The new chief executive of the railway sector’s industry-wide pension scheme highlights four key priorities as Railpen prepares for the changes and challenges ahead.
In less than a year since entering the pensions industry and joining Railpen in October, it has already demonstrated the breadth and depth of the markets within which Railpen operate, the changing policy environment within rail, pensions and investments, and the passion of an organisation wholly dedicated to putting members first.
Transitioning from Flood Re – where we enabled affordable home insurance for people at high flood risk – to the pensions industry has underscored the ability in both sectors for purpose-led organisations to improve people’s lives, and foster a fairer system.
Pensions play such a crucial role in living securely in retirement but are too often only considered later in life. That has played a part in my decision to lead Railpen and to support the railways’ pension schemes as we seek to secure our members’ futures.
It’s this clear sense of purpose that guides our decisions, our priorities, and our culture. Having led purpose-driven organisations, doing this well in today’s world requires resilience, clarity, agility, and a strong operational foundation.
Navigating a busy period
From initial observations, the pensions industry faces unique challenges and opportunities – not just providing adequate incomes in retirement but also considering the role pension funds play within the UK economy, and improving and driving value for money.
A member-first approach is vital and requires clear leadership, alongside a collaborative cross-industry directive.
We’re operating in times of change, with a more complex and volatile global economic and geopolitical environment than we’ve seen in years. The pensions industry has navigated sustained economic volatility, rising inflation, and shifting monetary policy – all against a backdrop of geopolitical tensions, conflicts, supply chain disruptions, and the growing regionalisation of trade and investment.
“In times of economic volatility, it is important to continue to have clear communication with members in order to maintain trust and provide reassurance – particularly in respect of the resilience of long-term investment strategies.”
Andy Bord, Railpen
In the current regulatory and policy landscape, there is growing pressure for greater transparency and accountability, particularly in how financial systems support the UK economy.
Key developments include planning and infrastructure reforms, the creation of the Treasury-owned National Wealth Fund aimed at mobilising private investment, and the nationalisation of rail services.
These changes are driving enhancements in regulation, such as the Defined Benefit Funding Code, improvements in systemic technology including the rollout of pensions dashboards, and the Pensions Investment Review. Within the rail sector, as Great British Rail is established, we also stand ready to support the Department for Transport.
In times of economic volatility, it is important to continue to have clear communication with members in order to maintain trust and provide reassurance – particularly in respect of the resilience of long-term investment strategies.
Being part of an organisation that is actively helping to shape the future of pension adequacy, improve outcomes for savers, and contribute to UK economic growth – while placing the trustee’s fiduciary duty to act in members’ best interests at the heart of all activity – is very rewarding!
Establishing Railpen’s key priorities
As we continue to secure our members’ future, we have four strategic priorities designed to achieve and respond to the trustee’s goals.
1. Strive for simplicity
We aim to reduce costs, risks, and friction within the complex pensions landscape, particularly in the railways pension schemes. This includes using technology to streamline finance systems, enhancing digital member engagement, and driving continuous improvement for ‘right-first-time’ outcomes.
2. Focus on value
We are enhancing fundamentals such as administration, data, and operations to ensure our services reflect true value. Simultaneously, we are evolving our defined contribution proposition while delivering strong outcomes for defined benefit members.
3. Fit for the future
We are focusing on being adaptable and resilient in the face of uncertainty by: using data to achieve better insight; improving oversight; speeding up decision-making; and having a flexible investment model. Externally, our policy engagement includes removing the barriers to investment such as our work on the Planning and Infrastructure Bill, impacting real asset investment in the UK to enable faster development.
4. Enabling our people
We’re creating a performance culture with clear expectations and transparency, investing in development, engagement, and tools – because our people are our greatest asset.
Collaborating on industry issues
These are goals that many other pension schemes are likely to feel alignment to. Providing greater simplicity and operational efficiency, ensuring we drive continued value, and keeping an eye on the future – all of these keep us agile, adaptable and most importantly, focused on providing that financial security and resilience in the future that members depend on.
We’re already seeing momentum.
Our advocacy and collaboration with the Pension Protection Fund (PPF) and peers has already helped reduce the PPF levy by 55%, saving our members £13.7m this year alone, as well as paving the way for the PPF to reduce the levy to zero.
More work needed on PPF levy: Railpen
The planned reduction in the PPF levy is a welcome reform, but there’s still work to do, argues Railpen’s pensions policy manager Tim Miller in this article from March 2025.
Looking ahead, we’ll continue engaging with stakeholders to address upcoming challenges. Despite past obstacles, we’re using this experience to build a more resilient future.
To be welcomed into the pensions industry at such a pivotal moment is both an honour and an exciting opportunity to contribute to meaningful change.
We have a clear commitment to scheme members, trustees and Railpen colleagues to deliver value wherever possible, and to prepare for a future that demands adaptability and resilience.
As we look ahead in the pensions industry, we are optimistic. We have strong foundations, a clear purpose, and an ambitious plan to ensure we continue to deliver for members.
Andy Bord is chief executive officer at Railpen.
