Pension Payments on unpaid leave

Whilst an employee who is a member of LGPS is on unpaid additional maternity/paternity/adoption leave or a leave of absence, they are not building up benefits in their pension account providing they are not acting up in another capacity that would allow them to pay into LGPS. This will affect the amount of Career Average Revalued Earnings (CARE) pension when they retire.

Any LGPS member of staff who takes unpaid leave is entitled to pay the pension that would have been paid on the amount of unpaid leave taken. This can be done by writing to the employee each time they take a period of unpaid leave, or it can be done annually, which we recommend to cut the administrative burden.

This is something that we do for all our clients, keeping a note of all unpaid leave in the year and then writing to each employee who has taken unpaid leave in that year.

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