hertfordshire Pensions logo
HCC main logo

Working Past Age 65

As you may already be aware by working past age 65 your pension benefits receive an actuarial increase applied to the pension benefits you have built up when you belatedly take your benefits to recompense you for the pension being paid for a shorter period.

The Government Actuary Department have now issued revised factors for those who delay their retirement beyond age. These changes come into effect from 4 January 2017 and are significantly reduced from those in place previously.

The factor for actuarial increase has been reduced from 0.014% to 0.01% for annual pension (for each day worked past SPA) and from 0.007% to 0.001% in respect of lump sums. Actuarial increases for late retirement are calculated based on the factors in force at the ultimate date of retirement, therefore after 4th January this change will apply to all days worked past age 65. This will result in a reduction in the additional pension earned prior to 4th January if a member retires after this date.

Below is an example comparison of the actuarial increases earned by a member whose pension was due into payment on 31/12/2015 but who had delayed their retirement by 1 year, and by 1 year and 1 month in example B (notional values used for example). This illustrates the overall reduction in actuarial increases as a result of the new factors being used in the calculation for a member retiring after 4th January 2017.


Example A


Basic Value

Calculation under existing Factors

Increase for Late Retirement

Annual Pension


365 days x 0.014% x £11,000


Lump Sum


365 days x 0.007% x £25,000



Example B


Basic Value

Calculation under post 4th January 2017 Factors

Increase for Late Retirement

Annual Pension


395 days x 0.01% x £11,000


Lump Sum


395 days x 0.001% x £25,000


Please note that these new factors will come into effect from 4th January and will apply to all the benefits that have been delayed beyond age 65, for some members this could be a significant reduction.

If you wish to discuss the impact this will have on your own pension benefits please contact the Herts LPP Team on 0300 323 0260 or email AskPensions@localpensionspartnership.org.uk


The LGPS has changed from 1 April 2014


If you are paying into the Local Government Pension Scheme (LGPS), you’ll automatically be in the new scheme from 1 April 2014. If you’ve retired or leave before then, there’s no change to your pension.

A 'Changes to the Scheme' leaflet has been created which highlights the main changes to the scheme. The tabs on the left hand side provide further detail. Or why not take a look at this quick video outlining the key changes to the scheme.


Myth Busting!

A number of myths are circulating regarding the LGPS and in particular surrounding the reality of what the changes from April 2014 mean for members. These myths include:

  • The cost of the scheme will increase
  • A career average scheme isn’t as good as a final salary scheme
  • There is no tax-free cash lump sum
  • Members have to work longer before drawing their pension
  • Membership built up before April 2014 is affected by the changes.

The information in the 'Myth Busters' leaflet sets out the facts about the new scheme and dispels the myths above.


Site administered by LPP for Hertfordshire County Council | © LPP 2019
Local Pensions Partnership | 2nd Floor, 169 Union Street, London SE10LL