TNAG-0539-FCO40-634-Strength-of-garrison-in-Hong-Kong-1975 — Page 51

CONFIDENTIAL

CONFIDEMA

ANNEX H

REDUNDANCY COMPENSATION FOR THE ARMED FORCES

1. The compensation to be paid to UK personnel who are made

redundant is described below. As in past redundancy programmes,

it will take account of the curtailment of their expected Service

careers (to which they are committed by binding engagements),

their loss of prospects, the higher rates of pension which they

might have earned had they served longer and the difficulties they

may face in starting new careers in civilian life.

2. For officers serving on permanent commissions who are pre-

maturely retired, and for servicemen serving on pensionable

engagements or who would have had a clear prospect of re-engaging

for pension had the need for redundancy not occurred, compensation

will take the form of a tax-free lump-sum payment, or Special

Capital Payment, graduated according to length of service given

and the length of time for which, but for redundancy, the in-

dividual could have expected still to serve before normal retirement.

The maximum rate of Special Capital Payment will be equivalent to

18 months' military salary; this will be paid to those who at the

time of redundancy would still have had more than 5 years to go

before normal retirement, and who have already given at least 13 years' qualifying service in the case of officers, and at least 16 years' qualifying service

i n the case of servicemen. The

Special Capital Payment will be smaller for those who have less

than 5 years still to go or have already served for more than

12 years but less than 13 (or 16). It will be based on the rate

of pay received by the individual at the time of leaving the

Service, whether in an acting, temporary or substantive rank.

CONFIDENTIAL

CONFIDENTIAL