Additional Contribution and Absences
Additional pension contributions continue to be calculated when an employee is absent, unless the member elects to end the contract.
Use the arrears functionality and the regulation for a specific additional contribution type to determine how a contribution is handled when reduced or zero absence prevents a full contribution from being made. (or arrangements are made directly with the employer to address the handling of any arrears).
Employer deductions continue to be calculated during paid and reduced pay absences.
Percentage-Based Contributions
The table shows the calculation required for statutory absence types when the additional contribution type is percentage based.
| Absence Type | Absence Payment Rate | AVC EE Contribution Basis | AVC ER Contribution Basis | Added Years Contribution Basis | ASBC Contribution Basis |
|---|---|---|---|---|---|
| Sickness | Actual pensionable pay | Actual pensionable pay | Final pensionable pay | Final pensionable pay | |
| Paid at reduced pay | Actual pensionable pay | Actual pensionable pay | Final pensionable pay | Final pensionable pay | |
| Unpaid | No contribution | No contribution | No contribution | No contribution | |
| Child Related Leave | Paid at full pay | Actual pensionable pay | Actual pensionable pay | Final pensionable pay | Final pensionable pay |
| Paid at reduced pay | Actual pensionable pay | Actual pensionable pay | Final pensionable pay | Final pensionable pay | |
| Unpaid | No contribution | No contribution | Final pensionable pay | Final pensionable pay | |
| Jury Service | Paid at reduced pay | Actual pensionable pay | Actual pensionable pay | Final pensionable pay | Final pensionable pay |
| Unpaid | No contribution* | No contribution | Final pensionable pay | Final pensionable pay | |
| Trade Dispute | Unpaid | No contribution* | No contribution | Final pensionable pay | Final pensionable pay |
| Other Authorised Leave of Absence | Unpaid | No contribution* | No contribution | Final pensionable pay | Final pensionable pay |
| Unpaid Unauthorised Leave of Absence | Unpaid | No contribution* | No contribution | Final pensionable pay | Final pensionable pay |
Flat Amount Deductions
The table shows the calculation required for statutory absence types when the contribution is a flat amounts.
| Absence Type | Absence Pay Rate | APC EE Contribution Flat Amount | APC ER Contribution Flat Amount | AVC EE Contribution Flat Amount | AVC ER Contribution Flat Amount |
|---|---|---|---|---|---|
| Sickness | Paid at full pay | Full contribution | Full contribution | Full contribution | Full contribution |
| Paid at reduced pay | Full contribution | Full contribution | Full contribution | Full contribution | |
| Unpaid | Deemed contribution** | Full contribution | No contribution | No contribution | |
| Child Related Leave | Paid at full pay | Full contribution | Full contribution | Full contribution | Full contribution |
| Paid at reduced pay | Full contribution | Full contribution | Full contribution | Full contribution | |
| Unpaid | Full contribution | Full contribution | No contribution | No contribution | |
| Jury Service | Paid at reduced pay | Full contribution | Full contribution | Full contribution | Full contribution |
| Unpaid | Full contribution | Full contribution | No contribution | No contribution | |
| Trade Dispute | Unpaid | Full contribution*** | Full contribution | No contribution | No contribution |
| Other Authorised Leave of Absence | Unpaid | Full contribution*** | Full contribution | No contribution | No contribution |
| Unpaid Unauthorised Leave of Absence | Unpaid | Full contribution*** | Full contribution | No contribution | No contribution |
| Absence Type | Absence Pay Rate | Preston Part-time Buy | ARC Contributions Flat Amount |
|---|---|---|---|
| Sickness | Paid at full pay | Full contribution | Full contribution |
| Paid at reduced pay | Full contribution | Full contribution | |
| Unpaid | Full contribution*** | No contribution | |
| Child Related Leave | Paid at full pay | Full contribution | Full contribution |
| Paid at reduced pay | Full contribution | Full contribution | |
| Unpaid | Full contribution*** | Full contribution*** | |
| Jury Service | Paid at reduced pay | Full contribution | Full contribution |
| Unpaid | Full contribution*** | Full contribution*** | |
| Trade Dispute | Unpaid | Full contribution*** | Full contribution*** |
| Other Authorised Leave of Absence | Unpaid | Full contribution*** | Full contribution*** |
| Unpaid Unauthorised Leave of Absence | Unpaid | Full contribution*** | Full contribution*** |
* No contribution: Pension members have the choice of buying back lost service due to unpaid leave
** Deemed contribution: The contribution isn’t actually deducted, the pension authority will deem it has been to preserve continuous pension service
*** Full contribution: If earnings are high enough to deduct the full contribution then the full contribution should be raised. If earnings aren’t high enough arrears should be created based on the user setup of arrears via the arrears functionality, partial deductions allowed and arrears balances.