Canada. NDP MP proposes changes to insolvency laws to improve pension protections
An Ontario backbench member of Parliament tabled a bill Monday to amend Canada’s insolvency laws so they offer more protections to pension plans, post-retirement benefits and severance when a company is in deep financial trouble.
The treatment of pensions during court-supervised restructurings has been a long-simmering issue but has attracted new attention since Sears Canada sought protection under the Companies Creditors Arrangement Act in July.
In addition to ending post-retirement health benefits and severance payments immediately, Sears Canada’s collapse meant future pension payments could be cut if there aren’t sufficient assets to make up its solvency deficit.
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