CONFIDENTIAL
OPTION F: HMG TO UNDERWRITE NON-COMMUTABLE ELEMENT
HMG to under-write only non-commutable element of pensions, paying supplements in respect of these as under Options A, B, C and D above
POTENTIAL ANNUAL COST:
Would depend on number of officers opting for new or old pensions schemes (ie 25% or 50% commutatable) and on trigger-point chosen in respect of Options A and B. best case the potential cost could be a little more than 50% of potential costs under Options A, B, C and D.
In the
Advantages:
(a) Reduced contingent liability
(b) Could complement private sector scheme if developed
Disadvantages:
(a) Illogical to protect only a proportion of an officer's pension benefits, unless a private sector scheme could protect the commutable element
options.1.HMOCS
MVS
CONFIDENTIAL
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