Hong Kong Regulations

PENSIONS REGULATIONS - REGULATION 26

Annual allowance and gratuity for monthly paid officers

(Past version on 30/06/1997).

Adaptation amendments retroactively made - see 63 of 1999 s. 3

(1) Every monthly paid non-pensionable officer serving under the Government in
respect of whom the conditions set forth herein are fulfilled may on
retirement be granted by the Chief Executive an annual  allowance which, if
his length of service does not exceed 25 years, shall be calculated at the
rate of one eight-hundredth of his annual salary for every complete month of
service under the Government and if his service exceeds 25 years, shall be
calculated at three-hundred eight-hundredths of such annual salary with an
addition thereto of one six-hundredth of such annual salary for every complete
month of service under the Government in excess of 25 years, and any
incomplete month of service shall be taken to be that fraction of a complete
month whereof the denominator is 30 and the numerator the number of days of
service in that incomplete month, irrespective of the actual number of days in
that month. (G.N.A. 90 of 1960; 26 of 1982 s. 6; 63 of 1999 s. 3)

(2) Such annual salary shall be computed in accordance with the provisions of
regulation 18, subject to the following modifications-

        (a)	for the word "pension" wherever it occurs, there shall be 
substituted the words "annual allowance";

        (b)	for the words "service in an established office" in paragraph 


(1) there shall be substituted the words "public service"; (26 of 1982 s. 6;
w.e.f. 30 May 1980)

        (c)	for the words "pensionable emoluments" wherever they occur, 
there shall be substituted the word "salary"; and (G.N.A. 90 of 1960; L.N. 123
of 1980)

   (d)  for the words "section 6(1)(c), (d) or (e) of the Ordinance" in
        paragraph (2)(ii) there shall be substituted the words "regulation
        26(4)(c), (cc) or (d)". (26 of 1982 s. 6; 80 of 1997 s. 102)

(3) Annual salary in respect of an officer who, having held a non-established
office is serving on probation in an established office, shall be the annual
pensionable emoluments of the established office or the annual pay last
received in respect of his service in a non-established office, whichever
shall be greater.

(4) The conditions upon which an annual allowance or gratuity may be granted
under this regulation are-

   (a)  subject to paragraphs (9), (10) and (11), such service must have been
        continuous for a period of not less than 10 years: (L.N. 17 of 1976; 4
        of 1993 s. 39) Provided that such interruptions in service which may
        be disregarded under regulation 15 for the purpose of qualifying for
        and computing a pension may be disregarded for the purpose of
        qualifying for and computing an annual allowance under this
        regulation; and either

   (b)  the officer must have attained the age of 55; or

   (bb) where the officer's retirement is with the approval of the Chief
        Executive, the officer must have attained the age of 45; or (L.N. 123
        of 1980; 63 of 1999 s. 3)

   (c)  the Chief Executive must be satisfied on medical evidence that he is
        incapable by reason of infirmity of mind or body of discharging the
        duties of his office and that such infirmity is likely to be
        permanent; or (63 of 1999 s. 3)

   (cc) the officer's retirement must be necessitated by the abolition of his
        office; or (L.N. 123 of 1980)

   (d)  the officer's retirement must be necessitated by the reorganization of
        the department to which he belongs in order to effect greater economy
        or efficiency; or (L.N. 352 of 1988)

   (e)  the officer's retirement must be necessitated by the public interest;
        or (L.N. 352 of 1988)

   (f)  the officer's retirement must be compulsory and by reason of the
        exercise by the Government of disciplinary powers of punishment. (L.N.
        352 of 1988)

(4A) Unless otherwise directed by the Chief Executive, an annual  allowance or
gratuity granted to an officer to whom paragraph (4)(e) or

   (f)  applies shall not be payable until the officer attains the age of 55
        years. (4 of 1993 s. 39; 63 of 1999 s. 3)

(5) An officer to whom an annual allowance is granted under this regulation
shall, if he has exercised his option as hereinafter provided, but not
otherwise, be paid in lieu of such annual allowance an annual  allowance at
the rate of 75, 80, 85, 90 or 95 per cent of such annual  allowance,
respectively, as he shall have exercised his option, together with a gratuity
equal to 14 times the amount of the annual reduction so made in the
annual allowance. (L.N. 123 of 1980; L.N. 249 of 1983)

(5A) The option referred to in paragraph (5) shall be exercisable, and if it
has been exercised may be revoked, not later than the day immediately
preceding the date of such officer's retirement: Provided that the Chief
Executive may, if it appears to him equitable in all the circumstances so to
do, allow him to exercise the option or revoke the option previously exercised
at any time between that date and the actual date of award of the
annual allowance under this regulation. (L.N. 123 of 1980; L.N. 63 of 1992; 63
of 1999 s. 3)

(5B) Subject to paragraph (5A), if an officer has exercised the option his
decision shall be irrevocable so far as concerns any annual  allowance to be
granted to him under this regulation. (L.N. 123 of 1980)

(5C) If an officer who has not exercised the option dies after he has finally
retired but before an annual allowance has been granted to him under this
regulation, it shall be lawful for the Chief Executive to grant a gratuity and
reduced annual allowance as provided in paragraph (5), as if the officer
before his death had exercised his option to receive a gratuity and 75 per
cent of the annual allowance. (L.N. 123 of 1980; L.N. 63 of 1992; 63 of 1992
s. 3)

(5D) The date of exercise of the option by an officer shall be deemed to be
the date of the receipt of his written notification addressed to the Director
of Accounting Services. (L.N. 123 of 1980)

(6) No annual allowance may be granted under this regulation to any officer in
an established office in excess of the pension which might have been granted
had that officer been a pensionable officer in the office held by him, with
the same service.

(7) (a) Unless it shall have been approved on grounds of public policy by the
Chief Executive, any period during which a non-pensionable officer shall have
been absent from duty without salary shall not be taken into account for the
purpose of computing the period of service in respect of which an
annual allowance or a gratuity may be granted under these regulations. (63 of
1999 s. 3)

   (b)  A period during which a non-pensionable officer is absent from duty
        without salary shall not be regarded as constituting a break in
        service. (L.N. 352 of 1988)

(8) Every monthly paid non-pensionable officer serving under the Government
who retires on any of the conditions stated in paragraph (4)

   (b)  , (bb), (c), (cc) and (d) and who on his retirement has not completed
        10 years unbroken service may be granted by the Chief Executive a
        gratuity not exceeding 7 times the annual allowance which if there has
        been no qualifying period might have been granted to him under this
        regulation. (G.N.A. 72 of 1955; L.N. 123 of 1980; 63 of 1999 s. 3)

(8A) Where a non-pensionable female officer who-

   (a)  has, prior to 17 November 1972, retired from the service by reason of
        her marriage; and

   (b)  has not, upon retirement, received a marriage gratuity under these
        regulations, is without break in service subsequently re-employed in
        the service under the Government, the period of service prior to such
        retirement shall be taken into account for the purpose of computing
        the period of service in respect of which an annual allowance or
        gratuity may be granted under these regulations. (30 of 1980 s. 5;
        w.e.f. 9.12.49)

(8AA) In the case of an officer-

   (a)  who retires under paragraph (4)(c); and

   (b)  whose retirement is necessitated or materially accelerated by
        permanent injury sustained in the circumstances described in
        regulation 31(1)(a), (b) and (c), for the purposes of paragraph (1) or
        (8) his period of service to be taken into account in computing an
        award of an annual allowance or gratuity shall be deemed to be twice
        the actual period of his service, subject to a minimum of 2 years and
        a maximum of-

        (i)    20 years; or

        (ii)   the period of pensionable service that he would have completed
               if he had served until attaining the age of 55 years, whichever
               is the lesser. (3 of 1993 s. 32)

(9) In the case of an officer who retires under paragraph (4)(c) otherwise
than under the circumstances described in paragraph (8AA)(b) and whose period
of service under the Government is- (3 of 1993 s. 32)

   (a)  not less than 5 nor more than 20 years; or

   (b)  more than 20 years but whose period of service to be taken into
        account in computing an award under paragraph (1) is less than 20
        years, for the purposes of paragraph (1) or paragraph (8) his period
        of service to be taken into account in computing an award under
        paragraph (1) shall be deemed to be-

        (i)    twice his actual period of service to be taken into account in
               computing an award under paragraph (1) (subject to a maximum of
               20 years); or

        (ii)   the period of service to be taken into account in computing an
               award under paragraph (1) that he would have completed if he
               had served until attaining the age of 55 years, whichever is
               the lesser. (26 of 1982 s. 6; w.e.f. 9.1.76)

(10) Where an officer's retirement is necessitated by the abolition of his
office or by the reorganization of the department to which he belongs in order
to effect greater economy or efficiency-

   (a)  he may, if he has been in the service of the Government for less than
        10 years, be granted in lieu of any gratuity under paragraph

(8), an annual allowance under paragraph (1), as if the words "for a period of
not less than 10 years" were omitted from paragraph (4)(a);

   (b)  he may be granted an additional annual allowance in respect of his
        unbroken service calculated in the following manner-

        (i)    for each complete period of 3 years service under the
               Government up to 24 years, one-eightieth of his annual salary;

        (ii)   for the complete period of 3 years service under the Government
               after 24 years, eleven-seven hundred and twentieth of his
               annual salary;

        (iii)  for each complete period of 3 years service under the
               Government after 27 years, one-sixtieth of his annual salary:
               Provided that-

        (i)    any such additional annual allowance shall not exceed
               ten-eightieths of his annual salary; and

        (ii)   any such additional annual allowance together with the
               remainder of the officer's annual allowance shall not exceed
               the annual  allowance for which he would have been eligible if
               he had continued to hold the office held by him at the date of
               his retirement and retired on reaching the age of 55 having
               received all increments for which he would have been eligible
               by that date. (L.N. 123 of 1980)

(11) An officer referred to in paragraph (4)(e) or (f) may, if he has been in
the service of the Government for less than 10 years, be
granted an annual allowance under paragraph (1), as if the words "for a period
of not less than 10 years" were omitted from paragraph (4)(a). (4 of 1993 s.
39)

(12) An annual allowance under this regulation shall be paid in monthly
instalments, or less frequently if so requested by the recipient.

(4 of 1993 s. 39) (G.N.A. 90 of 1960; 36 of 1987 s. 49)