How can an employee lose their pension, when a company goes bankrupt?

Posted by Dolores
bones50 asked:


Can a company do that even if the employees have a union? My brother-In-law has worked for a trucking company for nearly 10 years, and the company is going through bankruptcy, can they lose their pension. This does not seem fair. what are is your knowledge or advice?

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This entry was posted on Wednesday, April 21st, 2010 at 12:11 am and is filed under Personal Finance. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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One Response to “How can an employee lose their pension, when a company goes bankrupt?”

  1. AceHigh Says:
    April 22nd, 2010 at 6:21 am

    pension

    The employee pension plan is part of the asset of the company. It is not protected from creditors. Just like your RRSP which is not protected from creditors if you declare bankruptcy. The Canadian Government is planning to do something about the employee pension. Hopefully it will be protected from bankruptcy proceeding in the future.