The Hong Kong (Overseas Public Servants) (Continuing Service: Compensation) Order 1996

Explanatory Note

(This note is not part of the Order)

This Order makes provision for the payment of compensation to members of Her Majesty’s Overseas Civil Service and Her Majesty’s Overseas Judiciary in the pensionable service of the government of Hong Kong who remain in the service of the Hong Kong Special Administrative Region after 30th June 1997.

Articles 2, 4 and 5 define the persons (“entitled officers”) who are eligible to benefit under the Order.

The amount of compensation to which an entitled officer is entitled 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 7, and factors relevant to his age and length of service as set out in Tables at the end of the Order. Under article 10, compensation may be paid, at the entitled officer’s election, in one discounted lump sum (article 6(5)) or in five annual instalments; if paid in instalments, the compensation is recalculated during the payment period to take account of changes in notional emoluments and other factors where that is to the officer’s advantage. Special rules apply to officers who have already received compensation under an administrative Hong Kong Government Scheme (article 8) or if an officer transfers to the Home Civil or Diplomatic Services (article 9). Outstanding balances of instalments are payable when an officer retires on pension or is retired otherwise than for misconduct or default (articles 13 and 12) and to his dependants on death (article 14).

The Order provides for the payment of interest (article 11) and for the Secretary of State to satisfy entitled officers' tax liability on their compensation (article 17).