This section relates to members who retire sometime after the Calculation Date at which the pension offset was initially calculated. Calculation of the pension offset for members who retired on or before the Calculation Date describes how to calculate the pension offset where members retired on or before the Calculation Date of the original offset.

This section sets out the method and instructions for calculating the offset to be applied at the point of retirement. In many cases this could be several years after the offset was initially calculated.

The pension / lump sum offset to be applied if the member retires at NPA is as follows:

Pension (or lump sum) offset at retirement at NPA = Pension (or lump sum) offset x INFL

Where:

Pension (or lump sum) offset = as calculated in Calculation of the pension and lump sum offset at the Calculation Date.

INFL = Pensions (Increase) Act (PI Act) increases between the Calculation Date and the date of retirement.

The pension / lump sum offset to be applied if the member retires before NPA (in normal or ill health) is as follows:

Pension (or lump sum) offset at retirement before NPA = Pension (or lump sum) offset x INFL x ERF

Where:

Pension (or lump sum) offset = as calculated in Calculation of the pension and lump sum offset at the Calculation Date.

INFL = PI Act increases between the Calculation Date and the date of retirement.

ERF = where the member retires in ill health the relevant early retirement factor should be used from Table B1. For all other cases the early retirement factors for retirement in normal health should be used. The early and late retirement factors guidance on how to apply these factors for members' pensions and lump sums should be followed in the same way when applying them for pension and lump sum offsets.

When applying the factors in Table B1:

• Where the number of years between retirement and NPA is not an integer, the factor should be interpolated for part years.
• To enable the relevant ill-health early retirement factor to be calculated for a member retiring within 12 months of NPA, the administrator should interpolate between the 0 years and 1 year factors for the relevant number of months that the member retires early.

The pension offset to be applied if the member retires after NPA is as follows:

Pension (or lump sum) offset at retirement after NPA = Pension (or lump sum) offset x INFL x LRF

Where:

Pension (or lump sum) Offset = as calculated in Calculation of the pension and lump sum offset at the Calculation Date.

INFL = the cumulative inflation increase between the Calculation Date and the April immediately before the date of retirement.

LRF = the relevant late retirement factor in Table C1. The relevant factor depends on the member's NPA and the duration between NPA and late retirement. Note that where the Calculation Date occurred after the member's NPA, the relevant late retirement increase should be calculated by dividing the factor at the member's actual retirement age by the factor at the member's age on the Calculation Date.

When applying the factors in Table C1:

• Where the number of years between retirement and NPA is not an integer, the factor should be interpolated for part years.