XN000022-1989-05-17 — Page 40

WEDNESDAY, MAY 17, 1989

38

CIVIL SERVICE PENSIONS ADJUSTED

*

*

IN THE CONSUMER PRICE INDEX (A), COUNCIL TODAY (WEDNESDAY).

ADJUSTMENTS IN CIVIL SERVICE PENSIONS, IN LINE

BY APPROVED

WERE

WITH MOVEMENTS THE LEGISLATIVE

THE ADJUSTMENTS

WERE

MADE

UNDER

THE

PENSIONS

INCREASE)

IN

ORDINANCE AND THE WIDOWS AND ORPHANS PENSION (INCREASE) ORDINANCE, TWO MOTIONS MOVED BY THE ACTING CHIEF SECRETARY, THE HON PIERS JACOBS.

POLICY WAS SERVICE PENSIONS, ORPHANS PENSION

MR JACOBS EXPLAINED THAT THE GOVERNMENT'S DECLARED TO MAINTAIN THE ORIGINAL PURCHASING POWER OF CIVIL

PAYABLE UNDER THE WIDOWS AND INCLUDING PENSIONS SCHEME AND UNDER THE WIDOWS' AND CHILDREN'S PENSION SCHEME.

FROM APRIL

1

DURING THE LATEST REVIEW PERIOD MARCH 31 THIS YEAR, THE MOVING ANNUAL AVERAGE OF INDEX (A) ROSE BY 9.1 POINTS OR 8.18 PER CENT, HE SAID.

YEAR LAST

TO CONSUMER PRICE

THE PERCENTAGE

FIGURE

ΤΟ

"THE USUAL PRACTICE IS TO ROUND UP THE NEAREST WHOLE NUMBER IF THE DECIMAL PLACE IS 0.5 PER CENT OR MORE, AND TO ROUND DOWN IF LESS.

ALSO BE ADJUSTED, "THE PENSION INCREASE PERCENTAGES WILL NECESSARY, TO TAKE INTO ACCOUNT THE CUMULATIVE EFFECT OF ROUNDING OVER THE YEARS," HE SAID.

PRESENT

MR JACOBS SAID SINCE 1976, WHEN THE ADJUSTING PENSIONS AGAINST MOVEMENTS IN THE CONSUMER PRICE INDEX WERE INTRODUCED, THE PERCENTAGE INCREASES HAD NINE YEARS OUT OF 13.

BEEN

IF

OFF

ARRANGEMENTS

FOR

(A)

ROUNDED DOWN IN

THIS HAD RESULTED OVER THE YEARS IN A NET DOWN OF 0.62 PER CENT.

ARITHMETIC

ROUNDING

BY PENSIONS ADJUST "TO ROUND DOWN AGAIN THIS YEAR AND PER CENT WOULD INCREASE THE SHORTFALL TO 0.8 PER CENT.

EIGHT

"IT IS THEREFORE CONSIDERED REASONABLE TO ROUND UP THIS то APPLY AND ADJUSTMENT FROM 8.18 PER CENT TO NINE PER CENT, ALL PENSIONS IN PAYMENT ON APRIL 1, 1989," HE SAID.

IT

YEAR'S TO

THE TOTAL COST OF INCREASING ALL PENSIONS BY NINE PER CENT ESTIMATED AT $82.22 MILLION FOR A FULL YEAR, MR JACOBS ADDED.

139

WAS

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