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Michael Otsuka @MikeOtsuka
, 12 tweets, 10 min read Read on Twitter
"π—‘π—˜π—ͺ π— π—”π—§π—˜π—₯π—œπ—”π—Ÿ π—˜π—©π—œπ——π—˜π—‘π—–π—˜": Remember this statement from #USS to FT pensions correspondent @JosephineCumbo?: 1/
And also this?: 2/
Here is "π—‘π—˜π—ͺ π— π—”π—§π—˜π—₯π—œπ—”π—Ÿ π—˜π—©π—œπ——π—˜π—‘π—–π—˜" in spades: 3/
Mindful of their fiduciary responsibilities, the #USS trustee, into whose mouth the #USS executive has such a habit of putting their own words, will want to engage in a thorough investigation of the significance of this new material evidence. 4/
They will want to make sure that the #USS executives who are answerable to them are not now engaged in a back-covering PR campaign to try to minimise the significance of @Sam_Marsh101's findings. 5/
They will also want to know why their #USS executives failed to respond to a request from an π—²π—Ίπ—½π—Ήπ—Όπ˜†π—²π—Ώ, back in September 2017, for the asset projections they have only recently provided. 6/
Given #USS's failure to respond to a request of an π—²π—Ίπ—½π—Ήπ—Όπ˜†π—²π—Ώ during their September consultation on the valuation, @UniversitiesUK & @AlistairJarvis should also have a keen interest in knowing why. 7/
As I note in my linked blog post: 8/
medium.com/@mikeotsuka/us…
#USS executives maintain that its valuation remains sound, even in the face of this new material evidence. This claim, however, stands in need of thorough investigation and independent confirmation. 9/
Indeed, such an investigation should have occurred over a year ago, since that is when #USS should have released these figures. We should not be having this discussion now. It should have occurred BEFORE @UniversitiesUK proposed deep cuts to our DB pensions... 10/
...on the basis of a consultation that was conducted in the absence of key information that #USS refused to provide. See also the following blog post, regarding another consequential failure of disclosure on #USS's part, during the Sept consultation: 11/11
medium.com/@mikeotsuka/us…
πŸ‘†@UniversitiesUK @ucu @AlistairJarvis @JoanneSegars @SallyBridgeland @Sam_Marsh101 @Flibitygibity @carlomorelliUCU @HershMarion @Dennis_Leech @DaveGuppy @UofGVC @RedActuary @Derek_Benstead @kevinwesbroom @GuyCoughlan @USSbriefs @JosephineCumbo @henryhtapper
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#USS

More from @MikeOtsuka see all

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In their new valuation #USS continues to make a "large and demonstrable mistake" in applying Test 1, which they now ineptly try to explain away by contradicting past statements (see embedded thread). 1/
JEP has made a strong case for funding existing DB & DC benefits at a lower contribution level than USS is calling for. 2/
But the regulator (tPR) is calling for an even more conservative valuation than the one #USS issued last week. 3/
Read 19 tweets
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#USS provides blinkered, inaccurate, exaggerated measures of risk in their consultation document, all three of which are tied to the gilt yield. More comments below. 1/
The first (see 5.4.1) is their measure of 'long term risk' in terms of their infamous Test 1 gap to 'self-sufficiency' in 20 year's time. Self-sufficiency is a gilts+0.75 portfolio. 2/
As I explain in this thread, it's only when they rewrite history by contradicting past statements that they are able to show a need to 'de-risk' into bonds in order to meet this test. 3/
Read 19 tweets
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🚨🚨🚨#USS contradicts itself in its latest attempt to answer the critique arising from @Sam_Marsh101's findings regarding expected asset level 20 years hence. See the following highlighted passage from p. 12 of the consultation document on the 2018 valuation: 1/
This parenthetical claim is an attempt to deny that they ever assumed that col 1 row 1 would equal col 2 row 1 in @Sam_Marsh101 graph below. 2/
But the record shows that #USS previously identified the target path as the expected path. See this highlighted statement from the transcript of @GuyCoughlan's video of May 2018: 3/
Read 12 tweets

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Wow, new @Firstactuarial report on #USS 2017 valuation is brutal about #USS Trustee: governance of #USS is an ongoing massive question

See section titled "Is the Trustee in control?" (h/t @Sam_Marsh101 @MikeOtsuka for link to report) #USStrike ucu.org.uk/media/9971/Fir… 1/ screen shot from report linked to in tweetscreen shot from report linked to in tweet
I particularly enjoyed the sub-section that ends @RedActuary @Derek_Benstead's report on #USS valuation, titled – get this – "Alternative Facts". The final sentence reads: "So far as we are aware, this statement [by #USS] is untrue". ucu.org.uk/media/9971/Fir… 2/2 screen shot of section of report discussed in tweet
Will Prof Sir David Eastwood, Chair of #USS Board of Trustees, VC of @unibirmingham, respond to @FirstActuarial's grave concerns over whether #USS Trustee is actually in control of #USS valuation? Or will Trustee continue its silence? #USSstrike ucu.org.uk/media/9971/Fir…
Read 9 tweets
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UPDATE on 2017 #USS valuation.

Universities UK has told me:
β€œEmployers support the JEP’s recommendations, subject to acceptance from the USS Trustee and The Pensions Regulator, and to further information for employers on risk and its implications.”

1/
#UUK: ”We look forward to discussions with UCU, and with the USS Trustee, over the coming weeks as we seek a jointly agreed solution.”
2/2
#UUK has further clarified that employers support β€œall of the recommendations put forward by the panel” – subject to the conditions outlined in earlier tweeted statement.
Read 14 tweets
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Given importance of HE sector "there may be a case for future governments to consider alternative options" (incl "state-backed guarantee" or "measures enabling more risk-taking"). Powerful piece from @JMariathasan on #USS DB debate post-#JEP ipe.com/analysis/blogs… #USSstrike 1/
Article argues that central problem lies in regulatory changes that transformed management of a DB pension scheme into "a risk management problem, not an investment one" 2/
More info about the @CSFI1 debate over #USS and DB pensions discussed in @JMariathasan's article at @OpenUPP2018

See:
And: 3/
Read 4 tweets
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Reading fhrough the Joint Expert Panel report and it is quite bruising for the #USS, #UUK and Pensions Regulator.

Key comments from the Executive Summary of the JEP report to follow:
Firstly, on the Trustees’ use of 3 tests to help assess contribution affordability. The Panel thought the Trustees gave β€œtoo much weight” to β€œTest 1” which was not being used as a β€œstop and check” reference point but β€œconstraint” on benefit design and investment strategy. 1/
The Panel said that β€œinsufficient weight” was given to the fact that USS was a large, open scheme that was cash flow positive. The β€œstrength and diversity” of the HE sector appeared not to have been taken into account β€œin some areas”. 2/
Read 17 tweets
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Here's a THREAD on the #USS Trustees, powerful individuals whose role has been insufficiently examined, and who have been operating without the full benefits of public scrutiny.

#USSstrikes #USSstrike #WeAreTheUniversity #StrikeForUSS #DemocratiseUSS #DemocratizeUSS

πŸ‘‡πŸ‘‡πŸ‘‡
As the #USS dispute goes on, it's clearer than ever that the institutions that govern our pensions have been failing us in multiple ways. They are secretive, non-transparent, marked by conflicts of interest and revolving doors. We need to open up and #DemocratizeUSS.
Of the 5 β€œindependent” Trustees of #USS, 4 have a background working for investment and financial services companies, the 5th used to work for Rio Tinto, the mining company, running their gold mines in Papua New Guinea.

Let's have a look at them.
πŸ‘‡πŸ‘‡πŸ‘‡
Read 33 tweets
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"A Tale of Perfidious Infamy!"
or
How @UniversitiesUK botched, bungled and biased its September 2017 survey of #USS employers. πŸ‘‡ (THREAD)
Recall: In October, UUK reported that 42% of #USS employers had REJECTED the level of risk proposed by the USS trustees - based on Question 3 of an online survey. UUK received 116 responses from "#USS employers".
henrytapper.com/2017/12/03/you…
The 42% claim informed the JNC deliberations. In Jan, the JNC voted to end the Defined-Benefit scheme. It came down to the Chair's casting vote.
The 42% claim was repeated in a formal document: "UUK's response to the USS Technical Provisions consultation"
Read 23 tweets

Trending hashtags

#USSStrike #TPR #UCU #USS #UUK #joyofpragmatism #JEP #NoDetriment #UCUStrikes #USSbriefs26 #USSbriefs33 #Beetroot #pensions #TINA #USSstrike #AadhaarFail #democratizeUSS #ussstrikes #Canadian #Airtel #USSbriefs34 #2018or2017 #DemocratiseUSS #Trexit #USSbriefs4

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