Absences

What happens to your pension if you are absent from work

Sick leave
Employee pension contribution

  • You will pay contributions on the pay you receive, including statutory sick pay
  • You will not pay contributions if you don't receive any pay

LGPS benefits

  • If your pay drops due to sickness, your LGPS benefits will be based on your pay in the three months or 12 weeks before your pay dropped.
  • If you are not being paid and you are in the 50/50 section of the scheme, your employer will move you back into the main section.

You may receive your pension early if you have to leave your job because of ill health. For details see:  Thinking of ill health retirement?


Maternity/adoption leave – weeks 1 to 26

You can continue to build up pension membership as usual, whilst on maternity or adoption leave. You pay the normal contribution rate on whatever pay you receive. There is no effect on your pension, even if due to short service you are not entitled to any contractual or statutory maternity pay.

You must pay pension contributions on pay you receive, including occupational and statutory maternity or adoption pay.

If you are entitled to 12 weeks' half pay and elect to defer its receipt until you return to work, you will pay pension contributions on it.

Your pension will build up as normal – if your pay drops or you don't receive any pay, the pension you build up will be based on your pay in the three months or 12 weeks before the start of the absence.

If you are in the 50/50 section of the scheme at this time, your employer must move you back to the main section of the scheme.

Employee pension contribution

  • You will pay contributions on any pay you receive including statutory and occupational pay.
  • You will not pay contributions if you don't receive any pay. If you are in the 50/50 section of the scheme at this time, your employer must move you back to the main section of the scheme

LGPS benefits

  • Based on your pay in the three months or 12 weeks before the start of the absence.

Additional maternity/adoption leave

Paid

You must pay pension contributions on pay you receive, including occupational and statutory maternity or adoption pay. If you pay contributions, your pension will build up in the same way as it does during ordinary maternity or adoption leave.

Unpaid

You will not pay pension contributions or build up any pension if you do not receive any pay.

If you want to build up pension in respect of this period, you are entitled to take out a shared cost additional pension contributions contract (APCs). You would pay 1/3 of the cost of APCs and your employer would pay 2/3.

You must notify your employer of your decision within 30 days of returning to work, unless they have a policy to allow longer.

You will not be entitled to take out a shared cost APC contract if you miss this deadline, but may start an APC contract and pay the entire cost yourself.

Employee pension contribution

  • You will pay contributions on any pay you receive including statutory and occupational pay
  • You will not pay contributions if you are not receiving any pay, and you will not build up any pension in this time

LGPS benefits

  • If you pay contributions, you will build up pension based on your pay in the three months or 12 weeks before your ordinary maternity or adoption leave began
  • You will not build up pension if you do not pay contributions
  • You and your employer can take out a shared cost APC within 30 days (or longer if your employer allows), of returning to work if you would like to make up the pension

Ordinary paternity leave

You will continue to pay pension contributions on any pay you receive. If your pay is reduced or you are not being paid, your pension will still build up as normal and will be based on your pay in the three months or 12 weeks before the paternity leave began.

If you are in the 50/50 section of the scheme and are on ordinary paternity leave, but not receiving any pay, your employer must move you back to the main section of the scheme.

If you are paying additional contributions, you should continue to do so during your paternity leave. This may include:

  • Additional Pension Contributions (APCs)
  • Additional Voluntary Contributions (AVCs)
  • older contracts – added years or ARCs
Employee pension contribution

  • Contributions will be taken from any pay you receive
  • You will not pay contributions if you don't receive any pay. If you are in the 50/50 section of the scheme at this time, your employer must move you back to the main section of the scheme

LGPS benefits

  • Pension will be based on your pay in the three months or 12 weeks before the start of the absence, even if you are not being paid.

Additional paternity leave
Employee pension contribution

  • You will pay contributions on any pay you receive including statutory and occupational pay
  • You will not pay contributions if you are not receiving any pay, and you will not build up any pension in this time

LGPS benefits

  • If you pay contributions, you will build up pension based on your pay in the three months or 12 weeks before your ordinary paternity leave began
  • You will not build up pension if you do not pay contributions
  • You and your employer can take out a shared cost APC within 30 days (or longer if your employer allows), of returning to work if you would like to make up the pension

Strike days

If you are absent from work due to strike action for one or more whole days, you will not be paid so you will not pay your normal pension contributions. You will not build up any pension during the absence.

Any additional pension contributions that you are paying should continue. This may include:

  • Additional Pension Contributions (APCs)
  • Additional Voluntary Contributions (AVCs)
  • older contracts – added years or ARCs

You can pay additional pension contributions (APCs) if you want to build up the pension that you would otherwise have accrued that day. There is no time limit, as long as you continue to work. If the extra contributions that you would make from your pay are quite low, you may be asked to make a one off payment instead.

See the LGPS website for more details of the effect of strike action: Frequently Asked Questions

Reserve Forces leave

Full membership of the LGPS will continue to build up throughout any Reserve Forces leave of absence. You will continue to pay contributions based on the pay you were receiving before your leave began; it is not based on the amount you receive from the Ministry of Defence (MOD).

You must work with your employer to inform the MOD of the contributions you need to pay during your absence. The MOD will deduct your contributions from your reservist pay.

If you die, reach retirement age or become incapable of working in your LGPS employment because of ill health whilst on Reserve Forces leave, your benefits and those of any dependants will be paid as if you had remained in your LGPS employment.

Employee pension contribution

  • The MOD will deduct contributions from your reservist pay – you will need to work with your employer to inform the MOD of the amount you need to pay
  • Your contributions will be based on your normal pay (not your reservist pay)

LGPS benefits

  • Full benefits continue to accrue, subject to contributions being paid.

Unpaid leave

You will not pay pension contributions or build up pension if your employer agrees that you can take unpaid time off.

Any additional pension contributions that you are paying should continue. This may include:

  • Additional Pension Contributions (APCs)
  • Additional Voluntary Contributions (AVCs)
  • older contracts – added years or ARCs

If you want to build up pension in respect of the absence, you are entitled to take out a shared cost additional pension contributions contract (APCs). You would pay 1/3 of the cost of APCs and your employer would pay 2/3.

You must notify your employer of your decision within 30 days of returning to work.

You will not be entitled to take out a shared cost APC contract if you miss this deadline, but may take start an APC contract and pay the entire cost yourself.

This does not apply to sickness, maternity, adoption, paternity, jury service, strike or reserve forces absences, which are dealt with differently.

Employee pension contribution

  • If your employer allows you to take unpaid leave, you will not pay contributions.

LGPS benefits

  • You will not build up any pension during unpaid absence
  • You and your employer can take out a shared cost APC within 30 days (or longer if your employer allows) of returning to work if you would like to make up the pension