Written question asked by Andy McDonald (Labour) on Wednesday, 10 April 2019, in the House of Commons. It was due for an answer on Monday, 15 April 2019. It was answered by Andrew Jones (Conservative) on Tuesday, 23 April 2019 on behalf of the Department for Transport.

East Midlands Trains

Question: To ask the Secretary of State for Transport, what pension liability has been accepted by Abellio on East Midlands trains in addition to the parent company bond.

Answer: At the moment, train operating companies are liable for the full pensions risk during their franchise term. In the new East Midlands franchise, the operator is exposed to no additional risks or demands when compared to current franchisees. Indeed, the new franchise includes a risk sharing mechanism with the government, which reduces the risk that the operator will be exposed to. In this, the operator retains the risks that it is able to manage. The operator would be exposed to some upside/downside risk, but this risk would be shared with the Department.

Secondary information

Type: Written question
Reference: 243470
Session: 2017-19
Related items: East Midlands Trains: Pensions
Monday, 13 May 2019
Written questions
House of Commons
Subjects: Pensions East Midlands Trains Abellio Group
Link: View this Written question on www.parliament.uk