TNAG-1670-FCO40-23182-Future-of-Hong-Kong-continuity-of-administration-civil-serv-1987 — Page 145

New Pension Scheme

under the Pension Benefits Ordinance and

Regulations 1987

- 2

Old pension scheme

under the Fensions Ordinance

and Regulations, Cap. 89

Example

A Category A officer retiring at the age of 60 after completing 450 pensionable months' service on 100% pensionability, with a highest annual salary of $72,000

Unreduced

annual pension

$72,000 x 450 x

1

675

= $48,000 p.a.

If he opts to commute 50% of his annual pension into a lump sum, he will receive

Commuted

pension

gratuity

=

$48,000 x 50% x 14

$336,000

=

Example

A Category A officer retiring at the age of 55 after completing 390 months' pensionable service on 100% pensionability with a highest annual salary of $72,000 -

Unreduced

annual pension

$72,000 x 390.x

1 600

=

$46,800 p.a.

If he opts to commute 25% of his annual pension into a lump sum, he will receive

Commuted pension gratuity

=

$46,800 x 25% x 14

$163,800

II.

plus

Reduced annual pension

= $48,000 x 50%

= $24,000 p.a.

plus

Reduced annual pension

=

$46,800 x 75%

=

$35,100 p.a.

For Category B officer (i.e. officer occupying non-established office, or occupying an established office but not confirmed therein) retiring from service after completion of 10 years' service or more

Unreduced

annual

pension

=

Highest annual pensionable emoluments x

service in months x

800

(for service

prior to 1.4.87 and

675

for service as from 1.4.87)

(subject to a maximum of 2/3 of highest

pensionable emoluments)

Unreduced

annual

=

Highest annual salary x service in months x

1

1

800

allowance

for first 300 months service and

for service in excess of 300 months)

600

(subject to a maximum of 2/3 of highest annual

salary)