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The "factor" ranges from 0.7 to 2.6 according to a member's length of continuous superannuable service, his terms of service, and to the circumstances giving rise to the cessation of his membership of the Scheme. Details are shown in the table at Regulation 7.2(a) annexed. As an alternative to a lump sum benefit, a member may purchase a pension annuity from the Scheme, although as far as we know no member has done so.
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. This clause declares the University's intention of compensating 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 the immediately preceding financial year of the Scheme Fund, which ends on 31 December in each year.
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)
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 (i) and (ii) above.
The currency exchange index at present adopted by the University is the trade-weighted exchange rates index published daily by the Government. The actual calculation of the amount of supplementary payment is done having regard to the difference between "the greatest value of the product : salary x currency exchange index as at 1 April in any year of service since 1 April 1982" and "the product of the calculation: salary x currency exchange index at the date of cessation of membership". No compensation is payable if the product calculated on the date of cessation of membership is equal to, or greater than, the highest product.
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