Pensions - Articles - As BHS is set to disappear, PPF entry is not automatic

 Despite it being well-known that the BHS Scheme is underfunded, there is no automatic entry into the PPF club. The PPF has a lengthy robust assessment period to investigate whether the scheme has sufficient assets to pay its benefits at the PPF level. It’s only when this assessment has been finalised, which can take up to a year, that a scheme is finally allowed to enter the PPF.

 “As soon as the scheme falls into the assessment stage, members and pensioners pensions will be immediately be governed by PPF rules, although the trustees will continue to be responsible for paying benefits. Members’ pensions will be capped, then cut by 10%. Only pensioners who have passed the scheme’s normal retirement date will continue to receive full pensions, but pension increases may be cut back.”