Tables to be used for calculating compensation and calculation of the maximum sum
7.—(1) Compensation in respect of each entitled officer shall be calculated as a lump sum using the factors appropriate to the age and pensionable service of the officer in the relevant Table, as set out at the end of this Order, and the entitled officer shall be informed of the sum so assessed.
(2) The relevant Table:
(a)for officers and judicial officers to whom the Pensions Ordinance applies, is Table I;
(b)for officers to whom the Pension Benefits Ordinance applies, is Table II;
(c)for district judges or other judicial officers to whom the Pension Benefits (Judicial Officers) Ordinance applies, whose normal retirement age is 60, is Table II;
(d)for judges, or the registrar or a deputy registrar of the Supreme Court, whose normal retirement age is 65, is Table III.
(3) Notwithstanding any provision of the relevant pension law of Hong Kong or the repayment of any gratuity on or after the appointed day—
(a)no period of service shall be counted as pensionable service for the purpose of calculating compensation under this Order:
(i)which, on the appointed day, would not be taken into account as pensionable service under the relevant pension law of Hong Kong;
or
(ii)in respect of which a gratuity (or any part of a gratuity) has been paid, if the officer concerned—
(A)had not, on or before 30th April 1993, commenced the repayment of the gratuity or part thereof or, in the case of a judge, magistrate or other judicial officer, entered into an irrevocable undertaking to buy back the relevant period of contract service; and
(B)has not completed the repayment of such gratuity or the buying back of such service before the appointed day;
(b)pensionable service does not include any period by which an officer’s service is deemed to increase under such a law.
(4) The maximum sum is £120,000—
(a)multiplied 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 if the sum of £120,000 were a pension beginning on 8th April 1991; but
(b)in the case of any entitled officer who elects to receive his compensation in a single sum under article 11(1)(a), the maximum sum as determined in accordance with this paragraph will be reduced in accordance with paragraph (5) of this article to produce a discounted maximum sum.
(5) (a) Subject to subparagraph (b) below, the discounted lump sum is the sum of the payments of instalments and interest which would be paid to the entitled officer if he had elected to receive his compensation in instalments, each payment having been reduced by the compounded rate of inflation between the appointed day and the date the instalment would have been due and further discounted at a compounded rate of 6 per cent per annum over the same period.
(b)For the purpose of this paragraph:
(i)article 13 shall be ignored;
(ii)the inflation rate for the years 1996/97, 1997/98 and 1998/99 shall be deemed to be the anticipated lower inflation rate for the United Kingdom for those years as published by Her Majesty’s Treasury in the most recently published Financial Statement Budget Report (the “Red Book”), and for the financial years 1999/2000 and 2000/2001 shall be deemed to be the anticipated lower inflation rate for the United Kingdom for the financial year 1998/99, as so published.