Proceedings of the Standing Senate Committee on
National Finance
Issue 19 - Twelfth Report of the Committee
Tuesday, December 8, 2009
The Standing Senate Committee on National Finance has the honour to present its
TWELFTH REPORT
Your committee, to which was referred Bill C-51, An Act to implement certain provisions of the budget tabled in Parliament on January 27, 2009 and to implement other measures, has, in obedience to its order of reference of December 2, 2009, examined the said bill and now reports the same with the following amendments:
1. Page 46, clause 62: Add, after the heading "Bankruptcy and Insolvency Act" and before line 26, the following:
"62.1 (1) Clause 60(1.5)(a)(ii)(A) of the Bankruptcy and Insolvency Act is replaced by the following:
(A) an amount equal to the normal cost, within the meaning of subsection 2(1) of the Pension Benefits Standards Regulations, 1985, and any amount considered to meet the standards for solvency determined in accordance with section 9 of those Regulations, that were required to be paid by the employer to the fund, and
(2) Clause 60(1.5)(a)(iii)(A) of the Act is replaced by the following:
(A) an amount equal to the amount that would be the normal cost, within the meaning of subsection 2(1) of the Pension Benefits Standards Regulations, 1985, and any amount considered to meet the standards for solvency determined in accordance with section 9 of those Regulations, that the employer would be required to pay to the fund if the prescribed plan were regulated by an Act of Parliament, and".
2. Page 46, clause 63: Add after line 29 the following:
"63.1 The Act is amended by adding the following after subsection 81.3(1):
81.3 (1.1) The claim of a clerk, servant, travelling salesperson, labourer or worker who is owed termination and severance pay by a bankrupt, less any amount paid by the trustee or by a receiver for that termination or severance pay, is secured as of the date of the bankruptcy by security on the bankrupt's current assets as of the date of the bankruptcy.
63.2 The Act is amended by adding the following after subsection 81.4(1):
81.4 (1.1) The claim of a clerk, servant, travelling salesperson, labourer or worker who is owed termination and severance pay by a person who is subject to a receivership, less any amount paid by a receiver or trustee for that termination or severance pay, is secured by security on the person's current assets that are in the possession or under the control of the receiver.
63.3 (1) Subparagraph 81.5(1)(b)(i) of the Act is replaced by the following:
(i) an amount equal to the normal cost, within the meaning of subsection 2(1) of the Pension Benefits Standards Regulations, 1985, and any amount considered to meet the standards for solvency determined in accordance with section 9 of those Regulations, that were required to be paid by the employer to the fund, and
(2) Subparagraph 81.5(1)(c)(i) of the Act is replaced by the following:
(i) an amount equal to the amount that would be the normal cost, within the meaning of subsection 2(1) of the Pension Benefits Standards Regulations, 1985, and any amount considered to meet the standards for solvency determined in accordance with section 9 of those Regulations, that the employer would be required to pay to the fund if the prescribed plan were regulated by an Act of Parliament, and
63.4 (1) Subparagraph 81.6(1)(b)(i) of the Act is replaced by the following:
(i) an amount equal to the normal cost, within the meaning of subsection 2(1) of the Pension Benefits Standards Regulations, 1985, and any amount considered to meet the standards for solvency determined in accordance with section 9 of those Regulations, that were required to be paid by the employer to the fund, and
(2) Subparagraph 81.6(1)(c)(i) of the Act is replaced by the following:
(i) an amount equal to the amount that would be the normal cost, within the meaning of subsection 2(1) of the Pension Benefits Standards Regulations, 1985, and any amount considered to meet the standards for solvency determined in accordance with section 9 of those Regulations, that the employer would be required to pay to the fund if the prescribed plan were regulated by an Act of Parliament, and".
Respectfully submitted,
JOSEPH A. DAY
Chair