“No alternative methodology was proposed” – Michael Otsuka – Medium

“No alternative methodology was proposed” – Michael Otsuka – Medium:

There is likely to be a strike at Sussex and all the major old (pre-1992) universities. This is unprecedented - a total (hopefully temporary) breakdown in trust between professors and their universities.

I know pension disputes are almost impenetrable - and the professors' pension is the biggest private scheme in the UK (just bigger than British Telecom in fact!).

Here's what I understand, in simple terms:

the universities put forward a system to fund pensions every 3 years, but this year the goalposts were moved very significantly to account for the very unlikely concept of one or more of the major universities in the UK failing in the next generation. I suspect the problems that could cause such a breakdown in society would be more important than a pension deficit, but the fact is that no research-intensive university has ever failed.

The valuation used would both massively cut professors' pensions and their take-home pay. It is supported by just 42% of those 61 universities, with 53% opposed. I do not know where Sussex sits on this. The link in the article is to analysis by an LSE professor for those of you who like maths!

"Given that Alistair Jarvis is CEO of UUK, it is especially puzzling that the organisation he leads falsely claims, in their latest Q&As, that UCU has proposed no alternative methodology. Had UUK taken on board this alternative approach, rather than denying its existence, we could have avoided the difficulties to the scheme caused by the 42% of UUK members who ‘broke’ the September valuation by calling for a lower level of investment risk (to which UUK’s proposed move to 100% DC is an incoherent response).

Please see this post entitled “An explanation, via buy-to-let analogy, of First Actuarial’s approach…” for further explanation of the merits of the alternative approach whose existence UUK denies." 'via Blog this'