The Factor A is the amount by which your pension has grown in a given year, if you accrue pension through an employer. This number indicates how much pension growth you achieved that year and is shown on the Uniform Pension Statement (UPO) you receive annually from your pension provider.

The Factor A is important when calculating your annual margin. If you have accrued pension, the Factor A is used to reduce the annual margin, since you have already accrued pension through your employer. The higher the Factor A, the smaller the additional annual margin you can still use for tax-free pension accrual. You have to multiply the Factor A by 6.27 to get the total deduction.