I.
Sample Cases of Redundancy Provisions Payable to the Butchery Staff
Under the old pension scheme :
Pension
Rank
Age (As at 15.2.1987)
Years of pensionable
service (as at 1.1.1989)
Monthly Salary
Lump-sum
Enhanced pension
Reduced annual
pension
Reduced Lump-sum annual
pension
Ex-gratia
payment based
on
Total (Lump-sums +
ex-gratia)
KCR terms
Foreman
Butcher (Mr A) 4912 yrs
20 years 6 months
$5,505
$94,857
$20,326
$15,557 $3,333
$50,393
$160,807
5 days
($27,102)
($4,445)*
Butcher (Mr B)
3619 yrs
16 years 11 months
$4,570
$65,247
$13,981
$15,995
$3,427
$37,013
$118,255
29 days
($18,642)
($4,570)
Butcher (Mr C) 3610
12
yrs
9 years 10 months 16% days
$4,570
$37,915
$8,124
$9,597
$2,056
$27,252
$74,764
($10,833)
($2,742)
II.
Under the new pension scheme :
Pension
Rank
Age (As at
Years of pensionable
Enhanced pension
service
15.2.1987)
Monthly Salary
Lump-sum
Reduced annual
Reduced
Ex-gratia payment
Lump-sum
annual
based
on
(as at 1.1.1989)
pension
pension
Total (Lump-sums +
ex-gratia)
KCR terms
Foreman
9
Butcher (Mr A)
20 years 6 months
$5,505
$168,637
49.
$12,045
$41,104
$2,936
$50,393
$260,134
12 yrs
5 days
($24,091)
($5,872)
.10
Butcher (Mr B)
3612 yrs
16 years 11 months 29k days
$4,570
$115,997
$8,285
$28,434
$2,031
$37,013
$181,444
($16,571)
($4,062)
Butcher (Mr C)
36-1989
.10
yrs
9 years 10 months 16% days
$4,570
$67,410
$4,815
$17,059
$1,218
$27,252
$11,721
($9,630)
($2,437)
Explanatory Notes
(1)
* (2)
Figures in brackets denote. annual pensions or enhanced annual pensions before commutation.
Since the normal pension plus enhancement should not exceed the pension for which the officer would be eligible if he retired at the normal retirement age, the enhancement has therefore been reduced accordingly.
(3)
Formula for computing: -
(a)
Annual pension:
1
(or
under new scheme)
600
675
x annual salary x months of service
(b)
Lump-sum (commuted pension):
annual pension x 14 x 25% (or 50% under new scheme)
(c)
Reduced annual pension:
annual pension x 75% (or 50% under new scheme)
(a)
Enhanced annual pension:
60
(or 67.5 under new scheme) x annual salary x complete periods of 3 years' pensionable service
# The addition shall not exceed (or
1
under new scheme), and the addition together with the 6.75 remainder of the officer's pension shall not exceed the pension for which he would have been eligible if he had continued to hold the office and retired at the normal retirement age.
(e)
Lump-sum of enhanced pension:
enhanced annual pension x 14 x 25% (or 50% under new scheme)
(E)
Reduced annual pension of enhanced pension:
(g)
enhanced annual pension x 75% (or 50% under new scheme)
Ex-gratia payment based on KCR terms:
(i)
(ii)
a fixed payment equivalent to 3 months' salary.
an additional length of service payment at the rate of 3 months' salary for every ten years' service and pro-rata for shorter periods.
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