The Pension Protection Act moves pensioners to the front of the line of creditors to be paid out during bankruptcy or restructuring proceedings.
Marston explained that pensions are earned, and should be recognized as deferred wages. These deferred wages should be there in their entirety when a person retires. Currently, when a company goes into bankruptcy, pensions are considered unsecured debt, and only paid out from the companyâ€™s remaining assets -- long after the Crown, banks and other investors get their money.
For New Democrats, this situation is fundamentally unfair.
â€œThis bill is crucial to the NDPâ€™s overall retirement income security program,â€� said Marston. â€œWe will not stop working on this issue until Canadianâ€™s pensions get the protection they deserve.â€�
â€œAt the present time, someone who has been retired for a decade, after working for a company for 30 years, can suddenly find their pension cut by upwards to 40% through no fault of their own, simply because her former employer goes into bankruptcy,â€� said New Democrat Deputy Pension Critic, Alain GiguÃ¨re (Marc-AurÃ¨le-Fortin). â€œThis is wrong, and the law must be changed.â€�
â€œWith another possible downturn looming, and more bankruptcies or restructurings likely, itâ€™s more important than ever that pensions are protected. As always, itâ€™s a matter of priorities," said Marston. "Highly profitable banks and Investment Bankers have the Conservatives looking out for their interests. New Democrats will continue to fight on behalf of the rest of us.â€�
For more information please contact:
Tom Allen, office of Wayne Marston, 613-219-0076 [email protected]