Absences from work
To make an election to buy back lost pension you will need to:
- Know the amount of pay you lost due to absence. Your employer should provide this figure.
- Decide how long you wish to pay over, or whether this will be by a one off lump sum.
- Get a quote from the LGPS modeller using the ‘Buy lost pension’ option.
- Print off 1 copy of the application form and return to your employer, this must be received within 30 days of your return to work. It is advisable to check that the application has been actioned by your employer.
Explanations of the different types of leave and whether or not you can purchase back the lost pension are listed below.
Sick Leave
If you are off work due to sickness or injury and your contractual pay is reduced or you don’t receive any pay, then the pensionable pay figure used to work out your pension for this period is your assumed pensionable pay. Using your assumed pensionable pay rather than the amount of pensionable pay you actually receive whilst on sick leave means that you will continue to build up a pension in LGPS scheme you are in, as if you were working normally and receiving pay.
You will continue to pay your basic LGPS contributions on any pay that you receive while you are off sick (before any reduction on account of Statutory Sick Pay or Incapacity Benefit). If you are on unpaid sick leave you will not pay any contributions.
If you are in the 50/50 scheme and go onto unpaid sick leave, you will automatically be moved to the main scheme from the beginning of the next pay period if you are still on no pay at that time. This means from that point forward you will build up full pension benefits in the LGPS even though you are not paying pension contributions.
Authorised leave (unpaid)
If you are granted unpaid leave of absence, including jury service and parental leave, the period will not count for pension purposes unless you elect to pay Additional Pension Contributions (APCs) to purchase the amount of pension lost during that period of absence. The amount of pension lost is calculated as the appropriate fraction of your assumed pensionable pay for that period of absence i.e. 1/49th of your assumed pensionable pay if you were in the main scheme or 1/98th if you were in the 50/50 scheme.
If you wish to purchase the amount of lost pension and make the election within 30 days of returning to work then the cost of the APC is split between you and your employer. You will pay one-third of the cost and your employer will pay the rest. This is known as a Shared Cost Additional Pension Contributions (SCAPC).
You can pay these additional contributions in a one-off lump sum or through regular payments from your wages.
The maximum period of absence you can elect to buy back by a SCAPC is a period of 3 years.
Industrial Dispute – Strike Break
If you are absent for a day or more due to a trade dispute the period will not count for pension purposes unless you elect to pay Additional Pension Contributions (APCs) to purchase the amount of pension lost during that period of absence. The amount of pension lost is calculated as the appropriate fraction of your assumed pensionable pay for that period of absence i.e. 1/49th of your assumed pensionable pay if you were in the main scheme or 1/98th if you were in the 50/50 scheme.
The cost of purchasing the amount of lost pension for the period of absence would be met fully by you. Your employer does not make a contribution to the APC. If you have membership of the LGPS before 1 April 2014 you will have built up benefits in the final salary scheme. If you choose to pay for the lost pension in the scheme the amount you pay will go towards covering the protections associated with the pre 1 April 2014 membership.
Maternity/Adoption Leave
During any period of relevant child related leave the pensionable pay figure used to work out your pension is your assumed pensionable pay. Using your assumed pensionable pay rather than the amount of pensionable pay you actually receive when on relevant child related leave means that you will continue to build up a pension in the LGPS scheme you are in, as if you were working normally and receiving pay.
You will continue to pay your basic LGPS contributions on any pay that you receive while you are off on relevant child related leave.
However, any period of unpaid additional maternity, paternity or adoption leave will not count for pension purposes unless you elect to pay Additional Pension Contributions (APCs) to purchase the amount of pension lost during that period of unpaid absence.
The amount of pension lost is calculated as the appropriate fraction of your assumed pensionable pay for that period of absence i.e. 1/49th of your assumed pensionable pay if you were in the main scheme or 1/98th if you were in the 50/50 scheme.
If you wish to purchase the amount of lost pension and make the election within 30 days of returning to work then the cost of the APC is split between you and your employer. You will pay one-third of the cost and your employer will pay the rest. This is known as a Shared Cost Additional Pension Contract (SCAPC). You can pay these additional contributions in a one-off lump sum or through regular payments from your wages.
The maximum period of absence you can elect to buy back by a SCAPC is a period of 3 years.
If you have membership of the LGPS before 1 April 2014 you will have built up benefits in the final salary scheme. If you choose to pay for the lost pension in the scheme the amount you pay will go towards covering the protections associated with the pre 1 April 2014 membership.
If you have Keep in Touch (KIT) days during a period of unpaid additional maternity, paternity or adoption leave, you will build up a pension based on the scheme you are in for the days you are paid.
Paternity Leave
Statutory Paternity Leave of two weeks is granted for the purposes of caring for a child or for the child’s mother. If you are granted Additional Paternity Leave you will continue to pay pension contributions on any pay you receive during this period. However, any period of unpaid additional maternity, paternity or adoption leave will not count for pension purposes unless you elect to pay Additional Pension Contributions (APCs) to purchase the amount of pension lost during that period of unpaid absence.
The amount of pension lost is calculated as the appropriate fraction of your assumed pensionable pay for that period of absence i.e. 1/49th of your assumed pensionable pay if you were in the main scheme or 1/98th if you were in the 50/50 scheme.
If you wish to purchase the amount of lost pension and make the election within 30 days of returning to work then the cost of the APC is split between you and your employer. You will pay one-third of the cost and your employer will pay the rest. This is known as a Shared Cost Additional Pension Contract (SCAPC).
You can pay these additional contributions in a one-off lump sum or through regular payments from your wages.
The maximum period of absence you can elect to buy back by a SCAPC is a period of 3 years.
Parental Leave
You can with your employer’s agreement, take unpaid parental leave. If you want this period to count as a period of membership in the LGPS you will have to pay Additional Pension Contributions (APCs) as with authorised leave (unpaid).
Reserve Forces Leave
If you are on reserve forces service leave and elect to remain in the LGPS your pension in the scheme will be calculated using your assumed pensionable pay. Using your assumed pensionable pay ensures that you will continue to build up a pension as if you were in work rather than on reserve forces service leave. Any pay you do receive from your employer will not have pension contributions deducted from it.
If you go on reserve forces service leave and elect to stay in the LGPS your employer needs to advise you on the amount of basic pension contributions you and the Ministry of Defence (MoD) must pay, the amount of any additional contributions you are paying in the LGPS and, the amount of assumed pensionable pay those contributions must be collected on. You will need to pass this information on to the MoD.
Your employee contributions (and any additional contributions you are paying in the LGPS) will be deducted by the MoD and paid across to the Cheshire Pension Fund who are administered by Cheshire West and Chester Council, alongside the contributions made by the employer.
Jury Leave
You will not accrue any pension rights whilst you are on jury service. You will have the option to purchase Additional Pension Contributions (APCs) to make up any shortfall as with authorised leave (unpaid).