MALAWI LOANS
ANNEX 5
No data is available of the proportions of Malawi recurrent pensions or commuted pension gratuities for post 1.4.61 retirements which relate to OSAS or pre-Independence service. Since OSAS was introduced at the same time as in the case of Tanganyika there is no reason to suppose that the OSAS share would differ from the Tanganyika proportion. Since Independence was achieved two years later it is reasonable to assume that the average pre-Independence share of pensions is greater than in the case of Tanganyika
by (say) 2%.
Malawi have drawn £1 m. on the loan and the estimated calculations are therefore:-
Total value of commuted pension gratuities covered
by loan drawings
£1,093,000
Amount for which HMG would be responsible under new
formula. 87% of £1,093,000
£ 951,000
?