A full actuarial valuation involving an analysis of experience under the present scheme, an assessment of the value of the pension arrangements and the possibility of switching to a funded scheme and/or a more explicit charging system for superannuation cost, would involve additional work. The cost of this additional work would probably be in the range from £4,000 to £7,000.
A full actuarial investigation could include an analysis of the demographic experience of Hong Kong civil servants over recent years, an assessment of contribution rates required to purchase future benefits and consideration of steps required to alter the financing mechanism from the current pay-as-you-go basis. All these calculations could be done separately from the widows' and the children's pension scheme and for the main pension scheme.
Obviously it is difficult for GAD to give a precise estimate of the cost without having details of the scope of the work which you envisage and confirmation of the form in which data would be provided. However, I hope that the approximate figures given above will be of some help to you in deciding whether you want to go ahead with the proposed valuation and which of the suggested projections you would require.
May I suggest that you contact Mr Roy Foster in GAD directly to discuss the matter in more detail? Mr Foster was responsible for the previous work undertaken by GAD for Hong Kong and is already familiar with the work required. He will also be able to help you with the query in the second paragraph of your letter about what income it was assumed would be generated from the funds set aside in the 1984 valuation.
GAD's address is 22 Kingsway, London, WC2B 6LE, their telephone number is 071 242 6828 and their fax number is 071 831 6653. We would of course be happy to help in any way we can and would be interested to see the results of any valuations which might be undertaken.
foot sincerely),
دراسات الاهلية
Bridget Paris
Hong Kong Department
CC Mr Ballantine, GAD
Mr Foster, GAD