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I can see both sides of the argument. If the college has "fewer than 20" affected employees, it seems unnecessarily risky to keep them in the USS and, as a result, face an unlimited potential liability. But if the college walks away from the USS, how many other employers (i.e. in a similar position) would likely also withdraw and would this undermine the USS?

One other thought: if you're an academic, how important is it that an employer you're considering moving to is part of the USS? If it's very important then, however sensible the college's decision may appear, it may significantly reduce its ability to attract the best talent.