Defined Benefit  

Fears BHS pension deal heralds era of 'zombie' schemes

Former pensions minister Ros Altmann said it was unlikely that the new standalone BHS scheme would fail, because it was "very well funded". 

However, she added: "The new scheme may be the first one that will be assessed as a 'stand-alone' scheme under new calculations being consulted on by the Pension Protection Fund at the moment.

"The PPF is currently consulting on a new levy methodology to reflect the fact that some schemes have no realistic sponsor but are still running on and managing their investment risks and returns to generate the pension payments required over time," she said.

Overall, Baroness Altmann congratulated The Pensions Regulator on the deal, calling it "brilliant news".

james.fernyhough@ft.com