Bill C-228

Pension Protection Act

An Act to amend the Bankruptcy and Insolvency Act, the Companies’ Creditors Arrangement Act and the Pension Benefits Standards Act, 1985

Sponsor

Marilyn Gladu Conservative

Introduced as a private member’s bill.

Status

This bill has received Royal Assent and is, or will soon become, 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 (current 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 (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)

C-228 (2013) National Appreciation Day Act

Votes

Nov. 23, 2022 Passed 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, 2022 Passed 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

Debate Summary

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 enhance pension protection for Canadian workers by amending the Bankruptcy and Insolvency Act and the Companies' Creditors Arrangement Act. The bill would require annual reporting on pension fund solvency, create a mechanism for companies to transfer funds into underfunded pension plans without tax implications, and prioritize pension payouts over other creditors, including secured creditors and executive bonuses, in the event of bankruptcy. The bill establishes a four-year transition period before the priority payout comes into effect.

Conservative

Strong support for Bill C-228: The Conservative party strongly supports Bill C-228, which aims to protect the pensions of employees whose companies declare bankruptcy. It's a culmination of efforts from multiple parties over the last decade to improve pension security in Canada.
Key bill provisions: The bill includes provisions for annual reporting on pension fund solvency, mechanisms for companies to transfer funds to restore solvency, and priority payout of pensions over large creditors and executive bonuses in bankruptcy cases.
Addressing pension insecurity: The Conservatives emphasize the need to address pension insecurity, citing examples like Nortel and Sears where employees lost significant portions of their pensions due to company bankruptcies. The bill aims to provide a more secure financial future for Canadians.
Protecting against economic uncertainty: With rising inflation and economic uncertainty, the Conservatives argue that protecting pensions is vital. Bill C-228 is seen as a step towards giving Canadians more certainty and control over their hard-earned money during retirement.

NDP

Supports pension protection: The NDP supports protecting retirement plans and pensions when a business goes bankrupt, aligning with the party's commitment to workers' rights and decent working conditions. They view it as a matter of ensuring workers receive the money they set aside for their retirement, not as charity, but as their due.
Disappointment over severance: The NDP is disappointed that an amendment to include severance pay protection in the bill was rejected, despite support from the Conservative and Bloc members, as well as the bill sponsor. They question why the Liberals opposed protecting severance pay, especially considering their claims of supporting unions and workers.
Past Conservative opposition: The NDP highlights the historical opposition of the Conservative Party to similar bills aimed at protecting pensioners' rights, questioning the sincerity of their current support and pointing to past actions against worker and union movements.
Workers prioritized: The NDP believes in prioritizing workers over banks and investors in bankruptcy situations. They argue that protecting workers' pensions will not harm investments and that investors can make informed decisions knowing the rules and consequences of bankruptcy.

Bloc

Strong support for C-228: The Bloc Québécois strongly supports Bill C-228, aimed at prioritizing pension funds during company bankruptcies, viewing it as crucial for protecting workers' deferred wages and retirement security.
Cross-party collaboration: Bloc members commended the collaborative effort across party lines in developing and improving the bill, particularly highlighting the contributions of the member for Sarnia—Lambton.
Addressing human tragedies: The Bloc emphasized the devastating impact of company bankruptcies on pensioners who lose significant portions of their retirement income, stressing the bill's importance in mitigating such human tragedies.
Preferred, not priority creditor: The bill seeks to make pension funds preferred creditors, but mortgage holders would retain priority. Bloc members feel this would allow companies a chance to restructure while still protecting pension funds.

Liberal

Good intentions, potential consequences: The Liberal party recognizes the good intentions behind Bill C-228, but emphasizes the need to be mindful of potential unintended negative consequences for pensioners, employees, and employers, as raised by expert witnesses and pension plan administrators during committee study.
Concerns about new priority claim: The Liberals highlight concerns about the new preferred claim for termination and severance pay, which was introduced late in the committee process, without adequate opportunity for expert testimony or consideration of its potential impact on various employee groups and stakeholders.
Potential impact on defined benefit plans: The Liberals express concern about the potential impact of a pension claim superpriority on the incentives of pension plan sponsors to continue offering defined benefit pension plans, citing predictions that many private plan sponsors may terminate their plans during the bill's transition period.
Restructuring vs. superpriority: The Liberals point out that in some cases, retirees and workers are better served by company restructuring agreements that allow operations, and pension plans, to continue, citing past successful restructurings involving unfunded pension liabilities under existing insolvency laws.

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Pension Protection ActPrivate Members' Business

November 23rd, 2022 / 3:55 p.m.

The Speaker Anthony Rota

I declare the motion carried.

(Bill read the third time and passed)

As spoken

Pension Protection ActPrivate Members' Business

November 23rd, 2022 / 4 p.m.

The Deputy Speaker Chris d'Entremont

Would members wishing to have conversations please do so in the lobby?

I wish to inform the House that, because of the deferred recorded divisions, Government Orders will be extended by 39 minutes.

We have a point of order from the member for Kingston and the Islands.

Partially translated

Pension Protection ActPrivate Members' Business

November 23rd, 2022 / 4 p.m.

Liberal

Mark Gerretsen Liberal Kingston and the Islands, ON

Mr. Speaker, I want to start by apologizing. I was under the impression that it was okay to ask for a point of order between two votes. I will do that now, if that is okay.

It is unclear to me and to those who were watching exactly what transpired during the vote we had. I am seeking clarification from the Speaker as to whether or not it is necessary for a member to stand to cast their vote. The Leader of the Opposition did not stand, and it is unclear how he voted.

As spoken

Pension Protection ActPrivate Members' Business

November 23rd, 2022 / 4 p.m.

The Deputy Speaker Chris d'Entremont

The House leader for the official opposition has a comment on this as well.

As spoken

Pension Protection ActPrivate Members' Business

November 23rd, 2022 / 4 p.m.

Conservative

Andrew Scheer Conservative Regina—Qu'Appelle, SK

Mr. Speaker, on this side of the House, we trust our excellent table officers. We have clerks at the table, vote-callers and the Speaker in the chair observing things.

As much as the help from the hon. member for Kingston and the Islands may be appreciated by members on the other side of House, we do not believe that anybody at the table in the House of Commons needs help from him.

As spoken

Pension Protection ActPrivate Members' Business

November 23rd, 2022 / 4 p.m.

The Deputy Speaker Chris d'Entremont

What I will say is that the Table did acknowledge him and the vote was counted.

The hon. parliamentary secretary to the government House leader.

As spoken

Pension Protection ActPrivate Members' Business

November 23rd, 2022 / 4 p.m.

Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Speaker, I think the point of order is worthy enough to get clarification.

We all know the process for voting virtually, but just for clarification, when we have a recorded vote on the floor of the House of Commons, the expectation is that a member must rise and acknowledge their name when it is stated. My understanding has always been that if that does not occur, the vote does not count.

That is all I am asking about. I do not want you to reflect on past votes. I just want you to provide clarification for members going forward. They have to stand and acknowledge the Clerk, and if they do not do that, their vote does not count. That is my understanding.

As spoken

Pension Protection ActPrivate Members' Business

November 23rd, 2022 / 4 p.m.

The Deputy Speaker Chris d'Entremont

After further consultation with the Table, it is clear the member was indicating to vote in the positive for the bill. The Chair felt that he stood sufficiently for his vote to be recorded.

The hon. parliamentary secretary to the government House leader.

As spoken