TfL to identify options to 'save' £100m a year on pension costs

Circular No: IR/195/22                                                         

8th September 2022

Dear Colleagues,


Further to my my previous Circular (IR/166/22), dated 10th August 2022, the Regional Organiser has met with your representatives to discuss the funding agreement recently made between the Department for Transport and TfL.

TfL has conceded that the agreement will entrench the programme of “managed decline” which the government, aided by the Mayor of London, are attempting to inflict on our industry, while also seeking to impose huge cuts to jobs, pensions, and pay.

In addition to cuts demanded in previous funding agreements between TfL and the DfT, the agreement includes that TfL will:

  • Identify two options to save £100m a year on the employer's pension costs by 30th September, and to present a final plan to enact these savings in January 2023
  • Make further cuts of £230m from the operational budget
  • Approach a pay deal for 2023 within the constraints of the government's public pay policy

The RMT is seeking further clarity on the commitments from TfL, which appears to have effectively given up control of its finances, allowing the government oversight to ensure these cuts are imposed.

The National Executive Committee has considered this matter and all affected branches are instructed to hold special meetings to discuss the financial settlement outlined above, and to continue the build support for the campaign to maintain our jobs, pensions, and conditions.

I would be grateful if you could bring the contents of this Circular to the attention of your members.

Yours sincerely,

Michael Lynch
General Secretary