Beth Posted April 7, 2003 Share Posted April 7, 2003 OK.... I am just trying to get this all straight in my head, so really, please feel free to correct any erroneous assumptions I may make. When my family members' 410k's tanked out due to the high tech crises, I was told that there was no danger of that happening to my pension plan, that Canadian plans were more strictly regulated, companies are not allowed to invest in their own stock etc. AC was not atypical or wrong in its failure to contribute to the pension plan over the last 13(?) years, as the plan was in a surplus position. However, now that a deficit of 1.3 billion is coming due, they can not meet their obligation and that in part contributed to filing with the CCAA. Part of the restructuring could include AC bailing on the current plan (this is where it gets murky), transferring the existing monies to a new plan and being excused from the 1.3 top up. This would affect future retirees and possibly adjust the amount that current retirees are receiving. What happens to the current balance for those of us that are not of retirement eligibility in the event of liquidation? It's my understanding that contributions would be returned in the form of an RRSP. Where do the employees fall on the priority list of creditors in the event of liquidation? Thanks! Link to comment Share on other sites More sharing options...
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