EXAMPLE 1
OFFICER RETIRES BEFORE 1 JANUARY 1992 FROM HONG KONG [SINGLE SERVICE]
ACTUAL PENSION AND GRATUITY
Salary HK$ 10,000 at retirement. 400 months service.
400
Pension formula:
x HK$ 10,000 = HK$ 6666.66
600
OR
3/4 x HK$ 6666.66
HK$ 4999.99
PLUS Gratuity of HK$ 1,666.66 x 14
NEW SCHEME
*
HK$ 23,333.31
Equivalent salary at 1 Janaury 1992
HK$ 25,000
400
Pension formula:
x HK$ 25,000
=
HK$ 16,666.66
600
OR
3/4 x HK$ 16,666.66
HK$ 12,499.99
PLUS Gratuity of HK$ 4,166.66 x 14 HK$ 58,333.25
IN THIS CASE THE NOTIONAL HK PENSION, AS AT 8 APRIL 1991, WOULD BE EITHER:
AN UNREDUCED PENSION OF HK$ 16,666.66 [or £1,041.67 {16}]
or
A REDUCED PENSION OF HK$ 12,499.99 [or £781.25 {16}]
X RPI
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