Battle brewing over ‘unreformed and generous’ TfL pension scheme
Sadiq Khan is gearing up for a battle with Transport for London (TfL) staff after a report on the transport operator’s finances found its pension scheme was “expensive, unreformed and generous”.
According to the Telegraph, advisers to London’s Mayor have said that the current scheme is more beneficial for workers than models used by Network Rail or the Civil Service.
It comes just a day after the RMT union launched a campaign to defend TfL’s pension scheme, saying that any attempt to close it would be met with strike action.
As a condition of TfL’s latest bailout by the government, Khan was instructed by transport secretary Grant Shapps to conduct a review of the network’s pension scheme.
In a report, advisers said: “The scheme is outdated. TfL’s current pension model is expensive and unreformed.
“The scheme is generous to employees when benchmarked against the Network Rail and civil service schemes, which have been reformed.”
Instead of a review of the scheme, RMT has instead called for both an investigation of private sector involvement with TfL and a review of the government’s support for the network.
In a statement, RMT general secretary Mick Lynch said: “RMT will fight any attempt to impose detrimental terms onto our members. We will resist any attempt to make members work longer, increase pension contributions of workers – just a pay cut in disguise – reduce pension payments or undermine the fund in the long-term by closing it off to future staff.
“Our members in TfL kept transport services running throughout the pandemic and were hailed as heroes. Now their reward is the threat of poverty in retirement.
“We have absolutely no confidence in the review process set out, which is no more than a smoke screen for a massive attack on RMT members driven by the government and London Mayor’s agreement to make huge financial cuts on TfL and LUL.
“We reissue our call for all regular TfL work to be immediately brought in-house and for an end to the gravy train of easy profits and dividends to the shareholders of the private sector.
The new campaign comes just days after the RMT called off plans for a Tube strike the night before the industrial action was due to kick off.
An interim report into changes to the pension scheme will be published in early December, with recommendations to follow in March 2022.
A government spokesman said: “The Government has shown its commitment to supporting London’s transport network through the pandemic, providing more than £4bn in emergency funding to Transport for London.
“These support packages are fair to UK taxpayers, ensuring action is taken to put TfL on the path to long-term financial sustainability.”
A TfL Spokesperson said: “TfL’s funding agreement with Government included a requirement to carry out an independent review of the pension scheme, with the aim of moving TfL’s Pension Fund into a financially sustainable position which protects members’ pension benefits built up to date.
“Sir Brendan Barber has agreed to independently lead the pension review and will bring a wealth of experience having been a former General Secretary of the Trades Union Congress (TUC) and until recently serving as the Chair of the Advisory, Conciliation and Arbitration Service (ACAS).
“Sir Brendan will be supported by Joanne Segars OBE, in independently conducting the Pensions Review. Joanne has expertise in pensions, as the Chair of NOW: Pensions, one of the UK’s largest auto enrolment pension providers and Chair of the Joint Expert Panel on the Universities Superannuation Scheme.”