Posted on 15 June 2010
OTTAWA – Last week, second reading debate adjourned for Senator Pierrette Ringuette’s Bill S-214, An Act to amend the Bankruptcy and Insolvency Act and other Acts (unfunded pension plan liabilities).
The bill, which would give the pensioners of companies that declare bankruptcy preferred creditor status during bankruptcy proceedings, will now be referred to the Senate Standing Committee on Banking, Trade and Commerce for further study.
“I am pleased to see that this very important bill has passed second reading and will be further debated in committee,” said Senator Ringuette. “This measure will help those Canadians who have worked their entire lives and dutifully paid into company pensions, only to find their retirement security vanish when the company declares bankruptcy.”
In the First Quarter of 2010 over 1,100 businesses went bankrupt and over 5,000 in the previous 12 months, affecting tens of thousands of Canadians and putting pensions in jeopardy.
“This is a serious problem for a lot of Canadians. It’s not about handouts, it’s about protecting financial security, it’s about protecting the right of Canadians to receive the money that they are owed,” said Senator Pierrette. “I urge all Senators to work with me and provide the protection and stable future that Canadians deserve.”
For Additional Information:
Tim Rosenburgh
Office of Senator Pierrette Ringuette
(613) 943-3645