Conservatives Pass Law Protecting Pensions for Canadian Workers

April 19, 2023
FOR IMMEDIATE RELEASE

OTTAWA, ON — Marilyn Gladu, Conservative Shadow Minister for Civil Liberties, announces the passing of her Private Member’s Bill C-228, An Act to amend the Bankruptcy and Insolvency Act, the Companies’ Creditors Arrangement Act and the Pension Benefits Standards Act.

Bill C-228 creates new protections for workers’ pensions in the event of insolvency. It was first introduced in the House of Commons in February 2022 and has passed third reading at the Senate. It is now awaiting Royal Assent before it becomes law.

“After eight years of Trudeau, inflation is at record levels, and Canadians are experiencing financial volatility across the board. Pension protection is more important than ever. If an employer’s bankruptcy can wipe out an employee’s pension, then millions of Canadians who have worked hard all their lives are at risk of not being able to retire or afford to live — I will not allow this to happen,” said MP Gladu.

Bill C-228 ensures workers are protected in the event of a company collapse. If a fund is insolvent, the company will have to declare bankruptcy and give priority to pension payout or transfer funds into the pension plan to make it solvent.

“My goal with this bill is to protect Canadians, their families, their livelihoods, and the retirements they have worked so hard for while at the same time ensuring that lenders and suppliers receive due consideration,” said MP Gladu.

Additionally, the bill will require an annual report on the solvency of the pension fund prepared by the fund manager and sent to the superintendent, who currently reviews this information, as defined in the Pension Benefits Act. This report will be tabled in Parliament for greater transparency.

“This bill combines the elements of others that came before, and I am hopeful we will continue to work across the aisle to support and protect Canadians going forward,” said MP Gladu. “I wish to thank Senator David Wells, who was the Senate sponsor of Bill C-228, as well as all others who helped this bill pass.”