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officer's maximum possible entitlement the scheme should use actuarial factors abated by a proportion to be decided after consultation with representatives of HMOCS officers.
wari
Different actional factors would apply to officers on the old and new pension schemes and to Judicial Officers, who have a later retirement age. However the scheme should not
in our view be more generous than the present Hong Kong Government limited compensation scheme for superseded officers.
6.
HMG envisage payments being phased over a period of years, in accordance with previous practice in other former dependent territories, so as to give officers an inducement to continue their service in Hong Kong beyond 1997. We wish to discuss whether the period over which the phasing of payments would take place should span the whole of the officer's remaining career or some lesser period. Payments will only be made for actual post-1997 service. Only if an officer continues in service until normal retirement age or, if a lesser phasing period is decided, until the end of that period if earlier, should he receive the maximum possible entitlement.
7. The first payment should be made on or after 1 July 1997. In order that HMG should be able to plan with a clear idea of the costs involved, it will be necessary to fix as the base for calculating payments the April 1992 salary of the grade in which the officer is serving on 30 June 1997, converted into sterling at the average exchange rate for the first 6 months of 1992. 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 consultation 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
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