Bill C-228: Pension Protection Act
April 28, 2023
On April 18, 2023, Canada’s Senate passed Bill C-228, the Pension Protection Act.1 Should it become law (which is expected to occur later in 2023), Bill C-228 will impact the order of payments to creditors in the event an employer becomes bankrupt or insolvent, such that certain liabilities arising from a defined-benefit pension plan will be paid ahead of other creditors.
This change could have a significant impact on any employer that offers a defined-benefit pension plan, as insolvent employers would first need to fund special payment amounts for past, present, and future pension plan liabilities, prior to restructuring or paying the debts held by other creditors. These changes will not apply until the fourth anniversary of the day on which the bill comes into force.
To read the full briefing note, please click here. To access all Sherrard Kuzz LLP briefing notes, please visit our website at www.sherrardkuzz.com.