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 and C above (note: options B and D would not in any case
safeguard the commutable portion)
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 compliment 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
(b) Unprecedented
Dave
I am
not sure how this
would achieve almost
I can ree
50% saving.
options (b) and (d)
moil nor would early retirement (assuming mort- Thie's opted for early retivement)- yet in these cases we say that there would be slight reduction in HML's overall
As far as would act protect the commutable element,
contingent lubility.
options.1.HMOCS
mvs
CONFIDENTIAL
7
ज्