University staff may face an uncertain financial future after the University has admitted a deficit of £26.1 million in their pension fund for non-academic staff.
This includes support and administration personnel who are not eligible to join the external National Superannuation Scheme, which is open to academic staff only.
A spokesperson for the university informs that steps have now been taken to rectify the situation, citing the introduction of a “lower tier” to the internal University of York Pension Fund scheme.
The new tier calls for less contribution and benefits for employees, while the contribution by both employers and employees to the existing tier has increased.
“New entrants will join at the lower level and have the opportunity to move up after two years’ service,” the University comments.
The pension fund in question has come under fire before, as it is the main recipient of the income generated by university investment in arms manufacturer BAE Systems.
York St. John University also struggles with a deficit of almost £13 million in the same area.