Source: Yahoo! Finance
Yesterday marks a historic victory for the protection of Canadian pensioners. Bill C-228, An Act to amend the Bankruptcy and Insolvency Act, the Companies’ Creditors Arrangement Act and the Pension Benefits Standards Act, 1985passed third reading in the Senate, and awaits Royal Assent.
“This landmark legislation will protect millions of Canadians who rely on defined benefit pensions for their financial security in retirement,” said Michael Powell, President, Canadian Federation of Pensioners, whose organization led the charge for this protection.
C-228 extends super-priority to the unfunded pension liability of private sector, single-employer, defined-benefit pensions when a company goes insolvent. This means Canadian pensioners will move closer to the front of the line, improving the likelihood of receiving their full pension.