New Pension Scheme
under the Pension Benefits Ordinance and
Regulations 1987
- 2
Old pension scheme
under the Fensions 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
Unreduced
annual pension
$72,000 x 450 x
1
675
= $48,000 p.a.
If he opts to commute 50% of his annual pension into a lump sum, he will receive
Commuted
pension
gratuity
=
$48,000 x 50% x 14
$336,000
=
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 390.x
1 600
=
$46,800 p.a.
If he opts to commute 25% of his annual pension into a lump sum, he will receive
Commuted pension gratuity
=
$46,800 x 25% x 14
$163,800
II.
plus
Reduced annual pension
= $48,000 x 50%
= $24,000 p.a.
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
Unreduced
annual
pension
=
Highest annual pensionable emoluments x
service in months x
800
(for service
prior to 1.4.87 and
675
for service as from 1.4.87)
(subject to a maximum of 2/3 of highest
pensionable emoluments)
Unreduced
annual
=
Highest annual salary x service in months x
1
1
800
allowance
for first 300 months service and
for service in excess of 300 months)
600
(subject to a maximum of 2/3 of highest annual
salary)