2019 Federal Budget: Key Provisions Affecting Pensions, Benefits And Executive Compensation

CHANGES TO INSOLVENCY PROCEEDINGS, CORPORATE LAW AND PENSIONS

The 2019 Budget proposes to introduce legislative amendments to the Companies' Creditors Arrangement Act, the Bankruptcy and Insolvency Act, the Canada Business Corporations Act, and the Pension Benefits Standards Act, 1985 in an effort to address recent concerns regarding the security of workplace pensions in situations of corporate insolvency.

The proposed measures would make insolvency proceedings "fairer, more transparent and more accessible for pensioners and workers." The 2019 Budget states that this will be accomplished in part by requiring all parties to act in good faith and by giving courts greater ability to review payments made to executives in the lead up to insolvency.