Bill C-264
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- ENGLISH
- SUMMARY SUMMARY
- Bankruptcy and Insolvency Act Bankruptcy and Insolvency Act
- Companies’ Creditors Arrangement Act Companies’ Creditors Arrangement Act
- Transitional Provisions Transitional Provisions
- Coming into Force Coming into Force
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First Session, Forty-fourth Parliament, 70-71 Elizabeth II, 2021-2022 |
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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 plans)
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FIRST READING, March 29, 2022
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Mrs. Gill |
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 pension plans and claims relating to the cessation of an employer’s participation in group insurance plans are paid in priority in the event of bankruptcy proceedings.
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Available on the House of Commons website at the following address:
www.ourcommons.ca
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1st Session, 44th Parliament, 70-71 Elizabeth II, 2021-2022 |
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HOUSE OF COMMONS OF CANADA |
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BILL C-264 |
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An Act to amend the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act (pension plans and group insurance plans) |
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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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 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) any amount required to liquidate any other unfunded liability or solvency deficiency of the fund as determined at the time of the filing of the notice of intention or of the proposal, if no notice of intention was filed,
End of inserted block
(2) Subparagraph 60(1.5)(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 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) any amount required to liquidate any other unfunded liability or solvency deficiency of the fund as determined at the time of the filing of the notice of intention or of the proposal, if no notice of intention was filed,
End of inserted block
2 (1) Paragraph 81.5(1)(b) 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 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) any amount required to liquidate any other unfunded liability or solvency deficiency of the fund,
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) any amount required to liquidate any other unfunded liability or solvency deficiency of the fund,
End of inserted block
3 (1) Paragraph 81.6(1)(b) 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 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) any amount required to liquidate any other unfunded liability or solvency deficiency of the fund,
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) any amount required to liquidate any other unfunded liability or solvency deficiency of the fund,
End of inserted block
4 Subsection 136(1) of the Act is amended by adding the following after paragraph (d):
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Start of inserted block
(d.001) the amount required, determined in the prescribed manner, to adequately indemnify the beneficiaries in the event the employer ceases to participate in a group insurance plan that provides for the payment of benefits to, or in respect of, employees or former employees for, among other things, life, disability, health or dental insurance;
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(d.002) the amount equal to the difference between any severance pay or compensation in lieu of notice owed by an employer to a clerk, servant, travelling salesperson, labourer or worker and any amount previously paid by the trustee for that severance pay or compensation in lieu of notice;
End of inserted block
R.S., c. C-36
Companies’ Creditors Arrangement Act
5 (1) Subparagraph 6(5)(a)(i) of the Companies’ Creditors Arrangement Act is replaced by the following:
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(i) amounts at least equal to the amounts that they would have been qualified to receive under Insertion start paragraphs Insertion end 136(1)(d) Insertion start and (d.001) Insertion end of the Bankruptcy and Insolvency Act if the company had become bankrupt on the day on which proceedings commenced under this Act, and
(2) Subparagraph 6(6)(a)(ii) 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 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) any amount required to liquidate any other unfunded liability or solvency deficiency of the fund as determined on the day of commencement of proceedings under this Act,
End of inserted block
(3) 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) any amount required to liquidate any other unfunded liability or solvency deficiency of the fund as determined on the day of commencement of proceedings under this Act,
End of inserted block
Transitional Provisions
Exception — employers
6 (1) Sections 1 to 3 do not apply in respect of a person who is an employer who, on the day before the day on which those sections come into force, participated in a prescribed pension plan for the benefit of the person’s employees until the third anniversary of the day on which this Act comes into force.
Exception — companies
(2) Subsections 5(2) and (3) do not apply in respect of a company that, on the day before the day on which those subsections come into force, participated in a prescribed pension plan for the benefit of its employees until the third anniversary of the day on which this Act comes into force.
Coming into Force
Three years after royal assent
7 Section 4 and subsection 5(1) come into force three years after the day on which this Act receives royal assent.
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Published under authority of the Speaker of the House of Commons
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