TNAG-2426-FCO40-3528-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1992 — Page 103

COMPENSATION

CONFIDENTIAL

Option A

(original proposal)

-use of half traditional factors to calculate

notional total

-20% payable to all in 1997

-additional 10% payable for each year's service

under SARG up to 2005

-no cap

-no bar to eligible contract officers enrolling in HMOCS and benefitting

COST:

probably £ 20 30 m maximum £ 39 m

Option B: (HMOCS proposal)

-use of traditional factors

-100% payable in lump sum to all in 1997

-no cap

COST:

probably £ 48 maximum

-

55 m

£ 85 m

Option C:

-use of full traditional factors to calculate total for all serving in 1997

-payment phased in 5 or 6 equal instalments (first payment 20% of total) with interest at 5% pa (interest for those who stay on only ?)

-cap of £120,000

COST:

probably £ 37 maximum

43 m

£ 68 m.

CONFIDENTIAL