An employee may need to be absent from work for various reasons, including maternity leave, paternity leave, adoption leave, parental leave or sickness. The sections below explain what will happen in terms of making pension contributions during this time.
Family Leave (Maternity Leave/Adoption Leave/Paternity Leave/Additional Paternity Leave)
Adoption leave, paternity leave or additional paternity leave will be treated in the same way as a woman taking maternity leave.
For the first 39 weeks of maternity leave:
If the member is absent for any other reason, for example, sick leave, parental leave or a temporary absence and pay continues during the absence, contributions can be based on the actual salary paid, or on the pay received prior to the absence, as agreed between the member and employer. If the absence is without pay, contributions should not be paid for the period of unpaid leave.
When the member returns to work they will have the option to pay the contributions missed or any shortfall in contributions. It is then at your discretion whether to pay the employer’s share. If you decline to pay, the member can choose to also pay the employer’s share. You would need to ensure that any additional contributions are paid across in your normal monthly contribution submission.
Where no contributions are being made to the scheme, there will be a maximum period of absence that will apply before the member becomes a leaver in the scheme. This period of time varies dependent on the scheme that the member is contributing to. To obtain more information on the relevant rules of your specific scheme, please select your scheme from our website or give us a call.