Sudbury MP Viviane Lapointe, a Liberal, has pledged her support to a Conservative private member’s bill to protect pensions in the wake of insolvencies and bankruptcy.
Lapointe voted in favour of MP Marilyn Gladu’s Bill C-228, which received its second reading, this past week.
The bill, also called the Pension Protection Act, proposes changes to the Bankruptcy and Insolvency Act, the Companies’ Creditors Arrangement Act and the Pension Benefits Standards Act “to ensure pension funds would be paid before secured and unsecured claims.”
With the fallout from Laurentian University’s decision to seek CCAA protection, it resulted in people not only losing their jobs but some losing their retiree benefits plan.
“In light of the recent CCAA process instigated by Laurentian University, where we saw people not only lose their present livelihood but their future security as well, I offered my full support of MP Gladu’s Bill,” Lapointe said in a news release.
“Protecting individuals’ pensions must come before the interests of large creditors who can absorb losses without the devastating impact the loss of a pension puts on a person and their family.”
Under the bill, in the event of a bankruptcy, pensions would take priority over secured creditors such as large banks, preferred creditors and unsecured creditors.