An uplift is applied to 2007 or later entrants' (NPA 65 members) pensions when retiring from active service after age 65. A similar uplift applies to the NPA 65 pension of persons with mixed service. No uplift is applied to any Additional Pension, pre-2007 entrants' benefits, NPA 60 pension of persons with mixed service or for any retirements from deferred status (although a late retirement uplift is applied to any annual allowance pension debits of an NPA 60 member).

The benefits payable on late retirement are determined by applying the appropriate uplift factor to the relevant benefit entitlement at the date of retirement as follows. The factors are provided in Consolidated Factors Workbook.

Late retirement pension =

NPA 60 main scheme pension

+ Additional Pension

- Pension sharing on divorce pension debit(s)

- (Annual allowance pension debit(s) x Factor LR3)

Late retirement lump sum =

NPA 60 scheme lump sum

- Pension sharing on divorce lump sum debit(s)

- (Annual allowance lump sum debit(s) x Factor LR3)

Points to note in using the factors:

• Additional Pension and pension debits need to be revalued to the date of retirement.
• Late retirement factors should be selected from the appropriate table with reference to a member's age at retirement (in years and complete months).
• Where an annual allowance pension debit was implemented after age 60, an adjustment is required to the annual allowance pension debit line of the formula above. This adjustment is set out in the paragraph below.
• Factors should be applied before any lump sum commutation option is exercised.

Where the annual allowance pension/lump sum debit(s) was implemented after age 60, the debit(s) needs to be adjusted to allow for implementation after age 60 as follows:

(Annual allowance pension or lump sum debit(s) x Factor LR3 at retirement) / Factor LR3 at implementation date

Late retirement pension =

(NPA 65 main scheme pension calculated based on service to 65 x Factor LR1)

+ NPA 65 main scheme pension for service after age 65

+ Additional Pension

- (Pension sharing on divorce pension debit(s) x Factor LR2)

- (Annual allowance pension debits x Factor LR2)

Points to note in using the factors:

• Additional Pension and pension debits need to be revalued to the date of retirement.
• Late retirement factors should be selected from the appropriate table with reference to a member's age at retirement (in years and complete months).
• Where a member divorced after age 65, an adjustment is required to the pension sharing on divorce debit line of the formula above. This adjustment is set out in the next paragraph.
• Where an annual allowance pension debit was implemented after age 65, an adjustment is required to the annual allowance pension debit line of the formula above. This adjustment is set out in the last paragraph in this section..
• Factors should be applied before any lump sum commutation option is exercised.

Where the member divorced after age 65, the pension sharing on divorce pension debit(s) should be split into two elements relating to service before and after age 65. The split should be pro-rata to scheme service at the date of the pension sharing order. A late retirement uplift applies only to the debit relating to service before age 65. The formula above should be modified as follows:

[[(Pension sharing on divorce pension debit relating to service before age 65 x Factor LR2 at age of retirement) / Factor LR2 at age of pension share]

+ Pension sharing on divorce pension debit pension relating to service after age 65]

Where the annual allowance pension debit(s) was implemented after age 65, the debit(s) needs to be adjusted to allow for implementation after age 65. The formula above should be modified as follows:

(Annual allowance pension debit(s) x Factor LR2 at retirement) / Factor LR2 at implementation date

Members with mixed service have both NPA 60 pension and NPA 65 pension. Their NPA 60 and NPA 65 pension should be considered separately for the purpose of calculating a member's late retirement pension.

For members with mixed service who are retiring after age 65:

• their NPA 60 late retirement pension should be calculated using the guidance in the section Pre-2007 entrants (NPA 60 members) retiring after age 60; and
• their NPA 65 late retirement pension should be calculated using the guidance in the section 2007 or later entrants (NPA 65 members) retiring after age 65.

Members with mixed service who are retiring before age 65 will have their NPA 65 benefits reduced for early payment, as they will be taking their benefits before NPA. In this instance:

• their NPA 60 late retirement pension should be calculated using the guidance in the section Pre-2007 entrants (NPA 60 members) retiring after age 60; and
• their NPA 65 early retirement pension should be calculated using the "Early retirements in normal health" guidance.