restructuring.
  • Pensions are deferred wages: The bill recognizes pension plans as deferred wages and makes them preferred claims in bankruptcy proceedings to prevent them from being lost.
  • Addresses current injustice: The Bloc argues current Canadian law inadequately protects workers' rights, leading to injustices where pensioners lose earned funds in bankruptcies.

Conservative

  • Concerns about financial system impact: The party supports the principle of protecting pensioners but is concerned the bill could negatively impact the financial system by making borrowing harder and more expensive for businesses.
  • Potential negative consequences for businesses: Members warn the bill as currently written could force businesses to close, prevent debt restructuring, and jeopardize jobs due to increased risk for lenders.
  • Support for committee study: The party supports sending the bill to committee for further study and potential amendment to balance pension security with the stability of the financial system.
  • Explore alternative solutions: At committee, the party will explore alternative solutions to protect pensions, such as preventing dividend stripping when pensions are underfunded.

NDP

  • Prioritizing worker pensions: The bill amends bankruptcy laws to give unfunded pension liabilities "super priority" status, ensuring they are paid before secured creditors in company bankruptcies.
  • Addressing current injustice: Under current laws, workers' earned pensions (deferred wages) are lost in bankruptcies, while secured creditors are paid first, causing significant hardship for retirees.
  • Supports sending bill to committee: The NDP strongly supports Bill C-253 at second reading and urges all members to vote in favour to send it to committee for further consideration.

Liberal

  • Bill has negative impacts: The party opposes the bill, arguing it would prevent restructuring, cause job losses, hurt small businesses, and reduce competitiveness.
  • Government has acted effectively: The government has already implemented comprehensive, evidence-based measures through the 2019 budget and other programs to protect pensions and workers during insolvency.
  • Bill's approach is flawed: While acknowledging the importance of protecting pensions, the party believes Bill C-253 takes a misguided approach compared to the government's holistic strategy.
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Bankruptcy and Insolvency ActPrivate Members' Business

May 11th, 2021 / 6:45 p.m.

Bloc

Marilène Gill Bloc Manicouagan, QC

Madam Speaker, I request a recorded division.

Bankruptcy and Insolvency ActPrivate Members' Business

May 11th, 2021 / 6:45 p.m.

The Assistant Deputy Speaker Carol Hughes

Pursuant to an order made on Monday, January 25, the division stands deferred until Wednesday, May 12, at the expiry of the time provided for Oral Questions.

The House resumed from May 11 consideration of the motion that Bill C-253, An Act to amend the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act (pension plans and group insurance plans), be read the second time and referred to a committee.

Bankruptcy and Insolvency ActPrivate Members' Business

May 12th, 2021 / 4:20 p.m.

The Speaker Anthony Rota

Pursuant to order made on Monday, January 25, the House will now proceed to the taking of the deferred recorded division on the motion at second reading stage of Bill C-253 under Private Members' Business.

(The House divided on the motion, which was agreed to on the following division:)

Vote #116

Bankruptcy and Insolvency ActPrivate Members' Business

May 12th, 2021 / 4:35 p.m.

The Speaker Anthony Rota

I declare the motion carried.

Accordingly, the bill stands referred to the Standing Committee on Industry, Science and Technology.

(Bill read the second time and referred to a committee)