New Pension Scheme
under the Pension Benefits Ordinance and
Regulations 1987
2
-
Old pension scheme under the Pensions Ordinance
and Regulations, Cap. 89
Example
A Category A officer retiring at the age of 60 after completing 450 pensionable months' service on 100% pensionability, with a highest annual salary of $72,000
Example
A Category A officer retiring at the age of 55 after completing 390 months' pensionable service on 100% pensionability with a highest annual salary of $72,000 -
Unreduced =
$72,000 x 450 x
1
675
annual pension
= $48,000 p.a.
If he opts to commute 50% of his annual pension into a lump sum, he will receive
Commuted
$48,000 x 50% x 14
pension
gratuity
= $336,000
plus
Reduced annual pension
$48,000 x 50%
$24,000 p.a.
Unreduced
annual pension
1.
$72,000 x 390.x
600
$46,800 p.a.
If he opts to commute 25% of his annual pension into a lump sum, he will receive
Commuted
=
$46,800 x 25% x 14
pension
gratuity
= $163,800
plus
II.
Reduced
annual pension
$46,800 x 75%
==
$35,100 p.a.
For Category B officer (i.e. officer occupying non-established office, or occupying an established office but not confirmed therein) retiring from service after completion of 10 years' service or more
Highest annual pensionable emoluments x
service in months x (
(go for service
Unreduced
annual
pension
=
675
prior to 1.4.87 and
1 800
for service as from 1.4.87)
(subject to a maximum of 2/3 of highest
pensionable emoluments)
Unreduced
annual
Highest annual salary x service in months x
1
1
(800 for first 300 months service and
600
allowance
for service in excess of 300 months)
(subject to a maximum of 2/3 of highest annual
salary)