Absences

• Authorised nil pay absences – you must give the employee the option to buy any lost pension through an ‘Additional Pension Contributions’ (APC) contract.
• You should provide the employee with their pensionable pay for the nil pay period as soon as they return to work. Signpost the employee to the APC calculator and election form.
• If the employee wants to take out an APC contract they should return the election form to your payroll team.
• If the election is made within 30 days of returning to work (or longer if your discretions policy allows it)  the cost of the APC is split between the employee and employer. The employee will pay one third of the cost and the employer will pay the rest.
• You should complete an Absence Form even if the employee does not take out an APC contract.

Employee contributions: Based on actual pay received.

Employer contributions: Based on assumed pensionable pay (APP).

Final salary benefits (up to 31.3.2014): Pensionable pay should not be affected as notional pay should be provided.

Career average (CARE) benefits (from 1.4.2014): Pensionable pay should not be affected as APP is added back in.

Employee contributions: No contributions due.

Employer contributions: No contributions due.

Final salary benefits (up to 31.3.2014): Pensionable pay for unauthorised absence should be excluded from both the ‘actual final pensionable pay’ and the ‘whole time equivalent final pensionable pay’.  However, the figures should then be uprated to 365 days by taking the number of remaining days for the final year and multiplying by 365. E.g., for 2 unauthorised absence, divide by 363 and multiply by 365.

Career average (CARE) benefits (from 1.4.2014): Pensionable pay is affected – there is no CARE pensionable pay for the nil pay period.

Employee contributions: No contributions due.

Employer contributions: Based on assumed pensionable pay (APP).

Final salary benefits (up to 31.3.2014): Pensionable pay should not be affected as notional pay should be provided.

Career average (CARE) benefits (from 1.4.2014): Pensionable pay should not be affected as APP pay is added back in.

Employee contributions: No contributions due.

Employer contributions: No contributions due.

Final salary benefits (up to 31.3.2014): Depends if the member takes out an Additional Pension Contributions (APC) contract as to whether pensionable pay is affected.

If the member takes out an APC contract: Pensionable pay should not be affected as notional pay should be provided.

If the member does not take out an APC contract: If an APC contract was not taken out to cover the unpaid leave period, the pensionable pay for the period of unpaid leave should be excluded from both the ‘actual final pensionable pay’ and the ‘whole time equivalent final pensionable pay’.  However, the figures should then be uprated to 365 days by taking the number of remaining days for the final year and multiplying by 365. E.g., for 2 days unpaid leave, divide by 363 and multiply by 365.

Career average (CARE) benefits (from 1.4.2014)

Pensionable pay is affected – there is no CARE pensionable pay for the nil pay period.

The member must be given the option to take out an APC contract. You must complete a Record of Absence Form.

Employee contributions: Based on actual pay received.

Employer contributions: Based on assumed pensionable pay (unless actual pensionable pay is higher).

Final salary benefits (up to 31.3.2014): Pensionable pay should not be affected as notional pay should be provided.

Career average (CARE) benefits (from 1.4.2014): Pensionable pay should not be affected as assumed pensionable (APP) pay is added back in. However, APP does not apply on a ‘Stringer day’ if the pensionable pay the member receives is greater than the APP.

When on child-related leave, the employee may return for KIT or SPLIT days.

Employee contributions: Based on actual pay received.

Employer contributions: Based on assumed pensionable pay (unless actual pay is higher).

Final salary benefits (up to 31.3.2014): Pensionable pay should not be affected as notional pay should be provided.

Career average (CARE) benefits (from 1.4.2014): Pensionable pay should not be affected as assumed pensionable pay (APP) is added back in. However, if pay is higher than the assumed pensionable pay, use actual pay received.

Employee contributions: No contributions due.

Employer contributions: No contributions due.

Final salary benefits (up to 31.3.2014): Pensionable pay for the trade dispute absence should be excluded from both the ‘actual final pensionable pay’ and the ‘whole time equivalent final pensionable pay’.  However, the figures should then be uprated to 365 days by taking the number of remaining days for the final year and multiplying by 365. E.g., for 2 unauthorised absence, divide by 363 and multiply by 365.

Career average (CARE) benefits (from 1.4.2014): Pensionable pay is affected – there is no CARE pensionable pay for the nil pay period.

The member must be given the option to take out an Additional Pension Contributions (APC) contract. You must complete a Record of Absence Form.

You do not contribute to the APC; the cost is fully met by the employee.

An employee on reserve forces service leave can elect to stay in the LGPS and continue to build up a pension as if they were still at work. The employer would calculate assumed pensionable pay (APP) for this period but would not pay any employer contribution to the Fund. The employer would notify the reservist and, via the reservist, the Ministry of Defence (MoD) of both the APP figure and the employee and employer contribution rate due on that amount.

The MoD would pay the employee and employer pension contributions to the Fund. If the employer continues to pay the reservist some pay whilst they are on reserve forces service leave, that pay is non-pensionable. Neither employee nor employer contributions should be deducted.