The pension fund for university lecturers, unlike those for teachers, civil servants or NHS workers, has no government backing and is the UK’s largest private sector scheme, providing for more than 500,000 working or retired academics. It is also one of the few pension funds that still offers new members a ‘defined benefit’, meaning that the size of your pension is...
The success of the lecturers’ strikes is reflected in the scheme’s current investment strategy. Two-thirds of its assets are used to achieve growth, a quarter is kept as credit and half is used for Liability Driven Investment (LDI). These numbers add up to more than 100 per cent because the excess is leveraged. Some universities are unhappy about this, but the amount of leverage, and the overall use of LDI, is much lower than in other defined benefit schemes.