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Pension funds should put away their crystal balls

Confusion over the size of the USS pension scheme's deficit arises from a futile urge to pin down an uncertain future

UK universities, such as Cambridge University, pictured, have a multi-billion pound hole in their pension plan
UK universities, such as Cambridge University, pictured, have a multi-billion pound hole in their pension plan Photo: iStockPhoto

When news emerged last week that the UK's biggest pension scheme is in a financial hole, Financial News was among those reporting that its deficit had reached £12.6bn. But others, such as the BBC, reported it had reached £17.5bn.

And if they'd wanted to, someone could have gone with the even more alarming figure of £27.4bn. In pensions, billions can get lost in a fight between actuaries.

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