Bankruptcy of the company

Here is some basic information that will help you carry out your role with regard to your company's existing pension plan while acting in conformity with the Supplemental Pension Plans Act.

Effects of a bankruptcy on a pension plan

Bankruptcy ends your participation in the pension plan because the employment relationship between the employer and the employees is broken and there are no longer any payments of employer or member contributions to the plan.

  • If you are the only employer who participates in the plan, the plan will be terminated.
  • If you participate in a multi-employer plan, the plan will make the necessary adjustments to take your withdrawal into account.

For more details:

The pension fund is not part of the employer's assets

The sums accumulated in a pension fund (or in the locked-in and not locked-in accounts of an SIPP) cannot be used to pay a company's creditors.

If the employer owes any sums to the pension plan, the plan administrator must take the measures required to recover them.

Other changes that may effect a pension plan

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