Members of nuvos who continue in active service after their NPA will have their benefits increased for late payment. This is done by an 'age addition' that is added to the member's account on each scheme anniversary (1 April) where the member remains in active service after NPA. An age addition (assumed age addition) is also awarded on the date that the member leaves active service, where this is after NPA.

In order to calculate the appropriate age addition for a scheme year, a percentage is applied to the 'opening balance' of the relevant description of accrued pension for the previous scheme year.

Where the age addition is awarded on a date other than a scheme anniversary (i.e. because they have left active service during a scheme year), the (assumed) age addition should be the amount which would have been awarded at the following scheme anniversary, allowing for the proportion of the scheme year that the member was an active member who had reached NPA. Therefore, the 'opening balance for the previous scheme year' referred to above is actually the opening balance for the current scheme year.

For example, to calculate an age addition to be applied on 1 April 2025 a percentage is applied to the opening balance of pension for the year 2024-25, not the opening balance for the year 2025-26. The opening balance for 2024-25 can be thought of as the balance at 31 March 2024.

An age addition awarded on 25 July 2025 would be calculated by applying a percentage to the opening balance of pension for the year 2025-26.

The 'opening balance' is as defined in the nuvos scheme rules. We understand that the opening balance on a given scheme anniversary includes the opening balance at the previous scheme anniversary, indexation on the opening balance (at the previous scheme anniversary), earned pension applicable over the previous scheme year and any age addition awarded on the previous scheme anniversary.

The age addition is added to the member's account on the scheme anniversary but after the indexation has been determined on the opening balance for that year. So at 1 April the indexation on the opening balance at that date is determined first and added to the account and then the age addition amount (based on the opening balance for the previous scheme year) is added.

The age addition percentage applicable to the member's relevant opening balance is derived from unisex factors.

For the member's first age addition after passing NPA the appropriate factors are based on the member's age at the first scheme anniversary after NPA and the member's NPA.

The percentage used to calculate the first age addition is derived as follows:

Age addition percentage =
[(Factor at age at first scheme anniversary after NPA) / (Factor at age at NPA)] - 1

Where:

Age addition percentage is applied to the opening balance (of the relevant accrued pension) for the previous scheme year.

Factors are taken from:

• table P1AANUV1 for descriptions of accrued pension where a contingent spouse's pension is payable,
• table P1AANUV2 for pension where no contingent spouse's pension is payable e.g. contributed (self only) pension,

and the member's age is that at the relevant date in complete years and months with part months ignored.

For subsequent age additions the appropriate factors are based on the member's age at current scheme anniversary and the member's age at previous scheme anniversary.

The percentage used to calculate subsequent age additions is derived:

Age addition percentage =
[(Factor at age at current scheme anniversary) / (Factor at age at previous scheme anniversary)] - 1

Where:

Age addition percentage is applied to the opening balance (of the relevant accrued pension) for the previous scheme year.

Factors are taken from:

• table P1AANUV1 for descriptions of accrued pension where a contingent spouse's pension is payable,
• table P1AANUV2 for pension where no contingent spouse's pension is payable e.g. contributed (self only) pension,

and the member's age is that at the relevant date in complete years and months with part months ignored.

Where a member who is over their NPA leaves active service part way through a scheme year (either to become a deferred member or to retire) then an assumed age addition is added to the member's account at retirement/leaving date to reflect the period between the previous scheme anniversary and date of leaving/retirement. There will also be an assumed age addition if a member passes NPA and at a later date within the same scheme year leaves or retires.

The assumed age addition is calculated similarly to the age addition described above, except that the appropriate factors are based on the member's age at deferment or retirement and the greater of member's NPA or age at previous scheme anniversary.

The percentage used to calculate the assumed age addition is derived:

Assumed age addition percentage =
[(Factor at age at date of leaving/retirement) / (Factor at age at previous scheme anniversary or NPA if later)] - 1

Where:

Assumed age addition percentage is applied to the opening balance (of the relevant accrued pension) for the current scheme year (i.e. this is the same opening balance as would have been used had the member remained in service until the next 1 April).

Factors are taken from:

• table P1AANUV1 for descriptions of accrued pension where a contingent spouse's pension is payable,
• table P1AANUV2 for pension where no contingent spouse's pension is payable e.g. contributed (self only) pension,

and the member's age is that at the relevant date in complete years and months with part months ignored.

A member who leaves active service after NPA but does not retire immediately receives an age addition in respect of service up to leaving active service and also a late payment supplement in respect if the period from their leaving date to their eventual retirement date.

The following points should be noted:

• Age additions and assumed age additions are calculated before the commutation option is exercised.
• The age additions and assumed age additions applied to the member's pension should also apply to the contingent partner's pension (where one is payable).

The following table sets out more detail of the calculation of the age addition and assumed age addition, including the treatment of the year in which the member attains NPA and the year of retirement and how the age addition calculation should be done where it covers a period in which factors are updated. It shows the calculation method for a member reaching their NPA of 65 years on 1 September 2021, before retiring on 15 August 2023 at age 66 years 11 complete months.

Our understanding is that Pension Credit pensions should not receive any increase on late retirement.

Our understanding is that Pension Debit pensions should be treated in the same way as a deferred member's pension. Therefore, on late retirement they should be increased by a late payment supplement, not an age addition. Please refer to Late payment supplements - nuvos scheme.

This guidance does not cover the adjustments to apply to scheme pays debits on early or late retirement. Please refer to separate guidance on scheme pays debits.

Added pension for nuvos members in service should receive age additions as described above.