Support for Bill S-216

29 November 2010

Letter to Senators

Re: Support for Bill S-216, An Act to amend the Bankruptcy and Insolvency Act and the Companies' Creditors Arrangement Act in order to protect beneficiaries of long term disability benefits plans (also known as the Protection of Beneficiaries of Long Term Disability Benefits Plans Act).

Dear Sir/Madam:

On behalf of the Council of Canadians with Disabilities (CCD), a national human rights organization of people with disabilities, I am writing to you in support of Bill S-216, the Protection of Beneficiaries of Long Term Disability Benefits Plans Act, and to follow-up on the presentation made to the Senate Banking, Trade and Commerce Committee by Jim Derksen on 18 November 2010, when he spoke in support of Bill S-216. The purpose of this Bill is to protect people with disabilities on long term disability (LTD) benefits, whose plans are self-insured by their employers, should their employers declare bankruptcy. As you will recall, when Nortel declared bankruptcy, there was protection for Nortel creditors but Nortel employees on long term disability, much to their shock and dismay, discovered that they would be losing much of their long term disability benefits. Bill S-216 seeks to create a more just bankruptcy process for those Canadians who have LTD plans self-insured by employers.

People on long term disability benefits depend on these wage replacement plans to meet both the necessities of life and disability-related supports, another type of life necessity when you have a disability. Employer-insured LTD benefits are a problem that goes beyond the Nortel employees. Since this news story came to light, we have learned that one in ten Canadian employees with LTD benefits have benefits that are self-insured by employers. By passing this Bill, you would be offering protection to a group of vulnerable Canadians. Any Canadian worker may experience the onset of disability which prevents him/her from working and this never occurs at a time of one's choosing.

CCD urges you to support Bill S-216 because it will offer needed protection in bankruptcy proceedings to Canadians on LTD benefits that were self-insured by their employer. Bill S-216's S. 8 (Transitional Provision) extends the Bill's scope to current proceedings under the Bankruptcy and Insolvency Act and the Companies' Creditors Arrangement Act. Thus the concerns of the Nortel employees on long term disability benefits will be addressed by this Act, if it is passed.

Sincerely,

Tony Dolan
CCD Chairperson