EXAMPLE 2
OFFICER RETIRES BEFORE 1 JANUARY 1992 FROM HONG KONG [MIXED SERVICE]
ACTUAL PENSION AND GRATUITY
Salary HK$ 10,000 at retirement.
400 months service.
Emoluments: For HK HK$ 500,000 / For UK HK$ 50,000
Hypothetical HK pension:
400
x HK$ 10,000 = HK$ 6666.66
600
Actual HK pension:
OR
HK$ 500,000
X HK$ 6666.66 HK$ 6,060.60
HK$ 550,000
3/4 x HK$ 6,060.60 = HK$ 4545.45
PLUS Gratuity of HK$ 1,515.15 x 14 = HK$ 21,212.10
NEW SCHEME
Equivalent salary at 1 Janaury 1992
HK$ 25,000
Hypothetical pension formula:
400
x HK$ 25,000
HK$ 16,666.66
600
Actual HK pension:
HK$ 500,000
x HK$ 16,666.66
HK$ 15,151.51
HK$ 550,000