Proceedings of the Standing Senate Committee on
Banking, Trade and Commerce

Issue 3 - Minutes of Proceedings

OTTAWA, Thursday, October 30, 1997
(4)

[English]

The Standing Senate Committee on Banking, Trade and Commerce met this day at 11:00 a.m. in Room 505, Victoria Building, the Chairman, the Honourable Michael Kirby, presiding.

Members of the committee present: The Honourable Senators Callbeck, Kirby, Stewart and Tkachuk (4).

In attendance: From the Parliamentary Research Branch, Library of Parliament, Mr. Gerald Goldstein, Director, Economics Division and Ms June Dewetering, Researcher, Economics Division.

Also present: The official reporters of the Senate.

WITNESSES:

From the Multi-Employers Benefit Plan Council of Canada:

Mr. Bill Anderson, President; and

Ms Joan Tanaka, Vice-President.

From the International Association of Machinists and Aerospace Workers:

Mr. Louis Erlichman, Research Director.

Pursuant to the Order of Reference adopted by the Senate on Tuesday, October 21, 1997, the committee resumed its study of Bill S-3, An Act to amend the Pension Benefits Standards Act, 1985 and the Office of the Superintendent of Financial Institutions Act. (See Issue No. 2, October 28, 1997, for the full text of the Order of Reference.)

Mr. Anderson and Ms Tanaka made opening statements and then answered questions.

Mr. Erlichman made an opening statement and then answered questions.

At 12:25 p.m. the committee adjourned to the call of the Chair.

ATTEST:

OTTAWA, Tuesday, November 4, 1997
(5)

[English]

The Standing Senate Committee on Banking, Trade and Commerce met this day at 9:35 a.m. in Room 505, Victoria Building, the Chairman, the Honourable Michael Kirby, presiding.

Members of the committee present: The Honourable Senators Angus, Callbeck, Kelleher, P.C., Kirby, Meighen, Oliver and Stewart (7).

In attendance: From the Parliamentary Research Branch, Library of Parliament, Ms June Dewetering, Researcher, Economics Division.

Also present: The official reporters of the Senate.

WITNESSES:

From the Office of the Superintendent of Financial Institutions:

Mr. Nick Le Pan, Deputy Superintendent, Operations Sector;

Ms Patty Evanoff, Director, Policy Initiatives and Communications; and

Ms Carol Taraschuk, Legal Counsel, Department of Justice.

Pursuant to the Order of Reference adopted by the Senate on Tuesday, October 21, 1997, the Committee proceeded to study Bill S-3, An Act to amend the Pension Benefits Standards Act, 1985 and the Office of the Superintendent of Financial Institutions Act. (See Issue No. 2, October 28, 1997, for the full text of the Order of Reference.)

Mr. Le Pan made an opening statement and along with Ms Taraschuk answered questions.

It was agreed,--That a letter from Mr. Le Pan, dated November 4, 1997 and tabled with the committee, be printed as an appendix to this day's Minutes of Proceedings (see Appendix 5900 B1/S-3, 3 "1").

After consideration of the clauses of the bill it was agreed,--That Bill S-3 be adopted and reported to the Senate with the following amendments to clause 9:

Pages 8 to 9, clause 9:

(a) replacing lines 22 to 24, on page 8, with the following:

"(a) the employer establishes that

(i) it is entitled to the surplus, or part of it, under the pension plan, or

(ii) it has a claim to the surplus, or part of it, under this section;";

(b) adding, after line 28, on page 8, the following:

"(2) In deciding whether to consent to a refund, the Superintendent shall recognize the claim of the employer to the surplus, or part of it, established under this section.";

(c) replacing line 29, on page 8, with the following:

"(3) An employer has a claim to the surplus, or";

(d) replacing line 39, on page 8, with the following:

"(4) Subject to subsection (5), if more than one half but fewer than two";

(e) adding after line 2, on page 9, the following:

"(5) The employer's claim to the surplus, or part of it, shall be submitted to arbitration within eighteen months after the termination of the pension plan, or any further period specified by the Superintendent, if

(a) the employer has not established a claim to the surplus;

(b) the plan is terminated; and

(c) the employer is winding up or is in the process of being liquidated.

The employer shall notify the Superintendent and the persons in the categories referred to in subsection (3) that the claim will be submitted to arbitration.

(6) If a proposal or claim is submitted to arbitration, the employer and all interested persons are deemed to have agreed to have the employer's claim determined by the arbitration.";

(f) adding after line 26, on page 9, the following:

"(15) In respect of a claim submitted to arbitration under subsection (5), the arbitrator may impose a scheme of division of the surplus, or of part of it, between the parties to the arbitration."; and

(g) renumbering subclauses (2) to (11) accordingly and any cross-references thereto.

At 10:40 a.m., the committee adjourned to the call of the Chair.

ATTEST:

Paul Benoit

Clerk of the Committee