Sir Philip Green is reportedly poised to buy out 16,000 out of the 20,000 BHS pension plan members with a cash lump sum.
Last week Green told MPs that he would fix the scheme which has deficit of £571m.
Part of the solution being worked on by Green and advisers involves buying out members with small pensions, according to The Daily Mail.
Individuals who accepted the proposals would receive a one-off payout of a few thousand pounds, at a cost to Green of between £100m and £200m.
The plan would dramatically cut the scheme’s liabilities and could save it from being taken over by the Pension Protection Fund.