CONFIDENTIAL
HMOCS COMPENSATION: SOME OPTIONS
Present proposal
- Use of half traditional factors to calculate notional
total.
- 20% payable to all in 1997.
Additional 10% payable for each extra year's service under
SARG up to 2005.
No cap.
Cost: Probably £20-£30 m; with maximum of £39 m (figures given to Treasury)
Alternative A
Use of half traditional factors to calculate total for all
serving in 1997.
Payment phased in 5 instalments of 20%, with interest at
5% pa.
No cap.
Cost: Probably £27-£31 m; with maximum of £49 m
Alternative B
As Alternative A but:
-
-
Use of full traditional factors to calculate total.
Cap of £120,000
Cost: Probably £37-43m; maximum of £68m)
NC1ACS/1
JRB
CONFIDENTIAL