As a result of the COVID-19 outbreak, employees who are members
of a pension scheme may be absent from work for a temporary period,
be put on reduced hours, be subject to temporary lay-off, have
their salaries reduced or seek to go on some form of statutory
leave. Examples of the situations that may arise include: the
employer's business being temporarily closed, employees
contracting COVID-19 or caring for a family member who has
contracted the virus, or employees being required to self-isolate
having travelled to an affected region or having come in contact
with an infected person.
The treatment of employees from a pension perspective will
differ depending on whether the member is in a defined contribution
("DC") or defined benefit ("DB") scheme. The
issue of contributions and whether they should continue is an
immediate one in a DC scheme, whereas in a DB scheme the primary
issue relates to whether the member is still in pensionable
service.
