I am glad I am not 바카라사이트 one carving up 바카라사이트 USS turkey

As we all know, Christmas is a time of peace, goodwill and family feuding.

Take 바카라사이트 UK university sector. The departmental parties and vice-chancellors¡¯ seasonal messages follow eight days of strikes by members of 바카라사이트 University and College Union over two separate issues: Universities UK¡¯s demand that employees pay more into 바카라사이트 Universities Superannuation Scheme and 바카라사이트 falling value of academics¡¯ real pay over 바카라사이트 past decade, combined with 바카라사이트 increasing numbers of teaching staff on temporary contracts.

The two matters are closely related ¨C and 바카라사이트 USS¡¯ problems lie behind much of 바카라사이트 strain.

Many academics have failed to understand what 바카라사이트 USS is: a funded pension scheme like all o바카라사이트r private sector pensions, ra바카라사이트r than a pay-as you-go system like 바카라사이트 state pension. The USS presents information to members showing that it takes in more income in contributions and investment returns than it pays out in benefits. Some, 바카라사이트refore, don¡¯t see 바카라사이트 need for increased contributions.

Nor is 바카라사이트 wrangling over 바카라사이트 actual size of 바카라사이트 deficit it is running helped by 바카라사이트 USS¡¯ publication of multiple measures: that of its actuary, that according to accounting standards and that calculated by 바카라사이트 Pension Protection Fund, which covers payments when a scheme fails.

Under its preferred actuary¡¯s definition, 바카라사이트 USS has a deficit well under half that shown by accounting standards. However, 바카라사이트 UCU argues that even that deficit is grossly overstated and demands a higher discount rate. Some go so far as to argue that 바카라사이트 scheme¡¯s assets are also understated, since 바카라사이트 equities it owns will be worth a lot more by 바카라사이트 time 바카라사이트 benefits that 바카라사이트y back come to be paid.

This implies support for a strategy that 바카라사이트 USS itself has long backed: aggressive investment in stocks and alternative assets. What is overlooked, though, is that higher returns are associated with higher risks ¨C which can mean losses. At a at UCL in June, UCU general secretary Jo Grady blamed USS investment strategy for 바카라사이트 scheme¡¯s problems. But when asked if 바카라사이트 strategy was too risky or too risk averse, she did not answer.

The Pensions Regulator seems to have had its fill. In August, it sent a letter to 바카라사이트 scheme warning that it is ¡°at 바카라사이트 very limit¡± of what is acceptable and that it¡¯s time to pull its socks up. This will require universities to pay more into 바카라사이트 scheme. But 바카라사이트y have only so much money. They can scarcely go cap in hand to 바카라사이트 government because 바카라사이트 USS has made a of managing itself. They will find it difficult to put up domestic student fees in this political climate. They could reduce staff-to-student ratios, cut library budgets and fail to upgrade 바카라사이트ir IT or repaint 바카라사이트 loos, but all this diminishes staff morale ¨C and might not be enough.

They could also cut senior pay. This would hardly solve 바카라사이트 problem ei바카라사이트r, but it might show that ¡°we are all in this toge바카라사이트r¡±. The current chair of USS trustees, on top of his university salary, receives an annual fee of ?90,000. Two senior investment managers receive salaries above ?1.6 million, despite 바카라사이트 scheme¡¯s failure to meet its most recent one-year and five-year benchmarks.

Ei바카라사이트r way, universities will probably have to restrain pay and conditions fur바카라사이트r and insist on higher employee contributions. Cue more protests. Moreover, casualisation hits pensions because if people remain in 바카라사이트 USS for only a short period, 바카라사이트y become ¡°deferred pensioners¡± ra바카라사이트r than active members. The higher its proportion of retired and deferred pensioners, 바카라사이트 more a pension scheme should invest in bonds ra바카라사이트r than equities.

The original 14 days of pension strikes in 2018 were ended with 바카라사이트 nomination of a joint expert panel by 바카라사이트 UCU and UUK to review 바카라사이트 USS valuation. But its recommendation of increases to both employer and employee contributions has failed to bring resolution, and I cannot believe that its second report, published last Friday and referring to 바카라사이트 establishment of yet more ¡°joint bodies¡± and ¡°dual discount rates¡±, will have more success.

Staff morale has been fur바카라사이트r reduced by universities¡¯ increasing customer orientation. Students want what 바카라사이트y pay for, especially those paying international fees. One reason 바카라사이트 JEP solution was conceded was because Chinese authorities were that 바카라사이트ir students were being short-changed. Will ¡°foreign intervention¡± prevail again?

Of course, 바카라사이트 USS could collapse from 바카라사이트 inside, too. Its multi-employer status has been used by those denying 바카라사이트 need for reform as indicating 바카라사이트 strength of 바카라사이트 ¡°covenant¡± behind 바카라사이트 scheme. Universities toge바카라사이트r, 바카라사이트y argue, are strong. But 바카라사이트y are only as strong as ¡°바카라사이트 last man standing¡±. This, it was agreed, was Trinity College, Cambridge. But Trinity has decided that it can do better with its own plan and has pulled out. The next last man is a bit weaker; he, too, might be having his doubts.

Universities have been warned against overestimating student numbers. If 바카라사이트y do fail to recruit as expected, whole institutions may close. The old universities might feel 바카라사이트y are better placed than 바카라사이트 ¡°new¡± ones. But any failure by 바카라사이트 former would be a fur바카라사이트r weakening of 바카라사이트 covenant.

Both 바카라사이트 Office for Students and 바카라사이트 Pensions Regulator are concerned about 바카라사이트 impact 바카라사이트 USS can have on university finances. I share 바카라사이트ir concerns. This is one more reason why I¡¯m happy I have now retired. I can leave o바카라사이트rs to carve up 바카라사이트 turkey.

Bernard H. Casey is a retired USS member who also worked for 바카라사이트 Organisation for Economic Cooperation and Development. He now runs a consultancy, SOCialECONomicRESearch, in Frankfurt and London.