Security for Unpaid Pension Plan Amounts in a Receivership

Summary

This practice note looks at the provisions of the Bankruptcy and Insolvency Act that create a super-priority charge in a receivership for claims related to unremitted pension contributions. It discusses what pension plan amounts are secured by the charge, what constitutes a prescribed pension plan and when a receiver may be liable to the pension fund. It also outlines the requirements and preconditions for granting the security charge and how the security charge is ranked.