SECRET
HMOCS: STERLING COMPENSATION SCHEME
(A) The scheme would come into operation on 30 June 1996.
(B) The "appointed day" would be either 29 June 1997 for those officers who stay on or a date between 30 June 1996 and 29 June 1997, ie a personal date for those who wish to retire earlier with the approval of the Governor.
(C) The lump sum would be calculated using the salary point of
the officer's substantive grade on the appointed day but based on the actual Hong Kong salarios as at 1 January 1992 converted at the average exchange rate for 1991 (ie HK$13.7609:£1). The resulting sterling figure would be increased in line with UK RPT to the appointed day.
(D) The figure found through (C) above would then be applied to
an actarialy determined factor based on the officer's age and length of service on the appointed day. The same factor would be used irrespective of whether the officer chose to retire or stay on. Itr is envisage that the factors will be somewhere between the full factors and the half factors in the Hong Kong Government's Limited Compensation Scheme (LCS).
(E) Payment would be made over a period of 4 years in five
instalments regardless of whether the offcier opted to retire or stay on Five per cent interest a year on reducing balances would be paid in either case.
(F) The maximum amount payable under the scheme is £120,000 on at January 1992 levels. This will be increased in line with UK RPI to the appointed day.
(G) For those who stay on after 30 June 1997 both the Hong Kong salary used to determine the compensation on the appointed day (at (C) above) and the maximum amount would be increased in line with UK RPI during the drawdown period. Those officers would also get the benefit of any increases due to promotion. The compensation would be frozen at the maximum amount it reaches at any time after 30 June for
subsequent instalments instead of allowing it to decline with age.
(H) For those officers who are superseded for promotion the
compensation would be calculated as described above except the amount due on the appointed day and on the date of any subsequent instalment would be a sterling sum less the amount already recieved by the officer under the LCS converted at the rate of exchange on the date of payment plus 5 per cent a year interest to the date of the relevant instalment.
3
Food
928 ON
DECRET
20:ST
£6/11/62