This note is provided for the Ministry of Defence (MOD) as scheme manager of the Armed Forces pension arrangements and sets out how to determine the appropriate late retirement factor to be applied to a member's benefits when retiring late from active service in normal health for eligible members of AFPS15.

This note covers in-service late factors for retirements in normal health only for eligible members of AFPS15. These factors are not applicable to AFPS05 and AFPS75 and other legacy schemes.

These factors should only be used to adjust AFPS15 pension in the following circumstances:

• The pension is paid later than the earliest age at which it is payable without reduction and;
• the member is in service for the period over which the payment is delayed.

If the member is not in service over the period of delay then the general late retirement factors should be used instead. Please see the GAD guidance entitled "Armed Forces Pension Arrangements: Early and late retirements in normal health: Factor guidance".

These factors should not be used to adjust pension debits or credits, or to adjust Annual Allowance offsets. Please see the separate guidance regarding these factors.

The Consolidated Factors Workbook contains the relevant factors for use in in-service late retirement calculations. The table to use for in-service late retirement calculations is table 402.

The following changes have been made when reviewing this guidance:

• Important information around the expected audience for the guidance, use of the guidance, review of factors, compliance and limitations applies across all sets of guidance. Rather than being repeated in each set of guidance, this can now be found on the scheme home page. It is important to read this information alongside the guidance.
• Calculation methodology: No changes have been made to the calculation methodology.
• Examples: There are no examples in this guidance. Worked examples, using the calculation methodology, can be found in prior versions of the guidance (though please note that these use historic factors).
• Factor tables: The "Factor Tables" tab contains the names of the tables that are referenced in the calculation methodology. The tables of factors themselves can be found in the most recently published "Consolidated Factors Workbook" which is available by clicking the "Download current Consolidated Factors Workbook" button on the scheme's home page.
• Assumptions: The key assumptions underlying the factors in each note are contained in the Consolidated Factors Workbook.
• Regulations: The regulations that require the production of the actuarial factors and/or guidance that is the subject of this note are summarised in the "Regulations" tab.