Currently there is no provision on the state pension claim form to claim deferred pension.  The effect of this is that the lump sum or increased pension has to be claimed separately on  another form that is only sent out when the pension claim for is received by the Pension Service.  This takes several weeks in my case about 2 months. 

The choice of extra pension or a lump sum should be made at the time that pension claim is made.

The other issue with the current procedure is that the lump sum or additional pension is calculated at the beginning of the processs.  No account is taken of the two months that it takes to process the payment so the interest included in the payment is short by the amount of time taken to process the lump sum or additional pension.   Combining the claim for pension and lump sum or additional pension would reduce the timscale and hence the unpaid interest.

Why is this idea important?

Processing two forms for what is basically the same claim is inefficient.  Any calculation that the pension service make for pension and deferred pension is based on the same data and would be better calculated at that same time.  One process instead of two would reduce the administration burden in the Pension Service

It is unfair that the deferred pension amount (lump sum or additional pension) does not include interest for the processing period of approx two months.  In my case this was paid after a complaint.  This again is an addition administartive burden on the Pension Service.

2 Replies to “Combine pension and deferred state pension claims”

  1. This is a good idea and it completely defies logic that the 2 components of the state pension scheme should be split rather than dealt with do the civil servants who decide these things think, are they from the same planet or just sitting at their desks counting their gilded pension rather than streamlining these systems for the good of pensioners and efficiency of the government.when I received a letter stating how my state pension is made up there was even a space to include deferred pension but it was completed as nil when I have a years deferral.its pathetic and another example of government for the government not the people.

    1. Thank goodness I found these two posts. I have just received a letter telling me I will receive the basic pension but as it has been deferred for five years I thought it should be considerably higher than the figure mentioned. When I claimed online I was puzzled there was no option to choose a lump sum payment or increased pension but jus assumed because my deferral was so obvious I would received something re this in short order. I am staggered that this double application requirement has been running for so long. It must be simpler for everyone to combine two operations.

      At least I now know it is a routine delay and I should not face a struggle to obtain the deferred payments.

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