Dealing with absences
There are many types of member absences that you'll be faced with as an employer. It's important you know how to deal with these situations if they arise. Some examples include:
- Unpaid leave of absence
- Paid child related leave
- Unpaid child related leave
- Strike break because of a trade dispute
- Sickness
You should always inform us of the dates of an absence when a member decides to buy back lost pension. This can be done by your iConnect submission (if you submit an extract file) or by sending us form PEN004. If the member is on a period of maternity, paternity, or child related leave you should send us the dates through your iConnect submission (if you submit an extract file) or by completing form PEN005.
For employers who submit an extract file, please refer to the iConnect user guides (item 26 and 27) which can be found here.
Authorised unpaid leave – less than 15 days
From 1 April 2026, if you allow a member of the LGPS to take unpaid leave that lasts less than 15 days, their pension will continue to build up in this period. The member and you as the employer both pay the pension contributions that would have been paid as if the member were at work receiving their normal pay.
This will apply if they are unpaid when they are absent from work because of jury service.
It may also apply if they have bought annual leave from your employer, but this depends on how the scheme to buy extra leave works. If they are buying or thinking about buying extra annual leave, they should check this out with you as their employer can check with you as their employer how their pension will be affected. If the member receives any pay whilst off sick they'll pay contributions on this. However, their benefits will continue to build up as if they were working normally and receiving full pay.
If a member moves on to unpaid sick leave, they'll not pay any contributions. But, your employer contributions will continue as normal.
Authorised unpaid leave – 15 days or more
From 1 April 2026, if you allow an LGPS member to take unpaid leave that lasts for 15 days or more, the break will not automatically count for pension purposes. This also applies if they were absent from work and unpaid for more than 15 days for jury service. They can choose to pay extra contributions to buy the pension you ‘lost’ in the unpaid period.
If they elect to pay these extra contributions within a year of returning to work, the cost is split between them and you as their employer. The contributions can be paid by lump sum or regular deductions from their pay. If they take an unpaid break, you employer will need to tell the member the cost and their payment options.
An arrangement to buy pension ‘lost’ in a period of unpaid leave that started 1 April 2026 or later is known as a Qualifying Additional Pension Arrangement or QAPA.
Authorised unpaid leave – old rules
The rules that applied before 1 April 2026 still apply if an LGPS member took an authorised unpaid break that started before that date. Under those rules, the period does not count for pension purposes unless they elect to pay Additional Pension Contributions (APCs) to buy the pension they ‘lost’ during the absence.
If they make an election to pay Additional Pension Contributions to purchase ‘lost’ pension within 30 days of returning to work, the cost will be split between them and you. As the employer you can agree to contribute if they make their election after more than 30 days.
The member can use the use the ‘Buying lost Pension Calculator’ on the Pension Fund Website to find out more about this option. The member will need information from your you about the pay they ‘lost’ in the unpaid absence to use the calculator.
They can also use the calculator if they took an unpaid break that started on or after 1 April 2026, but they elected to pay the extra contributions more than a year after returning to work.
If the member receives any pay whilst off sick they'll pay contributions on this. However, their benefits will continue to build up as if they were working normally and receiving full pay.
If a member moves on to unpaid sick leave, they'll not pay any contributions. But, your employer contributions will continue as normal.
What happens if a member is off sick?
During a period of sick leave your employer contributions will continue to be the same.
If the member receives any pay whilst off sick they'll pay contributions on this. However, their benefits will continue to build up as if they were working normally and receiving full pay.
If a member moves on to unpaid sick leave, they'll not pay any contributions. But, your employer contributions will continue as normal.
What pay is used to work out benefits if the member leaves the LGPS and has been on reduced or no pay?
You'll need to use the employee's assumed pensionable pay. Information on how to work out assumed pensionable pay can be found on the pensionable pay and assumed pensionable pay page.
Strike action
If a member goes on strike they can choose to cover the cost of the ‘lost’ pension through additional pension contributions (APCs). These can be paid regularly or as a one-off lump sum. For trade disputes (and any other unauthorised absences), the APC will always be fully funded by the member.
What do I need to do during strike action?
You must always:
Tell members about their right to buy ‘lost’ pension.
Tell them the amount lost and refer them to the LGPS website where they can find more information, along with the additional pension calculator and the required forms. This calculator will show them how much they need to pay to make up the lost pension.
If they don't have internet access you should help them with their calculation.
Action: You must let us know if a member's gone on strike and chosen to repay the contributions. You should also confirm when there has been a strike but none of the members took part. If they do take part you should let us know their name, national insurance number, payroll number(s), unique identifier(s) of the post(s) in which the member took industrial action (if they have more than one job) and the date(s) of absence.
If you don't tell us about a member paying back the lost pension, we'll assume that the day of the strike doesn’t count for pension purposes. This is particularly important for members with pre 1 April 2014 service, as lost membership still affects these benefits.
