Here I distill my threads of the past few days into a single message: the @FirstActuarial & @ucu approach to the investment and valuation of #USS is not some radical new theory. Rather, it's in line with the way #USS used to run things, before Bill Galvin took over as CEO. 1/
It's the way #USS ran things from its foundation in 1975 until Galvin took over in 2013. For all of those years, we had DB on all salaries with 1/80th accrual. There was a modest reform in 2011, with the introduction of career average for new members. 2/
But it remained DB on all salaries, at 1/80th accrual. Moreover, it was not merely because of different regulatory regimes that it was possible to provide DB on all salaries. The 2008 and 2011 valuations were conducted under the current regulations. 3/
Since 2013, we have lurched from crisis to crisis: First with the closure of final salary DB, the imposition of a £55k cap on all DB, and the introduction of individual DC pension pots above the threshold. 4/
And then, more recently, the botched employer consultation in September 2017, followed by their draconian attempt to push through the imposition of individual DC on all salaries, followed by an unprecedented 14 days of strikes. 5/
By advocating the @FirstActuarial approach, @ucu is simply calling for a return to the way the scheme was run when Edwin Topper was the actuary and Tom Merchant the CEO. 6/
In order to justify the conservatism of the current valuation that gives rise to the rises in contributions on which we're about to be consulted, #USS will need to demonstrate, not only why @FirstActuarial is mistaken in its proposed valuation and investment of the scheme... 7/
...but also why #USS ITSELF was mistaken in the manner in which it ran the scheme so apparently stably and successfully during the 38 years from its inception to 2013, a half dozen of which were under the current regulations, and 5 of which were post-Global Financial Crisis. 8/
For more historical background & development of the above points, please see this thread on #USS from 2007 to 2013: 9/
...plus this thread on how #USS actually ran the scheme sensibly and affordably during the 'contribution holiday'. 11/11
👆Please RT above thread. (Tagging @Sam_Marsh101 @Flibitygibity @carlomorelliUCU @DaveGuppy @RedActuary @Derek_Benstead @kevinwesbroom @ucu @UniversitiesUK @USSbriefs @JosephineCumbo @henryhtapper @AlistairJarvis )
