The Occupational Pension Schemes (Scheme Funding) Regulations (Northern Ireland) 2005

Recovery plan N.I.

8.—(1) Where Article 205(1) 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 Article 203 and each subsequent valuation under Article 203(1)(a), within 15 months after the effective date of the valuation;

(b) in the case of a valuation under Article 203(1)(b) and regulation 7(1), within whichever period is applicable under regulation 7(2)(b).

[F1 (1A) For the purposes of Article 205(3A), 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 Article 205(2)(b) 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 [F2 members;]

(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 [F3 that person, and]

[F4 (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 Article 210(2)(b)(ii) 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.

[F5 (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.]

F6 (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1 Reg. 8(1A) inserted (6.4.2024) by The Occupational Pension Schemes (Funding and Investment Strategy and Amendment) Regulations (Northern Ireland) 2024 (S.R. 2024/90), regs. 1, 19(4)(a)

F2 Words in reg. 8(2)(d) substituted (6.4.2024) by The Occupational Pension Schemes (Funding and Investment Strategy and Amendment) Regulations (Northern Ireland) 2024 (S.R. 2024/90), regs. 1, 19(4)(b)(i)

F3 Words in reg. 8(2)(e) substituted (6.4.2024) by The Occupational Pension Schemes (Funding and Investment Strategy and Amendment) Regulations (Northern Ireland) 2024 (S.R. 2024/90), regs. 1, 19(4)(b)(ii)

F4 Reg. 8(2)(f) added (6.4.2024) by The Occupational Pension Schemes (Funding and Investment Strategy and Amendment) Regulations (Northern Ireland) 2024 (S.R. 2024/90), regs. 1, 19(4)(b)(iii)

F5 Reg. 8(7A)(7B) inserted (6.4.2024) by The Occupational Pension Schemes (Funding and Investment Strategy and Amendment) Regulations (Northern Ireland) 2024 (S.R. 2024/90), regs. 1, 19(4)(c)

F6 Reg. 8(8) omitted (24.7.2006) by virtue of The Occupational Pension Schemes (Winding up Procedure Requirement) Regulations (Northern Ireland) 2006 (S.R. 2006/297), regs. 1(1), 5(2)

Modifications etc. (not altering text)

C1 Reg. 8(1)(a) modified (24.7.2014) by The Pensions (2012 Act) (Transitional, Consequential and Supplementary Provisions) Regulations (Northern Ireland) 2014 (S.R. 2014/204), regs. 1(1), 65(3)

Commencement Information

I1 Reg. 8 in operation at 30.12.2005, see reg. 1