What happens to my pension contributions if I am off work?

Question:
What happens to my pension contributions if I am off work?
Answer:

This varies according to the reason for the absence as set out below.

  • Sick Leave

If you are absent due to sickness and you are receiving sick pay (even if this pay is reduced), your employer will deduct contributions from your pay so that you keep up your membership of the Scheme. If you are unpaid during this period, you do not pay any contributions. 

If you are in the Main Section of the scheme the pension you build up for the full period of sick leave will be 1/49th of the greater of your Actual Pay or your Assumed Pensionable Pay (APP) - see the FAQ on APP below. 

If you are in the 50/50 Section of the scheme, you will build up 1/98th of the greater of your Actual Pay or your Assumed Pensionable Pay (APP) during the period you receive pay. You will revert back to the Main Section of the scheme at the start of the next pay period after you start to receive no pay if you are still unpaid.

  • Unpaid Leave

If you take employer authorised unpaid leave, the pension you build up in the year of the break will only be based on the part of it when you were working and receiving pay. You can opt to pay extra contributions to make up any “lost pension” during your break. You can do this by paying Additional Pension Contributions (APCs), either as a one-off lump sum or as an ongoing deduction from your pay. These contributions would be Shared Cost APCs, which means that you would pay 1/3 of the cost and your employer pays 2/3 of the cost. You must make an election to pay these APCs within 30 days of your return to work. Details of the cost can be found on the National LGPS 2014 website.

If you are not paid for a period of unauthorised absence, this period will not count towards your pension.

  •   Dispute

If you are absent from work because of an industrial dispute the pension you build up in the year of the break will only be based on the period where you were working and receiving pay. You can opt to pay extra contributions to make up any “lost pension” during your strike break. You can do this by paying Additional Pension Contributions (APCs), either as a one-off lump sum or as an ongoing deduction from your pay. You must pay the full cost of these APCs. As the cost for a strike break is dependent on the age you are when you start to pay the APCs, you can pay these APCs at any time. Details of the cost can be found on the National LGPS 2014 website.

  • Maternity Leave

 

 Child-Related Leave

This leave is Maternity, Adoption or Paternity Leave.

Child-Related Leave is split into two periods – Ordinary and Additional, which each last for 26 weeks.

  • Ordinary Child-Related Leave

If you are receiving pay for this period, you will pay your normal contribution rate on the amount of pay you receive. If you are unpaid during this period, you do not pay any contributions.

The pension you build up for this period will be 1/49th (1/98th if you are a member of the 50/50 Section) of the greater of your actual pay or your Assumed Pensionable Pay (APP).

  • Additional Child-Related Leave

If you are receiving pay for this all or part of this period, you will pay your normal contribution rate on the amount of pay you receive. You will build up pension of 1/49th (or 1/98th) of the greater of your actual pay or your Assumed Pensionable Pay (APP).

If you are unpaid for all or part of this period, you do not pay your normal contributions and you will not build up any pension. You can opt to pay extra contributions to make up any “lost pension” during your break. You can do this by paying Additional Pension Contributions (APCs), either as a one-off lump sum or as an ongoing deduction from your pay. These contributions would be Shared Cost APCs, which means that you would pay 1/3 of the cost and your employer pays 2/3 of the cost. You must make an election to pay these APCs within 30 days of your return to work. Details of the cost can be found on the National LGPS 2014 website.