Specialist pensions consultant David Davison has warned that an independent Scotland would mean UK-wide charities would have to plug their pension holes immediately, which could lead some to close.

Pension schemes operating in a single country are allowed a deficit if they have a recovery plan. However, EU rules say pension plans operating across international borders cannot plug any deficit using a recovery plan spread over several years.

Davison told the Daily Telegraph today that even if the EU granted a three-year grace period, this was “nowhere near enough” for charities that require at least ten to 15 years to eliminate their deficits.

“Sadly charities will potentially have to close if they don’t have the money to fund their liabilities in full. It is very, very difficult to try and solve this,” he said.

Davison, a partner at Spence & Partners and a regular pensions blogger for civilsociety.co.uk, sits on the Institute of Chartered Accountants for Scotland's pensions committee.