Closet - so who does pay the 18% contribution if not the universities, to whom our DCs 9k/yr goes? I appreciate that there are plenty of other things to fund, but surely salaries and associated pensions are a key area of University outgoings?
Broccoli - unfortunately even 10k/yr guaranteed for life, is more than many people will get, even professionals, in the private sector.
No, it isn't a race to the bottom, but the scheme has to be funded going forward somehow, and 18% is way over what most employers contribute, whether to a DB or DC scheme.
I am a professional, degree qualified, my company contributes 4% into a DC fund. I would kill for 8%, never mind 18%.
I have worked almost 34 yrs, paying into DB schemes originally, but the DB rug was pulled out from under me nearly 15 yrs ago, with no notice. I will be lucky to get maybe 7k a year, from various DB pots, and have also probably lost at least 10k/year, but as talkingpeace said, its the reality, DB schemes just aren't sustainable in their current form. I am already paying into pensions for my DC, as they will have no chance of a DB scheme.
I do appreciate this is partly a row over how the deficit has been calculated, but as talkinpeace also said, surely those doing the valuation have to follow set rules? I know when we get the 3 yrly valuation on the closed DB scheme, we get told how the valuation has come about, who audited it etc.