Two in five academics at Northumbria University have agreed to switch pension schemes at the end of a concerted push by the institution to save millions of pounds on its staffing costs.
In a move that has been watched closely by the rest of the cash-strapped sector, Northumbria offered incentives for academic staff to opt out of the expensive Teachers’ Pension Scheme or face having their pay frozen.
After extending the deadline for people to make their decision to 31 May, the university confirmed to Times Higher Education that over 500 staff have agreed to move on to pensions provided by the Universities Superannuation Scheme (USS), which come with lower employer contributions.
This equates to about 43 per cent of 1,150 eligible staff. An additional 50 employees have been granted an extension and are still considering their position.
When it announced the move, the university said that it hoped to save £11 million, but the University and College Union (UCU) criticised the exercise, fearing that it would create a “two-tier” workforce.
