April 19, 2023 12:18 PM
The Federal Pension Protection Bill, introduced by the Sarnia-Lambton MP, is one step closer to becoming law.
Marilyn Gradu’s Bill C-228 passed the Senate for a third reading and is now awaiting royal approval.
The bill, first introduced in the House of Representatives in February 2022, aims to provide new protection for workers’ pensions in the event of bankruptcy.
Gradu said in a media statement that with inflation at its highest in 40 years, pension protection is more important than ever.
“Millions of hard-working Canadians are at risk of retiring or unable to afford to live if employer bankruptcies could wipe out employees’ pensions. “I will not allow this to happen,” she said.
The Pension Administrators Association of Canada (PIAC) has criticized the bill as detrimental to defined benefit plan sponsors.
In September, PIAC co-signed an open letter urging lawmakers to block the bill. It was also signed by the Canadian Bankers Association, the Canadian Chamber of Commerce and Canadian manufacturers and exporters.
