Case study

Universities and colleges are shedding their staff by force and cajolery. THES reporters examine the options.

Sheffield College has lost about 100 teaching and 50 support staff out of 2,000, with the bulk going in early retirements and the rest through voluntary redundancy. It is looking at further staff losses to help save Pounds 1 million.

In 1995 Mr X retired aged 53 on a salary of Pounds 24,800 after 28 years service. He had a pension of about Pounds 8,900 with a lump sum for the first year of about Pounds 26,800.

The college decided to enhance the pension by five years which meant an additional Pounds 1,550 per year. The college had to budget for Pounds 29,500 and an extra lump sum of roughly Pounds 4,650.

Mr X received the legal minimum redundancy payment of Pounds 5,300 and Pounds 7,000 redundancy from the college. A proportion of these costs to the college were offset by the FEFC restructuring fund.

The college says that under the new rules it will probably find it impossible to grant any early retirements in future.