TNAG-2921-FCO40-4196-Visits-and-proposed-visits-by-Alastair-Goodlad--Minister-of--1993 — Page 23

4.

If the officer is 55 or over at that time, the UK RPI will continue to be applied in each year and the resulting figure will be the sterling value of the officer's current "notional" pension which is protected. (If the officer is under 55 when he retires, the "notional" pension on retirement is frozen until he reaches 55).

For those officers who have already retired from Hong Kong without other service the "notional" Hong Kong pension is calculated as follows:

1. Determine what would have been the pension of the officer having regard to his actual grade and years of service at the date of his retirement but on the salary appropriate to that grade on 1st January 1992;

2. Divide the resulting figure by 21 to convert it into sterling;

3. The sterling figure is then uprated in line with the UK RPI to determine the sterling value of the officer's current "notional" pension which is protected. (If the officer is under 55, the "notional" pension remains frozen at 1992 levels until he reaches 55).

If the sterling value of the pensioner's total pension (ie his basic pension, local pension increases and UK pension

supplement) at any time falls below the "notional" pension figure, HMG will make up the difference.

The scheme will also make provision for calculating a notional pension for officers who have mixed service including those who have retired from other scheduled public service, eg Home Service.

Widows and Childrens Pensions

Dependants pensions will be similarly protected. The "notional" dependant's will be calculated with reference to the officer's unreduced "notional" pension at the time of his death using the following formula:-

Dependant's basic pension

in HK dollars

Officer's unreduced

pension in HK dollars

prps.nte.ADM

SLM

X

the officer's "notional" unreduced pension in £ sterling