B: OFFICERS WHO RETIRE FROM HONG KONG, OR THE SAR
GOVERNMENT, ON OR AFTER THE INTRODUCTION OF THE SCHEME AND WHO COMMUTE PART OF THEIR PENSION IN FAVOUR OF A GRATUITY
1. CALCULATION OF OFFICER'S NOTIONAL HK GRATUITY
(i) FOLLOW THE SAME RULES AS FOR THE OFFICER'S NOTIONAL HK
PENSION IN SECTION A 1(i), (ii) AND (iii).
(ii) CALCULATE THE COMMUTED ELEMENT OF THE NOTIONAL HK PENSION,
BASED ON THE SAME OPTION EXERCISED BY THE OFFICER IN
RELATION TO HIS ACTUAL HK PENSION UNDER THE PROVISIONS OF THE RELEVANT HK PENSIONS LAW.
(iii) CALCULATE THE STERLING VALUE OF (ii) ABOVE BY DIVIDING THE
AMOUNT BY 16/18/26/OR PERSONAL RATE SPECIFIED. THIS PRODUCES THE OFFICER'S NOTIONAL GRATUITY AS AT [ ] APRIL 1991.
(iv) THE STERLING VALUE OF THE OFFICER'S NOTIONAL GRATUITY
SHOULD BE INCREASED TO REFLECT THE MOVEMENTS IN THE UK RPI TO THE DATE OF THE OFFICER'S RETIREMEMT. FOR THIS PURPOSE THE AMOUNT CALCULATED UNDER (iii) ABOVE SHOULD BE INCREASED TO THE SAME EXTENT AS A DEFERRED HOME CIVIL SERVICE GRATUITY BEGINNING [ ] APRIL 1991 WOULD BE UNDER THE RELEVANT ORDERS MADE UNDER SECTION 59 OF THE SOCIAL SECURITY PENSIONS ACT 1975 (AS AMENDED).
THE NOTIONAL HK GRATUITY, AS INCREASED TO THE DATE OF THE OFFICER'S RETIREMENT, IS THE BENCH MARK AGAINST WHICH THE SUPPLEMENT UNDER THE SCHEME WILL BE ASSESSED.
2. CALCULATION OF OFFICER'S ACTUAL GROSS GRATUITY
(i) FOLLOW THE RULES FOR THE CALCULATION OF THE OFFICER'S
ACTUAL GROSS PENSION AT SECTION A 2.(i)(a), (b) AND (c), EXCEPT THAT THE EXCHANGE RATE WILL BE RATE IN FORCE ON DAY FOLLOWING THE OFFICER'S DATE OF RETIREMENT OR IN THE CASE OF A DEFERRED GRATUITY THE DAY FOLLOWING THE DATE ON WHICH THE GRATUITY IS PAYABLE UNDER THE HK PENSIONS LAW.
3. CALCULATION OF SUPPLEMENT PAYABLE UNDER THE SCHEME
(i) THE SUPPLEMENT PAYABLE UNDER THE SCHEME WILL BE THE
DIFFERENCE, IF ANY, BETWEEN THE OFFICER'S NOTIONAL HK GRATUITY AND THE OFFICER'S ACTUAL GRATUITY AS PRESCRIBED ABOVE.
(ii) WHERE THE OFFICER'S ACTUAL GRATUITY CALCULATED
UNDER 2(i) ABOVE EXCEEDS HIS NOTIONAL HK GRATUITY NO SUPPLEMENT WILL BE PAYABLE UNDER THE SCHEME.
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