(e) payment would be made over a period of four years in five
instalments even if the officer exercises his option to retire before the end of the draw down period. Interest at the rate of 5% a year on reducing balances would be paid in either case;
(f) for those who stay on both the HK salary used to determine the compensation on the appointed day and the CAP would be increased in line with RPI during the draw down period. This would reflect salary increases during that period. These officers would also get the benefit of any increases due to promotion;
(g) the compensation (whether or not it is subject to a CAP)
would not decrease below the figure assessed on the appointed day. The compensation for those officers who stay on would be recalculated each year to take account of changes in age, length of service and any increase in their notional HK salaries. Where this results in an increased assessment the officer's entitlements would not thereafter fall below the increased amounts. This process would continue until the payment of the fifth and final instalment. Special rules would apply to the calculation of interest in such cases;
(h) for those who stay on but are later required to retire,
retire on ill-health grounds, reach their normal retirement age or die in service the balance of compensation, if any, would be paid immediately together with the appropriate rate of interest. For those who retire voluntary they would continue to be paid their compensation in instalments together with the appropriate rate of interest;
(i) for those officers who are superseded for promotion the
compensation would be calculated as described above except that the amount due on the appointed day would be a sterling sum less the amount already received by the officer under the HK Limited Compensation Scheme converted at the rate of exchange on the date of payment plus interest at the rate of 5% a year to the appointed day;
(j) special rules will apply to those officers who transfer
from Hong Kong to other "Scheduled Service" without a break; and
(k) additional interest (or compensation) may be paid for
delayed payments.
3. Alex Harper has begun work on a Symphony data base/spreedsheet which will calculate the compensation and interest payable to any eligible officer over the draw down period. At Annex I you will find a copy of a screen showing the basic data held on the computer. When Alex has completed his work on the spreadsheet the screen will allow staff to modify the information held in the database for each officer, eg notional RPI salary increases, salary increases due to promotion, retirements, etc. The other Annexes - II to V
II to V show the compensation and interest payments which would be payable to an officer in different retirement circumstances:
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