We understand the Government plans to phase in the changes proposed in the consultation to ease the administrative impact. Phase one changes will be introduced in April 2026 and phase two later in the year.
A statutory instrument implementing the phase one changes will be laid at the start of March and take effect from 1 April 2026.
The changes that employers need to be aware of are as follows:
Gender pensions gap benefits:
- Making authorised absences of less than 15 days automatically pensionable.
- Aligning the cost of buying back lost pension for authorised absences of over 14 days with the standard member contribution rates.
- Extending the time limit for electing to buy back lost pension from 30 days to 12 months, as long as the member is in the same employment.
- Allowing an employer to pay their share of contributions relating to an unpaid period of more than three years.
- Updating the definition of child-related leave to include all periods of additional maternity, adoption and shared parental leave without pay.
What employers need to do
Start thinking about whether or not you need to change any of your letters or procedures as well as making sure your software providers are aware that these changes are likely to take place very soon and that potentially software developments may be required
Look out for further guidance from the Shropshire Count Pension Fund.
