The assets of the Group’s pension schemes are held under trust, separate
from the assets of the Group and are invested with a number of independent
fund managers. There are ten trustees for the principal UK scheme of whom
three are employee representatives nominated by the members on a regional
basis and two are pensioner trustees. The chairman of the trustees of the
principal UK scheme is a professional trustee who served for eight years as a
fund member elected representative on the National Association of Pension
Funds’ investment council. He also sits independently as an elected
representative of all railway employers on the board of the Railways Pension
Scheme and is the immediate past Trustee Chairman of the Railways Pension
Scheme trustees. The other trustees of the principal UK scheme include senior
Group and UK Bus executives.
A Pensions Oversight Committee was in operation throughout the year. This
Committee is chaired by a non-executive director, Sir Ewan Brown, and also
comprises one executive director and other members of senior management.
The Committee operates at a strategic level and its remit covers all matters
affecting the Group’s pension schemes from the perspective of the Group’s
shareholders and other stakeholders, and it will consider, develop and
propose recommendations to the Board in respect of such issues as may
arise. The Committee reviews pension scheme funding, investment strategy,
risk management, internal controls surrounding pension matters and the
related administration for all of the employee pension schemes of the Group.