Deferred pensioners who become entitled to benefits after reaching State Pension Age receive a late payment supplement in addition to their deferred pension.

The late payment supplement applying to each amount of deferred pension (i.e. earned, added (self only) and added (all beneficiaries)) can be calculated using the following formula:

Late payment supplement = Deferred pension x F_C

where:

Deferred pension is taken from the relevant deferred account at the date of retirement and should include transferred in pension.

F_C is the late payment supplement factor from Table C (Table 405 in the consolidated factors workbook), chosen by reference to the number of years and complete months from the member's SPA at the point of retirement.

If the member became a deferred pensioner after reaching SPA, then the late payment supplement factor directly above should be chosen by reference to the number of years and complete months between the date the member left active service and the point of retirement.

For the avoidance of doubt, do not deduct any commutation amount from the amounts of deferred pension prior to carrying out the calculation above.

The member's annual rate of full retirement pension at retirement is then calculated by adding the late payment supplements to each amount of deferred pension specified in the deferred member's account (together with any reductions for commutation).