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Law Queries
Pensions
Q. Our sick pay scheme provides for six months on full pay followed by six months on half pay, and nothing after that. Does the company still have to contribute to the employee’s pension after the 12 months of sick leave?
A. It depends on the terms of the pension scheme. Under the auto-enrolment rules, which are overseen by The Pensions Regulator, an employer in a defined contribution must make minimum contributions during a “pay reference period”, but has no obligation to make pension contributions during a period of unpaid leave.
You can get free help about pensions from the government-sponsored MoneyHelper, and they should be able to advise you on your scheme. You can access them at: www.moneyhelper.org.uk/en/pensions-and-retirement or by telephone on 0800 011 3797.