Mr Nigel Whitney,
Hong Kong Department Foreign and
Commonwealth Office,
LONDON,
SW1A 2AH
GAD
Government Actuary's Department
22 Kingsway, London WC2B 6LE Telephone: 071-242 6828 ext.
Fax: 071-831 6653
HUCA 233/1
JAN 1994
Your reference:
хор
Our reference: 8766/6, S1810\cof
Date:
7 December 1993
Dear Nigel,
HONG KONG HMOCS 1997 COMPENSATION FACTORS: Method and assumptions
1. You asked us to calculate a scale of compensation factors for HMOCS in 1997 which would give expected costs of £39 million. This letter sets out a method and assumptions, with an indication of the likely results. I think it would be useful for you and ODA to compare our approach with the papers you are preparing for Hong Kong, in case they are different.
2.
would he
My understanding is that the HMOCS officers eligible for compensation will be those who are in post at 1 July 1997 and who are not eligible under the LCS. The compensation payable at 1/7/97 will be calculated in £ as
where
Pensionable salary in HK$ x Compensation factor
x RPI increase / Exchange rate
337
Pensionable salary is the officer's salary at January 1992 (at 91/92 prices),
Compensation Factor is the factor for the officer's age, service, and Normal Pension Age (NPA) at 1/7/97,
RPI increase reflects UK price increases from 91/92 prices to 1/7/97.
Exchange rate is HK$13.7769 to £1
date of t
and where the compensation is capped by £120,000, increased
in line with UK price increases from 91/92 prices to 1/7/97. -and heyeral
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