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REPRESENTATIVES OF THE OFFICERS CONCERNED.
5. SUCH SCHEMES HAVE ALWAYS BEEN TAILORED TO THE PARTICULAR TERRITORY CONCERNED. IN THE SPECIAL CIRCUMSTANCES OF HONG KONG, WE ENVISAGE USING THE PRESENT HONG KONG GOVERNMENT LIMITED COMPENSATION SCHEME FOR SUPERCEDED OFFICERS AS THE BASIS FOR CALCULATING EACH OFFICER'S MAXIMUM POSSIBLE ENTITLEMENT.
6.
WE ENVISAGE PAYMENTS BEING PHASED OVER A PERIOD OF YEARS, SO AS TO GIVE OFFICERS AN INDUCEMENT TO CONTINUE THEIR SERVICE IN HONG KONG BEYOND 1997. WE WISH TO DISCUSS WITH HMOCS OFFICERS' REPRESENTATIVES WHETHER THE PERIOD OVER WHICH THE PHASING OF PAYMENTS WOULD TAKE PLACE SHOULD SPAN THE WHOLE OF THE OFFICER'S REMAINING CAREER IN THE HONG KONG PUBLIC SERVICE OR SOME LESSER PERIOD OF IT. WE CONSIDER THAT AN OFFICER SHOULD RECEIVE HIS MAXIMUM POSSIBLE ENTITLEMENT ONLY IF HE CONTINUES IN SERVICE UNTIL NORMAL RETIREMENT AGE OR, IF A LESSER PHASING PERIOD IS DECIDED ON, UNTIL THE END OF THAT PERIOD IF EARLIER.
7 WE CONSIDER THAT THE FIRST PAYMENT SHOULD BE MADE ON OR AFTER 30 JUNE 1998. IN ORDER THAT HMG SHOULD BE ABLE TO PLAN WITH A CLEAR IDEA OF THE COSTS INVOLVED, WE CONSIDER THAT IT WILL BE NECESSARY TO FIX AS THE BASE FOR CALCULATING PAYMENTS THE SALARY AS AT 30 JUNE 1991 OF THE GRADE IN WHICH THE OFFICER IS SERVING ON 30 JUNE 1997, CONVERTED INTO STERLING AT THE AVERAGE EXCHANGE RATE FOR 1991. HOWEVER THE DERIVED BASE VALUE COULD BE ADJUSTED ANNUALLY TO TAKE ACCOUNT OF THE MOVEMENT OF THE UK RETAIL PRICE INDEX.
8.
ANOTHER QUESTION FOR DISCUSSION IS THE PHASING ARRANGEMENTS, IE WHETHER THE FIRST AND SUBSEQUENT PAYMENTS SHOULD BE MADE ANNUALLY IN EQUAL PROPORTIONS OR WHETHER THERE SHOULD BE SOME SORT OF 'LOADING'. FOR EXAMPLE, TO INCREASE THE INCENTIVE TO CONTINUE IN THE PUBLIC SERVICE, THE PROPORTION OF TOTAL POSSIBLE ENTITLEMENT PAID IN EACH YEAR COULD INCREASE TO REACH A PEAK IN
THE FINAL YEAR.
9. IN THE CASE OF OFFICERS WHO ORIGINALLY SERVED ON CONTRACT TERMS, WE CONSIDER THAT THE COMPENSATION/INCENTIVE ARRANGEMENTS SHOULD APPLY ONLY TO SERVICE SINCE THE DATE OF AN OFFICER'S ENROLMENT IN HMOCS. (THUS IF AN OFFICER BOUGHT BACK' HONG KONG GOVERNMENT PENSION ENTITLEMENT FOR ANY YEARS PRIOR TO HIS ENROLMENT IN HMOCS, IT WOULD NOT AFFECT THE TOTAL DUE TO HIM UNDER THE SCHEME PROPOSED.)
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