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C-501 would secure underfunded pension plans throughout bankruptcy proceedings
Ottawa (30 March 2010) – New Democrat Member of Parliament John Rafferty (Thunder Bay – Rainy River) introduced Private Members’ Bill C-501 today which would grant ‘secured’ status to pension funds during bankruptcy proceedings and restructuring. Rafferty’s bill would secure underfunded pension plans, like those payable to AbitibiBowater workers, by giving them priority over other creditor following any bankruptcy or restructuring process.
“Shoring up Canadians’ retirement security is a top priority for New Democrats. But a full month after his Throne Speech committed to help workers on the brink of losing their pensions, Harper still hasn’t acted,” New Democrat Leader Jack Layton said. “Our bill will support the hard working Canadians whose dedication and years of service have built companies like Nortel and AbitibiBowater.”
Rafferty’s bill was inspired by the plight of workers at the AbitibiBowater mills and plants in his riding.
“We had a situation over the past year where thousands of workers in the riding were in danger of losing a significant portion of their pension plan,” he said. “Those workers came out in large numbers to our town hall meetings and asked me to do everything in my power to help secure their pensions.”
Layton and Rafferty were joined by the New Democrat Critic for Seniors and Pensions Wayne Marston (Hamilton East – Stoney Creek). Marston cited the problems faced by former Nortel workers as another prime example of why the pension security bills are necessary.
“Nortel made pension commitments to its people, and it should follow through on those commitments,” Marston said. “The government must act to protect pensions, otherwise the taxpayer will end up picking up the tab for the social assistance that folks will apply for.”
Rafferty’s bill was developed in consultation with Marston’s office and is very similar to the Hamilton MP’s own ‘Nortel Bill’ (C-476) which was tabled late in 2009. Rafferty’s bill will be considered in the House first, because of the lottery that determines the order for consideration of Private Members’ Business.
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