Recovery plan | Practical Law

Recovery plan | Practical Law

Recovery plan

Recovery plan

Practical Law UK Glossary 9-206-1964 (Approx. 4 pages)

Glossary

Recovery plan

Introduced by the Pensions Act 2004, the trustees of a salary-related scheme that has a funding shortfall must agree a recovery plan with the scheme's principal employer. The recovery plan must aim to eliminate the deficit so that the scheme meets the statutory funding objective. It must state the additional contributions that the principal employer (and any participating employers) will make to do this, and the period over which these will be paid.