Membership of the Local Government Pension Scheme allows for many different types of absences, leave and breaks. Some are pensionable and some are not a below. If a member is having a break due to;
- Sickness and injury
- Child related leave i.e. maternity, paternity and adoption leave
- Absences with permission (other than illness and injury)
- Reserve forces service leave
The above are pensionable, whereas
- Unauthorised absence
- Strike Action (Trade dispute)
are not, hence then this may affect their pension.
In order to calculate the pension contributions then an Assumed Pensionable Pay (APP) will be required. For details on how to calculate Assumed Pensionable Pay please see our webpage here. Assumed Pensionable Pay (APP) is only calculated when a member has had a period of reduced or nil pay as a result of sickness or injury; child related leave or whilst on reserve forces service leave.
Employee pension contributions will be taken from any reduced pay but no contributions collected when the employee is on nil pay. Whereas for employer pension contributions these will need to paid over periods of both reduced and nil pay on either pensionable pay or APP; dependent on whether this reduced pay is pensionable above.
Strike action, Trade disputes and unauthorised absences are not included. The LGPS website offers HR guidance on the differing types of leave or absence and whether contributions are deducted here.
If a member returns from leave and would like to make up the contributions they can do this by paying Additional Pension Contributions (APCs). For information on this see our page called Additional Pension Contributions
Frequently Asked Questions
Q) Do we need to give you any paperwork?
A) For any period where contributions are not taken and paid across this unpaid period needs to be notified to LGSS Pensions on form UNPAIDLEAVE which is on our forms page.
Q) What do I do about my AVCs whilst on leave?
A) As this is a separate contract between you and your AVC provider, whatever decision you make you should let them know and preferably communicate with them before making your decision. Most payroll departments will continue to deduct your AVCs from any pay you receive. It is important to think about AVCs especially when going on to nil pay. Also worth bearing in mind is that if you stop paying AVCs your AVC commencement date might be affected which could be linked to the value of your AVC lump sum you take at retirement.
The Employers Team offer specific training on Pensionable Pay for Employers, for further information please see the Support and Events section of the website.