Moved by Liberal Party of Canada (Ontario)
WHEREAS many Canadians save for their retirement through pension plans offered by their employers and the employer contribution to the company pension plan represents deferred earnings for the employee, constituting employee savings;
WHEREAS this participation is a condition of employment so not voluntary;
WHEREAS the contributions including both employee earnings and deferred earnings are currently not protected by law and may not be available to provide retirement income;
WHEREAS other savings by Canadians are protected by law through the Canadian Deposit Insurance Corporation, a Crown Corporation, for up to $100,000 at each financial institution;
WHEREAS if a company becomes insolvent while its pension plan is not fully funded, the pensioners are not treated as secured creditors;
BE IT RESOLVED that the Federal Government establish a system to ensure that the contributions to employer pension plans are fully insured, and that any employer that offers a company pension plan based on employee/employer contributions must meet federal standards for the management of such pension plans while maintaining the separation of those funds from any other corporate obligations;
BE IT FURTHER RESOLVED that the Liberal Party of Canada urge the Government of Canada to amend the Bankruptcy and Insolvency Act so that the company’s obligations to the pensioners are treated as a secured creditor under the Act.