Alternative C
CONFIDENTIAL
As Alternative A but with 20% bonus payable to those who
serve until 2000.
Cost: Probably £32-£37m; with maximum of £59m
Alternative D
As Alternative B but with only 80% of notional total payable
to those who leave in 1997.
Cost: (Probably £31-£39m; maximum of £68m)
Notes
1.
Maximum figures assume that all contract officers with
the right to come over to HMOCS terms opt to do so. It might be possible, though controversial, to withdraw this
right or to limit the period of service for which they would be entitled to compensation, thus reducing costs.
2.
The cap of £120,000 is a rough upgrading in terms of RPI
of the usual £12,000 cap included in most schemes during the
1960s. In Hong Kong if full factors are used
(Alternative B) it would affect far more officers than in
previous schemes, because of high Hong Kong salaries, but this would probably be justifiable in UK terms. However HMOCS officers might argue that the £12,000 figure should be upgraded in line with higher average wage inflation, rather
than the RPI.
Phasing over 6 years rather than 5 years would slightly increase costs (because of interest payments).
3.
1991
All figures are in 1992 prices.
Qu 1616
4.
NC1ACS/2
CONFIDENTIAL
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