This is the best thing I’ve read on the pension issue in UK Higher Education – not least because of its critique of Union incompetence.
Academics in pre-1992 universities who are members of the University and College Union (UCU) will tomorrow be commencing a marking boycott in response to a planned attack by employers on our USS pension scheme.
By any reasonable measure, and despite losses suffered during the global financial crisis (GFC), USS is in good financial health, persistently taking in much more in contributions than it pays out to retirees. However, the arbitrary valuation method favoured by the UK Pensions Regulator – which has an interest in a highly conservative approach, to avoid employers running schemes down then leaving the regulator to carry the can – perversely shows the scheme in deficit. The ridiculous nature of the assumptions behind this valuation have been well explainedelsewhere, as has the mendacity of Universities UK, the employers’ association, in using data misleadingly. Put simply, the claim that USS is unsustainable is based on the…
View original post 1,372 more words