From 1 April 2026, new regulations under the Local Government Pension Scheme (Miscellaneous Amendments) (Member Benefits) Regulations 2026 introduce important changes to how authorised unpaid leave is treated.
Authorised Unpaid Leave less than 15 days
Authorised unpaid leave that lasts less than 15 calendar days is automatically pensionable.
Pension contributions are compulsory and automatically taken for a period of authorised unpaid leave lasting less than 15 calendar days that started after 1 April 2026. There is no adjustment for working days or in respect of members who work part time when working out whether an unpaid break is less than 15 days.
The compulsory contributions for members and employers are based on ‘lost pensionable pay’. This is the pay the member would have received if they had been at work receiving their ‘normal’ pay instead of taking unpaid leave. ‘Normal’ pay is based on the member’s contractual pay.
Lost pensionable pay does not replace a member’s actual pensionable pay. If a member receives some pensionable pay during a period of authorised unpaid leave, the actual pensionable pay and lost pensionable pay should be added together to find the cumulative pensionable pay for the period. This could happen if the member is paid a bonus or arrears of pay following a pay award while they are on unpaid leave.
Member and employer contributions are paid at the normal contribution rate based on the lost pensionable pay.
This does not affect members on unpaid leave due to maternity, paternity and adoption leave or absent due to a trade dispute (strike).
Authorised Unpaid Leave 15 days or more
Authorised unpaid leave of 15 calendar days or more is not automatically pensionable. The rules that apply when an authorised absence is less than 15 days do not apply to the first 14 days of a longer absence.
Employers must write to all members who take authorised unpaid leave of 15 days or more and offer them the chance to buy back their lost pension. A sample letter for this communication can be found at the bottom of this page.
The member will have 12 months to elect to buy back the lost pension using a Qualifying Additional Pension Arrangement (QAPA).
Member contributions are based on their normal contribution rate. A pay reduction because of unpaid leave is ignored when allocating the member to the correct contribution band.
Employer contributions to a QAPA are compulsory if the authorised absence is less than or equal to three years. The employer may choose to contribute to the cost of buying back the pension lost in the unpaid period after the first three years. If the employer does not contribute to the cost of covering an unpaid break in excess of three years, the member may meet the cost. The arrangement is still a QAPA and the cost is the total member and employer contributions for the period.
A QAPA can be paid by regular contributions or by a lump sum. If paying by a regular contribution this can not be over a part year. The default options are to spread over 1, 2, 3, or 4 years. However the employer can choose to offer to spread the cost over up to 9 years if the cost of the QAPA is very high. A QAPA paid by regular contributions becomes payable following the election at the next available pay period.
A QAPA must be paid by a lump sum payment if the cost is less than £25 or if the member is aged over their Normal Pension Age or they are within one year of it. A QAPA must also be paid by a lump sum if the member has left after making their election.
Sample Letter for Scheme Members with Unpaid Leave post 1 April 2026