BHS scheme paid £14m to Pension Protection Fund

BHS scheme paid £14m to Pension Protection Fund

The BHS pension scheme has paid more than £14m into the Pension Protection Fund (PPF) since 2006, including a levy of £5m this year, according to a letter published by the Work and Pensions Select Committee.

In the letter, the PPF disclosed the vast majority of the £14m was paid after 2012.

Between 2006 and 2012, the scheme contributed less than £2m, or around 15 per cent of the total levy payments.

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The PPF calculates a pension scheme’s levy based on how well-funded the scheme is, and the insolvency risk of the sponsoring company.

The PPF said in its letter that Sir Philip Green’s Arcadia – former parent company of BHS – took advantage of this rule, putting up one of its other businesses, Davenbush, as a certified asset.

This saw its levy halve from around £400,000 in 2010 to 2011, to £200,000 in 2011 to 2012.