TNAG-2271-FCO40-3270-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-corr-1991 — Page 29

WR retired December 82

Pension at retirement Special exchange rate

(SER) For Base Value

SPOS Base Value

UK Pension increases

SPOS Feedback

Grade D3 Exchange rate $10.4

$138,946.28 pa

£13,353.80 42.93%

SPOS Target-

maximum payable

Some figures

$10.405

HK Pension increases Exchange rate @

mid-Feb. 91, say

$101,325 pa $14.85

£5,734.93 pa (a)

Sterling equivalent

£6,823.23 pa (b)

As (b) exceeds (a), no SPOS is payable.

In this example unless the exchange rate is more than $17.67, no SPOS is payable. At that rate the total pension is £13,597.70 or some 28% less in real terms than at retirement.

MS retired September 85

Pension at retirement

Grade D1

Exchange rate 10.7

$148,900 pa

SER for Base Value

SPOS Base Value

UK Pension increases

$10.6775

£13,945.25 24.03%

HK Pension increases Exchange rate @

$51,864 pa

14.85

mid-Feb. 91, say

SPOS Target-

maximum payable

£3,351 pa (a)

As (b) exceeds (a), no SPOS is payable.

Sterling

equivalent

£3,492 pa (b)

In this example unless the exchange rate is more than $15.48, no SPOS is payable. At that rate the total pension is £12,969.25 or some 25% less in real terms than in 1985!