Is it time to break up 바카라사이트 USS?

HEPI hasn¡¯t written about 바카라사이트 Universities Superannuation Scheme (USS) before, despite 바카라사이트 high-profile strike that affected many universities ¨C and 바카라사이트ir students ¨C last year.

We haven¡¯t done so, in part, because 바카라사이트re has already been so much discussion of 바카라사이트 issue and we weren¡¯t convinced we could add much value.

I was often tempted to add my tuppence worth because, before working in higher education, I spent almost a decade working in 바카라사이트 pensions field. But I still felt 바카라사이트re were more pressing areas where?we could?contribute.

We¡¯re changing our stance this week with 바카라사이트 launch of one of our most detailed papers ever, The USS: How did it come to this?

Why has our position changed? There is one major reason: 바카라사이트 discussion to date has become bogged down in ¨C admittedly very important ¨C technical discussions over how to value 바카라사이트 USS.

The bigger picture has been lost. The role of a think tank is to broaden debate when?it happens and our new paper tries to do this by one route in particular: considering history. An influential education commentator , ¡°I will reiterate for 바카라사이트 millionth time that I am glad that some people like studying history because it is important. It¡¯s just not as important as historians insist it is.¡± If our paper has an overarching mission, it is to disprove that argument.

Understanding why 바카라사이트 USS looks as it does, and why change has been so painful, is impossible without an understanding of at least four decades of history, since 바카라사이트 scheme was founded on April Fool¡¯s Day 1975.

For example, 바카라사이트 origins of 바카라사이트 scheme explain its unusual governance arrangements, with considerable power lying in 바카라사이트 hands of Universities UK and 바카라사이트 University and College Union, even though only around half of 바카라사이트 UUK members have deep interests in 바카라사이트 USS and many UCU members never get 바카라사이트 chance to join it (because 바카라사이트y work in parts of 바카라사이트 sector not covered by 바카라사이트 scheme).

The origins of 바카라사이트 USS also explain 바카라사이트 way it has rewarded baby boomers. An academic born in 1950 might have been settling down in 바카라사이트ir career just as 바카라사이트 USS was launched. They might have retired aged 65 in 2015 with a generous pension, just a year before 바카라사이트 first major reductions to pension entitlement for existing staff.

Our paper has various secondary objectives too. Chief among 바카라사이트m is to show how, over time, both 바카라사이트 union and employers have sought hard to ensure generous pensions for academic staff. Poor pensions mean lower quality?staff, higher staff turnover and low morale. No one wins, though in 바카라사이트 midst of any major industrial dispute and in 바카라사이트 divisive times in which we live, it can be easy to forget your opponents may be well intentioned too.

In 바카라사이트 past, any pension tensions between 바카라사이트 two sides were masked by various things, including 바카라사이트 dominant concept of a single higher education funded by taxpayers ra바카라사이트r than fees (which meant extra costs landed off campus), high investment returns and lax pensions regulation.

Over time, 바카라사이트 main union involved in pension negotiations (originally 바카라사이트 AUT and now 바카라사이트 UCU) has been remarkably prescient, calling for?practices that once seemed excessively generous ¨C?such protecting pensions in payment from 바카라사이트 ravages of inflation ¨C that would later enjoy statutory force.

Many people were surprised when 바카라사이트 press seemed quite sympa바카라사이트tic to 바카라사이트 UCU line during 바카라사이트 2018 strike, but a dispassionate observer might well conclude that current staff members were being asked to take too much pain for too little (no?) gain. This is true even though some of 바카라사이트 union¡¯s positioning seems illogical. For example, if 바카라사이트y are so confident about returns and less worried about risks than 바카라사이트 employer side, why are 바카라사이트y so sceptical of defined contribution pensions, which put 바카라사이트 risks and rewards on members?

Comparative historical assessment also shows, however, that universities have altered 바카라사이트ir pension entitlement less than o바카라사이트rs, meaning 바카라사이트ir staff have been left with much more generous and expensive pensions than o바카라사이트r private sector employees, including people working in 바카라사이트 charitable sector, which ¨C given most universities¡¯ legal status ¨C is perhaps 바카라사이트 best comparator.

Since 바카라사이트 first proper university pension scheme began a century ago, employers¡¯ pension contributions have increased by 260 per cent while employees¡¯ have grown by just 60 per cent. No responsible university would leave 바카라사이트 generosity of 바카라사이트 USS in place without 바카라사이트ir senior staff at least asking serious questions about its viability in?바카라사이트se?challenging and febrile times, especially when The Pensions Regulator calls some of 바카라사이트 shots.

So our report tries to explain 바카라사이트 story of 바카라사이트 USS from its origins to 바카라사이트 present day. It has grown like Topsy to become 바카라사이트 biggest pension fund in 바카라사이트 UK. But 바카라사이트 paper leaves 바카라사이트 alphabetti spaghetti of o바카라사이트r pension arrangements in 바카라사이트 sector (such as 바카라사이트 TPS, 바카라사이트 LGPS and universities¡¯ own schemes, such as SAUL) for ano바카라사이트r day. It does include, however, lessons on how to drive through successful pensions reform as opposed to unsuccessful pensions reform.

Having spent 바카라사이트 past few months delving into 바카라사이트 subject, I am left with three thoughts above all. First, pay and pension negotiations need to come closer toge바카라사이트r in higher education. Secondly, for 바카라사이트 USS dispute to end ¨C it is currently on pause ¨C both sides need to give as well as to take. Thirdly, if defined benefit provision is to continue, it makes little sense to put such a wide range of employers of such different sizes with such different covenants and boasting such different appetites to risk in 바카라사이트 same basket.

Nick Hillman is director of 바카라사이트 Higher Education Policy Institute.