CONFIDENTIAL
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4.
The number of serving HMOCS members as at 1.7.97 will also be affected by normal wastage ie. retirements and resignations beforehand. ΤΟ take into account retirements, Administrative Officers who will be 57 or above by 1.7.97, Police who will be 55 or above by 1.7.97 and other officers who will be 60 or above by 1.7.97 are marked by 'x' in Annexes A and B. For resignations, we have assumed the following wastage rates in the estimate of compensation costs in January 1990 :
Serving HMOCS members : : ) 1.4% p.a. for AOs
)
0.9% p.a for Police and others
Potential HMOCS members :
)
12.3% p.a. for Police
}
0.9% p.a. for others
5.
I confirm that individual compensation factors quoted in October 1988 are those set out in table I(b) of the Limited Compensation Scheme. ie. officers with a retirement age of 60 (on the New Pension Scheme) who are superseded for promotion and retire voluntarily. As officers still have the option to join the New Pension Scheme (NPS) or stay in the Old Pension Scheme (OPS), we have assumed, for the purpose of costing of compensation, that all officers are on the NPS and table I (b), which represents the more expensive scenario is used. practice when compensation is paid to individual officers, table OPS and table
NPS.
In
I (a) should be used for officers on the I (b) should be used for officers on the
6.
In
our initial discussion of the general compensation scheme, your predecessors pointed out that compensation should be based on 'voluntary' factors since under the terms of the Joint Declaration we would not accept the argument that officers were compelled
to retire upon the transfer of sovereignty in 1997 (Telno 563 of 27.2.87 refers). We agreed that the compensation factors in tables I (a) & (b) are more appropriate than those in tables II (a) & (b). However, staff may argue that the former factors are inappropriate because officers who leave the service voluntarily under GCS would not normally get their deferred pension until their statutory retirement age whilst those who retired voluntarily under LCS on grounds of supersession for promotion can get their pension gratuity immediately and their monthly pension 5 years before they reach their normal retirement age. You may wish to consider whether the compensation factors in table I(a) and (b) should be adjusted to take into account this latter point.