9.
10.
11.
12.
Specimen Examples You may also be interested in a couple of illustrative examples which we prepared on the basis of the information provided, in order to demonstrate the extent of the disparity between the level of pension provision for Hong Kong HMOCS, as compared to the provision available for their counterparts in the UK civil service. These examples reflect not only the disparity in salary levels, but also the more generous pension benefits available to HMOCS, especially to administrative staff.
Two examples are attached in Appendices C and D. The first example relates to an administrative officer, and the second example to a police officer. The differential for administrative staff is quite startling, since it shows in general terms that the Hong Kong pension benefits are nearly double the benefits available to the UK equivalent. (There are a number of Hong Kong grades which are deemed equivalent to grade 7. the grade selected for the example, but we have selected the lowest level of Hong Kong staff deemed to be equivalent to this grade. An even greater disparity in the benefit calculations would be obtained if a higher Hong Kong equivalent had been used.)
In Appendix D. relating to the example for a police officer, we have taken the grade of Chief Inspector as being the most typical for HMOCS officers. In this case the disparity is not so great as for the administrative staff, partly because of the sinaller salary differential, but also because of the generosity of the police pension provision applicable in the UK. Nevertheless, the superiority of the Hong Kong final salary (and hence pension benefits), is quite significant.
Pensioners The calculations have been made for currently serving officers, and do not take into account the possibly different circumstances which apply to current pensioners who may have retired many years ago. If it is true that the disparity in salary levels between Hong Kong and the UK has become extreme only in recent years, then a conversion factor appropriate for currently serving officers may be slightly harsh for pensioners who retired many years ago. However, you indicated at the meeting that it might be possible to adapt the SPOS arrangements, without involving too much expense, in a way which would give a reasonable outcome for existing pensioners, and perhaps enable the same underpinning sterling guarantee to be adopted (assuming that Ministers agree to such a course, in principle!).
+
No comments yet.
Private notes are available after approval.