Saskatchewan will soon be the latest jurisdiction to adopt an enhanced priority for deemed trusts created by its pension benefits legislation.
The Pension Benefits Act establishes a deemed trust for amounts contributed by both employers and employees. Bill 151, which amends the province’s Personal Property Security Act, will create a super-priority for these trusts when the legislation passes.
“Bill 151 would elevate the deemed trusts over all secured interests,” says David Gerecke, a lawyer in Miller Thomson LLP’s Saskatoon office. “That’s going to be a very scary thing for lenders providing operating credit, because there’s a lot of it out there.”