Purchase of Additional Annual Leave
The purchase of additional annual leave scheme has been introduced as a staff benefit to increase the flexibility of planned time off. This scheme is available to most staff, excluding staff employed by locally managed schools.
Salary Sacrifice Arrangement
Additional leave is treated as a salary sacrifice arrangement and varies the terms and conditions of your employment for the duration of the agreement. You agree to reduce your gross pay by the value of the additional annual leave days purchased and in turn we will provide up to 10 days additional leave each year, subject to the operational requirements which must remain the priority.
Once the additional annual leave purchased is paid for in full, your terms and conditions of employment i.e. salary will revert back to those prior to the salary sacrifice arrangement.
Before submitting your application to purchase additional annual leave you need to understand that:
- The decision to allow you to purchase additional leave is entirely at our discretion
- You will need to specify the dates you wish to purchase
- If your application to purchase additional leave is approved, your salary will be reduced through a salary sacrifice scheme with monthly deductions that will run until the end of your leave year
- By taking part in this scheme your eligibility for statutory payments and benefits e.g. Working Tax Credit, Child Credit, Statutory Maternity/Paternity and Adoption Pay could be affected
- All additional leave purchased must be used by the end of your annual leave year in which the request was made
- All additional leave purchased, whether a single amount of 10 days or multiple amounts, must be paid for within the same annual leave period it is purchased for
- Once purchased, leave cannot be 'sold back' to us
- As a result of receiving a reduced salary you will pay reduced pension contributions for the period of the salary deductions
- You can apply to buy back lost pension by electing to pay additional pension contributions
This scheme applies to most of our employees, excluding staff employed by locally managed schools.
You will need to:
- Have completed 12 months' continuous service at the time of making the request and completed the probationary period satisfactorily;
- Have a contract of employment for the duration of the term of the salary sacrifice agreement; and
- Have a gross salary above the national living wage threshold, after taking into account all salary sacrifice for the duration of the term of the salary sacrifice agreement
If you wish to purchase additional leave you are encouraged to discuss your request informally with your line manager at the earliest opportunity so that the impact on the work in your area can be assessed in time for a formal submission to be made. You should also consider the financial implications of the monthly deductions from your salary.
Applications to purchase additional leave can be made at any time from the start of your annual leave year. Deductions from pay will be spread over the remaining annual leave year commencing from the first available pay period after approval.
It is important that you understand that:
- There is no automatic entitlement to purchase additional leave
- Only full days leave can be taken
- The amount will be deducted from salary as a salary sacrifice scheme
- In the event of you leaving employment, we will recover any outstanding balance from your final salary or wage payments
- Additional leave is not pensionable so members of the LGPS will lose the equivalent days of pensionable service
- A separate request must be made for each leave year
Your Line Manager will:
- Treat all applications equally
- Assess your request for purchasing additional annual leave and consider the operational feasibility of granting the request, including ensuring that the additional leave can be accommodated within your leave year
- Ensure proper management of your leave throughout your leave year in order to ensure that all additional annual leave is taken prior to the end of your leave year
- Advise you of the outcome within 14 calendar days
- Forward the application for additional leave to the Absence Team for processing
The Absence Team will:
- Calculate the cost to you of purchasing the additional annual leave based on your salary as at the point the additional leave request is agreed by your line manager.
- Notify you of the total cost to you of purchasing the additional annual leave
- Detail the monthly deductions to be made and advise what month the deductions will start and end
- Inform you of the process to purchase the 'lost' pension
Once your application has been approved your annual leave entitlement will appear on My View.
You will need to request the additional annual leave through My View as per the normal annual leave application process.
Where an application is not supported you may ask for a review of the decision.
This can be requested in writing to the Assistant Chief Executive, People Management, Building 4, St. David's Park, Jobswell Road, Carmarthen, SA31 3HB detailing your grounds for requesting the review.
Once an application has been approved and the first deduction made from your pay, the agreement becomes binding and cannot be withdrawn before the final deduction is made.
By purchasing additional leave you receive a reduced salary and will pay reduced pension contributions. You can request to buy lost pension by electing to pay additional pension contributions, but this is not compulsory.
The Absence Team will notify you once your application is approved and will provide the pensionable pay figure. If you want to buy your lost pension, you must apply within 30 days of getting your application approved. The cost and an application to buy lost pension can be found on the lgps website.
If you apply within 30 days of approval the cost will be split 1/3 employee and 2/3 employer. If the application to buy lost pension is made after 30 days of approval, the full cost will be met by you.
Buy Lost Pension guidance
The application to buy lost pension is quite straight forward, but here are some helpful points if you have any problems:
- Lost pensionable pay figure can be found in section 4 of you approved annual leave application form
- Reason for absence is authorised unpaid leave
- 30 day override can be left blank if you are applying within 30 days of approval, but must be ticked if more than 30 days have passed since approval
- Method of payment will be lump sum deduction
- Leave years you wish to pay over and frequency blank
Once you have got a result we recommend you print the quote for your records. Then proceed to complete the application, print and sign the form and send to The Absence Team, People Services, Carmarthenshire County Council, Building 4, St. David’s Park, Jobswell Road, Carmarthen, SA31 3HB.
If you require any help to complete the buy lost pension application please call extension 6169
Taking part in a salary sacrifice scheme may affect your eligibility for statutory payments and benefits e.g. Working Tax Credit, Child Credit, Statutory Maternity/Paternity and Adoption Pay could be affected.
If you are in receipt of these benefits and are thinking of purchasing additional annual leave, please contact your benefits provider first to understand how the scheme could affect you.
Page updated: 13/07/2020 11:30:57