UK. State could be landed with £8bn rail pension deficit
The Telegraph reported that the massive government intervention could shift the pension deficit of franchises from the private sector to the public sector.
The Department for Transport (DfT) last week effectively took the rail network into public ownership in response to the coronavirus crash which has slammed demand for travel.
Transport secretary Grant Shapps gave companies the option of paying a set fee to run the franchises for six months or to return them to the government.
The report said the railway pension scheme’s deficit could hit £8bn following the recent stock market crash.
Rail pensions were a major source of controversy even before the recent crisis hit, with private sector companies reluctant to get landed with the liabilities connected to the scheme.
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