NO.689 P004
the calculation at 1 January 1992 as increased to reflect the movements in the UK Retail Price Index to the "appointed day" but no further but see para 21 below. For this purpose the 1992 salary would be deemed to begin on 8 April 1991 to ensure that the maximum increases would be provided by the
the subsequent Pensions Increase (Review) Orders made under Section 59 of the Social Security Act 1975, eg April 1992, 1993, 1994, 1995, 1996 and 1997 for those officers who retire or transfer from the public service on or after the operative date of the 1997 Review Order. Where an officer retires on or after the operative date of the Scheme but before that of the 1997 Order he would only benefit from the increases up to and including that of the 1996 Order. This would seem to be simplest way for the Scheme to interact with the increases of the Review Orders so long as IK inflation remains at current levels, ie we may run into problems in trying to justify not compensating an officer who retires say January of 1997.
12. The CAP would be calculated on the appointed day and would calculated in the same way as the compensation under paragraph 11 above except that the base figure would be £120,000 beginning on 8 April 1991- but see para 21 below.
13. Compensation (whether or not it is subject to a CAP) would not decrease below the figure as assessed on the appointed day. The compensation of those officers who stay on would be recalculated each year to take account of changes in age, length of service and any increase in their notional HK salaries. Where this results in an increased assessment the officer's 'entitlements would not thereafter fall below the increased amounts. This process would continue until the payment of the fifth and final instalment.
14. Method of payment. Although we should not loose sight of paying the compensation as a one-off payment (HMT may agree to this if it fits in with our overall policy towards HMOCS officers), the lump sum would be payable over a period of four years from the appointed day in five instalments. The first instalment would be paid as soon as possible after the appointed day but not later than three months after that date. Subsequent instalments would be paid at intervals of one year from the appointed day.
15. With the exception of those officers covered by para 17 below these instalments would be paid to all officers whether they elect to retire from HK or remain in the pensionable establishment or retire and accept an offer to remain in the public service of HK on contract terms.
16. The initial instalment would be 1/5 of the total compensation payable. 1/4 of the balance of compensation due would be paid as second instalment, 1/3 as a third instalment, and so on.
17. Officers who attain the normal retirement age (see definitions), die in service; retire on medical grounds. retire in the public interest or to facilitate the reorganisation of the public service or because their posts have been abolished by the SAR Government would be paid the outstanding balance of
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