C. The age of children who are beneficiaries of the scheme will be uniformly amended to go up to the age of 18. The age for children studying full time courses will be set at

Benefits in respect of daughters of serving officers on the existing schemes will remain the same. There will be no age limit for receiving benefits in respect of handicapped

children.

23.

The definition of a "widow" can be more flexible. In

certain special circumstances the Board of Directors may

exercise discretion in accepting those who originally did not meet the requirements for a benefiting "widow" as a beneficiary, depending on her financial dependence on the

deceased civil servant.

The British side opine that during the initial stage of

implementation of the above mentioned amended proposals, an

estimated $360 million will be needed to refund past

contributions by officers if single officers (about 32,000)

originally in the scheme opt out of it. In the long-term, Government expenditure will reduce. Financial expenditure for other proposed amendments will be negligible.

2. Amendment proposals for death gratuity:

Ex-gratia death gratuity will be provided in respect of deceased civil servants who die with less than two years of service. 3-months salary will be paid in respect of deceased civil servants with less than one year of service. 6-months salary in respect of those with more than a year of service but less than two years of service. This proposal will not cover civil servants who died previously.

The British side is of the opinion that if this proposal is implemented, the additional annual expenditure for the government will depend on the number of above-stated officers for that year. Based on calculations on the number

of such officers in the past two years, the annual

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