This bill has received Royal Assent and is now law.
Summary
This is from the published bill. The Library of Parliament has also written a full legislative summary of the 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. It also amends the Pension Benefits Standards Act, 1985 to provide for the tabling of an annual report respecting the solvency of pension plans.
Similar bills
C-225 (44th Parliament, 1st session)
An Act to amend the Bankruptcy and Insolvency Act, the Companies’ Creditors Arrangement Act and the Pension Benefits Standards Act, 1985 (pension plans and group insurance plans)
C-259 (43rd Parliament, 2nd session)
An Act to amend the Bankruptcy and Insolvency Act, the Companies’ Creditors Arrangement Act and the Pension Benefits Standards Act, 1985 (pension plans and group insurance programs)
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-228s:
C-228 (2025)
An Act to amend the Department of Foreign Affairs, Trade and Development Act (prior review of treaties by Parliament)
C-228 (2021)Law
Reduction of Recidivism Framework Act
C-228 (2020)
Reduction of Recidivism Framework Act
C-228 (2016)
An Act to amend the Fisheries Act (closed containment aquaculture)
Votes
Nov. 23, 2022Passed 3rd reading and adoption of Bill C-228, An Act to amend the Bankruptcy and Insolvency Act, the Companies’ Creditors Arrangement Act and the Pension Benefits Standards Act, 1985
June 22, 2022Passed 2nd reading of Bill C-228, An Act to amend the Bankruptcy and Insolvency Act, the Companies’ Creditors Arrangement Act and the Pension Benefits Standards Act, 1985
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-228 aims to amend existing acts to better protect workers' pensions and benefits in the event of company bankruptcy or insolvency. It would require annual reports on pension fund solvency to be tabled in the House of Commons, create a mechanism to transfer funds to restore solvency, and establish that pension payments have priority over other creditors and executive bonuses during bankruptcy proceedings. The bill also proposes empowering the Superintendent of Financial Institutions to intervene when pension plans are at risk.
Conservative
Pension protection priority: The Conservative party is prioritizing pension protection for Canadians whose companies declare bankruptcy. They want to ensure Canadians receive the secure financial future they expect from their life-long contributions.
Key bill provisions: The bill includes three provisions: requiring annual solvency reports in the House of Commons, providing a mechanism to transfer funds to restore solvency, and prioritizing pension payouts over large creditors and executive bonuses in cases of bankruptcy.
Drawing from past bills: This bill has incorporated aspects of previous bills, aiming to improve pension protection through measures that can garner broad agreement across the House. The party is open to amendments at the committee stage to improve pension protection for seniors.
Stakeholder support: The bill has received support from various stakeholders, including the Canadian Federation of Pensioners and the Canadian Association of Retired Persons (CARP), though some financial institutions have expressed concerns about potential impacts on credit access for companies with insolvent funds.
NDP
Supports protecting pensions: The NDP supports the bill's goal of protecting worker pensions during bankruptcy or insolvency. They view pensions as deferred wages that provide a foundation for retirement, and express concern that current laws leave workers behind while prioritizing secured creditors.
Collaborative effort: The NDP collaborated with the Bloc Québécois and the bill's sponsor to address concerns and reach an agreement. They thank Scott Duvall for his prior work on the issue and the bill's sponsor for being open to amendments.
Need for improvements: The NDP voices concerns about a clause that could allow fund administrators to unilaterally change pension plan terms and conditions, and the potential for insurance policies to inadequately cover unfunded pension liabilities. They also advocate for the protection of health care benefits during insolvency proceedings.
Bloc
Strong support for bill C-228: The Bloc Québécois expresses strong support for Bill C-228, viewing it as a crucial step toward correcting a serious injustice and protecting workers' pension plans in the event of company bankruptcies. Members believe that the bill should move forward quickly.
Prioritizing pension plans: The Bloc supports the bill's core principle of prioritizing pension plans during bankruptcy proceedings to ensure that workers receive the retirement benefits they have earned. They note that workers agree to lower wages over their working lives in exchange for contributions to a pension fund, meaning the money in the pension fund belongs to the workers.
Areas for Improvement: While supporting the bill, the Bloc notes the absence of a provision to designate group insurance plans as preferred creditors. They also suggest exploring the possibility of transferring pension funds rather than liquidating them during bankruptcy, and enabling employees to obtain insurance to cover potential deficits in pension funds.
Need to end burden: The Bloc emphasized that the current system unfairly burdens Quebec workers and retirees and that their financial security must be guaranteed.
Liberal
Strongly supports the bill: The Liberals are generally supportive of the bill, viewing the proposed changes to insolvency legislation as a positive step. They support any solution that moves pensioners closer to the front of the line when creditors are paid during insolvency.
Need to strengthen protection: Liberal members emphasize the need to strengthen pension protection for defined benefit plans to prevent the loss of retirement income when employers face insolvency, as seen in cases like Sears and Nortel. They believe that pensions Canadians pay into should remain available to them in full throughout retirement.
Desire for committee study: Liberals are very interested in seeing the bill go to committee for proper study and recommendations back to the House, which will allow them to make a more informed decision on how to vote on this issue.
