The rules about pension contributions can be found in UK social security legislation, which is separate from UK maternity legislation and does not follow the same approach.
As far as the social security rules are concerned, the distinction between OML and AML is not relevant. Instead, the rules draw a distinction between paid and unpaid maternity leave. Paid leave is any time when the employee is receiving SMP or other pay. If the employee qualifies for SMP, this will be 39 weeks unless your policy is to pay company maternity pay extending beyond this period.
In a final-salary (defined benefit) scheme, you must treat any period of paid maternity leave as pensionable service. If the employee makes contributions to the scheme, then you can require her to keep up those contributions throughout her paid maternity leave. However, her contributions must be calculated on the basis of the actual pay she is receiving rather than her normal pensionable pay.
If she wants to make additional voluntary contributions then this may be possible under your scheme rules and you should check with your pension scheme advisers.
In a money-purchase (defined contribution) scheme, you must keep up your contributions to the scheme for the period of paid maternity leave. Your contributions must be based on the employee’s normal pay (i.e. the pay she would be receiving if she was at work).
However, the employee’s contributions must be calculated on the basis of the actual pay she is receiving rather than her normal pay. Reduced contributions on the employee’s part may of course reduce the amount of pension she ultimately receives.
You may therefore want to remind the employee that she can, if she wants to do so, top up her contributions to their previous level by paying in the additional amount to the scheme.
There is an argument that you should step in to ‘top up’ her contributions yourself. However, most employers do not do so, and the argument remains untested.
The new regulations will not impact on pension contributions, so these rules will stay the same.
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