The Hong Kong (Overseas Public Servants) (Retirement and Compensation) Order 1996

Calculation of compensation: general rule

8.—(1) This article applies to the calculation of the compensation due under this Order to entitled officers other than:

(a) an entitled officer who has received compensation under the Limited Hong Kong Scheme on account of being superseded for promotion; or

(b) an entitled officer who is appointed to the pensionable establishment of the Home Civil Service or Diplomatic Service without a break of at least ninety days between his last day of pensionable service under the Government of Hong Kong and his first day of pensionable service in the Home Civil Service or Diplomatic Service.

(2) The compensation shall be calculated as follows:

(a) identify the entitled officer’s salary point for the substantive grade held by him on the appointed day and then determine the salary appropriate to that salary point of that grade at 1st January 1992 (hereinafter referred to as “the notional 1992 salary”);

(b) convert the sum arrived at in paragraph (2)(a) into sterling using the average rate of exchange between the HK dollar and the £ sterling during 1991 (i.e. £1 = HK $13.7609);

(c) multiply the sterling value of the notional 1992 salary by the appropriate increase factors under those United Kingdom Pensions Increase (Review) Orders which have effect between 1st January 1992 and the appointed day as though the notional 1992 salary were a pension beginning on 8th April 1991; this will produce the notional emoluments of the officer concerned based on the movement of the United Kingdom Retail Price Index from 1992 to the appointed day;

(d) multiply the notional emoluments as determined in paragraph (2)(c) by the appropriate factor taken from the relevant Table.

(3) Subject to article 11(1)(a), the sum arrived at in paragraph (2)(d) in sterling or the maximum sum, whichever is the less, is the compensation due.

(4) In this article and article 10, “the appropriate factor” in relation to an entitled officer means the factor obtained from Table IV that is appropriate to the age and pensionable service of that officer on the appointed day in completed years and months or, if it is more favourable to the officer, in completed years without regard to months.