CONFIDENTIAL
HMOCS Pensions
Illustration of the application of the proposal
Pa
Under the proposed arrangements, each pensioner will have a new sterling basic pension determined as at the date of election to join the new scheme.
This new base figure will include
(a)
his HK basic pension and accrued HK pension increases converted to sterling by reference to a fixed exchange rate to be agreed; and
(b) the amount of SPOS being drawn.
new
Thereafter, the pensioner will receive from HMG his sterling basic pension plus any UK inflation increases which may be payable. On its part HKG will pay to HMG the value of the pension plus any pension increases in HK dollars.
2.
For example, in respect of a pensioner in receipt of a basic pension of HKD12,800, accrued HK pension increases of HKD6,400 and a SPOS of 2200, his new sterling basic pension will be
(a)
1,700 if the exchange rate is fixed at
1
HKD12.8 (the average over the last 30
JJ
or
(12,800 6,400)
+
Z
2200
=
£1,500
+ #200
(HK penelen (converted to) (sterling
+ (SPOS)
*
£1,700
(b)
1,870 if the exchange rate is fixed at Z 1: HKD11.5 (the average over the last 20
years)
-
(12,800+ 6,400)
11
(HK pension
(converted to)
(sterline
2200
21,670 + 7200
+ (SPOS) = 21,870
CONFIDENTIAL
TO 398d
8:6 ST-IT 06.
ун
SNOН In09
000