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HMOCS Pensions and Compensation/Incentive Scheme

1.

1.1

1.2

1.3

Exploratory proposal, without commitment

HMG

assumes responsibility for HKG pensions and UK pensions increase for serving HMOCS, HMOCS pensioners and deferred pensioners.

Transfer of responsibility matched by transfer payment to HMG by HKG of capitalised current value of liabilities for basic pensions and HK pensions increases, and for widows and dependents pensions.

In parallel, HMG provides for complementary

compensation/incentive

terms.

arrangements,

in sterling

2.

Issues for Discussion

2.1

Timing of Transfer

Options : a) b)

1992

later date

Preference

December 1992

2.2

Coverage of Transfer

Options : a)

accrued

b)

Preference

2.3

benefits at time of

transfer include future service

Liabilities as accrued at date of transfer, based on salary at that date.

Treatment of Future Service if not covered by

Transfer

pensionable by HKG without

Options : a)

sterling protection

b)

gratuity-earning

non-pensionable but

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