Critics Argue Bill C-228 Could Lead to "Unintended Consequences"
December 02, 2022
A federal bill to give defined benefit pension plan members super-priority in the event of a plan sponsor insolvency recently passed in the House of Commons, creating division among stakeholders.
The Association of Canadian Pension Management, the Canadian Chamber of Commerce, the Canadian Bankers Association, the Pension Investment Association of Canada, the Canadian Manufacturers and Exporters and the Canadian Association of Insolvency and Restructuring Professionals are among the organizations opposed to the new legislation, warning that Bill C-228 could lead to “unintended consequences,” according to a report in Benefits Canada.
“In an Oct. 17 open letter to the House of Commons Finance Committee, the ACPM argued the legislation could result in the ordinary course of borrowing becoming more difficult, expensive or impossible for some DB pension plan sponsors and could result in organizations terminating their plans,” the news outlet reports.
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