to limit the amount of pension, but to increase it so that we guarantee a higner threshhold than the original pension.
To take a very inexact example: Say the trigger is put at HK$ 20 = £1:
A pension of HK$ 30,000 is granted in 1985 when the exchange rate is $10 = £1; the pensioner gets £3,000, £1,500 of which is "guaranteed". If the rate falls to $30 =£1, the pensioner would
get £1,000 and we would have to supplement this by £500.
If we re-assessed the 1985 pension in 1991 when, say, the equivalent emoluments would produce a pension of HK$ 40,000, we would be "guaranteeing" £2,000. If the exchange rate falls to HKS 30 = £1, the pensioner gets £ 13,333 and we would have to supplement this by £ 666.66.
(b) I have not attempted to draft the passage on notional pension for those with mixed service who retire on or after 1st April 1993 (Head D in Annex I to the draft), because I have not been able to follow the instructions at Head C.2. of Alan McDonald's Formula and Rules and there is no diagram for this Head to assist in understanding them.
(c) It follows that I have not been able to draft a passage on a notional gratuity in respect of those with mixed service who retire on or after 1st April 1992 (Head B in Annex II to the draft and Head D of McDonald's Formula and Rules).
Could I please have rather more comprehensive instructions on these latter two points with an illustrative diagram.
3. I hope most of the draft is self-explanatory, but I snould raise the following points:
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