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HMOCS: STERLING COMPENSATION SCHEME
(A) The scheme would come into operation on 30 June 1996.
(B) The "appointed day" would be either 29 June 1997 for those officers
who stay on or a date between 1 July 1996 and 29 June 1997, ie a personal date for those who wish to retire earlier with the approval of the Governor. In practice, this means that an officer may, with the approval of the Governor, proceed on pre-retirement leave or retire between 1 July 1996 and 29 June 1997 and, if they have a leave balance, they may proceed on pre-retirement leave before 1 July 1996 provided they do not retire until 1 July 1996 or thereafter.
(C) The compensation would be calculated using the salary point of the
officer's substantive grade on the appointed day but based on the Hong Kong salaries for that grade as at 1 January 1992 converted at the average exchange rate for 1991 (ie HK$13,7609;£1). The resulting sterling figure would be increased in line with UK Retail Price Index (RPI) to the appointed day.
. (D) The figure found through (C) above would then be applied to an
actuarialy determined factor based on the officer's age and length of service on the appointed day. The same factor would be used irrespective of whether the officer chose to retire or stay on. It is envisaged that the factors will be somewhere between the full factors and the half factors in the Hong Kong Government's Limited Compensation Scheme (LCS).
Five
(E) Payment would be made over a period of 4 years in five instalments
regardless of whether the officer opted to retire or stay on. per cent interest a year on reducing balances would be paid in either case.
(F) The maximum amount payable under the scheme is £120,000 at January 1992 levels. This will be increased in line with UK RPI to the appointed day.
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(G) For those who stay on after 30 June 1997 both the Hong Kong salary used to determine the compensation on the appointed day (at (C) above) and the maximum amount would be increased in line with UK RPI during the drawdown period. Those officers would also get the benefit of any increases due to length of service or promotion. compensation would be frozen at the maximum amount it reaches at any time after the appointed day for subsequent instalments instead of allowing it to decline with age.
The
(H) Provision will be made for calculating compensation under this
scheme for superseded officers on the appointed day, but no payment would be made if the calculation produced a sum less than that paid under the HKG's LCS increased by 5% per annum up to the appointed day.
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