Archive for pension

More Thoughts of Retirement…

Posted in Biographical, Maynooth with tags , , , , on September 16, 2024 by telescoper

Now that I’m back home from campus after work, and have access to this blog once again, I thought I’d share a little ethical question with you.

Less than a year ago, while I was in Barcelona, I posted an item about looking forward to retirement. Here are two paragraphs from that piece:

The fact of the matter is, though, that I can’t afford to retire yet. I have a mortgage to pay and I’ve only had five full years of pensionable service in the Irish system, so won’t get much of a pension. I have the frozen residue of my UK pension, of course, but that is subject to an actuarial reduction if I take the benefit before I’m 65, which is also the standard retirement age for academic staff in Ireland. I can’t be made to retire here until I’m 70, in fact, but I think I’ll be well beyond my best-before date by then and am not keen to overstay my welcome.

So it looks like I’ll have to stay until I’m 65 at the earliest. In fact I won’t be able to collect the State Pension (SPC) until I’m 66, so I’ll probably have to stay another year. That means that when I get back from sabbatical I will have four or five years left until I can retire. I don’t know what I’ll be teaching when I return but I hope I get a chance to teach a few new modules before the end. In particular some cosmology or astrophysics would be particularly nice. All this is predicated on: (a) me living long enough; and (b) Physics at Maynooth not being closed down; neither of these is certain.

Since I posted this I have made a firm decision that I will retire as soon as I’m able, which should be in June 2028. This is partly because I recently had a health scare which, though it is now seemingly resolved, has persuaded me not to take (a) for granted. There are things I’d like to do before I pop my clogs and I won’t be able to do them while still in full-time employment. I’ve done some calculations and should be able to pay off my mortgage early, perhaps even by the end of this year.

Anyway, this led me to the following ethical question, to which different colleagues have had different responses.

A PhD in Ireland typically takes a minimum of 4 years. That means that if I were to take on a new PhD student next academic year (starting in September 2025) then less than three years would pass before I would retire. If a member of staff is less than 4 years from retirement should they decline all PhD supervision requests?

Opinions through the Comments Box please!

PS. My two current students will both have completed well before 2028.

PPS. Another question is who would take over the Open Journal of Astrophysics…

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Strategic Plans

Posted in Biographical, Education, Maynooth with tags , , on September 18, 2022 by telescoper

Maynooth University is in the middle a consultation exercise involving the construction a new Strategic Plan Envisioning Our Future for the period 2023-28. This is something higher education institutions do from time to time, and it usually involves dreaming up ways of spending money they haven’t got on things they don’t need. I’ve seen a few Strategic Plans in my time, but yet to see one that was worth the glossy paper it was expensively printed on. I can’t envision this one being any different,

You could dismiss the current Strategic Plan as merely an irrelevance but it is having a real effect, in that it has completed distracted the University management away from crucial operational matters, such as new appointments and fixing various failing systems. Moreover, it seems very likely, there being little chance of a substantial increase in government funding, that any new “initiatives” arising from the Strategic Plan will be paid for by further plundering already hard-pressed departmental budgets.

The other day I looked up “Strategy” in a dictionary and found

Noun: a plan of action designed to achieve a long-term or overall aim.

The biggest issue is not the plan of action bit, it’s the articulation of the aim and the interpretation of long-term as being “the next five years”. I know I am excessively old-fashioned but I think a university – especially a publicly funded one – should be aiming to be as good as possible at teaching and research. If we have to have a plan for the next five years, at a bare minimum it should involve increasing the investment in its existing departments and providing better teaching facilities. I don’t see either of those happening at all. We’ve got a new teaching building, but nothing has been done to improve any of the other teaching rooms on campus. It’s very dispiriting for front-line academic staff to appearance such neglect of what should be the core functions of the institution.

Anyway, now that I am no longer Head of Department and free of the requirement to attend pointless meeting after pointless meeting I am going to focus what remains of my energy on teaching and research, even if The Management does not deem these important.

Tomorrow (19th September) is the first week of teaching term for the 2022-23. Though new students don’t officially start until 26th September, some are already here and I have even spoken to them. Although we have had a very rough couple of years, our first-year numbers look healthy, which is a good point to be handing over the reins. I have two new PhD student and one Research Masters student arriving this academic year which should help me with my research plans.

Undergraduate science degrees and PhD degrees in Maynooth are typically of four years’ duration. I’ll be sixty during this academic year and over the last few weeks I have been doing a bit of strategic planning of my own. Although I can’t be made to retire until I’m 70, I think it will be a good time to go when the incoming UG & PG cohort finishes, i.e. four years from now. I love teaching and enjoy my research but there is a point at which one should step aside and make way for someone younger.

Assuming, that is, that: (a) I live that long; (b) I can sell my old house and pay off my mortgage; (c) my USS pension is not worthless by then; (d) I’m not sacked in the meantime for insubordination.

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The University Strikes are Back!

Posted in Education, The Universe and Stuff with tags , , , , on November 6, 2019 by telescoper

I noticed that a recent ballot of members of the University and College Union (UCU) has delivered a mandate for industrial action across 60 UK universities. Eight days of strikes will start later this month: they will last from November 25th until December 4th. The cause of the dispute is twofold: (1) the long-running saga of the Universities pension scheme (about which there were strikes in 2018); and (2) over pay, equality, workloads and the ever-increasing casualisation of lecturing and other work.

Among the institutions to have voted for strike action are my previous employers Cardiff, Sussex and Nottingham.
It seems to have taken a long time to count the votes in the case of Sussex UCU, but the result was a large majority in favour of action. It remains to be seen what the impact of these strikes will be, but they could affect a very large number of students. Nobody likes going on strike but the UK higher education system is a very poor state right now, and many of my former colleagues feel that they have no alternative.

Anyway, the real purpose of this short post is simply to express solidarity with those taking industrial action. It it set to be a big struggle, but I wish everyone taking part all the best on the picket lines!

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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.

 

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