Transport for London (TfL)TfL Pensions Review

Transport for London has embarked on a review of its Pension Fund, a demand placed upon it by the UK Government as a condition for the financial support it received on 1 June 2021. The Government’s demand is that the review should identify and make recommendations about ‘reform’ options, with the explicit aim of “moving TfL's pension arrangements into a financially sustainable position whilst protecting members' benefits built up to date.” TSSA is opposed to any changes that would be detrimental to our members’ pensions and we are making that position clear through the review.

The first hint of a potential review was contained in TfL’s Independent Review (published in December 2020) that claimed savings of £100m could be made by changing the scheme. The idea of the review was accepted as a matter to discuss with the DfT in TfL’s Financial Sustainability Plan (published January 2021) and became a condition for the support package.

Subsequently, an Independent Review has been established, headed by Sir Brendan Barber. The Independent Review has established a Contact Group with a representative from each of the trade unions recognised by TfL and London Underground (LU). One of the Review’s first actions was to produce its 1^st Call for Evidence, inviting responses from various stakeholders including the trade unions, the Fund’s Trustee, Pensions Working Group and others.

The Fund is highly regarded by its members with virtually all of TfL and London Underground employees contributing, along with TfL and LU as employers.

The reason that we can say the Fund is highly valued is because in preparation for TSSA’s response to the first call for evidence we ran a survey of members which had a large participation with overwhelming support for the scheme as it is currently set up. More details can be found in our submission, below. This outcome, along with the clear message that we have heard from members at numerous meetings is that they are opposed to making changes to the scheme that would mean they have to pay more and see their pension benefits cut.  

The Fund’s 2018 valuation revealed a deficit meaning that TfL had to pick up the deficit repair contributions. At the same time as the Review was announced, the Trustee had started on the work required from the 2021 valuation. That valuation is yet to report, but the view from the trustees is that the Fund is in a much healthier position and could even report a surplus. This simple fact undermines the call for a review.

TSSA is opposed to increases to members’ contributions or any reduction in pension benefits.