Archive for pensions

Spring comes to Maynooth

Posted in Biographical, Cardiff, Maynooth with tags , , on April 5, 2018 by telescoper

After a good night’s sleep last night I was up early this morning to give my usual Thursday 9am lecture on Computational Physics. It was a bright sunny morning, though there was overnight frost and a distinct chill in the air, as I made my way to Physics Hall. Once there, for the first time this year, I had to close the blinds because the Sun was shining too bright for the projector screen. It has hitherto always been too gloomy outside for this to happen. The picture above (of St Joseph’s Square, on the South Campus) was taken as I left St Patrick’s House after a very nice lunch of roast lamb in Pugin Hall. By this time of day it was pleasantly warm.

Here’s a nice picture of the Library circulated by the Maynooth social media folk earlier today.

library

Anyway, this mornings’s lecture was an introduction numerical solutions of ordinary differential equations, beginning with Euler’s method applied to initial value problems. Further studies of this topic – which is very important for bidding computational physics – will take up the rest of the lectures as we explore the delights of, e.g. Runge-Kutta codes and boundary value problems. This morning’s lecture was followed this afternoon by a two-hour lab session in which the students had to write their own ODE solver.

Among the advantages (for me) of teaching this module is that I’m actually becoming reasonably competent at Python. At any rate I’ve difficult improved my ability to spot bugs in codes written by other people. In fact, it is traditional for the exam in this module to include a question that involves finding 10 mistakes in a piece of Python code. That’s a fun challenge, the only real problem for me being to write a bit of code with only 10 mistakes in it in the first place…

Talking of exams, the timetables for my two current employers are now out. Computational Physics in Maynooth is on Friday 11th May while Physics of the Early Universe in Cardiff is almost a fortnight later, on Thursday 24th May. The Easter recess is shorter here in Maynooth than in Cardiff, where lectures do not resume until April 16th (assuming the UCU strike does not continue), which is why the exams in Maynooth are earlier. I’m grateful there isn’t a clash. I should have ample time to mark the Maynooth ones before the Cardiff ones are due. After the first week or so of May I won’t have to teach in both institutions, so my somewhat hectic schedule should become a little more relaxed from then onwards.

I mentioned the UCU strike above in passing. The UCU leadership has decided that there will be an online ballot on whether to accept the `offer’ recently made by the management organisation UUK. The ballot will be open until April 13th. If the vote goes against acceptance then Cardiff staff will be back on strike from 16th April, and there will be further industrial action over the examination period. I can’t predict what the result of the ballot will be. Although the UCU leadership is recommending acceptance I don’t know anyone personally who intends to vote for it, but there’s a probably a big selection effect there! There is a distinct possibility that examinations will be badly disrupted not only in Cardiff but all over the UK. It’s a very sad state of affairs but all those on strike (and the majority of students) consider the UUK side to be to blame…

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USS Pension Proposal: Poll

Posted in Education, Politics with tags , , , , , on March 13, 2018 by telescoper

Last night I saw the news on Twitter that negotiators on behalf of the Universities and Colleges Union (UCU) and the employers’ organisation Universities UK (UUK) under the auspices of the Advisory Conciliation and Arbitration Service (ACAS) agreed a proposal to end the strike over pensions that has been going on since the end of February.

The text of the agreement can be found here (PDF). This proposal will have to be discussed and ratified formally, but the negotiators hope this can be do today and that the strike will be suspended from tomorrow.

The proposal suggests a transitional period of three years from April 2019 during which a much reduced Defined Benefit scheme will operate, but it still affirms the much disputed November 2017 valuation of the scheme which means that it is overwhelmingly likely that after three years the dispute will be back on.

I shall be leaving the USS scheme in July 2018 as I’m moving full-time to Ireland where I will be joining a Defined Benefit scheme so the changes outlined in the document will not affect me. Moreover, though I have supported the strike I am not a member of UCU. If I were I would not be in favour of accepting this deal because it seems to me that it amounts to an abject surrender on all the main issues. But given my personal situation I don’t think my opinion should carry much weight. The few friends I have discussed this with feel the same as I do, but I’m interested to know what the general opinion is. If you feel like filling in the poll below please feel free to do so. I’ve divided the responses between UCU members and non-UCU members to see if there’s a difference.

On one matter however I am less equivocal. The document calls on staff to `prioritise the rescheduling of teaching’ (lost during the strike). I have a one-word response to that: NO. Not only will it be logistically impossible to reschedule so many teaching sessions, but I am also not going to do extra teaching for free when my pay is being deducted for days on strike.

As usual, I invite your comments through the box below.

UPDATE: Here is a Google Document showing how UCU branches are responding to the proposal: at the time of posting, it is solidly `reject’..

UPDATE: Following on from the above, the UCU has now formally rejected the proposal. The strikes continue.

Void Fill

Posted in Biographical, Cardiff, Politics with tags , , on February 26, 2018 by telescoper

It’s quite hard being on strike when you find your job interesting and rewarding so I’ve been looking for things not related to my employment at Cardiff University with which to plug the gap in my working schedule.

I’ve found the ideal thing:

Why I’m taking part in the UCU Strike Action

Posted in Education, Politics with tags , , , , , , on February 21, 2018 by telescoper

In case you weren’t aware, from tomorrow (22nd February) the University and College Union (UCU) is taking industrial action over proposed drastic cuts to staff pensions funded by the Universities Superannuation Scheme (USS). You can find some background to the pensions dispute here (and in related articles). A clear explanation of why the employers’ justification for these cuts is little more than fraudulent is given here and here you can find an example of the effect of the proposed changes on a real person’s pension (ie a cut of almost 50%). I also blogged about this a few weeks ago. There’s no doubt whose side the Financial Times is on, either.

I am not a member of UCU – I left its forerunner organisation the Association of University Teachers (AUT) as a result of its behaviour when I was at the University of Nottingham – but I will be participating in the industrial action, which takes place over four weeks as follows:

  • Week one – Thursday 22 and Friday 23 February (two days)
  • Week two – Monday 26, Tuesday 27 and Wednesday 28 February (three days)
  • Week three – Monday 5, Tuesday 6, Wednesday 7 and Thursday 8 March (four days)
  • Week four – Monday 12, Tuesday 13, Wednesday 14, Thursday 15 and Friday 16 March (five days)

This is a bit complicated for me because I only work half-time at Cardiff University (usually Mondays, Tuesdays and half of Wednesdays) and at Maynooth University the rest of the time. The USS only covers UK universities, and the dispute does not apply in the Republic of Ireland (though it does affect higher education institutions in Northern Ireland) so I won’t be on strike when I’m working for Maynooth University, which includes the first two strike days (tomorrow and Friday). I will be participating in industrial action next week, however, and have today sent an announcement to my students they hear from me that the strike has been called off there will be no lectures on 27th February, 6th March or 13th March.

All staff will be docked pay for days not worked owing to strike action, of course, but that will be far less than the amount to be lost in these pension cuts. In my case I will be docked the equivalent of three weeks’ pay as 2.5 days a week I work are all strike days in Weeks 2-4. Moreover, I shall be leaving the UK for Ireland this summer and the pension cuts will not affect my pension anyway – any changes will not be made until after I’ve left the USS scheme. Nevertheless, this is an important issue and I feel it is right to take a stand.

One final comment. Last week Cardiff University sent an email to staff including a link to a website that stated:

If staff refuse to cross a picket line and they are not a member of UCU they will be in breach of their contract of employment with the University.

In fact, any strike action (even by a union member) is a breach of contract. The law however prevents employers dismissing staff who participate in industrial action, provided that it is lawful (i.e. following a ballot, and with due notice given to the employer, etc). The government website makes it clear that non-union members have exactly the same protection as union members in this regard. The Cardiff website has now been changed, but I’m very unhappy that this extremely misleading communication was sent out in the first place.

I sincerely hope that there is a negotiated settlement to this issue. Nobody wants to go on strike, especially when it has the potential to damage students’ learning. But there comes a point where you have to draw a line in the sand, and we have reached that point. I hope I’m proved wrong, but I think this could be a very prolonged and very unpleasant dispute.

University Pension Differences

Posted in Education, Finance, Maynooth with tags , , , , , , , , on January 26, 2018 by telescoper

Following a ballot of members of the University and College Union (UCU), the UK university sector is gearing up for strike action over proposed changes to the USS pension scheme. Unless the dispute is resolved in the meantime (which I think is highly unlikely) the first strike lasting two days will place on 22nd and 23rd February. Thereafter strikes will escalate to cover three days, four days and five days in subsequent weeks.  I’ll actually be in Maynooth for the first 48 hour block so won’t have to worry about crossing a picket line initially, but will have to later if it drags on. It looks set to be a bitter dispute which will not be easily resolved.

When I joined USS (in 1988) it was a simple `Final Salary Scheme’. Both employer and employee contributed and the benefits accrued were an index-linked pension of 1/80 of the final salary for each year of contributions and a (tax-free) lump sum of 3/80 for each year of contributions. I joined at age 25 so I expected to accrue 40 years of pension if I retired at 65, namely a pension of half my final year’s salary and a lump sum of three-halves. It looked a good deal and was a significant factor mitigating the relatively low starting salary for academics in those days.

Over the years it became apparent that this scheme is actuarially unsound because (a) people are living longer, increasing the scheme’s liability and (b) investment growth achieved by the USS fund managers has decreased, with a negative impact on asset growth. Moreover, the USS fund is not underwritten by the government, so if it collapses completely members could be left with no benefits at all.

The USS Final Salary scheme was closed to new entrants some years ago and replaced by a less generous defined benefit scheme. A couple of years ago it was closed to existing members too, though the benefits accrued are retained; I will now only be able to get 28/80 of my final salary from that scheme when I actually retire. The scheme was replaced by a hybrid of an even less generous defined benefit scheme and a defined contribution scheme (where the pension benefit is dependent on the fund valuation at retirement, as most private pensions). Now the proposal is to remove the defined benefit component entirely. The loss of pension benefits will be substantial.

I don’t see any easy settlement of this dispute so I’m glad that it won’t affect me very much. I’ll be leaving the UK Higher Education system this summer and relocating to Ireland. Quite a few people have asked me how the pension scheme works here so I thought I’d point out the differences.

The first thing to say is as a professor in the National University of Ireland at Maynooth I am treated as a public servant so my future pension benefits here are covered by the Single Public Service Pension scheme. This resembles the final salary scheme that USS used to be, but with the important difference is that it is integrated with the State Pension to which everyone is entitled if they pay social insurance contributions. This – called the SPC – is similar to the old State Earnings-Related Pension Scheme (SERPS). Since public employees benefit from this as well as the public service pension scheme, the accrual rate in the latter is lower than the old USS scheme – just 0.58% per year – on salaries up to €45,000. For salaries above this figure the amount above the  limit generates an accrual rate 0f 1/80, just as the USS version. There is also a lump sum which accrues at 3.75% per annum, the same as the USS scheme.

In summary, then, the big difference is that in Ireland the public service pension is integrated with the state pension, whereas in the UK the latter is entirely separate. It’s also the case that in Ireland the pension is guaranteed by the government (which, of course, can change the rules…)

In my opinion the pension scheme for University staff in Ireland is significantly better value than the diminishing returns provided by the USS scheme, yet another reason why I made the decision to move here.

 

Hymn for the Day

Posted in Politics with tags , , , , , on October 31, 2013 by telescoper

This morning’s hymn is Sine Nomine, No. 641 from the English Hymnal, and is chosen in honour of those participating in today’s strike of some University staff.

For all the Saints who from their Labours Rest

Posted in Politics with tags , , , , , on November 30, 2011 by telescoper

This morning’s hymn is Sine Nomine, No. 641 from the English Hymnal, and is chosen in honour of all those participating in today’s public sector pension strikes.