(AN-1993 13:00
PAUL FIFOOT
0372733755
sions; the consequence is that different provision needs to be made in respect of the dependants of officers who retire or die during their service after the publication of the Scheme (alternatively 1st January 1992) from that made in respect of dependants of officers who retire or die in service beforehand. Hence both sub-heads (C) and (D).
ii) as I understand it, under Hong Kong law, dependants cannot commute a part of their pensions and retain a reduced pension. There is no local law provision on which we could hang arrangements such as requiring dependants to commute to the maximum, or deeming them to have commuted to the maximum, and retaining a reduced pension comparable to those suggested or proposed for retired officers. Are you content with this (would it mean that widow's pensions are better secured than their deceased husband's) or do you propose to reduce the dependant's UKPB to a comparable proportion of the pension to which the husband/father's pension is reduced to produce his UKPB ? Under the latter suggestion, the dependant would retain the whole pension, but only a proportionate part would be safeguarded. It might be logical, but it would not look good. I have drafted on the basis that there is no notional reduced pension.
Section 3(C): This follows section 3(A) in stabilizing the figure for pensionable emoluments as at 1992. You should enquire from Hong Kong whether we should insert a proviso on the same lines of the proviso to section 3(A)(i). Like section 3(A), a RPI factor is an element in the UKPB and, therefore, of the multiplier for the pensions safeguard.
Section 3(D): In addition to the issues common to (C) and (D), the point for consideration is which of the alternative conversion rates do you wish to adopt ? The former could be more advantageous to the pensioner, and more logical.
Section 4(1): (I) The provision is reasonably straightforward, though, if there is a more common accountant's way of expressing the last five lines I would be grateful to learn it Those who will have to administer
P.06/08
(
No comments yet.
Private notes are available after approval.