Paid and Unpaid Leave

Your pension can be affected differently depending on the type of leave you take.

Unpaid leave (less than 31 days)

If you’re on authorised unpaid leave for less than 31 days, your pension contributions will be taken from your next pay, based on the pay you would have received. This means your pension is fully covered for this time.

Unpaid leave (more than 30 days)

If you’re off work for more than 30 days because of:

  • Authorised unpaid leave
  • Unpaid additional child-related leave
  • Industrial action.

…this period won’t count towards your pension unless you buy it back.

You can:

  • Buy back the pension through an Additional Pension Contribution (APC)
  • Pay as a lump sum or spread payments over several years (unless you’re within a year of your Normal Pension Age)
  • Get your employer to pay two-thirds of the cost if you apply within 30 days of returning to work (not available for unauthorised absence or industrial action)

You can check the cost of buying back pension using the LGPS APC modeller.

Sick Leave
Career Breaks
Strike Breaks
Reserve forces leave

If you’re off sick:

 

  • Your pension keeps building up as normal
  • You pay contributions on any salary you receive (before reductions for Statutory Sick Pay or Incapacity Benefit)
  • If you’re not receiving pay, your pension is based on assumed pensionable pay – the notional figure your employer uses to make sure your pension grows as if you’re in work as normal.

If your career break or authorised unpaid leave lasts:

 

  • Less than 30 days: your employer will deduct contributions automatically, so your pension is covered
  • More than 30 days: you can buy back the lost pension via an APC. If you apply within 30 days of returning, your employer must pay two-thirds of the cost. If you apply later, your employer may choose to help, but doesn’t have to

If you’re off due to a trade dispute, your pension contributions won’t be deducted automatically, even for absences of less than 30 days.

 

  • You can choose to buy back the pension via an APC
  • Your employer won’t share the cost, even if you apply within 30 days

If you’re eligible for the Armed Forces Pension Scheme but choose to stay in the LGPS:

 

  • Your employer will calculate your assumed pensionable pay and inform both LPF and the Ministry of Defence
  • The MOD will deduct your contributions (and pay the employer contributions) directly to LPF
  • Any salary your employer continues to pay you during this period is not pensionable
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