Around 10 per cent of non-retired BHS senior managers have suffered significant hits to their defined benefit pension income because their benefits breach the Pension Protection Fund cap.
Ten out of 105 deferred members of the senior scheme have been identified as having benefits above the £32,276.75 cap for the scheme’s age 60 normal retirement age. These deferred members will now only receive 90 per cent of the value of the cap, an annual income of £29,049, which will be indexed to CPI.
The senior scheme had 233 members at the end of 2015, of which 128 were taking benefits. It went into PPF assessment on March 3rd, 2016. None of the 20,000 members of the main scheme are expected to be hit by the PPF cap.
A spokesperson for the BHS pension scheme said: “These are the ones we know about. There may be a few more who are impacted by the time they retire.”