07-APR-1992 14:33
C.S.B. (2) 8685069
+852 524 6164
P.01
Annex D
Conditions Governing the Refund of Contract Gratuities
An officer permitted to transfer from agreement terms to the permanent end pensionable establishment under CSR 121 may apply to the Secretary for the Civil Service to buy back his previous agreement servise. In the case of an officer who has served more than one agreement before his transfer, he may elect to buy back.-
(i)
(ii)
either the entire period of his previous service; or N
the service of any full tours of agreement immediately prior to the date of his transfer.
If the officer's application for buying back is approved, he will be required to repay to the Government any contract gratuities which he has received for the period of service to be bought back, less the tax paid thereon plus interest. (See paragraph 2)
2.
Compound interests will be charged on each gratuity payment for the period it is held by the officer and on the instalment repayments as follows :-\
(a)
Interest on each gratuity payment before commencement of repayment
The Hong Kong Association of Banks' rate (hereinafter called HKAB's rate) for one- year time deposit prevailing on the date of each gratuity payment made to the officer will be used in respect of the first year of the period during which the gratuity is held by the officer; and thereafter in respect of each subsequent year, interest will be charged on the gratuity, and its accrued interests at the one-year time deposit HKAB's rate prevailing on each anniversary.
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(b) Interest on tax paid by the officer on each
gratuity payment
Interest on tax paid will also be allowed on the same basis as (a) above.
2
(c) Interests accrued f repayment is made by
instalments
Interests will be charged on the outstanding balance at the end of each month at the Hong Kong and Shanghai Banking Corporation's 'best lending rate prevailing on the date when the officer's application to buy back his pensionable service is approved by the Secretary for the Civil Service.
13.