Continuity option 2: resolving triggering event

CDC code in force: 1 August 2022

We are more likely to be satisfied where the trustees’ continuity strategy shows that they have considered each continuity option, in conjunction with the general event period. Continuity option 2 is for the triggering event to be resolved.

Key issues to consider when pursuing Continuity option 2

Key issues to consider when pursuing Continuity option 2 are set out in the table below. We are more likely to be satisfied that the continuity strategy is adequate if it addresses these points:

Requirement	Matters more likely to satisfy TPR
Identifying options for resolving a triggering eventCU1	Whether there are any known potential remedies available for resolving a certain triggering event. Whether they will seek legal and professional advice and how those costs can be met.
CommunicationsCU2	Whether they intend to communicate with beneficiaries and employers in considering options for resolving a triggering event. If so, how and when they will communicate. How the costs of communication will be met. How they will comply with the requirement to notify TPR that the triggering event is resolved.
Timescales for resolving the eventCU3 and meeting costsCU4	Clear timescales for resolving the event using any of the mitigation options identified. Any critical milestones. How long the trustees can fund an attempt to resolve an event before switching to continuity option 1 (discharge and wind-up) or continuity option 3 (conversion to closed scheme). A contingency plan to cover the costs of resolving an event, if resolution takes longer than expected. A summary of the assumptions behind any estimated figuresCU5.

Legal references

^CU1 Regulations 15(1)(a) and (b) of the Regulations

^CU2 Regulations 15(1)(c) and (d) and 30 of the Regulations

^CU3 Regulations 15(1)(a) and (b)(iii) of the Regulations

^CU4 Regulation 15(1)(t) of the Regulations

^CU5 Regulations 15(2) and 15(3)(c) of the Regulations