1967-HKRS30-8-57_Part01 — Page 5

Enel L.

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(ii) casual plus vacation annual leave-earning rate should

not be less than 12 days;

(ii) there are grounds for more generous rates for over-

seas officers.

41. Following these remarks of the Commission, it has been decided in principle that vacation leave-carning rates for all officers should be reduced by 25%. It is not proposed at this time to make any other changes in the vacation leave position; in particular, in respect of overseas officers, it is not proposed to alter tour lengths or to take steps towards the amalgamation of the old and new leave termIS.

42. Implementation of this reduction of vacation leave- carning rates will, however, be deferred for the time and not later than the 1st August 1966, during which discussion on possible alternative measures will take place with the maio Staff Associations. Any such alternative measures will, how- ever, bave to show savings equivalent in amount to those shown to result from a reduction of 25% in vacation leave- earning rates.".

2. Discussions have accordingly taken place with the main Staff Associations, authority for an extension of time for this purpose having been given by the Governor in Council, but it has not been possible to draw up any alternative which would have the effect set out in the extract quoted above.

3. Accordingly, and with the advice of Executive Council and Finance Committee, the following decisions have now been taken for implementation :

(D) that 100% pensionability shall be re-introduced with retrospective effect to Ist April 1965; this is for the purposes of the Widows and Orphans Pension Ordinance. Cap. 94, and the Pensions Ordinance. Cap. 89, and is subject to enactment of the necessary amending legisla. tion;

(ii) that the vacation leave-earning rates for all classes of officers (other than officers on contract terms of service in respect of their current contracts, whose position was sel out in paragraph 3 of Establishment Circular No. 35/66) shall, with effect from 1st October 1966, be re- duced by 25%, the new rates being set out at enclosure ] to this circular:

(iii) that the reduction noted at (ii) above shall not affect the maximum limits of accumulation of vacation leave for local officers, which maxima will be retained at their existing levels.

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The decisions set out above are subject to the exercise of a right to elect by individual serving officers to retain their existing vacation leave-earning rates coupled with 90% pension- ability. This election is a once-for-all election. This means that, if an officer elects to retain his existing vacation leave-earning rate coupled with 90% pensionability, he is taking an irrevocable decision that his pension or other retiring beneft, when it becomes due, shall be calculated on the basis of 90% of his substantive emoluments (for which provision is intended to be made by an appropriate amendment to the Pensions Ordinance, Cap. 89). Equally, he will retain his existing vacation leave-earning rates until be retires or leaves the service for any reason, subject of course to any overall amendments to the leave/passage rules applicable to the Service as a whole which may be proposed in the meanwhile (which would not, however, it is emphasized, take into account factors associated with the proportion of substantive emoluments used for the purpose of calculations under the Pensions Ordinance). Officers on overseas torms of service on the old leave terms, as defined in Establishment Regulation No. 1200, who elect to retain existing vacation leave-carning rates coupled with 90% pensionability will, if and when they opt for the new leave terms, as defined in Establishment Regulation No. 1210, be cligible for the existing (unreduced) rates under the latter Regulation.

5. Questions of election will not arise in the case of staff in receipt of cost of living allowance, in respect of which the provi. sions of the Pensions Ordinance have in the past provided for the calculation of retirement benefits by reference to 100% of basic emoluments. The vacation kave-carning rate for this staff will be reduced as indicated in paragraph 3) above. It may. however, be noted that this category of staff has benefited, so far as retirement benefits are concerned, pot only from the general increase in salaries but also from the very considerable consolida- tion of cost of living allowance into basic salary.

It will be assumed that serving officers will move on to the new terms unless they have notified the Establishment Officer to the contrary by 7th February 1967, using the form attached to this circular at enclosure I for the purpose. An exception to this will be made in the case of officers on leave outside the Colony, whose final date will be 7th February 1967, or 15 days after their return to duty in Hong Kong, whichever is the later. A similar provision will apply in the case of officers assuming duty on first appointment, if necessary.

7. For the purpose of paragraphs 4 and 6 of this circular, the phrase "serving officer" means an officer who is in the service of the Hong Kong Government at the late of issue of this circular,

Encl. 1.