Worst Case
(A high proportion
of HMOCS officers
leave in 1997 or
shortly thereafter)
Probable
£m
Best Case
(All eligible
HMOCS officers
remain until
normal retirement
age)
(i)
Option a
163
131
57
(ii)
Option b
45
17
3
(iii)
Option c
72
34
7
Notes
(i) Option a, a traditional General Compensation Scheme, wald involve an actuarially assessed lump sum payment as compensation for loss of career and early payment of
pension, which would be financed by HMG until officers
reached normal retirement age.
(ii) Option b, a modified compensation scheme, would involve
an actuarially assessed payment as compensation for loss of
the Secretary of State's protection but no early payment of pension. 10% of the total sum would be payed in 1997 and a
further 9 annual payments of 10% would be made for each year
that the officer remains in service after 1997.
(iii) Option c, an enhanced modified compensation scheme, would involve payment based on a proportion of the officer's salary (say 25% per year). Two payments would be
made in 1997: one as compensation for the loss of the
Secretary of State's protection and one as an incentive to
stay on (up to 1997). Thereafter up to 8 annual payments of 25% of salary would be available to officers who remained in
the service.
WEDABI/4
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