Transport for London Pension Fund

April 5, 2006

Dear Colleague,

Transport for London Pension Fund

Further to my circular of 28^th March, I am writing to bring you up to date with developments arising from the meeting of Secretaries and Chairs of RMT's LT Branches last week.

Proposal to disturb the TfLPF Trustee Board Balance of Power by appointing an Independent Chair

Your representatives were deeply concern at Transport for London's attempts to gain control of the TfL Pension Fund through the appointment an Independent Chair of the Trustee Board. In view of the fact that this change would have a similar adverse impact on other Union's members it was agreed to write to other Trades Unions drawing attention to our concern on this issue and seeking their support to prevent what we believe is a significant threat to the way the fund operates and the benefits offered to our members.

It was also agreed that all RMT members in the Fund should be urged to write to the Secretary of the Fund expressing concern at implications of the proposed changes. In this respect I enclose a pro forma letter (see below) which should be circulated as widely as possible for members to express their concern. Members should write their own address at the top of the letter then either post it direct to the TfLPF or pass it to their local representative for onward transportation. Additional copies will be available from the RMT Website or Head Office.

I cannot stress too strongly the necessity for ensuring management is aware of the depth of members feelings on this issue. Basically, anyone who wants an increase in pension costs, reduced benefits and to continue working until age 65 should ignore this request, but anyone who wants to keep the current level of benefits, contributions and Union influence on the Fund should ensure they send a letter of concern. Anyone who would prefer to formulate their own letter is obviously free to do so. Likewise anyone wishing to write to the Trustees other than Pat Sikorski, because he is obviously against this change, should also feel free to do so. Such a letter would be particularly helpful to the PCC nominees who may not have the same attachment to the current terms and conditions of service.

The Trustees are as follows:

Name Nominating Body Employer Nominees

Chris Godbold Pensions Consultative Council S. Critchley Chair

Mike Swiggs PCC G. Duffy

John Robson PCC S. Allen

Chris Miller PCC J. Hart

Jan Hamilton TSSA N. Belben

John Timbrell Jnt Trades P. Worthington

Steve Grant Aslef H. Hood

Tom Scanlon TGWU M. Ainsworth

Pat Sikorski RMT vacancy

Actuarial Valuation

The Scheme Actuary will value to TfLPF at 31^st March. This means the Fund's liabilities will be assessed in relation to its assets. The Actuary will then set the contribution rate necessary to buy future benefits and also any additional contributions payable by management to clear the deficit.

The staff-side of the Pensions Working Group discussed the forthcoming valuation and noted that Scheme Rules provide for consultation between the employer and Trustees prior to the report being finalised. The meeting expressed concern that Trades Unions may be excluded from discussions on the draft valuation. I have therefore written to management pointing out that the Trades Unions are an integral part of the fund and have a right to consultation on the draft report. I have the Unions should be consulted through the joint PWG during late August/early September so that any views we have on the matter may be considered by the Trustees when reviewing the preliminary report at their September meeting.

In view of management's current attitude to the Unions on pensions issues it would not be surprising if my request was declined. However, it is essential that the Unions should be able to engage on pensions issues as this represents our members' well-being and security in retirement.

RMT's policy on LT Pensions is:

No cuts in benefits
No increase in contributions,
The TfLPF should be open to all LT workers, including Metronet, Tubeline and Bus worker who currently excluded.
Pensionable service to commence from 18 years of age for all members

Lobby of Parliament - 9^th May

Members will be aware of the campaign being pursued in order to protect the pensions of main line railway staff. In this respect a Lobby of Parliament is to take place on 9^th May at 1pm. Further details will be available shortly or on the RMT website. LT members may wish to participate by bringing their banners and drawing attention to the attempt to gain control of their Pension Fund with all the consequences that would involve.

Yours sincerely,

R. Crow

Text of pro-forma letter

Date:

Mrs. S. Timbrell
Secretary
Transport for London Pension Fund
55 Broadway
London SW1H OBD

Dear Mrs. Timbrell,

Proposal to disturb the TfLPF Trustee Board Balance of Power by appointing an Independent Chair

I have received information which suggests consideration is being given to a change to the current Trustee structure in order to provide for an Independent Chairperson as an additional member of the Board. I am very concerned that this would alter the Trustee Board's current balance of power and thus adversely affect the overall Governance of the Fund as it would increase the employer's ability to implement changes. I do not believe such a change would be in my interests nor would it be in the interests of other Fund members.

The Hatt Judgment confirmed an equality of voting and representation which had previously prevailed in the two old LT Schemes and I do not believe this balance of power should be changed.

I should therefore be grateful if you would draw my deep concern on this matter to the Trustees attention at their next meeting, in order that they may be aware of my views when giving consideration to any proposal to change the Fund's current balance of power.

Please confirm that you will act accordingly.

Yours sincerely,

[your name]