TNAG-2685-FCO40-3886-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1993 — Page 77

CONFIDENTIAL

CO

RECOMMENDATION AND ADVICE SOUGHT

2.

for

It is recommended that the compensation factors

officers who are superseded for promotion under the LCS

be grossed up (by 15%) to allow for tax at the prevailing

tax rate.

3.

Members will be asked to advise whether the

above recommendation should be approved.

BACKGROUND

4.

On 30 June 1987, Council approved the LCS for

pensionable officers who are superseded for

promotion to facilitate localisation; or directed to retire

certain

in

the interest of localisation or to facilitate

constitutional change or in the interest of the development

the public service or permitted to retire if

circumstances exist which make it unreasonable for them to

continue in the service [Memorandum XCR (87) 249].

of

Details

of the scheme are at Annex A. The compensation provided

for eligible officers under the scheme is as follows :

CONFIDENTIAL