3.
(c)
code where their normal retirement age is 60, but they have the option to retire at 55". The Scheme in Annex A distinguishes the two sets of factors as "retirement age 55" and "retirement age 60" but the rest of the words are also important.
We heard in February 1986 (Tel No 519) that it was proposed to recommend early retirement arrangements for the Disciplined Services though the arrangements remained to be determined at that time and, although we became aware of the details from Tel No 1549 of 21 May
out on 1986, the compensation factors sent
29 May 1986
were not modified to allow for this change.
new
Thus I think that the compensation to a member of the
transferred to the new Disciplined Services who has
code and is then required to retire should be calculated from the "retirement age 60" factors. As explained in my letter of 8 April 1986 to Mike Power following the meeting in FCO with Keith Shipley on 24 March 1986, the retirement pattern assumed for those transferring to the new code was arbitrary. A copy is attached in case you have difficulty in tracing it. I do not think that it would be sensible to review these assumptions until there is some experience of the age at which officers who transfer to the code retire and also the distribution, between Disciplined Services and Administrative Officers, of those receiving compensation under the Limited Compensation Scheme. In analysing this experience, the actual age of retirement would be used for members of the Disciplined Services who retire at a prescribed retirement age before 60 rather than the age at which they might like to have retired. However, in calculating the compensation, allowance would be made for the fact that some of the members of the Disciplined Services retiring before 60 receive an enhanced
to retire. pension because they have no option but
4. To "cut a long story short", I confirm that the application of the actuarial tables in the circumstances set out in Tel No 276 of 20 January 1988 is in order.
Yours sincerely
do
RT FOSTER