Source: Benefits Canada

Six organizations representing Canadian retirees say proposed amendments to the federal Bankruptcy and Insolvency Act would have a positive impact on defined benefit pension plan members.

In an open letter to the House of Commons standing committee on finance, the six organizations —CanAge, the Canadian Federation of Pensioners, the Canadian Network for the Prevention of Elder Abuse, CARP,  the National Pensioners Federation and the Réseau FADOQ — said federal insolvency and pension laws currently favour the protection of big banks and executive bonuses over financial protection for pensioners.

Under current legislation, when the assets of a bankrupt or insolvent company are divided, secured creditors, banks are paid first. Bill C-228 addresses this by giving pensioners super-priority status in corporate insolvency, which means pensioners move closer to the front of the line, improving their likelihood of receiving their full pension.

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