Bill S-214 explained in plain English
An Act to amend the Bankruptcy and Insolvency Act and other Acts (unfunded pension plan liabilities)
Federal Parliament bill summary, status, timeline, sponsor, votes, and official sources.
At a glance
Official Parliament of Canada snapshot for 40th Parliament, 3rd Session. MP vote breakdowns appear when the House of Commons publishes a recorded division export for that bill. Senate and House stage details include official debate/sitting links when LEGISinfo publishes them.
Our plain-language take, written for civic education.
Source: By PoliticalData.ca
Bill S-214 proposes to amend several federal acts to ensure unfunded pension plan liabilities are treated as secured debts in bankruptcy, create a procedure for former employees to claim unpaid wages from directors of bankrupt companies, and adjust provisions related to employment insurance and wage earner protection.
This bill, entitled "An Act to amend the Bankruptcy and Insolvency Act and other Acts (unfunded pension plan liabilities)", aims to change how unfunded pension plan liabilities are treated in cases of bankruptcy or corporate insolvency. It seeks to give these liabilities the status of secured debts. The bill also introduces a process for former employees to make claims against directors of a bankrupt corporation for unpaid wages, and it clarifies that certain payments related to bankruptcy will not affect employment insurance benefits. Additionally, it expands the types of employer financial situations covered by the Wage Earner Protection Program Act to include proposals, compromises, and arrangements made under specific acts.
- It aims to ensure that unfunded pension plan liabilities are treated as secured debts in bankruptcy proceedings.
- It introduces a procedure for former employees of a bankrupt corporation to make claims against the corporation's directors for unpaid wages.
- It clarifies that certain payments received due to a bankruptcy will not reduce employment insurance benefits.
- It expands the scope of the Wage Earner Protection Program Act to include employers who have made proposals, compromises, or arrangements under specific insolvency acts.
- Employers who participate in pension plans that may become unfunded.
- Former employees of bankrupt corporations.
- Directors of bankrupt corporations.
- Employment insurance claimants.
- Trustees and receivers in bankruptcy and receivership.
- Individuals owed wages by employers in specific financial distress situations (bankruptcy, receivership, proposals, compromises, or arrangements).
- Unfunded pension plan liabilities will have the status of secured debts in bankruptcy.
- Former employees will have a right to file claims against directors of a bankrupt corporation for unpaid wages.
- Payments made from a bankrupt's property or by a government will not be deducted from employment insurance benefits.
- The Wage Earner Protection Program will cover employees owed wages by employers making proposals, compromises, or arrangements under specific insolvency acts.
- Sections 8 and 9 of the Act will come into force on a day to be fixed by order of the Governor in Council, subject to the appropriation of funds by Parliament.
- The bill was given first reading on March 24, 2010.
- The bill aims to provide security for unfunded pension plan liabilities, potentially impacting the distribution of assets in bankruptcies. The Wage Earner Protection Program Act, as amended, may lead to increased payments from the program.
- The bill establishes a process for adjudicators to order directors of bankrupt corporations to pay former employees compensation for unpaid wages. These orders are final and can be registered in the Federal Court for enforcement as if they were a court judgment.
- The specific date for the commencement of sections 8 and 9 (amendments to the Employment Insurance Act and Wage Earner Protection Program Act) is not yet proclaimed and depends on a Governor in Council order and parliamentary appropriation of funds.
- The bill does not specify the exact amount of "normal cost" or "solvency standards" for pension plans; these are defined by regulations mentioned in the bill (Pension Benefits Standards Regulations, 1985).
- The bill does not detail the maximum amount a director can be ordered to pay a former employee, other than it should not exceed the amount that would have been owed if the corporation had not gone bankrupt.
- The bill does not specify if there are any limits on the total amount that can be claimed from directors of a bankrupt corporation under the new provisions of the Canada Business Corporations Act.
This bill amends sections of this Act to give unfunded pension plan liabilities the status of secured debts in bankruptcy proceedings. It also adds provisions related to security for termination and severance pay for employees in bankruptcy and receivership situations.
Source: Section 1, 2, 3, 4, 5
This bill amends sections of this Act to ensure that unfunded pension plan liabilities are treated as secured debts when a company makes a proposal, compromise, or arrangement under this Act.
Source: Section 7
This bill adds a new section to this Act to establish a procedure where former employees of a bankrupt corporation can file a claim with the Minister of Labour against the directors of the corporation to recover unpaid wages. An adjudicator will be appointed to hear and decide these claims.
Source: Section 6
This bill amends section 19 of this Act to specify that payments made to an employment insurance claimant from the proceeds of a bankrupt's property or by a government in case of bankruptcy will not be deducted from their employment insurance benefits.
Source: Section 8
This bill amends section 4 of this Act to include employers who have made a proposal, compromise, or arrangement under the Bankruptcy and Insolvency Act or the Companies' Creditors Arrangement Act within the scope of the Wage Earner Protection Program.
Source: Section 9
Generated using AI from official bill text. Not legal advice. It is written by PoliticalData.ca for civic education, automatically checked and spot-reviewed before publishing.
Official textParliamentary Process
We don't have a plain-language summary for First reading yet. The official source linked below is the full record.
We don't have a plain-language summary for Introduction and first reading yet. The official source linked below is the full record.
We don't have a plain-language summary for Second reading yet. The official source linked below is the full record.
We don't have a plain-language summary for Debate at second reading yet. The official source linked below is the full record.
We don't have a plain-language summary for Sponsor’s speech yet. The official source linked below is the full record.
We don't have a plain-language summary for Debate at second reading yet. The official source linked below is the full record.
We don't have a plain-language summary for Debate at second reading yet. The official source linked below is the full record.
We don't have a plain-language summary for Response speech yet. The official source linked below is the full record.
We don't have a plain-language summary for Consideration in committee yet. The official source linked below is the full record.
We don't have a plain-language summary for Report stage yet. The official source linked below is the full record.
We don't have a plain-language summary for Third reading yet. The official source linked below is the full record.
We don't have a plain-language summary for First reading yet. The official source linked below is the full record.
We don't have a plain-language summary for Second reading yet. The official source linked below is the full record.
We don't have a plain-language summary for Consideration in committee yet. The official source linked below is the full record.
We don't have a plain-language summary for Report stage yet. The official source linked below is the full record.
We don't have a plain-language summary for Third reading yet. The official source linked below is the full record.
Debate and sitting links point to official parliamentary sources when LEGISinfo publishes them. Any plain-language discussion summaries should be generated from those official texts and reviewed before public display.
Vote Summary
This bill is still active. We only show vote counts after the legislature publishes a recorded division.
No published representative vote breakdown
This bill is still moving through the process. When a recorded division is published, representative positions can be listed here.
Official sources
Status, sponsor, votes, and timeline on this page are drawn from these official legislative sources and public records. Each summary above is attributed to its own source.
How this data is sourced