In this seminar, we will discuss recent legal changes that have elevated the priority of unfunded pension liabilities in insolvency. While seemingly a laudable objective, there are unintended consequences arising from the enhanced priority position which may in fact spell the end of defined benefit pension plans in Canada as we know them, not to mention the creation of numerous uncertainties for lenders and insolvency stakeholders.

Our discussion will include a review of the following topics:

• The priority previously afforded to unfunded pension liabilities in insolvency
• The new priority such liabilities will now enjoy
• The implications of this expanded priority on the efficacy of the insolvency regime
• The implications of the expanded priority from a lender’s perspective
• The implications of this expanded priority from a pensions’ perspective, including what options are available to employers with defined benefit pension plans from both a non-union and union environment