Determination of sterling values of notional Hong Kong gratuity and of actual gratuity
7.—(1) The provisions of Parts I and III of the Schedule to this Order shall apply for calculating and determining the notional Hong Kong gratuity in respect of a specified officer who exercises an option under the relevant law to be paid a gratuity and a reduced pension, the notional Hong Kong gratuity in respect of a death gratuity payable in respect of a specified officer, and the sterling value of such gratuities.
(2) For the purposes of this Order, the actual gratuity of, or payable in respect of, a specified officer will be the sum of the sterling value of the gratuity (and any increases granted under the relevant law), at the exchange rate in force on the day the gratuity is paid, and any supplement payable in respect of the gratuity under any regulations made under section 11 of the Pensions Increase Act 1971.
(3) In the event of there being any change in matters to be taken into account in calculating a notional Hong Kong gratuity between the registration of such gratuity under article 9 of this Order and the payment of the actual gratuity, the notional Hong Kong gratuity will be recalculated and redetermined.