(a) exchange-rate of HK$24 : £1
ANNUAL COST:
(e) exchange-rate of HK$30 :
ANNUAL COST:
(f) exchange-rate prevailing at retirement:
ANNUAL COST:
NOTE: In all the above options, 2011 is shown as the year in which pensions are due to reach a peak before declining. In that year the value of pensions is estimated at HK $ 280 m. Thus, under Option A, HMG would have to pay out £ (280/13.76) - (280/20) m = £20.35 £14.00 m £ 6.35 m, if the HK dollar fell to HK $ 20: £ 1. In 1998 the value of pensions is estimated at HK $ 167 m. Both estimates are maxima: actual figures are likely to be much lower. The figures are given in 1992 Hong Kong prices: the real cost in UK terms will increase if Hong Kong salaries and pensions increase more rapidly than the UK RPI (see Option G below).
Option G:
As options A to F above, but with HMG safeguarding only a notional pension, corresponding to the pension payable in 1992 for the retirement rank, converted into sterling at the average 1991 exchange-rate (HK$13.76 : £1) and upgraded in line with the UK RPI.
ANNUAL COST:
As Options A to F above, except that the sums would be in 1992 UK prices rather than in 1992 Hong Kong prices.
Option H
HKG/SARG to pay annual HMOCS pensions bill to HMG, which would pay individual pensions at a fixed rate as under Options A to F above.
а
ANNUAL COST:
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Maxima would be as under Options A to F above,