CONFIDENTIAL
B.
COMPENSATION
Option A (original proposal)
-use of half traditional factors to calculate
notional total
-20% payable to all in 1997
-additional 10% payable for each year's service
under SARG up to 2005
-no cap
COST: up to £ 34 37 m
Option B: (HMOCS proposal)
-use of traditional factors
-100% payable in lump sum to all in 1997
-no cap
COST: £ 70 75 m
Option C:
-use of full traditional factors to calculate total
for all serving in 1997
-payment phased in 5 or 6 equal instalments (first payment 20% of total) with interest at 5% pa for those who stay on
-cap of £120,000
COST:
£ 50
-
54 m
CONFIDENTIAL