What are the recovery options from an encrypted Time Machine?
As far as I know, both can be answered with yes. Of course, you'll need the password you used encrypting the backup.

Accessing individual files would work by clicking the Time Machine symbol in the menubar while holding alt and selecting something like "Search other backup volumes" (I'm from Germany so I don't know what it says exactly). Then you should search the backup like any other after you've entered the password.

When you use migration on another Mac, everything should be copied (except for some machine specific files maybe).