Lucrative TfL Pension Scheme Costing Taxpayer Hundreds of Millions – Guido Fawkes

Lucrative TfL Pension Scheme Costing Taxpayer Hundreds of Millions

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Khan’s TfL is paying out disproportionate millions to its lucrative Pension pot. In response to a question from London Assembly Reform member Alex Wilson the GLA revealed that for the last financial year, TfL paid £297.7 million in employer contributions towards the TfL Pension pot. This is based upon a 27% employer contribution. For the Local Government Pension Scheme, which the rest of the GLA is signed up to, the employer contribution is 12%…

That means that if TfL shifted its scheme – one of the largest in the country with 86,000 members – to a regular contribution percentage it could save £827 million over five years. The GLA claims:

“The Transport for London (TfL) Pension scheme is a key benefit offered to TfL permanent employees as part of the total reward package and is highly valued. The Scheme is a key enabler for TfL to attract and retain talent in the organisation, especially in roles where base pay is significantly behind market rate.”

For that you would think TfL could organise for the Tube network’s graffiti to be cleaned. Employer contributions are being brought down to about 10% for a year supposedly thanks to well-performing investments. Why has this not happened before and why is it only for a year?