Employers

In this section:

Scheme changes for employers from 1 April 2026

Changes to the LGPS regulations take effect from 1 April 2026.

These updates relate to assumed pensionable pay (APP), pension contributions during authorised unpaid absence and the introduction of qualifying additional pension arrangements (QAPAs).

Assumed pensionable pay (APP) for unpaid additional leave

From 1 April 2026, APP will apply during the following unpaid types of leave, but only where the unpaid period begins on or after this date:

  • Unpaid additional adoption leave

  • Unpaid additional maternity leave

  • Unpaid shared parental leave

For any unpaid leave that started before 1 April 2026, the previous rules will continue to apply. Under the previous rules, these periods are not covered by APP, and employees instead have the option to buy back lost pension via an Additional Pension Contribution (APC).

Compulsory pension contributions during short unpaid absences

From 1 April 2026, employers must pay compulsory pension contributions during authorised unpaid absences of 14 days or fewer.

  • Contributions will be based on the pay lost during the absence

  • Both member and employer contribute at their usual rates

This applies only to authorised unpaid absences starting after 31 March 2026. For unpaid absences that started before this date, the previous rules remain unchanged.

Qualifying additional pension arrangements (QAPAs)

New rules apply to authorised unpaid absences lasting more than 14 days, where pension has been lost:

  • The cost of buying back lost pension will be based on both the member’s and the employer’s normal contribution rates

  • Members will have one year after returning to work to apply for a QAPA, an increase from the previous 30 day limit

  • This option is only available while the member remains active in the same employment

  • Employers may choose to contribute towards the cost of a QAPA for any unpaid absence lasting more than three years

  • Pension bought back through QAPAs will count towards survivor pensions and will not be reduced for retirement on redundancy or efficiency grounds

These rules apply only to continuous periods of authorised unpaid absence that begin after 31 March 2026.

Actions required

You should:

  • Direct your members of staff who are due to take time away from work to the LGPS member website's If you are away from work webpage

  • Ensure that your payroll team and any external payroll providers who submits data to the Fund on your behalf are made aware of these regulatory changes as soon as possible so that arrangements begin for the necessary changes to procedures and payroll systems

  • Review your communications to employees relating to authorised unpaid leave and child-related leave to identify where amendments will be required for absences which began on or after 1 April 2026