If your pension or lump sum payment is not made within one month, an interest payment is due on the late payment.
The lump sum payment includes mandatory payments or where you’ve elected to exchange your pension for a lump sum.
Interest is calculated based on the bank of England base rates from the date the payment was due to when it was actually paid.
A lump sum payment is due on the day after retirement.
A pension payment is due monthly in arrears.
If you're eligible for an interest payment, this will be automatically calculated after your award goes into payment. We’ll send you a letter confirming the due date of your payment and the actual payment date for which interest has been calculated for.
There is no timescale for interest payments to be made.