Timeline for changes
Government timeline for changes to TfL Pension Fund
The following is taken from the Long Term Funding Settlement dated 30th August 2022.
The Mayor’s December 2020 Independent Review of TfL recognised that TfL’s pension scheme is expensive, outdated and in need of modernisation.
As part of this funding settlement, the Mayor commits to ensuring TfL’s pension fund is financially sustainable and to protecting members’ benefits built up to date.
Paragraph 39 and 40: - timeline agreed/imposed:
13th September 2022:
· By this date, TfL will:
§ consider the findings of the Independent Review of the TfL Pension Fund
§ provide a response to the Final Report
§ produce a workplan, setting out the steps that would be necessary for moving TfL’s Pension Fund into a long-term, financially sustainable position. This workplan must include detail on what resources will be committed to
achieving this objective.
20th September 2022:
· On this date, TfL and HMG officials will meet to discuss TfL’s workplan, progress to date and next steps.
30 September 2022:
· By this date, TfL will submit two categories of options for future service reform with no more than two sub-options under each, all of which will aim to reduce future service liabilities by circa £100m.
· TfL will set out their rationale as to why other potential options for reform have been ruled out.
· TfL will also provide:
§ (a). core design principles for each sub-option (including but not limited to: salary risk, retirement age, indexation and possible accrual rates);
§ (b). an assessment of how each sub-option meets key criteria related to: deliverability; affordability; (assessment of cost savings); sustainability (risk); fairness; and how it compares to other equivalent pension schemes;
§ (c). its view on what HMG support is needed to progress the shortlisted options alongside proposals for how past service liabilities will be managed under these proposals.
31 January 2023:
· TfL and the Mayor will agree with HMG a final detailed proposal for any recommended changes to both future service benefits and past service liabilities, and an implementation plan
1st May 2023:
· Should the recommended approach require TfL to consult members, TfL will commence consultation by 1 May 2023. TfL will be expected to provide regular substantive progress updates during the Funding Period.
“If TfL does not satisfy the terms of this Funding Settlement set out in paragraphs 38-40, I will consider varying the grant payments in this letter, after consultation in accordance with section 101 of the GLA Act. If, during that consultation period, TfL does satisfy those terms or HMG is sufficiently satisfied that TfL will use its best efforts to meet them as soon as possible, I will take that into consideration.”
*These dates were published ahead of time and may not be an accurate reflection of dates actually met.