Policies

7

Employee Pension Protection Strategy

Moved by Liberal Party of Canada (Ontario)

WHEREAS:

  • some employers have failed to fulfill their commitment to Employee Pension Plans, depriving employees of future retirement income in addition to the loss of part or all their current contributions;
  • private pensions should be the responsibility of the commercial enterprises making the commitment, not the taxpayer;
  • the Companies’ Creditors Arrangement Act and the Bankruptcy and Insolvency Act provide “super-priority” to numerous obligations over Employee Pension Plans;
  • the Supreme Court of Canada has favoured the payments of these “super-priority” creditors even at the expense of the original Employee Pension Plan Agreements, giving paramountcy to a flawed insolvency law over any provincial recognition of pension rights;
  • the previous government, recognizing the unjust treatment some Canadians faced with private defined benefit pensions, granted current year pension contributions super-priority status in the Wage Earner Protection Program;

BE IT RESOLVED the Liberal Party of Canada urges the Government of Canada to develop and implement an Employee Pension Protection Strategy by:

  • Prioritizing Employee Pension Plans in the Companies’ Creditors Arrangement Act and the Bankruptcy and Insolvency Act to recognize super-priority for pension debts
  • Reforming current federal legislation with the aim of protecting Employee Pension Plans during insolvency proceedings.

BE IT FURTHER RESOLVED the Liberal Party of Canada call upon the Government of Canada to consult with stakeholders, organizations, and third parties in its development of the aforementioned strategy.

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