CODE 18-77

Mr Fifoot

CONFIDENTIAL

HKA 233/

201

Reference

HONG KONG HMOCS: EXAMPLES OF PROPOSED COMPENSATION PAYMENTS

1. I have prepared below some examples to give you an idea of what certain HMOCS officers would receive as a first payment under our proposed compensation scheme. I have used the actuarial factors for someone retiring at 60. If the officers remained on the old pension scheme and retired at 55 the factors would be slightly different. The 1.88 factor would become 1.74. The 2.92 factor would become 3.04.

Administrative Officers

Administrative Officers, Staff Grade C

Maximum salary as at 1.7.91: HK$828,600.00 pa.

Example 1

Age in 1997: 45

Length of service: 10 years or more.

and

Compensation payment due (assuming no promotion, using factor taken from table 1B of HKG Scheme, ie officers with a retirement age of 60 who are superseded for promotion]:

HK$ 828,600 x 1.88

*

HK$ 1,557,768.00

Likely first payment (20%): HK$ 311,553.60

= £23,965.66 (Exchange rate used in all

Example 2

examples: HK$ 13:£1)

Age in 1997: 35

Length of service: 10 years or more.

Compensation payment due:

HK$ 828,600 x 2.92 = HK$ 2,419,512.00

Likely first payment (20%): HK$ 483,902.40

= £37,223.26

SISABX

CONFIDENTIAL

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