ANNEX
Discount Rate
Say 50% commutable amount is projected to be HK$8 million in 2002 money of the day. Discounted at 12% for 10 years this
would be:
Years
8.0
2002
7.14
2001
6.38
2000
5.70
1999
5.08
1998
4.54
1997
4.05
1996
3.62
1995
3.23
1994
2.88
1993
2.58
1992
M.
The 2.58 invested at 8% per annum would yield:
2.58
(could be converted to
Sterling ctc).
2.79
3.01
3.25
3.5
3.79
4.09
4.42
4.78
5.16
5.57
Years
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
lump sum
ie the pensioner would lose 31% of the value of his pension.
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