NATFHE granted leave

NATFHE has been granted leave for a High Court review of the former Government's controversial decision to change teachers' pensions policy.

The move is a challenge to former education secretary Gillian Shephard's reform of the Teachers Superannuation Scheme (TSS). It is understood, however, that the new Labour Government will contest the hearing, due on August .

Natfhe, representing some 70,000 lecturers in colleges and universities, claims that Mrs Shephard had exceeded her powers in attempting to transfer the cost of early retirements from the TSS to individual colleges and new universities. It says this is prohibited by pensions law.

The proposed changes could cost institutions millions in early retirement costs, but many are more likely simply to stop offering early retirement. This could mean more redundancies and demoralised staff being forced to stay on in their jobs until the age of 60.