• 3
New Pension Scheme
under the Pension Benefits Ordinance and
Regulations 1987
If he opts to commute 50% of annual pension into a lump sum, he will receive
Old pension scheme under the Pensions Ordinance and Regulations, Cap. 89
If he opts to commute 25% of annual allowance into a lump sum, he will receive
Commuted pension
=
Unreduced annual pension x 50% x 14
gratuity
Commuted annual allowance gratuity
= Unreduced annual allowance x 25% x 14
plus
plus
Reduced annual pension
- Unreduced annual pension x 50%
Reduced annual allowance
= Unreduced annual allowance x 75%
Example
A Category B officer retiring at the age of 60 after completing 450 months' service, 200 of which was prior to 1.4.87, with a highest annual salary of $36,000 -
Unreduced
annual pension
=
$36,000 x (200 x
1
800
+ 250 x
1 675
>
=
$22,333 p.a.
Example
A Category B officer retiring at the age of 55 after completing 390 months' service, with a highest annual salary of $36,000
Unreduced
= $36,000 x (300 x
1 800
+ 90 x
1
600
>
annual
allowance
$18,900 p.a.
If he opts to commute 50% of his annual pension into a lump sum, he will receive
>
-
Commuted pension gratuity
$22,333 x 50% x 14
=
$156,331
=
plus
Reduced
annual pensi
$22,333 x 50%
= $11,167 p.a.
If he opts to commute 25% of his annual allowance into a lump sum, he will receive
Commuted
annual allowance gratuity
plus
Reduced annual allowance
-
$18,900 x 25% x 14
= $66,150
=
$18,900 x 75%
$14,175 p.a.