Pensions - Articles - W&P Committee to look into impact of BHS pension liabilities

 “The Pension Protection Fund was designed as safety net for employees with defined benefit pensions should their sponsoring company become insolvent. The PPF is partly financed by a levy on other defined benefit schemes but this balance is looking increasingly precarious as a diminishing number of schemes pay an ever-increasing levy as more schemes fall into the PPF. While DB accounts for a smaller and smaller proportion of today’s pensions contributions, a large number of workers will be dependent on these pensions in retirement. In the face of high profile corporate collapses with enormous pension liabilities, it’s welcome news that the WPSC will be looking at this situation as DB schemes will play an important role in the pensions landscape for many years to come and we would not wish to see their demise accelerated as a result of pressure on the PPF.”