Additional Annual Leave Purchase
Many of our Scheme Employers operate an annual leave purchase scheme (also known as a holiday buy back scheme) which allows you to buy additional hours of leave to increase your existing annual leave entitlement.
The purchase of additional annual leave is treated as authorised unpaid leave and therefore pension contributions will not automatically be paid. As a result, your pension benefits will be affected by the reduced pensionable pay*. However, you can elect to pay Additional Pension Contributions to buy back the ‘lost’ pension.
Please check with your employer on how the deductions for additional leave purchased will be taken from your salary. If the scheme works through a ‘salary sacrifice’ arrangement, this could also impact the final pay calculation if you have pre 1 April 2014 (final salary) membership and the additional leave purchased falls within the final pay period.