The Hong Kong (Overseas Public Servants) (Pension Supplements) Order 1996

PART III RULES FOR CALCULATING AND DETERMINING A NOTIONAL HONG KONG GRATUITY AND ITS STERLING VALUE

Head L: Specified officers who retire from the service of the Government of Hong Kong with no other pensionable public service and who elect to commute part of their Hong Kong pension for a gratuity

To calculate the sterling value of an officer’s notional Hong Kong gratuity:

(a) Calculate the officer’s unreduced notional Hong Kong pension in accordance with HeadA, paragraphs (a), (b), (c) (i), (d) and (e);

(b) Apply the provisions of the relevant law to the unreduced notional Hong Kong pension to calculate the gratuity in accordance with the option exercised by the officer as if it were the pension to be taken for the purpose under the relevant law;

(c) The sum obtained at paragraph (b) of this Head is the sterling value of the officer’s notional Hong Kong gratuity.

Head M: Specified officers who retire from the service of the Government of Hong Kong with other pensionable service under a Scheduled Government and who elect to commute part of their Hong Kong pension for a gratuity

To calculate the sterling value of an officer’s notional Hong Kong gratuity:

(a) Calculate the officer’s unreduced notional Hong Kong pension in accordance with HeadB, paragraphs (a) to (i) and (k);

(b) Apply the provisions of the relevant law to the unreduced notional Hong Kong pension to calculate the gratuity in accordance with the option exercised by the officer as if it were the pension to be taken for the purpose under the relevant law;

(c) The sum obtained at paragraph (b) of this Head is the sterling value of the officer’s notional Hong Kong gratuity.

Head N: Specified officers who retire from the service of the United Kingdom Government and elect to commute part of their Hong Kong pension for a gratuity

To calculate the sterling value of an officer’s notional Hong Kong gratuity:

(a) Determine the sterling value of the officer’s unreduced notional Hong Kong pension in the manner prescribed in Head D or Head E, as the case may be;

(b) Apply the provisions of the relevant law appropriate to the calculation of the gratuity for which the officer has elected to the sterling value of the unreduced notional Hong Kong pension as determined under paragraph (a) of this Head to produce a sterling sum; such sterling sum is the sterling value of an officer’s notional Hong Kong gratuity.

Head O: Death Gratuity

To calculate the sterling value of an officer’s notional Hong Kong gratuity in the case of a death gratuity:

(a) Identify the officer’s salary point and allowances appropriate to his substantive grade at the date of his death or, if he died after retirement, at the date of his retirement;

(b) Determine the salary point and allowances appropriate to that grade on 1st January 1992; this will produce the officer’s notional Hong Kong pensionable emoluments;

(c) Then identify—

(i) where a death gratuity is payable in respect of an officer who dies in service, the amount equivalent to the officer’s notional pensionable emoluments as obtained at paragraph (b) of this Head or the maximum commutable pension gratuity as determined by paragraph (b) of Head L, whichever is the greater;

(ii) where a death gratuity is payable in respect of an officer who is eligible for a deferred pension, but who dies before the receipt of the pension, the amount equivalent to the maximum commutable pension gratuity as determined by paragraph (b) of Head L;

(iii) where a death gratuity is payable in respect of a pensioner who dies after retirement, the amount equivalent to the officer’s notional pensionable emoluments at the date of his retirement as obtained at paragraph (b) of this Head or the maximum commutable pension gratuity as determined by paragraph (b) of Head L, whichever is the greater;

(d) Divide the figure identified at paragraph (c) of this Head by 21 to convert into sterling;

(e) In the case of a death gratuity to which paragraph (c)(i) or (c)(ii) applies, increase the sum obtained at paragraph (d) in April of each year up to the date on which the officer died by the appropriate percentage increase rate obtained from the relevant Pensions Increase (Review) Order as if the sum so obtained were a pension beginning on the 8th April 1991. This produces the sterling value of the notional death gratuity;

(f) In the case of a death gratuity to which paragraph (c) (iii) applies—

(i) where the officer retired before 1st January 1992, the sum obtained at (d), less the deductions specified in paragraph (g), will be the sterling value of the notional death gratuity;

(ii) where the officer retired on or after 1st January 1992, increase the sum obtained at paragraph (d) in April of each year up to the date on which the officer died by the appropriate percentage increase rate obtained from the relevant Pensions Increase (Review) Order as if the sum so obtained were a pension beginning on the 8th April 1991. The resulting amount less the deductions specified in paragraph (g), will be the sterling value of the notional death gratuity;

(g) The deductions are the sterling value of any pension benefits or gratuity (other than any payment on account of an injury pension or gratuity) paid to the pensioner, any supplement paid in respect of the officer’s pension or gratuity (other than an injury payment or gratuity) under regulations made under section 11 of the Pensions (Increase) Act 1971, and any payments made under this Order.