EXAMPLE 3
OFFICER RETIRES ON OR AFTER 1 JANUARY 1992 FROM HONG KONG [SINGLE SERVICE]
ACTUAL PENSION AND GRATUITY
Salary HK$ 25,000 at retirement. 400 months service.
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
NEW SCHEME
Equivalent salary at 1 Janaury 1992 HK$ 10,000
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
HK$ 23,333.31
IN THIS CASE THE NOTIONAL HK PENSION, AS AT 8 APRIL 1991, WOULD BE EITHER:
AN UNREDUCED PENSION OF HK$ 6,666.66 [or £416.67 {16}}
or
A REDUCED PENSION OF HK$ 4999.99 [or £312.50 {16}]
X RPI