Q&As

Where pension contributions are paid as a percentage of earnings, is an employer entitled to reduce their contribution when an employee is on maternity leave to reflect the same percentage of maternity pay as opposed to their normal pay?

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Published on LexisPSL on 11/09/2018

The following Pensions Q&A provides comprehensive and up to date legal information covering:

  • Where pension contributions are paid as a percentage of earnings, is an employer entitled to reduce their contribution when an employee is on maternity leave to reflect the same percentage of maternity pay as opposed to their normal pay?

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

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

  1. section 75 of the Equality Act 2010, and

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

An occupational pension scheme that does not contain a maternity equality rule is treated as including one. Under a maternity equality rule, occupational pen

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