Pension Protection Act (S.C. 2023, c. 6)

• Published date: 27 October 2023
• Date: 27 April 2023
• Gazette Issue: 1 - [object Object]
• Section: Part III - Acts of Parliament

S.C. 2023, c. 6

Assented to 2023-04-27

An Act to amend the Bankruptcy and Insolvency Act, the Companies’ Creditors Arrangement Act and the Pension Benefits Standards Act, 1985

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.

It also amends the Pension Benefits Standards Act, 1985 to provide for the tabling of an annual report respecting the solvency of pension plans.

His Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

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1 This Act may be cited as the Pension Protection Act.

R.S., c. B-3; 1992, c. 27, s. 2Bankruptcy and Insolvency Act

• 2 (1) Subparagraph 60(1.5)(a)(ii) of the Bankruptcy and Insolvency Act is amended by adding the following after clause (A):

  • (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,

  • (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,

• (2) Subparagraph 60(1.5)(a)(iii) of the Act is amended by adding the following after clause (A):

  • (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,

  • (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,

• 3 (1) Paragraph 81.5(1)(b) of the Act is amended by adding the following after subparagraph (i):

  • (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...