2. The Governor will have discretion to allow acting

allowances to be taken into account for pension computation

for those who have been acting in a higher rank for a

relative long period (more than 6 months). The British side

said the proposal will be applicable to an extremely few

people and will not apply retrospectively to retired

officers, and therefore will not have significant financial implications.

3. Other minor textual improvement, correction of omissions

and cross references are also to be introduced to the

pension legislation.

IV Proposed Pensioners welfare fund

One-off cash assistance for retired officers in genuine

hardship. The British side indicated that in each case the maximum amount to be given should not exceed HK$5000. estimated the annual expenditure will be between 200000 to

250000.

It is

V Proposed implementations of a War Service Credit Scheme.

Additional pension will be issued to officers who served in the Second World War between 3 Sept 1939 and 30 June 1950 and who have joined the civil service on or before 1 July 1950. The specific way to do it is to take half of their period of war service as service with the Government and use the same pension factor as specified in the existing Pension Ordinace to calculate pension. Sum total of additional pension under this scheme and his normal service pension will not exceed 2/3 of his salary while he was in the civil service. The British sides rough estimation is annual financial commitment is about $800000. However as the number of such eligible officers will decrease, the financial commitment will continue to decrease.

JG6AAA/5

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