Transport for London (TFL) has confirmed that its pension scheme will continue as usual following a recent review of its broader funding agreements.

In 2022, TfL was asked to review its pension arrangements independently as a condition of the government's funding agreements.

Sir Brendan Barber facilitated the review, with the support of pensions expert, Joanne Segars, and the final report was sent to the government on 28 March 2022.

The review suggested, amongst other points, that the Local Government Pension Scheme (LGPS) would be a suitable alternative to its current scheme, as it could save TfL up to £100m a year in pension costs.

However, the RMT Union raised concerns that moving to the LGPS would have meant that tube workers retiring at 60 would lose around 30 per cent of their pension benefits, and contribution rates would have risen for employees from 5 per cent to between 5 and 10 per cent of wages.

This triggered a campaign to "defend" the fund, with a total of seven consecutive ballot mandates secured from 2022 to October 2024, and six days of all-grades strike action from RMT members between March 2022 and March 2023.

TfL has since confirmed that there are no plans to change the scheme and that its pension review management team has been disbanded.

A TfL spokesperson commented: “As part of our funding agreements with the last government we were required to carry out a review of the TfL Pension Fund.

"Extensive work was carried out and we have always held the position that 'do nothing' remained an option throughout the process.

"No requirement on pensions featured in our most recent capital funding agreement with the new government and our view is that the original condition has now been met. There are no plans being developed or actively considered by TfL to change the TfL Pension Fund.”

The RMT hailed the news that TfL is not considering any further changes to the scheme as a "major victory" in the fight to defend the pension fund, noting that all pension benefits will remain intact, based on a final salary, increases remain linked to the Retail Prices Index (RPI), not the Consumer Prices Index (CPI).

Indeed, RMT general secretary, Mick Lynch, said the news represented a "huge victory” for RMT members, who showed "tremendous tenacity" to stand together to defend their pensions.

"We were told these cuts were inevitable, but our members' determination has ensured that these attacks on pensions have been thwarted,” he continued.

"This win proves that when workers are organised and willing to take strike action, they can defeat even the most determined attacks on their rights and living standards.

"RMT will continue to stand ready to take action to protect our members if any such attacks on pensions or terms and conditions come to pass in the future."

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