Finance: Pay and Pensions

Maternity leave

• Ordinary maternity leave now continues for 26 weeks (previously it was 18 weeks);
• Additional maternity leave ends 26 weeks from the end of ordinary maternity leave, (previously it ended 29 weeks after the week of childbirth);
• Women who have been continuously employed for at least 26 weeks at the beginning of the 14th week before the expected week of childbirth qualify for 26 weeks additional maternity leave.

Effect on your rights under the Scheme

Ordinary maternity leave

During ordinary maternity leave you are entitled to all your normal terms and conditions of employment except pay.

Apart from the increase in the length of ordinary maternity leave your rights under the Scheme are not altered by these changes in the law.

During ordinary maternity leave your pension benefits will continue during this period. If, and for so long as, you qualify for Statutory Maternity Pay (SMP) or you receive contractual pay from your employer, your pensionable service under the Scheme continues as if you are working normally. Your pension benefits will continue and will be based on the pensionable salary that would have applied had you been working normally. You continue to pay contributions but they are based on the pay you actually receive during ordinary maternity leave (rather than on your pensionable salary). Your death benefits will be similarly continued.

If you do not receive SMP or do not receive contractual pay from your employer, your pensionable service and benefits continue, as previously described, for the ordinary maternity leave period of 26 weeks.

You do not pay any contributions during any unpaid ordinary maternity leave.

Additional maternity leave

As for ordinary maternity leave, the changes in the law have not changed your rights under the Scheme.

If, and for so long as, you receive contractual pay from your employer, your pensionable service under the Scheme continues as if you are working normally. Your benefits will continue and will be based on your pensionable salary that would have applied to you had you been working normally.

If you do not receive contractual pay from your employer during additional maternity leave, your pension benefits for that period will not be continued but you may be able to make up your contributions when you return to work. You will be advised whether death in service benefits continue during this period.

If, following maternity leave (either ordinary or additional, whichever applies to you), you do not return to work, and you have not left the Scheme earlier, you will then be treated as leaving service and the Scheme. Your date of leaving the Scheme is then taken as the date any maternity (either statutory maternity pay or contractual pay) pay stops or, if later, when your maternity leave ends.

Rights to paternity leave

• Paternity leave rights apply to employees whose children are born on or after 6 April 2003.
• The new paternity leave rights also arise from the adoption of a child and apply to employees when the child is matched or placed for adoption on or after 6 April 2003.
• Employees have the right to take either one week or two consecutive weeks' paternity leave. This right is subject to certain qualifying conditions.
• During paternity leave you may be entitled to receive Statutory Paternity Pay.
  
  

Effect of paternity leave on your rights under the Scheme

During paternity leave you are entitled to all your normal terms and conditions of employment except pay.

Your pension benefits will continue normally during periods of paternity leave and normal death in service benefits will continue to apply. You may be required to contribute to the Scheme during paternity leave. Details of any contributions will be notified to you.

Rights to adoption leave

• Adoption leave rights are available when the child is matched or placed for adoption on or after 6 April 2003.
• As with maternity leave, there are two periods of adoption leave. Ordinary adoption leave lasts for a period of 26 weeks and additional adoption leave lasts for 26 weeks after that.
• During ordinary adoption leave you may be entitled to Statutory Adoption Pay (SAP).
• The rights to ordinary and additional adoption leave and SAP are subject to certain qualifying conditions.
  
  

Effect of adoption leave on your rights under the Scheme

During ordinary adoption leave you are entitled to all your normal terms of conditions of employment except pay. During additional adoption leave, your employment contract continues and some terms and conditions of employment continue to apply and these will be notified to you at the time, as appropriate.

Your pension and death benefits will be continued in exactly the same way as described in this announcement for maternity leave. However, for adoption leave, the earlier references to "maternity leave", and "Statutory Maternity Pay (SMP)" should be taken to read "adoption leave" and "Statutory Adoption Pay (SAP)" respectively.