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The mayor of London is shelling out huge amounts of cash on the scheme, which costs three times more than other public sector pensions, while the city’s transport network faces an unprecedented financial crisis, according to the Conservative candidate for the mayor, Shaun Bailey. The pension dispute erupted when the government agreed to extend its financial support to Transport for London (TfL) for two weeks while negotiations on a new bailout continue.
A spokesperson for Khan said: “The two-week extension will allow TfL to continue to offer safe, reliable and frequent transportation services, which is more critical than ever as the capital enters Level 2 and COVID cases are on the rise. .
“Sadiq will continue to fight for adequate long-term funding for TfL and fair treatment for Londoners.”
But Bailey has accused Khan of failing to manage TfL’s finances efficiently during his time at City Hall and has vowed to reform what he described as overly generous staff pensions to align with other public sector schemes.
More than 26,000 TfL employees are in pensions where the staff contributes 5 percent of their salary while the employer contributes 31 percent.
The Local Government Pension Scheme (LGPS) has an average employer contribution of 13 per cent for the pensions of staff, including employees in education, police, London Fire and City Hall.
Mr Bailey claims that TfL has paid £ 1.4 billion in employer pension contribution payments since Khan took office, a figure that would have come to £ 588 million below the LGPS average.
READ MORE: Mayor of London Embarrassed: ‘Weak’ Sadiq Khan attacked for ‘latest betrayal’
He said: “TfL has one of the most extravagant pension systems in the public sector, along with some of the highest paid employees.
“This doesn’t make sense. With TfL in financial difficulties, taxpayers’ money should go to services, not golden pensions.
Sadiq Khan could have fixed this early in his tenure and saved nearly £ 1 billion.
The mayor’s office has dismissed Bailey’s accusation, blaming Khan’s predecessor Boris Johnson for presiding over a regime of financial mismanagement.
A spokesman for the London Labor Party said: “Sadiq Khan has spent four years cleaning up the financial mess that Boris Johnson created at TfL.
“While Boris Johnson was mayor, rates increased by 42 per cent, but TfL’s operating costs increased every year, its debt increased by £ 7 billion, millions were wasted on vanity projects like the Garden Bridge and the grant from the TfL government surrendered without any plan to replace it.
In stark contrast, Sadiq reduced TfL’s net deficit by 71 percent over four years and increased its cash balances by 13 percent, all while freezing rates.
“The pandemic is the sole cause of the financial difficulties faced by TfL and other transportation providers around the world and anyone who claims otherwise simply does not understand the facts.”
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