Tuesday, March 7, 2023

The Standing Senate Committee on Banking, Commerce and the Economy has the honour to present its

SIXTH REPORT

Your committee, to which was referred Bill C-228, An Act to amend the Bankruptcy and Insolvency Act, the Companies’ Creditors Arrangement Act and the Pension Benefits Standards Act, 1985, has, in obedience to the order of reference of December 14, 2022, examined the said bill and now reports the same without amendment but with certain observations, which are appended to this report.

Respectfully submitted,

Observations to the Sixth Report of the Standing Senate Committee on Banking, Commerce and the Economy (Bill C-228)

Your committee heard concerns that multi-employer pension plans could become liable for any pension deficits upon the insolvency of an employer. However, your committee was convinced by a breadth of testimony that supported the position of the Bill C-228 sponsor, Marilyn Gladu, M.P., that these types of pension plans fall outside the scope of the bill and that only employers who are legally responsible to backstop a pension plan fund are liable to provide due payment to their employees upon bankruptcy.

Your committee also observes that multi-employer pension plans offer many advantages to both employers and employees and suggests that allowing federally regulated employers to establish such pension plans may be beneficial.

Lastly, your committee observes that there have been instances where agreements have been reached between companies, unions or employee groups and pensioners for settlement with respect to pension plan deficits outside the normal insolvency proceedings and that this path could be pursued to achieve a fair settlement as intended by this legislation.