Commentary on Sections Scheme funding Section 226: Recovery plan
814.This section sets out requirements for a recovery plan where it appears to the trustees or managers of a scheme from an actuarial valuation that the statutory funding objective is not met.
815.Subsection (1) requires the trustees or managers to prepare a recovery plan (or, if a plan is already in force, to review and if necessary revise it) within a prescribed time.
816.Subsection (2) provides that the recovery plan must set out the steps to be taken to meet the statutory funding objective, and the timeframe over which this is to be achieved. Additionally, subsection (3) provides that the recovery plan must be appropriate to the nature and circumstances of the scheme and any prescribed requirements, and subsection (4) enables regulations to require the trustees or managers to take account of such matters as may be prescribed.
817.Subsection (5) enables regulations to prescribe the circumstances in which a recovery plan may, or must, be reviewed and (if necessary) revised.
818.Under subsection (6) the trustees or managers must (except in circumstances which may be set out in regulations) send a copy of the recovery plan to the Regulator within a reasonable period of its preparation or revision, along with any information prescribed by regulations.
819.Subsection (7) provides for penalties to apply to trustees or managers who have failed to take reasonable steps to comply with these provisions.