Temporary absence and pension accrual
Temporary absence and pension accrual

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

  • Temporary absence and pension accrual
  • Reasons for absence
  • Treatment of members' pension rights
  • Member contributions
  • Employer contributions
  • Pensionable service
  • Calculation of benefits
  • Return to work
  • Failure to return to work
  • The employer's approach
  • More...

THIS PRACTICE NOTE APPLIES TO OCCUPATIONAL PENSION SCHEMES.

There are no statutory requirements governing the treatment of members' pension rights during periods of temporary absence from work, with the following exceptions:

  1. absences due to periods of statutory leave such as maternity leave, paternity leave, adoption leave, parental leave or shared parental leave—for further information, see Practice Note: Maternity and other statutory family leave—the pension requirements

  2. breaks in pensionable service which are disregarded by the preservation legislation for the purposes of calculating whether an early leaver has two years' qualifying service—for further information, see Practice Note: Early leavers—preservation — Breaks in pensionable service

Subject to these exceptions, employers need to decide how they wish to treat members' pension rights on temporary absence from work and should ensure that their scheme's trust deed and rules contain provisions clearly setting out how members' pension rights are affected during a period of temporary absence.

This Practice Note only covers the treatment of pension rights during periods of temporary absence from work in circumstances other than the exceptions mentioned above.

For further information on protection of pension rights during periods of statutory family leave, see Maternity and other statutory family leave—the pension requirements.

Reasons for absence

Members may be temporarily absent from work for a variety of reasons (other than statutory family leave) including:

  1. sickness, ill health, injury or accident

  2. attendance at a

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