BHS staff who have become eligible for their pensions since the company’s collapse will receive “haircut” incomes, The Pensions Regulator has said.

Speaking at yesterday’s Work and Pensions Committee meeting, TPR chief executive Lesley Titcomb noted that new pensioners that enter the scheme will be “haircut at the moment”.

The vast number of pensioners who were in payment at the time of the administration, however, are continuing to receive their full pensions.

Nonetheless, Titcomb stated that “if the eventual settlement results in better than PPF benefits for members, then whatever is appropriate of the haircut will be refunded to them.

At the moment, the scheme is in the PPF assessment period whereby there is a possibility that it will be moved into the fund. The PPF is administering the payment of those who are receiving pensions from the BHS scheme in the meantime.

“What we don’t yet know, given the shape of any settlement, whether it would be possible for a scheme to come out of a the PPF and continue in some form or whether the PPF would receive sufficient funds that it would be able to buy out the benefits of members at better than PPF levels,” Titcomb said.

Discussing the current position of the BHS pension scheme, Titcomb added: “I would like to assure the BHS pension scheme members that we are pursuing the best possible outcome that we can secure for them, relentlessly.”

On the 2 November, the regulator issues a warning notice to those involved in the BHS collapse, giving an indication of its intention to attempt to use its powers against various targets.

While action is being taken to recover the BHS workforce’s pensions, Titcomb confirmed that discussions are still at an early stage and the “timetable is out of our hands”. The court, rather than the TPR has the ultimate power to decide whether Green’s assets should be sold.

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