Bill C-384
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- ENGLISH
- SUMMARY SUMMARY
- Bankruptcy and Insolvency Act Bankruptcy and Insolvency Act
- Companies’ Creditors Arrangement Act Companies’ Creditors Arrangement Act
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First Session, Forty-second Parliament, 64-65-66 Elizabeth II, 2015-2016-2017 |
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HOUSE OF COMMONS OF CANADA |
An Act to amend the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act (pension plans and group insurance programs)
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FIRST READING, November 6, 2017
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Mr. Duvall |
SUMMARY
This enactment amends the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act to ensure that claims in respect of unfunded liabilities or solvency deficiencies of a pension plan are accorded priority in the event of bankruptcy proceedings. It also provides that an employer has to maintain group insurance programs that provide benefits to or in respect of its employees or former employees.
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Available on the House of Commons website at the following address:
www.ourcommons.ca
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1st Session, 42nd Parliament, 64-65-66 Elizabeth II, 2015-2016-2017 |
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HOUSE OF COMMONS OF CANADA |
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BILL C-384 |
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An Act to amend the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act (pension plans and group insurance programs) |
Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
R.S., c. B-3; 1992, c. 27, s. 2
Bankruptcy and Insolvency Act
1 (1) Subparagraph 60(1.5)(a)(ii) of the Bankruptcy and Insolvency Act is amended by adding the following after clause (A):
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(A.1) an amount equal to the sum of all special payments, determined in accordance with section 9 of the Pension Benefits Standards Regulations, 1985, that were required to be paid by the employer to the fund referred to in sections 81.5 and 81.6 to liquidate an unfunded liability or a solvency deficiency,
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(A.2) in respect of a prescribed pension plan that is terminated, an amount equal to the sum of all amounts that are required to be paid to the fund by the employer under section 29 of the Pension Benefits Standards Act, 1985,
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(2) Subparagraph 60(1.5)(a)(iii) of the Act is amended by adding the following after clause (A):
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(A.1) an amount equal to the sum of all special payments, determined in accordance with section 9 of the Pension Benefits Standards Regulations, 1985, that would have been required to be paid by the employer to the fund referred to in sections 81.5 and 81.6 to liquidate an unfunded liability or a solvency deficiency if the prescribed plan were regulated by an Act of Parliament,
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(A.2) an amount equal to the sum of all amounts that would have been required to be paid to the fund by the employer under section 29 of the Pension Benefits Standards Act, 1985, if the prescribed plan that is terminated were regulated by an Act of Parliament,
End of inserted block
2 The Act is amended by adding the following after section 69.6:
Benefits — employees or former employees
Start of inserted block69.7 On the filing of a proposal under subsection 62(1) in respect of an insolvent person, and until the trustee has been discharged or the insolvent person becomes bankrupt, the insolvent person shall not modify, cancel or cease contributing to an arrangement under which contributions are made by the employer and one or more payments are to be made to employees or former employees of the employer, or for the benefit of or in respect of these employees or former employees, from a group sickness or accident insurance plan, a group term life insurance policy or a private health services plan.
End of inserted block3 (1) Paragraph 81.5(1)(b) of the Act is amended by adding the following after subparagraph (i):
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(i.1) an amount equal to the sum of all special payments, determined in accordance with section 9 of the Pension Benefits Standards Regulations, 1985, that were required to be paid by the employer to the fund referred to in this section and section 81.6 to liquidate an unfunded liability or a solvency deficiency,
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(i.2) in respect of a prescribed pension plan that is terminated, an amount equal to the sum of all amounts that are required to be paid to the fund by the employer under section 29 of the Pension Benefits Standards Act, 1985,
End of inserted block
(2) Paragraph 81.5(1)(c) of the Act is amended by adding the following after subparagraph (i):
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Start of inserted block
(i.1) an amount equal to the sum of all special payments, determined in accordance with section 9 of the Pension Benefits Standards Regulations, 1985, that would have been required to be paid by the employer to the fund referred to in this section and section 81.6 to liquidate an unfunded liability or a solvency deficiency if the prescribed plan were regulated by an Act of Parliament,
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(i.2) an amount equal to the sum of all amounts that would have been required to be paid to the fund by the employer under section 29 of the Pension Benefits Standards Act, 1985, if the prescribed plan that is terminated were regulated by an Act of Parliament,
End of inserted block
4 (1) Paragraph 81.6(1)(b) of the Act is amended by adding the following after subparagraph (i):
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(i.1) an amount equal to the sum of all special payments, determined in accordance with section 9 of the Pension Benefits Standards Regulations, 1985, that were required to be paid by the employer to the fund referred to in section 81.5 and this section to liquidate an unfunded liability or a solvency deficiency,
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(i.2) in respect of a prescribed pension plan that is terminated, an amount equal to the sum of all amounts that are required to be paid to the fund by the employer under section 29 of the Pension Benefits Standards Act, 1985,
End of inserted block
(2) Paragraph 81.6(1)(c) of the Act is amended by adding the following after subparagraph (i):
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Start of inserted block
(i.1) an amount equal to the sum of all special payments, determined in accordance with section 9 of the Pension Benefits Standards Regulations, 1985, that would have been required to be paid by the employer to the fund referred to in section 81.5 and this section to liquidate an unfunded liability or a solvency deficiency if the prescribed plan were regulated by an Act of Parliament,
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(i.2) an amount equal to the sum of all amounts that would have been required to be paid to the fund by the employer under section 29 of the Pension Benefits Standards Act, 1985, if the prescribed plan that is terminated were regulated by an Act of Parliament,
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5 Subsection 136(1) of the Act is amended by adding the following after paragraph (d):
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(d.001) the amount of any termination or severance pay owed to a clerk, servant, travelling salesperson, labourer or worker by a bankrupt, less any amount previously paid by the trustee for that termination or severance pay;
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R.S., c. C-36
Companies’ Creditors Arrangement Act
6 (1) Subparagraph 6(6)(a)(ii) of the Companies’ Creditors Arrangement Act is amended by adding the following after clause (A):
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(A.1) an amount equal to the sum of all special payments, determined in accordance with section 9 of the Pension Benefits Standards Regulations, 1985, that were required to be paid by the employer to the fund referred to in sections 81.5 and 81.6 of the Bankruptcy and Insolvency Act to liquidate an unfunded liability or a solvency deficiency,
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(A.2) in respect of a prescribed pension plan that is terminated, an amount equal to the sum of all amounts that are required to be paid to the fund by the employer under section 29 of the Pension Benefits Standards Act, 1985,
End of inserted block
(2) Subparagraph 6(6)(a)(iii) of the Act is amended by adding the following after clause (A):
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Start of inserted block
(A.1) an amount equal to the sum of all special payments, determined in accordance with section 9 of the Pension Benefits Standards Regulations, 1985, that would have been required to be paid by the employer to the fund referred to in sections 81.5 and 81.6 of the Bankruptcy and Insolvency Act to liquidate an unfunded liability or a solvency deficiency if the prescribed plan were regulated by an Act of Parliament,
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(A.2) an amount equal to the sum of all amounts that would have been required to be paid to the fund by the employer under section 29 of the Pension Benefits Standards Act, 1985, if the prescribed plan that is terminated were regulated by an Act of Parliament,
End of inserted block
7 The Act is amended by adding the following after section 11.04:
Former employees — benefits
Start of inserted block11.05 No order shall be made under section 11.02 that has the effect of enabling the company in respect of which the order is made to modify, cancel or cease contributing to an arrangement under which contributions are made by the employer and one or more payments are to be made to employees or former employees of the employer, or for the benefit of or in respect of these employees or former employees, from a group sickness or accident insurance plan, a group term life insurance policy or a private health services plan.
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Published under authority of the Speaker of the House of Commons
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