CARP is celebrating 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, 1985 passed third reading in the Senate, and now awaits Royal Assent which make the bill law.
C-228 extends super-priority to the unfunded pension liability of private sector, single-employer, defined-benefit pensions when a company goes insolvent.
Bill VanGorder, Chief Policy Officer of CARP comments, “Until now, when companies like Sears went bankrupt, the assets of the failed company were divided and banks were paid first. This unexpected loss in a fixed income plunged vulnerable seniors into poverty. This soon-to-be law will protect the 4.6 million Canadian seniors and their families who rely on pensions for their financial security in retirement.”
MP Pat Martin first introduced super-priority as a solution in 2004. The private members bill, Bill C-228 was introduced by MP Marilyn Gladu in early 2022. In the spring of 2022, CARP joined advocates including the Canadian Federation of Pensioners and Canadian Network for the Prevention of Elder Abuse in writing an open letter to the government, urging them to step up and protect vulnerable pensioners. Read the letter.
CARP has advocated strongly alongside allies for 19 years.
CARP Advocacy is often a marathon effort rather than a sprint. Read the process by which bills become laws in Canada here.