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Nilgosc


Child Related Leave

During a period of relevant child-related leave (ordinary maternity, paternity or adoption leave or paid additional maternity, shared parental, adoption leave) the member will build up 1/49th assumed pensionable pay if they are in the main section or 1/98th assumed pensionable pay if they are in the 50/50 section.

  • The member pays contributions on the actual pay received.
  • The employer pays contributions on the Assumed Pensionable Pay (APP).

If the pay received for a Keeping in Touch (KIT) day or Shared Parental Leave In Touch (SPLIT) day is higher than APP the member will accrue 1/49th of that pay for that day if they are in the main section or 1/98th if they are in the 50/50 section.

If a member in the 50/50 section goes onto no pay during ordinary maternity, paternity or adoption leave they are automatically moved back into the main section from the first available pay period after going on to no pay, providing they are still on no pay at the beginning of that pay period.

Pre-existing contracts

During any period of relevant child related leave (ordinary maternity, paternity or adoption leave and paid additional maternity, shared parental or adoption leave) any pre-existing APC / SCAPC contracts remain payable. If the employee is in receipt of no pay, the employer contributions to a SCAPC remain payable but the employee payments due to an APC or SCAPC which could not be collected roll over as a debt to be recovered from pay upon return to work.

Any pre-existing AVC / SCAVC contracts remain payable (unless the member, or the employer in the case of a SCAVC, elects to end the contract) for so long as there is enough pay to cover them.  Any member paying AVCs for additional life assurance cover will have to make arrangements to continue to pay the life assurance AVCs during any period when there is not enough pay to cover them, if they do not want their AVC life assurance cover to lapse.

Any existing part-time buy-back contracts, ARCs and added years contracts must continue to be paid.

Action for Employers

Timescale

Deduct member contributions on actual pay received

On running payroll 

Pay employer contributions on assumed pensionable pay

On running payroll 

 

Remit assumed pensionable pay for this period on annual return

By 30 April

Ensure that APC/SCAPC contracts are treated correctly

n/a

Pre-existing AVC / SCAVC contracts remain payable

n/a

Any pre- existing part-time buy-back contracts must continue to be paid

n/a

 

Authorised unpaid maternity, paternity and adoption leave

The employer no longer deducts contributions from the member for the first 30 days of absence.

If a member wishes to cover this period they can do so through an Additional Pension Contributions (APC) contract.  If they elect to do this within 30 days of returning to work (or such longer period as the employer may allow) the cost of the APC contract is split 1/3rd employee, 2/3rds employer.  If they elect to do this after 30 days (or outside such longer period as the employer may allow) the cost of the APC contract is at full cost to the member. The employer can only contribute to cover the ‘lost pension’ for the first 36 months of any break.

For any Keeping in Touch (KIT) or Shared Parental Leave In Touch (SPLIT) day during this period the member will accrue 1/49th of the pensionable pay received on that day if in the main section and 1/98th if in the 50/50 section. The employee and employer pay contributions on the actual pay received.

Pre-existing contracts

Any pre-existing APC / SCAPC contracts remain payable during this time. Although the employee is in receipt of no pay, the employer contributions to a SCAPC remain payable but the employee payments that were due to an APC or SCAPC which could not be collected roll over as a debt to be recovered from pay upon return to work.

Any pre-existing AVC / SCAVC contracts remain payable (unless the member, or the employer in the case of a SCAVC, elects to end the contract) for so long as there is enough pay to cover them.  Any member paying AVCs for additional life assurance cover will have to make arrangements to continue to pay the life assurance AVCs during any period when there is not enough pay to cover them, if they do not want their AVC life assurance to lapse.

Any existing part-time buy-back contracts, ARCs and added years must continue to be paid.

 

During a break with permission an employee remains an active member of the Scheme – this means that the previous practice of deferring benefits can no longer continue.

Action for Employers

Timescale

At commencement of break employer completes LGS34 and forwards to NILGOSC

On running payroll 

Employer deducts contributions from any pay received during a KIT or SPLIT day.

On running payroll 

 

On return to work, complete LGS35 and forward to NILGOSC

Within 30 days of member’s return to work

Notify member of right to cover period of unpaid leave using an APC.  If a member wishes to cover the break the employer will need to calculate ‘lost’ pension.

Immediately on return to work

Ensure that APC/SCAPC contracts are treated correctly

n/a

Pre-existing AVC / SCAVC contracts remain payable

n/a

Any pre- existing part-time buy-back contracts must continue to be paid

n/a