The Occupational Pension Schemes (Scheme Funding) Regulations 2005

Recovery plan

8.—(1) Where section 226(1) of the 2004 Act applies, and the trustees or managers of a scheme are required, following an actuarial valuation, either to prepare a recovery plan or to review and if necessary revise an existing recovery plan, they must do so—

(a) in the case of the first actuarial valuation obtained by them under section 224 of the Act and each subsequent valuation under section 224(1)(a), within 15 months after the effective date of the valuation;

(b) in the case of a valuation under section 224(1)(b) and regulation 7(1), within whichever period is applicable under regulation 7(2)(b).

[F1 (1A) For the purposes of section 226(3A) of the 2004 Act (principles to be followed in determining whether a recovery plan is appropriate), in determining whether a recovery plan is appropriate having regard to the nature and circumstances of the scheme, the trustees or managers must follow the principle that the period specified for the purposes of section 226(2)(b) of the 2004 Act (recovery plan: period within which steps to be taken to meet the statutory funding objective is to be achieved) must be as soon as the employer can reasonably afford.]

(2) In preparing or revising a recovery plan, the trustees or managers must take account of the following matters—

(a) the asset and liability structure of the scheme;

(b) its risk profile;

(c) its liquidity requirements;

(d) the age profile of the members[F2 ;]

(e) in the case of a scheme under which the rates of contributions payable by the employer are determined—

(i) by or in accordance with the advice of a person other than the trustees or managers, and

(ii) without the agreement of the employer,

the recommendations of that person[F3 , and

(f) the impact of the recovery plan on the sustainable growth of the employer]

(3) A recovery plan must be reviewed, and if necessary revised, where the Regulator has given directions under section 231(2)(b)(ii) of the 2004 Act as to the period within which, and manner in which, a failure to meet the statutory funding objective is to be remedied.

(4) Where paragraph (3) applies, the review and any necessary revision must be completed within a reasonable period after the date of the Regulator's directions.

(5) A recovery plan may be reviewed, and if necessary revised, where the trustees or managers consider that there are reasons that may justify a variation to it.

(6) A recovery plan must specify the date on which it was prepared, or, if it has been revised, the date on which it was last revised.

(7) A copy of any recovery plan sent to the Regulator by the trustees or managers of a scheme must be accompanied—

(a) in a case where the plan has been prepared or revised following an actuarial valuation, by a summary of the information contained in the valuation, and

(b) in a case where the plan has been revised in the circumstances described in paragraph (5), by an explanation of the reasons for the revision.

[F4 (7A) The requirement in paragraph (7)(a) does not apply where the effective date of the actuarial valuation to which the recovery plan relates is on or after 22nd September 2024.

(7B) Paragraphs (1A) and (2)(f) apply only in relation to recovery plans where the effective date of the actuarial valuation to which the recovery plan relates is on or after 22nd September 2024.]

F5 (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1 Reg. 8(1A) inserted (6.4.2024) by The Occupational Pension Schemes (Funding and Investment Strategy and Amendment) Regulations 2024 (S.I. 2024/462), regs. 1(1), 20(4)(a)

F2 Reg. 8(2)(d) substituted (6.4.2024) by The Occupational Pension Schemes (Funding and Investment Strategy and Amendment) Regulations 2024 (S.I. 2024/462), regs. 1(1), 20(4)(b)(i)

F3 Reg. 8(2)(f) and word inserted (6.4.2024) by The Occupational Pension Schemes (Funding and Investment Strategy and Amendment) Regulations 2024 (S.I. 2024/462), regs. 1(1), 20(4)(b)(ii)

F4 Reg. 8(7A)(7B) inserted (6.4.2024) by The Occupational Pension Schemes (Funding and Investment Strategy and Amendment) Regulations 2024 (S.I. 2024/462), regs. 1(1), 20(4)(c)

F5 Reg. 8(8) omitted (24.7.2006) by virtue of Occupational Pension Schemes (Winding up Procedure Requirement) Regulations 2006 (S.I. 2006/1733), regs. 1, 5(2)

Modifications etc. (not altering text)

C1 Reg. 8 modified (30.12.2005) by Occupational Pension Schemes (Regulatory Own Funds) Regulations 2005 (S.I. 2005/3380), regs. 1, 5(2)(b)

C2 Reg. 8(1)(a) modified (24.7.2014) by The Pensions Act 2011 (Transitional, Consequential and Supplementary Provisions) Regulations 2014 (S.I. 2014/1711), regs. 1(1), 66(3) (with regs. 6, 41, 44(1), 47(1), 69(2), 72(1), 76(1)); coming into force immediately after s. 29 of 2011 c 19 - see S.I. 2014/1683, art. 2