A private member's bill brought forward by Sarnia-Lambton's MP has received royal assent.
Marilyn Gladu's pension protection bill C-228 is now law.
The bill requires a report on the solvency of funds be tabled each year in the House of Commons. A mechanism to transfer funds to make a pension fund solvent is added. In the case of bankruptcy, pensions will be paid out in priority over banks and creditors.
“With the highest inflation in 40 years, 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,” Gladu said in a news release.
Gladu said this is a great Day for Canadian workers and pensioners.
“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," she said.
In the past, the Association of Canadian Pension Management (PIAC) had criticized the bill, saying it would be harmful for defined benefit pension plan sponsors.
As @SenateCA sponsor, I’m pleased to announce #BillC228 has received Royal Assent and is now law! This protects Canadian pensioners w/ new measures that will move them up the line of priority in the event of employer bankruptcy. #cdnpoli #nlpoli #SenCA @MarilynGladuSL @CPC_HQ pic.twitter.com/pMQcGGH0Jq
— Senator David Wells (@wellsdavid) April 28, 2023
