432 – Pension Protection Law in the Works?

If a company goes bankrupt, should the employees lose their pension or have their benefits reduced? No, of course not. But it has happened. There is new legislation before Parliament to protect pensions, but will it have unintended consequences? What will this mean for average person? How does this affect businesses? On today's podcast, Doug Hoyes and Ted Michalos explain the different types of pensions employers offer, what happens when a company goes out of business, and they discuss the broader implications of the incoming legislation. Tune in!

Related Links:

Should Company Pensions be Protected in Bankruptcy? https://www.hoyes.com/blog/should-pensions-be-protected-in-a-corporate-bankruptcy/

Hansard, debate on Bill C-228 https://www.ourcommons.ca/DocumentViewer/en/44-1/house/sitting-130/hansard

Sears Canada pension settlement: https://kmlaw.ca/cases/sears-canada/

Bankruptcy & Insolvency Act, section 60 (1.5) https://laws-lois.justice.gc.ca/eng/acts/B-3/page-10.html#docCont

Bankruptcy & Insolvency Act, section 136, Scheme of Distribution, Priority of Claims https://laws-lois.justice.gc.ca/eng/acts/b-3/page-24.html#h-27334

Bill C-228, House of Commons: https://www.parl.ca/legisinfo/en/bill/44-1/c-228