This is ... curve grading, right? It's a bit alien to me. Where I went to school, you used get scores from 1(lowest)- to 10 (highest) where 6 is "Acceptable". You could curve the questions, but not the students. So theoretically the whole class could all score 1s, or all could score 10s. This makes more sense to me, if everyone works hard, they should all succeed, and if they're all lazy they should fail. You couldn'…
It's kind of curve grading I guess? There's no limit on A- and below, so you could have 20%(+4) A students and 80% A- if you really wanted. Or 100% Fs if you want to retire from teaching immediately. I wouldn't say I'm a curving advocate, but it seems to me 400 Calc 1 students or whatever is a large enough sample that statistically curving will not do any great injustice.
But why would this automatically cause the teacher to be the one to retire?
Are there documents or books on this? This system seems so alien to me. And yet it does seem to produce some amount of competent graduates who can -eg- launch a spacecraft into lunar orbit.