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

• Citation: S.I. 1996/1294
• Sections: 19

Section 1 Citation and commencement

(1) This Order may be cited as the Hong Kong (Overseas Public Servants) (Pension Supplements) Order 1996.

(2) This Order shall come into force on 1st July 1996.

Section 2 Interpretation

(1) In this Order (including the Schedule):

“specified officer” means:

(a) a person who, during his service or a part of his service in Hong Kong, is or was a member of Her Majesty’s Overseas Civil Service (hereinafter referred to as “HMOCS”) or Her Majesty’s Overseas Judiciary;

(b) a person who is or was a judge in Hong Kong (that is to say, a judge of the Supreme Court or a judge of the District Court) or magistrate who, during his service in Hong Kong, was informed in writing by or on behalf of the Secretary of State that he would be treated as a member of HMOCS;

(c) a member of any of the Services listed in the Schedule to the Special Regulations made by the Secretary of State for HMOCS and published in the White Paper The Reorganisation of the Colonial Service, Colonial 306 , who prior, to 1st October 1954, held a pensionable office on pensionable terms in the service of Hong Kong;

(d) an expatriate officer who, prior to the 19th July 1956, held a pensionable office on pensionable terms in the service of Hong Kong, being a person who is certified by the Secretary of State:

(i) as having been selected or promoted to such office by, or with the approval of, the Secretary of State; or

(ii) as having been recruited to such office through the Crown Agents for Overseas Governments and Administrations; or

(iii) as having been recruited through other channels to such office in the service of Hong Kong for which a normal channel of recruitment was either through the Colonial Office or the Crown Agents,

other than an officer whose application for membership of HMOCS has been refused;

“basic pension” and “basic Hong Kong pension” mean:

the pension first awarded to a specified officer with effect from the date of his retirement and calculated by reference to his emoluments, or which would have been so awarded had it commenced on that date; or, if the pension is deferred, the amount that would have been awarded as so calculated had the pension commenced on the date of his retirement;

in the case of a pension in respect of the services of any person other than the pensioner, the pension first awarded,

without in either case, any addition or increases howsoever awarded (whether or not included in the amount of the original award);

“death gratuity” has the meaning ascribed to it in the relevant law;

“Hong Kong” means the Colony of Hong Kong or the Hong Kong Special Administrative Region, and references to service in or of Hong Kong, and the Government of Hong Kong, refer respectively to service in, and the Government of, the Colony or the Special Administrative Region;

“gratuity” means a lump sum paid under a relevant law as a gratuity, together with a reduced pension, in lieu of a full pension, or as a death gratuity; and this Order shall be construed in respect of a death gratuity as if the deceased officer were entitled to the death gratuity and the gratuity were payable at a place appointed by his legal personal representatives;

“pension” means a pension (including an injury pension), whether full, reduced or deferred, which is granted under a relevant law;

“pensioner” means a specified officer, or a dependant of a specified officer, who is in receipt of a pension;

“relevant law” means:

the Pensions Ordinance ;

the Pension Benefits Ordinance ;

the Pension Benefits (Judicial Officers) Ordinance ;

the Police Officers (Special Cases) Pensions Ordinance ;

the Widows and Orphans Pension Ordinance ;

the Surviving Spouses’ and Children’s Pensions Ordinance ,

of Hong Kong (and the regulations made under those ordinances), including any law amending such a law up to the date on which this Order comes into force, and any other law of Hong Kong recognised by the Secretary of State for the purposes of this Order;

“relevant law”, in relation to any pensioner or person entitled to a gratuity means the relevant law under which he is granted, or is entitled to, such benefit.

(2) Where any calculation is to be made under this Order in accordance with the relevant law and that relevant law is amended after the coming into force of this Order by a law other than a law recognised for the purposes of this Order by the Secretary of State, the calculation shall be made in accordance with the relevant law as if it had not been so amended.

(3) Nothing in paragraph (2) applies to the determination of the actual pension income of a pensioner or the determination of an actual gratuity, and in relation to such determination, the definition of relevant law in paragraph (1) shall be read as if the words “up to the date on which this Order comes into force and any other law of Hong Kong recognised by the Secretary of State for the purposes of this Order” were omitted.

Section 3 Benefits falling within this Order

This Order applies to:

(a) pensions awarded to specified officers and their dependants under a relevant law;

(b) a gratuity payable to a specified officer or to which a specified officer is entitled under a relevant law,

and the Order will have effect in respect of payments of such a pension or gratuity due after the coming into force of this Order:

Provided that where the Secretary of State is satisfied that a payment in respect of a pension or a gratuity is or may be made within the area comprising Hong Kong, the People’s Republic of China and Macao, and that no corresponding payment (less any sum paid under the law of Hong Kong in tax in respect of such pension or gratuity) is made by or on behalf of the person entitled thereto to a place outside that area, he may declare that this Order shall not apply to that pension or gratuity until he is subsequently satisfied that payments in respect of that pension or gratuity, or such corresponding payments, are made to a place outside that area.

Section 4 Determination of notional Hong Kong pension and actual pension income in sterling

(1) The provisions of Parts I and II of the Schedule to this Order shall apply for calculating and determining the notional Hong Kong pension of pensioners and the sterling value of such notional pension for the purposes of this Order. If a pensioner is entitled to more than one pension under the relevant laws, a separate calculation and determination shall be made in respect of each pension.

(2) For the purposes of this Order, the actual pension income for any month of a pensioner in respect of a Hong Kong pension is the sum of:

(a) one twelfth of the sterling value of the basic pension; and

(b) the sterling value of any increases on the basic pension received in respect of that month under the law of Hong Kong; and

(c) the amount of any pension supplement payable during that month under any regulations made under section 11 of the Pensions (Increase) Act 1971 , as from time to time in force, in respect of the basic pension,

and pro rata for any part of a month. If any payment is made otherwise than in sterling, the sterling value of the basic pension and any such increase will be determined using the middle rate of exchange of the official exchange market between the Hong Kong dollar and sterling on the fifteenth day of the month in question.

Section 5 Provision for supplementation of pension

If, in any month, the actual pension income of a pensioner in respect of a Hong Kong pension to which this Order applies is less than the sterling value of the pensioner’s notional Hong Kong pension, the pensioner shall be entitled to a supplementary payment in sterling of the difference between the two. Where a pension is payable in respect of only a part of a month, the notional Hong Kong pension shall be calculated on the same basis, and any supplementary payment shall be the difference between the two.

Section 6 Suspension or variation of payment of pensions

This Order applies only to pensions for the time being in payment and, accordingly:

(a) no supplementary payment shall be made when a pension is deferred under the relevant law or ceases, or during a period when it is suspended; and

(b) in the event of a pension being reduced or otherwise varied in accordance with the relevant law, the notional Hong Kong pension shall be recalculated and redetermined as the same proportion of the notional Hong Kong pension as originally determined as the reduced pension or pension as varied bears to the original basic pension.

Section 7 Determination of sterling values of notional Hong Kong gratuity and of actual gratuity

(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.

Section 8 Provision for supplementation of gratuity

If the actual gratuity paid to, or in respect of, a specified officer is less than the sterling value of the notional Hong Kong gratuity of that officer, he shall be entitled to a supplementary payment in sterling of the difference between the two.

Section 9 Registration of notional Hong Kong benefits and provision of information

(1) In order to qualify for supplementary payments under this Order, a pensioner shall provide the Secretary of State:

(a) with such information as will enable the Secretary of State to calculate and register that pensioner’s notional Hong Kong pension:

(i) in the case of a pension awarded before the coming into force of this Order, within six months of its coming into force;

(ii) in the case of a pension awarded after the coming into force of this Order, within three months of the grant of such pension,

or within such longer period as the Secretary of State may allow;

(b) with such other information, within such period as the Secretary of State may require, as will enable the Secretary of State to verify the payments made to the pensioner under the law of Hong Kong in respect of his pension, the place of such payments and any corresponding payments, and any changes made in respect of his pension, and to determine the amount of any supplementary payment.

(2) In order to qualify for a supplementary payment under his Order in respect of a gratuity, a specified officer or, as the case may be, his legal personal representatives shall provide the Secretary of State:

(a) with such information as will enable the Secretary of State to determine whether the Order applies to the gratuity, to calculate and register that officer’s notional Hong Kong gratuity and, if any change occurs in the matters taken for calculation of the gratuity since so informing the Secretary of State, of any such change;

(b) with such other information as will enable the Secretary of State to determine the amount of any supplementary payment.

(3) No supplementary payment shall be made under this Order except in respect of a registered notional Hong Kong pension or a registered notional Hong Kong gratuity, and the Secretary of State may withhold any supplementary payment unless he is satisfied that he has been correctly informed of all pertinent information as regards a pension or gratuity and the payments made under the law of Hong Kong in respect of the pension or gratuity.

Section 10 Overpayments

(1) In any case where an increase to a pension under the law of Hong Kong which may be taken into account in determining any supplementary payment payable under this Order is granted or revised with retrospective effect, such supplementary payment will be revised accordingly with similar effect and any overpayment to the pensioner as a result may be recovered from him by deduction from any supplementary payments subsequently payable or otherwise.

(2) Where any overpayment has not been recovered within three months of notification, no further supplementary payments shall be made to the pensioner until the amount of the overpayment has been recovered.

Section 11 Secretary of State to decide all questions of interpretation of the Order

Any question relating to the interpretation of this Order, including any question as to who is a member of HMOCS, Her Majesty’s Overseas Judiciary or otherwise eligible as a specified officer and what shall be deemed to be the salary point and grade as at 1st January 1992 of a grade established or existing before or after that date, may be determined by the Secretary of State.

Section 1

In this Schedule:

“pensionable emoluments” (except in the expression notional Hong Kong pensionable emoluments), “public service”, “other public service” and “Scheduled Government” have the meanings respectively ascribed to them in the relevant law;

“service in the Group” means service under the Government of Hong Kong and under a Scheduled Government or Governments;

“the mixed service formula” means the following calculation:

determine the pension which would be payable under the relevant law in respect of the notional Hong Kong pensionable emoluments as if the officer’s service had been wholly under the Government of Hong Kong;

determine:

the aggregate amount of the officer’s actual pensionable emoluments during his service under the Government of Hong Kong; and

the aggregate amount of his actual pensionable emoluments throughout his service in the Group;

the pension payable on the notional Hong Kong pensionable emoluments in respect of the officer’s Hong Kong Service will bear the same proportion to the amount determined in paragraph (a) of this definition as the amount determined in paragraph (b)(i) bears to the amount determined in paragraph (b)(ii);

“relevant Pensions Increase (Review) Order” in respect of any year, means the Order (if any) made under section 59 of the Social Security Pensions Act 1975 , as from time to time in force, which has effect in respect of that year.

Section 1 Head C: Specified officers who retire before the coming into force of this Order from United Kingdom service who, on such retirement, are awarded a pension under a relevant law of Hong Kong in respect of their service in Hong Kong

Subject to item 2 of this Head, to calculate the sterling value of an officer’s notional Hong Kong pension:

(a) Identify the officer’s highest rate of salary on retirement from his service under the Government of the United Kingdom, or, if it is greater and is taken into account to calculate his United Kingdom pension, his highest pensionable salary for the year which is so taken into account;

(b) Calculate in months the officer’s total length of pensionable service in Hong Kong in accordance with the relevant law;

(c) Identify the officer’s pension earning rate under the relevant law;

(d) Multiply the figures obtained at paragraphs (a) and (b) and divide by the figure obtained at paragraph (c);

(e) Multiply by 4/3rds the actual pension (excluding that part enhanced by the purchase of added years but including any enhancement under flexible added early retirement or ill-health arrangements) awarded to the officer at the time of his retirement under United Kingdom law;

(f) Add the sum obtained at paragraph (e) to the sum obtained at paragraph (d) i.e. (e)+(d)=(f);

(g) Multiply the sum obtained at paragraph (a) by 2/3rds;

(h) If the sum obtained at paragraph (f) is less than that obtained at paragraph (g), carry the former sum forward; if the sum obtained at paragraph (f) is greater than that obtained at paragraph (g), carry the latter sum forward;

(i) Subtract the sum obtained at paragraph (e) from whichever sum is carried forward at paragraph (h); the result is the sterling value of the officer’s unreduced notional Hong Kong pension;

(j) If the officer commuted any part of his actual Hong Kong pension, or his pension has been or is reduced by an appropriate authority under the relevant law, the unreduced notional Hong Kong pension established at paragraph (i) is reduced in like proportion;

(k) Save as provided in paragraph 2 of Part I of this Schedule, increase the sum obtained at paragraph (i) or paragraph (j) of this Head, as appropriate, as if that sum were a pension of the same amount beginning on the same date as that used to determine the entitlement of the officer to a pension supplement under regulations made under section 11 of the Pensions (Increase) Act 1971, or such date as would have been used as if the officer had been entitled to a pension supplement, as follows:

(i) in respect of any period to which section 1 or section 2 of that Act applies, in accordance, as appropriate, with the provisions of the said section 1 or any order to give effect to the said section 2; and

(ii) in April of each year up to the date on which a calculation is to be made to determine whether a supplementary payment is to be made under paragraph 5 of this Order, by the appropriate percentage increase rate obtained from the relevant Pensions Increase (Review) Order;

(l) The sum obtained at paragraph (k) of this Head is the sterling value of the officer’s notional Hong Kong pension;

(m) Divide the sterling value of the officer’s notional Hong Kong pension by 12 to obtain the monthly rate of such sterling value.

Section 1 Head I: Spouses and children who, being dependants of specified officers who die in service or after being granted a pension in respect of their service in Hong Kong, have been or are themselves granted a pension under the Surviving Spouses’ and Children’s Pensions Ordinance

To calculate the sterling value of a spouse’s notional Hong Kong pension:

(a) Identify the officer’s salary point and allowances appropriate to his substantive grade at the date of his death in service or retirement, as the case may be;

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

(c) Calculate the pension which would be payable using the notional Hong Kong pensionable emoluments in accordance with the following formula:

where

A are the officer’s notional Hong Kong emoluments;

B:

are the total number of months of the officer’s contributory service, but where the pension earning rate is 600, ignoring the number of months in excess of 400 and where the pension earning rate is 675, ignoring the number of months in excess of 450; or

is the minimum period (in months) prescribed by section 7 of the Surviving Spouses’ and Children’s Pensions Ordinance,

whichever is the greater;

C is the officer’s pension earning rate; and

is the sum to be taken for the remainder of the calculation.

(d) Divide the sum obtained at paragraph (c) by 21; the resulting sum will be denominated in pounds sterling;

(e) Increase the sum obtained at paragraph (d) in April of each year up to the date on which a calculation is to be made to determine whether a supplementary payment is payable under paragraph 5 of this Order 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;

(f) The sum obtained at paragraph (d) of this Head as increased in accordance with paragraph (e) is the sterling value of the spouse’s notional Hong Kong pension;

(g) Divide the sterling value of the spouse’s notional Hong Kong pension by 12 to obtain the monthly rate of such sterling value.

Section 2

(1) Where, in calculating the sterling value of a specified officer’s notional Hong Kong pension, provision is made in this Schedule for increasing any sum by a percentage increase rate obtained from a Pensions Increase (Review) Order or in accordance with section 1 or an order made under section 2 of the Pensions (Increase) Act 1971 and the calculation is to be made at any time between the officer’s retiring under the age of fifty five years and his attaining that age, no such increase shall be made:

(a) in respect of any such Order made subsequent to the date of his retirement;

(b) or, as the case may be, for any period to which the said section 1, or any order made under the said section 2, applies

if that period falls within the period between the officer so retiring and his attaining the age of fifty five, unless the Secretary of State is satisfied that the officer is permanently incapacitated by physical or mental infirmity from engaging in any regular full-time employment. When the officer has attained the age of fifty five, subsequent calculations shall take account of Orders or periods excluded by the foregoing provisions of this paragraph as well as any relevant earlier or future Orders.

(2) Nothing in this paragraph applies to the calculation of the sterling value of a deceased specified officer’s notional Hong Kong pension where such calculation is made for the purposes of calculating a dependant’s notional Hong Kong pension.

Section 2 Head C: Specified officers who retire before the coming into force of this Order from United Kingdom service who, on such retirement, are awarded a pension under a relevant law of Hong Kong in respect of their service in Hong Kong

Where the officer is in receipt of an overseas government service pension in addition to a service pension under the law of Hong Kong, the foregoing provisions of this Head shall have effect as if the following paragraph were inserted immediately following paragraph (e):

(ee) Add to the sum obtained at paragraph (e) the annual unreduced pension, as originally calculated, of any other overseas government service pension granted to the officer;

and thereafter in this Head references to paragraph (e) shall be read as references to paragraph (ee).

Section 2 Head I: Spouses and children who, being dependants of specified officers who die in service or after being granted a pension in respect of their service in Hong Kong, have been or are themselves granted a pension under the Surviving Spouses’ and Children’s Pensions Ordinance

To calculate the sterling value of the notional Hong Kong pension in respect of the child dependant or children dependants of an officer:

(a) where a pension is payable under the relevant law in respect of a child or children of pensionable age when the parent is in receipt of a pension under the relevant law:

(i) and there is only one such child, determine the sum representing one quarter of the basic rate, or, if the child is not being cared for by the parent, one third of the basic rate;

(ii) and there are two or more such children, determine the sum representing one half of the basic rate;

(b) where such pension is payable but the parent is no longer living or in receipt of a pension:

(i) and there is only one such child, determine the sum representing one third of the basic rate;

(ii) and there are two or more such children, determine the sum representing two thirds of the basic rate.

(c) Apply the rules at paragraph 1(d), (e), (f) and (g) of this Head to obtain the monthly rate of the sterling value of the child or children’s notional Hong Kong pension.

(d) Where there are two or more eligible children the sum obtained at paragraph 2(c) of this Head is the total sum applicable for all the children, and the provisions of paragraph 5 of the Order will apply as if the references to a pensioner were references to the children who are pensioners and the reference to the pensioner’s notional Hong Kong pension were a reference to the sum applicable as determined in accordance with paragraphs 2(a), (b) and (c) of this Head.

Section 2 Interpretation of Head H2:

In this paragraph,

“basic rate” means the sum obtained at

in paragraph 1(c) above.

Section 3 Head C: Specified officers who retire before the coming into force of this Order from United Kingdom service who, on such retirement, are awarded a pension under a relevant law of Hong Kong in respect of their service in Hong Kong

In this Head, “overseas government service pension” means a pension in respect of other public service not being service under the Government of the United Kingdom.