The LGPS have published a calculator for employers to use to offer a member the opportunity to pay a QAPA to cover an authorised unpaid period of leave that lasted for 15 days or more.
From 1 April 2026, if you allow a member to take unpaid leave that lasts for 15 days or more, the break will not automatically count for pension purposes.
Members can elect to buy some or all of the pension lost during the unpaid period by paying extra contributions. The contributions can be paid by lump sum or regular deductions from pay.
The cost of buying back pension ‘lost’ during a period of authorised unpaid absence of more than 14 days is now based on the member and the employer’s normal contribution rates. These contracts will be known as Qualifying Additional Pension Arrangement (QAPAs).
Action
Employers will need to communicate with their payroll departments about how they will exchange information and who is responsible for what part of the process.
You can download the QAPA calculator on the LGPS’ Employer guides and documents webpage
The spreadsheet includes general notes about the rules that apply to an authorised absence of 15 days or more that started on 1 April 2026 or later. It also includes notes about how to use the spreadsheet.
Employers may need to make changes to the spreadsheet in the following cases:
- Members who pay the additional contributions by lump sum directly to the pension fund.
- Members who take an authorised break that lasts more than three years, and the employer decides not to voluntarily contribute in respect of the period beyond the first three years.
- Members who changed section (main to 50/50 or 50/50 to main) part way through the unpaid period.
- Members who want to spread regular contributions over a period of more than nine years.
Action
Remember to adapt your existing communications to reflect the changes.
Please note the Buy lost pension calculator must still be used in certain cases.
The ‘old’ rules apply to an authorised break that started before 1 April 2026, a strike break and a break that started on or after 1 April 2026, but the member misses the one-year deadline to elect for a QAPA.
