Railways: Franchises

(asked on 18th April 2019) - View Source

Question to the Department for Transport:

To ask the Secretary of State for Transport, when the requirement was for companies to cover pension costs as part of the franchising arrangements was first introduced.


Answered by
Andrew Jones Portrait
Andrew Jones
This question was answered on 25th April 2019

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.

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