Reasons to choose BPA

One of the main reasons to consider a BPA is to remove some or all of the risk associated with a company pension scheme from its balance sheet.

A number of risks are involved in providing a pension scheme. These are some of the reasons why an organisation might choose BPA.


As people live longer, they need to be paid longer. This can severely stretch the resources of the scheme.


High inflation means the scheme's assets could be worth less, affecting ability to pay pensioners.


It's hard to predict how the stock market may perform in the future. Poor performance can lead to unexpectedly low returns, potentially causing difficulty in making payments to retired members.


The costs of administering a scheme may be a factor. Some organisations find it more cost-effective to de-risk their schemes.

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