The first episode of EY’s Re-imagining Pensions Podcast is live! Our guest is John Hamilton, trustee chair for Stagecoach’s Group Pension scheme.
He talks to Paul Kitson, UK Head of Pensions Consulting at EY, and me about why Aberdeen agreed to replace Stagecoach as the sponsoring employer of the £1.2bn scheme.
John explains how, finding itself with a strong surplus, the trustees of Stagecoach looked at different options available and chose to run-on with shared ambition. The scheme will target low-risk returns in the future with around two-thirds of surpluses going to members and a minority share to Aberdeen.
Dialogue with the regulator was open and constructive – they are happy to listen to schemes which have innovative solutions while operating within regulatory constraints, John says. Other schemes should take heart from this deal and move away from inertia and conventional thinking, he adds.
Pensions should be at the heart of helping the UK to generate growth – to help to address the Office for Budget Responsibility’s projected yawning gulf between public sector costs and tax revenues. That growth does not have to be confined to the UK, John said.
If John were given a magic wand to make one change to UK pensions, he would alter the PPF’s remit. He’d remove the outdated obligation to protect the PPF now that it is mature, highly-skilled and well-funded with a large surplus. He would replace this with a temporary objective to encourage improved member outcomes.
Watch or listen now
