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(a)
a lump
sum
officer's annual
appropriate
3
calculated
by multiplying the
salary by a factor actuarially
to
his age and length of service
subject to an overall
maximum ceiling of 4.76
times the annual value of the Master Pay Scale
Point 48 (now Point 45 of the revised MPS);
(b)
on
retirement, payment of the officer's earned
pension benefits with, in the case of officers
below the age of 55, an enhanced factor for the
commutation of pensions.
5.
contained
Annex A (Annex A).
The compensation
and
commutation
factors are
in the tables I to III in the Appendix to the LCS
When the scheme was introduced in 1987 it was
estimated that about 100 officers, mainly in the Police
Force and the Administrative Service, would be affected and
the cost of the proposal would be around $100m at 1987-88
prices. So far a total of 16 officers have been retired
under the LCS at a cost of a total of $17.1 million.
Tax Issue
6.
Under existing legislation, compensation paid to
officers who are directed to retire is exempt from tax.
This is because the lump sum payment can be regarded as
compensation
for loss of office or employment and would not
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