auro adeocari COSTINGS
: Lerien
ANNEX B
Costings need to be carried out for three possible variations of
schemes: a classic General Compensation Scheme: a compensation
scheme based on ten annual payments of 10% of the compensation that
would have been payable under a classic scheme starting in 1997 to officers who remain in service for those years; and a compensation/
incentive scheme based on a payment in 1997 of 50% of the then
annual salary plus further payments of 25% of annual salary for up to nine years (if continued service). For each variation, the best,
median and worst case senarios set out in Annex A need to be
covered..
SAT
For the purposes of these calculations, current (April 1990) Hong
Kong salaries are used. This effectively assumes that salaries do
no more than keep pace with inflation.
Classic General Compensation Scheme
This would involve compensation for loss of career and early payment
of pension. Compensation would be actuarily calculated. We
consider that HMG would have to meet the early payment of pensions
until the officers became of pensionable age when the SARG would
take over.
The costs thus are:
Best case scenario
£
តា
million
Median case scenario
£
million
Worst case scenario
£ million
Compensation Scheme based on ten payments of 10% compensation
This scheme involves only compensation - no early payment of
pension. The compensation would be based on acuarial calculations. One payment of 10% of the full compensation that would have been
payable in a classic scheme would be paid in 1997 - to compensate
for the loss of the Secretary of State's protection. A further nine
annual payments of 10% of compensation would be available for those
BATAHA
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