Question to the Department for Transport:

To ask the Secretary of State for Transport, what assurances Abellio have provided his Department in relation to the pensions of staff employed on the East Midlands line.

The Railways Pension Scheme was established in 1994, replacing the previous British Rail scheme. Contributions in to the Railways Pension Scheme are split according to a shared cost arrangement, whereby employers (the Train Operating Companies) pay 60% and employees pay the remaining 40%. Since franchising arrangements were first introduced Train Operating Companies have been, and continue to be, responsible for paying employer pension contributions during a franchise term.

Under the East Midlands Franchise Agreement Abellio will participate in and become the Designated Employer for the East Midlands section of the Railways Pension Scheme. Abellio will be obliged by the Franchise Agreement to pay the employer contributions required under the schedule of contributions applicable during their franchise term. All of Abellio’s pensions related obligations are detailed in Schedule 16.1 to the Franchise Agreement which will be published in due course.