XN000022-1987-10-14 — Page 51

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WEDNESDAY, OCTOBER 14, 1987

SCHEME'S FINANCIAL IMPLICATIONS ACCEPTED

THE FINANCE COMMITTEE TODAY (WEDNESDAY) ACCEPTED THE FINANCIAL IMPLICATIONS FOR IMPLEMENTING A SCHEME PRIMARILY DESIGNED TO COMPENSATE PENSIONABLE OFFICERS WHO ARE REQUIRED TO RETIRE OR WHO ARE SUPERSEDED FOR PROMOTION TO FACILITATE LOCALISATION BETWEEN NOW 1997.

AND

THE FINANCIAL IMPLICATIONS, PHASED OVER THE PERIOD BETWEEN 1987-88 TO 1996-97, ARE ESTIMATED AT $100 MILLION AT CURRENT PRICES.

THE COST OF IMPLEMENTING THE SCHEME IN THE CURRENT FINANCIAL YEAR IS ESTIMATED AT $3.7 MILLION.

A GOVERNMENT SPOKESMAN SAID THE SCHEME WOULD APPLY TO PENSIONABLE OFFICERS APPOINTED BEFORE JANUARY 1, 1985, THE FIRST DAY OF THE MONTH FOLLOWING THE INITIALLING OF THE JOINT DECLARATION.

"ANY PERSON JOINING THE SERVICE AFTER THIS DATE SHOULD BE FULLY AWARE OF ANY CONSTRAINTS ON HIS FUTURE IN THE CIVIL SERVICE, SAID.

HE

THE SPOKESMAN SAID THAT ABOUT 100 OFFICERS, MAINLY IN THE ADMINISTRATIVE SERVICE AND THE POLICE, WOULD BE AFFECTED AND BE ELIGIBLE UNDER THE SCHEME.

THE PRINCIPAL COMPENSATION PROVIDED FOR ELIGIBLE OFFICERS UNDER THIS SCHEME IS A LUMP SUM CALCULATED BY MULTIPLYING THE OFFICER'S ANNUAL SALARY BY A FACTOR ACTUARIALLY APPROPRIATE то HIS AGE AND SERVICE. IN ADDITION, IN THE CASE OF OFFICERS BELOW THE AGE OF 55, THERE IS SOME ADDITION TO THE VALUE OF THEIR PENSION BENEFITS.

THE SPOKESMAN POINTED OUT THAT A CEILING WAS PROVIDED FOR UNDER THE SCHEME AS IT WAS CONSIDERED THAT WITHOUT A CEILING THE COMPENSATION PAYABLE COULD BE EXCESSIVE.

A LIMIT HAS THEREFORE BEEN IMPOSED OF THE ANNUAL VALUE OF SALARY AT MASTER PAY SCALE POINT 48 MULTIPLIED BY THE MAXIMUM COMPENSATION FACTOR OF 4.76. AT CURRENT LEVELS THIS PROVIDES FOR MAXIMUM COMPENSATION OF ABOUT $1.5 MILLION. HOWEVER, MOST PAYMENTS WOULD BE BELOW THIS LEVEL.

"THE COMPENSATION CEILING WILL BE ADJUSTED AUTOMATICALLY IN LINE WITH FUTURE SALARY INCREASES,' THE SPOKESMAN SAID.

"

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