C-264An Act to amend the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act (pension plans and group insurance plans)

What it does

• Adds unpaid special pension payments and other unfunded pension liabilities or solvency deficiencies to the priority list in bankruptcy.
• Adds the same pension-related claims to creditor proceedings under the Companies’ Creditors Arrangement Act.
• Gives priority in bankruptcy to amounts needed to protect beneficiaries if an employer stops taking part in a group insurance plan, including life, disability, health or dental coverage.
• Adds unpaid severance pay or pay in lieu of notice, after any amount already paid by the trustee, to the bankruptcy priority list.
• Requires creditor-protection proceedings to give amounts at least equal to the bankruptcy priority amounts for group insurance and severance claims.
• Delays some new rules for existing employers and companies in prescribed pension plans until the third anniversary of royal assent.