What happens to your pension benefits when you take parental leave

As you'd expect, the different types of parental leave have different impacts on your pension benefits. While all maternity, paternity or adoption leave arrangements should be discussed directly with your employer, the following guidelines outline the way each type of leave is treated for pension benefit purposes.

Maternity leave

Paid maternity leave

While on paid maternity leave, your pension scheme membership will continue and you'll pay scheme contributions at the same percentage rate. Contributions will be based on your actual pensionable pay which will be either full pay or Statutory Maternity Pay.

Unpaid maternity leave

Any period of unpaid leave is regarded as non-pensionable, therefore you'll not be eligible to pay scheme contributions during this period - or to cover any 'missed' contributions by paying extra when you return to work. Any pension you have accrued will be preserved and, while on authorised leave, you'll continue to remain covered for death in service benefits.

Keeping in Touch days

Any 'Keeping in Touch' days you undertake are pensionable and you will pay scheme contributions based on the pensionable pay you actually receive.

If you don't intend to return to work after maternity leave

Your last day of scheme membership will be the last day you pay scheme contributions. Any pension you have accrued will be preserved.

Paternity leave, parental leave and adoption leave

Paid parental leave

While on paid parental leave, you'll remain a member of the scheme and continue to pay scheme contributions at your normal percentage rate on the pensionable pay you actually receive during your leave period.

Unpaid parental leave

Any period of unpaid leave is regarded as non-pensionable, therefore you'll not be eligible to pay scheme contributions during this period - or to cover any 'missed' contributions by paying extra when you return to work. While on authorised leave, you'll remain covered for death in service benefits and any pension accrued will be preserved.

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