Bill C-228: Death Knell For Private Sector Defined Benefit Pension Plans?

On November 24, 2022, new legislation designed to improve pension priorities in insolvency quietly passed its first reading in the Senate, moving one step closer to becoming law in Canada. While many private member bills have tried to strengthen pension priorities in insolvency over the past decade, none have been successful since the amendments were made to the insolvency regime in 2009, giving certain unfunded pension liabilities the priorities they presently enjoy. In contrast, Bill C-228, An Act to Amend the Bankruptcy and Insolvency Act ("BIA"), the Companies' Creditors Arrangement Act ("CCAA") and the Pensions Benefits Standards Act, 1985¹, or the "Pension Protection Act" in short, appears to be moving through the Legislature with little attention and relative ease. Bill C-228 has received broad support from members of all political parties. At the rate of its present trajectory, this sets the stage for the Bill to receive Royal Assent and become law in the