TNAG-2099-FCO40-2988-HM-Overseas-Civil-Service-(HMOCS)-policy-matters-1990 — Page 130

auro adeocari COSTINGS

: Lerien

ANNEX B

Costings need to be carried out for three possible variations of

schemes: a classic General Compensation Scheme: a compensation

scheme based on ten annual payments of 10% of the compensation that

would have been payable under a classic scheme starting in 1997 to officers who remain in service for those years; and a compensation/

incentive scheme based on a payment in 1997 of 50% of the then

annual salary plus further payments of 25% of annual salary for up to nine years (if continued service). For each variation, the best,

median and worst case senarios set out in Annex A need to be

covered..

SAT

For the purposes of these calculations, current (April 1990) Hong

Kong salaries are used. This effectively assumes that salaries do

no more than keep pace with inflation.

Classic General Compensation Scheme

This would involve compensation for loss of career and early payment

of pension. Compensation would be actuarily calculated. We

consider that HMG would have to meet the early payment of pensions

until the officers became of pensionable age when the SARG would

take over.

The costs thus are:

Best case scenario

£

តា

million

Median case scenario

£

million

Worst case scenario

£ million

Compensation Scheme based on ten payments of 10% compensation

This scheme involves only compensation - no early payment of

pension. The compensation would be based on acuarial calculations. One payment of 10% of the full compensation that would have been

payable in a classic scheme would be paid in 1997 - to compensate

for the loss of the Secretary of State's protection. A further nine

annual payments of 10% of compensation would be available for those

BATAHA

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