On Wednesday 14 May, we welcomed over 80 employers and Pensions Committee members to the Pension & Investment Conference 2025, hosted by the Railways Pension Trustee Company Limited and delivered by Railpen.

Compered by Railpen’s Director of Corporate Affairs, Jonathan Clark, the day explored the economic, geopolitical and regulatory changes impacting our schemes today, and how we’re adapting to continue delivering the best outcomes for members.

Here’s an overview of all the key discussion points from the day.

Setting the scene

Following a warm introduction from Jonathan, Trustee Chair Christine Kernoghan officially opened the event, welcoming delegates to the 2025 Pension & Investment Conference.

Nodding to the theme of the day, ‘Adapting through change,’ Christine observed that, “Looking ahead, we’re operating in times of change – globally, as well as here in the UK.” Geopolitical and economic changes, legislative reforms, fiscal pressures and wider pensions policy developments all present risks, she said, but also opportunities.

“That’s why we continue to work closely with Railpen, as our delivery partner, and with our clients, unions, government, regulators, and members themselves. These relationships are essential, and it is through collaboration that we make the schemes stronger, more resilient, and able to continue adapting and innovating – just as the Rail industry, throughout its 200-year history, has always done!”

Christine closed by welcoming Railpen CEO Andy Bord to the stage, who provided a closer look at how Railpen’s new operating strategy, designed to support the Trustee’s strategic objectives, will help deliver better outcomes for members.

“We’ll continue to simplify where we can, deliver value wherever possible, and prepare for a future that demands adaptability and resilience,” he promised. “And above all, we’ll stay rooted in our purpose: securing our members’ future.”

Improvements to our administration processes

Andy handed over to Railpen’s Chief Officer, Benefits, Nic Cromack, to discuss the improvements being made to Railpen’s administration processes.

Nic was joined by Ian McQuade, CEO of Muse Advisory, who outlined the wider market context, describing the pensions administration industry as a “Cinderella service”. Historically, he explained, it’s an area that’s seen under-investment, and as a result many administrators are now revisiting their data management and reliance on manual processes just as Railpen is.

These improvements, Nic explained, are being undertaken against a backdrop of intense complexity, as we continually adapt to regulatory changes, embrace new legislation and keep pace with technological advances.

Looking ahead, Nic emphasised Railpen’s commitment to not only resolving our existing challenges, but to future-proofing our processes to continue delivering for members in the future.

UK financial resilience today

After the first break of the day, delegates returned to a keynote session, led by the Financial Inclusion Centre’s Mick McAteer.

Deep-diving into the state of financial resilience and security in the UK today, Mick noted that 42% of working-age UK households are in serious financial difficulty, making it difficult for them to save for their retirement.

“If you’re not thoroughly depressed by the end of this session, then either you’ve not been listening or I’ve not been doing my job,” Mick deadpanned.

“But,” he said, “having a pension is one of the building blocks to good financial resilience and security, and that’s why the role of employers is incredibly important.” Mick emphasised that protecting workplace defined benefit (DB) pension schemes was a key part of this, as well as the role of employer contributions and payroll savings schemes.

How we’re supporting you and your members

Senior Client Relationship Manager Chris Welburn followed this call to action, to share how Railpen is working to support scheme members and employers through our all-new training programme.

Members are now able to attend a free series of online webinars, designed to help them understand more about their scheme, and how they can get the most out of their pension.

Meanwhile, employers are also invited to attend their own webinar series, to learn more about the features of their schemes and how they can help drive member engagement.

Plus, Pensions Committee members can look forward to a new streamlined induction series, as well as ongoing refresher content, available to access in bite-sized chunks as and when you need it.

The market outlook

Craig Heron, Director of Public Markets, welcomed delegates back from lunch with an update on the scheme’s Pooled Funds performance, before exploring the market trends impacting this.

Provisional figures from April 2025 suggest that the year so far has been “tricky.” Returns from equity markets and government bonds have been low, whilst high-quality corporate bonds have been one of the better performing assets over the short-term. Craig also noted that, since its inception in 2010, Growth Fund returns of 7% per annum are still lagging behind the Consumer Price Index comparator of +4%, due primarily to high inflation and low asset returns in 2022.

Craig warned that the next three and a half years – the remainder of Donald Trump’s term in office – will continue to see a difficult geopolitical backdrop due to the uncertainty created by this administration's approach to tariffs and foreign policy.

Looking ahead, we'll continue monitoring the environment closely, while working to identify and optimise growth opportunities for the scheme. We'll maintain our focus on investing in higher-returning assets for the long-term, while also building our exposure in credit to deliver higher rewards for members.

Defined contribution scheme update

Next, Katrina Mackay, Railpen’s Senior Investment Advisory & Funding Manager, took to the stage to talk to delegates about the defined contribution (DC) arrangements and recent changes.

She provided an outline of the arrangements on offer, with some allowing DB members to supplement their savings with an additional DC pot should they choose to (AVC arrangements), as well as a dedicated DC offering (the Industry-Wide Defined Contribution scheme).

Katrina summarised the fund and lifestyle strategy range for the arrangements, including the default strategies. Recent changes following the 2023 investment strategy review were also covered, along with the reasoning for these changes.

The political agenda: investing in the UK

In November’s Mansion House speech, Chancellor Rachel Reeves outlined a vision for pension funds to help drive growth by investing in the UK.

Director of Investment Management, Private Markets & Real Assets, Anna Rule, led a panel to discuss this, and explore how Railpen is already driving value in this area, with 40% of all assets invested in the UK as of April 2025.

She was joined by Railpen investment experts, Infrastructure Investment Director Lewis Vanstone, Head of Property Matt Howard, and Portfolio Manager Julia Diez, who shared the barriers when it comes to UK property, infrastructure and innovation. “It’s imperfect,” Julia summarised.

Nirmalee Wanduragala, Managing Director at FTI Consulting, also joined the panel, sharing how her work with Railpen’s Corporate Affairs team aims to influence government policy and legislation. “We’ve been working with policy officials in government and at a local level, to help them understand exactly what the barriers are and how they’re hindering investment,” she said, adding that we’re engaging “to influence for better outcomes.”

Championing a sustainable future

After a final networking break, Railpen’s Sustainable Ownership Senior Investment Manager, Adam Gillett was joined by Trustee Director Peter Holden, to discuss Railpen’s approach to sustainable investing.

Adam emphasised the belief shared by both the Trustee and Railpen, that sustainable ownership is not only an important driver of investment outcomes, but it’s also a core pillar in our duty to deliver the best outcomes for members.

This was underscored by Peter, who noted that “The Trustee is looking for long-term investment returns so that we can pay members’ benefits securely, affordably and sustainably. And we’ve got to be ahead of the game in terms of our sustainable investment strategies, so that we can adapt to change further down the line.”

Going digital: serving members now and in the future

Trustee Director Anjali Lakhani led the day’s final session, welcoming a panel to showcase diverse perspectives from employers – represented by CrossCountry’s Satinder Khambay-Brom and Arriva Group’s Ian Kirk – as well as scheme members – represented by Dominic Eaton – and Railpen, represented by Chief Officer, Benefits Nic Cromack and Head of Customer Experience Rob Hughes.

Together, the panellists discussed how we can continue to serve members through the transition to digital and online finance. The session opened with an audience poll: “Do you support the shift to a more online, digital experience for members?”

Although 93% of delegates responded “Yes,” Anjali quizzed panellists about how we ensure we don’t leave the remaining 7% behind. “It’s got to be balanced,” Nic Cromack said, noting that Railpen’s digital strategy wasn’t focused on delivering a move to 100% digital, but a hybrid approach that will enable members to engage with their pension in the way that works for them.

Reflections

Finally, Christine returned to the stage to close the day.

Reflecting on the key messages, she implored delegates: “If there’s one thing I hope you take away from today, it’s confidence that, even in the face of change, your scheme is being overseen, administered and invested by passionate people, led by a clear strategy, and united by a shared purpose to always put members first.”