TNAG-1848-FCO40-2623-House-of-Commons-Select-Committee-on-Foreign-Affairs-enquiry-1989 — Page 80

CONFIDENTIAL ##

Annex B

Private sector practice

Company A

1.

are

eligible,

for a

Senior staff (local and overseas)

(local and under the company's contributory provident fund scheme, lump sum payment and a monthly pension. irrevocable option to receive dollars or a foreign currency (US $, Australia $ or sterling).

2.

The conversion rate

They may exercise an in Hong Kong their pension

is determined either according the average exchange rate for the 6-month period prior to retirement, or on retirement, whichever benefits the officer.

3.

An annual pension increase of not less than 4% is awarded (regardless of the currency of payment).

Company B

4.

Overseas

to

the

officers

retirement

contributing

appointed

be fore

bene fit scheme

1984

retain

an

The

option to receive their lump sum gratuity either in Hong Kong dollars, or in the currency of their country of origin. exchange rate is determined by averaging the rate calendar years immediately prior to their appointment.

for five

5.

bearing

Overseas

agreement

officers

terms.

are

now

appointed

on

gratuity

for

The payment arrangements

gratuities mirror the arrangements in paragraph 4.

Company C

6.

Pensions for "overseas" staff are paid in sterling based on their final "notional" salary. This equates to the salary of an company in the UK.

officer

of equivalent

rank

employed by

the

7.

figure.

Pension increases reflect the UK Retail Price Index

(0013B: 20)

CONFIDENTIAL # 3