TNAG-1589-FCO40-21741-Future-of-the-judiciary-in-Hong-Kong.-Part-1-of-2-1987 — Page 72

CONFIDENTIAL

21.

The new pension arrangements will mean that a member of the

judiciary appointed at 50, who retires at 65, will earn the

equivalent of about 30 year's pension at the standard rate (about

53% of his retirement salary). Similarly a member of the judiciary

appointed at 40 will earn the maximum pension of 2/3rds of his

retiring salary if he retires at age 65.

22.

In addition to the new pension factor it is planned that

members of the judiciary who are required to retire early on the

grounds of ill health should be entitled to a minimum pension of 1/4

salary.

23.

Apart from the above, the standard provisions of the new

pension scheme would apply. All members of the Judiciary, other than those who have already retired and been re-engaged (on short term contracts after retirement), would be permitted to convert to the new pension arrangements.

Financial Implications

24.

The financial implications of the proposed new pension

arrangements for members of the judiciary between now and 2007 are

set out in Annex B.

Conclusion

25.

The British side hopes that the new arrangements which the

Hong Kong Government plans to introduce for the judiciary will

succeed in attracting a number of experienced local lawyers with the

appropriate quality to the judiciary. It believes that the new

arrangements will also assist in ensuring the continuation of a

judiciary of high calibre and as a consequence in maintaining

stability and preserving confidence.

CONFIDENTIAL