INDEPENDENCE would cause a pensions crisis costing billions of pounds for universities and charities, Scottish Labour has claimed.

Any UK-wide schemes would be forced to ensure they were fully-funded, if Scotland became independent, to comply with EU rules on "cross-border" schemes, Labour's pensions spokesman Gregg McClymont said.

The Universities Superannuation Scheme (USS) – Britain's second largest pension fund – has an estimated shortfall of £9.8 billion. It has been suggested many leading charities' schemes are also underfunded.

Cumbernauld MP Mr McClymont said: "Schemes across the UK will have to find billions in the event of a vote for separation. The only other option will be separating out liabilities and closing schemes in Scotland."

The Scottish Government has said it is considering the issue of the EU regulation.

Pointing to a deal between the UK and Ireland to provide flexibility to employers, a spokeswoman added: "There is no reason why similar arrangements appropriate to the UK and Scotland's would not be possible."