New Pension Scheme
under the Pension Benefits Ordinance and
Regulations 1987
2
Old pension scheme under the Pensions Ordinance
and Regulations, Cap. 89
Example
A Category A officer retiring at the age of 60 after completing 450 pensionable months' service on 100% pensionability, with a highest annual salary of $72,000 -
Example
A Category A officer retiring at the age of 55 after completing 390 months' pensionable service on 100% pensionability with a highest annual salary of $72,000
Unreduced
annual pension
= $72,000 x 450 x
1
675
=
$48,000 p.a.
Unreduced
annual pension
=
$72,000 x 390 x
1. 600
= $46,800 p.a.
If he opts to commute 50% of his annual pension into a lump sum, he will receive ·
-
$48,000 x 50% x 14
If he opts to commute 25% of his annual pension into a lump sum, he will receive
Commuted
$46,800 x 25% x 14
II.
Commuted
pension
gratuity
=
$336,000
plus
Reduced annual pension
$48,000 x 50%
=
$24,000 p.a.
pension
gratuity
= $163,800
plus
Reduced annual pension
= $46,800 x 75%
= $35,100 p.a.
For Category B officer (i.e. officer occupying non-established office, or occupying an established office but not confirmed therein) retiring from service after completion of 10 years' service or more
Highest annual pensionable emoluments x service in months x (for service
Unreduced
annual
pension
675
prior to 1.4.87 and
800
for service as from 1.4.87)
(subject to a maximum of 2/3 of highest
pensionable emoluments)
Unreduced
annual
allowance
=
Highest annual salary x service in months x
1
1 ( for first 300 months service and
800 for service in excess of 300 months)
600
(subject to a maximum of 2/3 of highest annual
salary)