The company has been negotiating with the pension regulator and the PPF in a bid to offload its pension liabilities and a decision is expected soon.
Most, if not all, members of the scheme would see a reduction in benefits.
Those under retirement age would receive an immediate 10% cut in their pension pot.
In addition, annual payments to most members, including those already retired, would be less in the PPF than if the Hoover scheme continued.
At about £500m, the pension scheme is roughly the same size as BHS.
BHS pensions is already receiving compensation from PPF which acts as a lifeboat for pensions so people are paid even when a company goes bust or is about to and if there are insufficient assets in the scheme.
BHS is being assessed for take-over by the organisation.
The Hoover scheme has a deficit of about £250m.
Parent company Hoover Candy stopped producing washing machines in Merthyr Tydfil in 2009, blaming competition in the marketplace.
More than 300 workers lost their jobs although there is still a head office and a distribution warehouse in the town.
It is believed about half of the Hoover pension scheme's 7,800 members live in Wales.
Pensions expert Stuart Price, partner at Quantum Advisory, said: "Members of the pension schemes will lose out on their benefits but, on the flipside, those still employed by the company will retain their jobs.
"At the moment they [members] don't know what's happening so they can't really plan for their short-term future.
"If they get a 10% reduction [for those under 65] and lower increases in the future they might find it very hard to overcome."
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Up to 4,000 people in Wales could be affected if the Hoover pension scheme goes into the Pension Protection Fund (PPF), BBC Wales understands.