TNAG-2428-FCO40-3530-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1992 — Page 89

options.1.HMOCS

MVS

CONFIDENTIAL

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 for those who continue

-cap of £120,000

COST: [£ 54 m]

1997/98:

£10m

1998/99: £10m

1999/2000: £11m (Guesstimates}

2000/01: £11m

2001/02:

£12m

2002/03:

nil

OPTION D

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

-payments phased as in Option C

-no cap

COST: [£ 43 m]

1997/98:

£8m

1998/99: £8m

1999/2000: £8m (Guesstimates}

2000/01: £8m

2001/02: £8m

2002/03: nil

NOTE: All above figures are given in 1992 UK prices (we have proposed that the basis of calculation should be the 1992 salary equivalent of the rank in which the officer is serving in 1997, converted into sterling at the 1991 average exchange-rate, upgraded in line with subsequent increases in UK RPI).

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