CONFIDENTIAL
OPTION B: COMPARATOR
HMG to underwrite pensions at a level comparable to those received by equivalent grades in the UK, ie if the sterling value of an HMOCS officer's pension fell below that of his UK grade equivalent, HMG would make up the difference.
POTENTIAL ANNUAL COSTS:
Advantages:
(a) Provide definite guarantee to officers that the value of
their pensions would be safeguarded at the level of their UK counterparts
(b) Equity of treatment for both serving and retired
officers
(c) Slightly reduced liability for HMG as non-commutable
element not covered
Disadvantages:
(a) Very difficult to make accurate job comparisons- would
probably be challenged by many HMOCS officers
(b) Hard to resist demand for immediate introduction for
current pensioners
(c) Very difficult to administer - in effect large numbers of
safeguared triggers would apply
(d) Some immediate cost on introduction
(e) Unpopular with some officers as the commutable element
would not be protected
Dave
Is it correct that this gotian would not protect the commutable element?
options.1.HMOCS
MVS
CONFIDENTIAL
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