New Pension Scheme
under the Pension Benefits Ordinance and
Regulations 1987
If he opts to commute 50% of annual pension into a lump sum, he will receive
Unreduced annual pension x 50% x 14
Old pension scheme under the Pensions Ordinance and Regulations, Cap. 89
If he opts to commute 25% of annual allowance into a lump sum, he will receive
Commuted
Unreduced annual allowance x 25% x 14
Commuted
pension
annual
gratuity
allowance
gratuity
plus
plus
Reduced annual pension
Unreduced annual pension x 50%
Reduced annual allowance
Unreduced annual allowance x 75%
Example
A Category B officer retiring at the age of 60 after completing 450 months' service, 200 of which was prior to 1.4.87, with a highest annual salary of $36,000
Example
A Category B officer retiring at the age of 55 after completing 390 months' service, with a highest annual salary of $36,000 -
Unreduced
annual
pension
*
$36,000 x (200 x + 250 x
1 800
1
>
675
$22,333 p.a.
Unreduced
annual allowance
$36,000 x (300 x
1 800
+ 90 x
> 600
$18,900 p.a.
If he opts to commute 50% of his annual pension into a lump sum, he will receive
Commuted
A
$22,333 x 50% x 14
$156,331
If he opts to commute 25% of his annual allowance into a lump sum, he will receive
Commuted
annual
allowance
=
$18,900 x 25% x 14
$66,150
pension
gratuity
plus
Reduced
$22,333 x 50%
annual pension
$11,167 p.a.
gratuity
plus
Reduced
annual
allowance
www
$18,900 x 75%
= $14,175 p.a.