I have reprinted the links to the video and slides from John Hamilton’s presentation yesterday. It is a mark of the interest the Stagecoach/Aberdeen (SASA) deal has had that the blogs surrounding John Hamilton’s appearance have had enormous interest.
But that deal is done and though I expect others will follow, it is dealing with the legacy of DB for the private sector
For most private sector companies, the question is what will the future bring and this is open to debate. To distort a famous saying…
Give me change but not now!
Just as legacy DB has struggled over whether to go with an insurer , stay with the sponsor or move to superfund, another sponsor or even the PPF, – so we are struggling with DC going forward.
It sounds churlish for me to point this out, so great the effort of Stagecoach with its legacy but it does still have 24,000 bus drivers who it employs today and will tomorrow.
My question to them and to the bus companies like them in the UK is what are you going to do and when are you going to do it. Because just as it seems obvious to run on your DB plans than hand the profits to the insurers , so it seems obvious that you consider the DC plans which you are putting in the hands of commercial providers for the meantime.
And here , staring us in the face is the other “obvious” thing for us all to consider
Torsten Bell
There is a number that emanates from consultancies including WTW and Aon but most recently from Hymans Robertson which talks of these new collective funds providing up to 60% of the DC funds we invest in individually.
That number is being used by the Pension Minister.
If it is not disputed, why are we continuing to rely on DC to pay workplace pensions? Why don’t we grasp the better CDC alternative as soon as we can, even if that will need some effort on all sides?
I suspect in the back of a lot of our minds lurks the statement “Give me Change but Not Now!”
So I put it to Stagecoach and the other bus drivers and the many other large companies who could take a lead on CDC, that now is the time to be bold just as the Trustees of Stagecoach were, just as Aberdeen was. For we cannot go on ducking the challenges we are faced!
Here is the great story of the past, I hope in a year’s time I will be printing the great story of the future!
Yesterday’s news
If you missed this coffee morning presentation from John , you are in luck. It’s with you below, with a download if you want to share it – here.
If you want to see the slides they are below and they can be downloaded from this link.
Thanks to all that came and to those who tried but couldn’t get on the call. Let’s move on now – we have another challenge to consider!
Could increase by up to 60%
Catchy headline.
What about the downside risk?
Was curious about your use of the Greater Manchester Bee Network launch photo from two years ago, to see how that “newcomer” is faring.
Two years in (launched September 2023), Bee Network is seeing growth with 14% passenger increases, better satisfaction (85%), cheaper fares (like £2 hourly hopper), and more frequent, punctual services, despite initial driver pay disputes.
Positive momentum towards an integrated, accessible transport system, then?
Bee Network integrates all city buses, operated by multiple bus companies under franchise agreements with Transport for Greater Manchester (TfGM), including Stagecoach Manchester, Go North West, Metroline Manchester, First Manchester, Beryl, Vision Bus and others, managing different franchised areas for buses and trams (operated by KeolisAmey Metrolink).
It’s a public transport system under local control, not a single private company.
Sounds like a model for CDC, Henry, but it’s early days yet.
We are excited about what we and the FCA are discussing as a model for delivering a CDC scheme. Think “dairy with milk delivered” being the reward for participating and you have our idea for a mutual set up where for farmer , think employer (any size) and distribution to employers being based on contributions (like milk brought to the dairy).
We think employers will want to be more involved than they’ve been in workplace pensions so far! Perhaps employers should take charge of the dairy and be farmers!