Absence Through Sickness

If your employee has a period on reduced contractual pay or no pay, Assumed Pensionable Pay (APP) is added to his or her pensionable pay cumulative (and not the amount of any pay actually received).

The member will pay a contribution based on the actual pay they have received (if any).

The employer will pay contributions on APP during the period the member is on reduced contractual pay of no pay.  This means that employers contributions will be payable in full in cases of long-term sickness absence.

During any period of sickness on reduced contractual pay or no pay, any pre-existing Additional Pension Contributions (APCs) / Shared Cost Additional Pension Contributions (SCAPCs) contracts remain payable.  If the employee is in receipt of no pay, the employee contributions are deemed to have been paid but the employer must continue to pay the employer contributions to a SCAPC.  Any employee APCs actually collected (but not those deemed to have been paid) must be added into the employee APC cumulative and any employer contributions to a SCAPC must be added into the employer SCAPC cumulative.

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