Family Leave and Occupational Sick Leave

Answer:

It depends why their pay is reduced, whether this is Family Leave or Occupational Sick Leave.

Family leave is when a member is on reduced pay due to family leave and they’re receiving statutory pay or at least half their normal monthly salary, when this is the case it should be treated as pensionable. The member contribution percentage (i.e. tier) used to calculate a member’s contribution deduction must be worked out based on what their earnings would be if they weren’t on reduced
pay or statutory pay.

Occupational sick leave is when a member is on reduced pay due to occupational sick leave and they are receiving at least half their normal monthly salary, when this is the case it should be treated as pensionable. If it drops below half, then this service is no longer pensionable. The member contribution percentage (i.e. tier) used to calculate a member’s contribution deduction must be worked out based on what their earnings would be if they were not on reduced pay.

Answer:

For this, you’d need to provide two service lines, one for the service up to the reduction, and one for the reduction.

For the service line without the reduction in pay, you’d need to provide the actual pensionable pay relating to the service period only, leaving the status indicator and notional pensionable pay fields blank.

For the service line with the reduction due to family leave, you’d need to provide the actual pensionable pay relating to the service period only, provide the status indicator as ‘FL’ and the notional pensionable pay value as the pensionable earnings they would have earnt if they weren’t on reduced pay.

The members contribution tier would then be calculated based on the actual pensionable pay from the first period, plus the notional pensionable pay from the family leave period multiplied by 12 to annualise it. The tier should then be identified with this amount.

Answer:

As the pay rates have changed during this period, we'd require three lines of data for this service. You’d need to make sure that the actual pensionable pay value was provided for each of the service periods individually. The employer and member contributions can be provided on one of the lines.