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

Explanatory Note

(This note is part of the Order)

This Order makes provision for the retirement during the year preceding the ending of British sovereignty over Hong Kong of members of Her Majesty’s Overseas Civil Service and Her Majesty’s Overseas Judiciary in the pensionable service of the Government of Hong Kong and for the payment to them of compensation.

Article 2 defines the persons (“entitled officers”) who are entitled to opt for retirement in accordance with the Order and article 3 provides their right to retire; the latter article will also be law in Hong Kong.

Articles 4 to 6 determine which entitled officers are entitled to compensation under this Order. The amount of compensation to which an entitled officer is eligible is determined (subject to a maximum of £120,000 increased annually in line with United Kingdom Retail Price Index) by his notional emoluments, as calculated in accordance with article 8, and factors relevant to his age and length of service as set out in Tables at the end of the Order. Under article 11, compensation may be paid, at the entitled officer’s election, in one discounted lump sum (article 7(5)) or in five annual instalments. Special rules apply to officers who have already received compensation under an administrative Hong Kong Government Scheme (article 9) or if an officer transfers to the Home Civil or Diplomatic Services (article 10). Outstanding balances of instalments are payable to an officer’s dependants on death (article 13).

The Order provides for the payment of interest on outstanding instalments (article 12) and for the Secretary of State to satisfy an entitled officer’s tax liability on his compensation (article 16).