TNAG-2427-FCO40-3529-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1992 — Page 49

APPENDIX 2

METHOD OF CALCULATION OF

CAPITALIZED VALUE OF PENSION LIABILITIES AT 1997

Both Model A & Model B

I.

II.

For officers expected to retire before 1997

Projected Reduced age at 1997

pension X Multiplying factor for officer's

For officer expected to retire after 1997

Projected annual pension

X Multiplying factor for officer's age ar assumed age of retirement x Discount factor discounting pension value back to 1997.

III. For pensioners (including dependent pensioners)

Note

(1)

(2)

Current at 1997

annual pension x Multiplying factor for officer's age

Multiplying factor 15

calculated on the basic of 3.5% discount

rate p.a. and U.K. mortality rate (Annex).

Discount factor is calculated on the basic of 3.5% discount rate p.a.