TfL's Pensions Review
As you may know, TfL is required to carry out a review of its pension arrangements under its funding agreement with the Government. The review is being independently led and facilitated by Sir Brendan Barber (who will be joined by Joanne Segars OBE). The review process has now started and will be completed by 31 March 2022.
The stated aim of the review is to move the TfL Pension Fund (the Fund) into a financially sustainable position. TfL has said that the review will consider all options for reforming its pensions arrangements, with nothing ruled in and nothing ruled out.
In addition, TfL has said that, after the review, should any decision be made to take forward any of the 'reform options', TfL will fully consult with its trade union representatives and employees, and will follow any required legislative processes.
The Trustee's Role in TfL's Pensions Review
The Trustee is an interested party in TfL's review, along with other stakeholders including trade unions and the Government. The Trustee has been told that it will be offered a reasonable period of time to engage with and submit evidence to the review. The Trustee intends to engage with the review where appropriate and at the appropriate time, consistent with its duties to the Fund and Fund members.
In August 2021, the Trustee was asked by the independent lead to answer some initial questions relevant to the review. The Trustee issued its response to the independent lead of the review on 16 September 2021 and the Trustee Directors have subsequently met with Sir Brendan Barber and Joanne Segars to discuss the Trustee's response. The full Trustee response is included below.
The Trustee will provide further information to members about any further engagement with the review as the review progresses and also provide more information when it is available and when it is appropriate to do so.
Please be assured that this is a review being undertaken by TfL the Trustee has been advised that there is no predetermined outcome. More importantly to note as the terms of reference of the review confirm benefits built up to date are protected and the Trustee continues to manage the Fund in accordance with its governing documentation and applicable legislation. Members' benefits are being paid in the usual way with no changes. Additionally, TfL remains legally committed to provide contributions to the Fund on the agreed basis.
The Trustee is not responsible for the review. If any Fund member wishes to provide feedback or express views in relation to the review they should do so, for example, through their representative body.
24 September 2021