Sheffield Hallam University has abandoned plans to transfer staff onto a subsidiary firm to save on pension costs ahead of expected falls in employer contribution rates next year.
The university was criticised for proposing to move all academics – apart from those eligible for the Research Excellence Framework (REF) – into a new company, rather than employing them directly.
Seen as a way of reducing the number of academics enrolled in the expensive Teachers’ Pension Scheme, many feared the move would create a “two-tier” workforce.
With further strikes planned at the university from 15 June, Sheffield Hallam announced it had agreed to an “immediate withdrawal of the proposal”.
This was because “we expect a significant reduction in the Teachers’ Pension Scheme (TPS) employer contribution rate from April 2027”. It is anticipated that employer contribution rates will come down by as much as 10 per cent.
