XCCI (85)20
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Upon the cessation of membership of the Scheme for any reason other than death, to which a slightly different formula will apply, a member shall be entitled to a Guaranteed Benefit, calculated according to the following formula:
Guaranteed Benefit - - Factor x Final Month's
!
Salary x Number of Years of Continuous Superannuable Service
The "factor" ranges from 0.7 to 2.6, according to a member's length of continuous superannuable service, his terms service, and to the circumstances giving rise to the cessation of of his membership of the Scheme. Details are shown in the table at Regulation 7.2(a) at Annex A. As an alternative to a lump sum benefit, a member may purchase a pension annuity from the Scheme although no member has done so.
Currency fluctuation protection
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In April 1984, the Council of the HKU approved the inclusion of a Currency Fluctuation Clause in the Regulations of the Scheme as set out in Regulation 7A at Annex A. This clause declares that it is the intention of the University to compensate members of the Scheme in the event of major currency fluctuations affecting the relative values of their Guaranteed Benefits. In such an event, supplementary payments may be made from the Scheme Fund to those members who have become entitled to their Guaranteed Benefits upon cessation of membership occurring in
in the immediately preceding financial year of the Scheme Fund, which ends on 31
31 December in each
year.
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In determining the amount of supplementary payment which may be made to any such member the Council of HKU takes into account the advice of their Actuary. In formulating his advice, the Actuary takes into consideration
(a) the member's salary at the date of
termination of his membership of the Scheme,
(b)
(c)
and
the member's salary at the date of each previous salary revision occurring on' or after 1 April 1982, and
the values of an appropriate currency exchange index on each of the dates referred to at (a) and (b) above.