During any period of:
- paid maternity leave (including any period when only statutory maternity pay is paid)
- paid adoption leave (including any period when only statutory adoption pay is paid)
- any unpaid maternity or adoption leave during the 26 week ordinary maternity leave/ordinary adoption leave period
- paid shared parental leave
- statutory paternity leave
your Local Government Pension Scheme benefits will continue to build up as if you were working normally on full pay. You must continue to pay pension contributions on the actual pay you are receiving.
Unpaid maternity, adoption or shared parental leave
Any period of unpaid maternity or adoption leave beyond the 26 week ordinary maternity leave/ordinary adoption leave period and any period of unpaid shared parental leave will not count for pension purposes unless you have a right to return to work, in which case you can choose to pay Additional Pension Contributions (APCs) to buy the lost pension.
The cost of paying for lost pension is in accordance with guidance from the Government Actuary Department (GAD). Your employer will contact you regarding your choice to pay APCs on your return to work.
Paying for lost pension
Your employer will write to ask you if you want to pay Additional Pension Contributions (APCs). They will let you know the relevant timescales.
If you decide to pay APCs within 30 days the cost is shared between you and your employer. You pay one third and your employer pays two thirds of the cost. You can decide to pay after 30 days but you will pay the full cost. There are deadlines restricting your decision and your employer will let you know this in their letter to you.
If you are paying additional contributions in order to increase your benefits and need to know the effect this absence may have, further information can be found within What happens if I pay extra and I am absent from work?
Not paying for lost pension
If you do not pay for lost pension for any period of unpaid maternity or adoption leave beyond the 26 week ordinary maternity leave/ordinary adoption leave period or for any period of unpaid shared parental leave, it will not count for pension purposes. The pension you built up in your account for that year will be lower.
If you paid into the scheme before 1 September 2006 you may have protections under the 85 year rule. If you have a period of unpaid membership it may delay the date you meet the 85 year rule.
If you are in your final year of membership in the scheme before leaving and have membership before 1 April 2014, a lower final pay may affect your pension benefits. If you think this may affect you please contact us.
Keep in Touch days
If you have Keep in Touch (KIT) day(s) or Shared Parental Leave in Touch (SPLIT) day(s) during a period of unpaid additional maternity, adoption or unpaid shared parental leave, you will build up a pension for the day(s) you are paid.