Maternity, paternity, adoption, parental and shared parental leave—the pension requirements
Maternity, paternity, adoption, parental and shared parental leave—the pension requirements

The following Pensions guidance note provides comprehensive and up to date legal information covering:

  • Maternity, paternity, adoption, parental and shared parental leave—the pension requirements
  • Protection of pension rights during periods of family leave
  • Statutory framework
  • Maternity leave and pension accrual
  • Paternity leave and pension accrual
  • Adoption leave and pension accrual
  • Parental leave and pension accrual
  • Shared parental leave and pension accrual
  • Shortfall in employee contributions under money purchase schemes
  • Salary sacrifice and maternity leave
  • more

THIS PRACTICE NOTE APPLIES TO OCCUPATIONAL PENSION SCHEMES (DEFINED BENEFIT AND MONEY PURCHASE)

Protection of pension rights during periods of family leave

Legislation protects the pension rights of members of occupational pension schemes who are absent from work due to a period of statutory family leave.

Periods of statutory family leave include:

  1. maternity leave

  2. paternity leave

  3. adoption leave

  4. parental leave, and

  5. shared parental leave

Trustees and sponsoring employers of occupational pension schemes should ensure that their scheme rules comply with the legislation.

The treatment of members' pension rights may vary according to whether the period of statutory leave is paid or unpaid and whether the pension scheme is defined benefit or money purchase.

For more detailed information on the requirements for:

  1. maternity leave, see Practice Note: Maternity leave

  2. paternity leave, see Practice Note: Paternity leave

  3. adoption leave, see Practice Note: Adoption leave

  4. parental leave, see Practice Note: Parental leave

  5. shared parental leave, see Practice Notes:

    1. Shared parental leave (birth)

    2. Shared parental leave (adoption)

All the above Practice Notes are subscription dependent.

Statutory framework

The treatment of the pension rights of employees during maternity leave is set out in:

  1. the Equality Act 2010, s 75, and

  2. the Maternity and Parental Leave etc Regulations 1999, SI 1999/3312, reg 9

The treatment of the pension rights of employees during paternity leave is set out in: