Page:Report of The Inter-Governmental Committee, Malaysia.pdf/40

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(iii) An entitled officer who, having received an initial payment of £2,000, breaks his undetaking to serve on pensionable terms for a further minimam penod of 24 months of residential service by retiring without the agreement of the Govemment, shall be liable to lose one-half per cent of the total compensation due to him (as calculated, if appropriate, in accordance with the provisions of paragraph 5 (v) above) in respect of each month or part of a month by which he has failed to serve.

(iv) An entitled officer who enters into this arrangement may proceed in one of the following ways:—

(a) if the undertaking is given not later than three months after the operative date, any period of service in North Borneo Sarawak between the operative date and three months thereafter will wunt towards his 24 months' residential service; and he will be entitled to an initial payment of £2,000. (If, before the undertaking is given the officer has already received an initial instalment calculated in accordance with paragraph 6 (iu) above the additional sum required to bring; his first instalment up to the appropriate figure calculated in accordance with sub paragraph (i) of this paragraph will be paid to him as soon as possible after he has given the undertaking); or

(b) of the undertaking is given after the expiration of three months from the operative date but before the expiration of 12 months from the operative date, the period of 24 months of further residential service, which he undertakes to serve will start from the day on which the undertaking is given. He will already have received an initial payment of compensation. as though he had given no undertaking (see paragraph 6); but as soon as possible after he has given the undertaking, a further payment will be made to him to bring his initial payment up to the enhanced level set out in sub-paragraph (1) of this paragraph.

8. Payment of Interest

(i) Interest at 5 per cent per annum, based on the previously assessed balance of compensation due, will be paid at the time of the payment of the next instalment Where a recalculation of the entitlement to compensation is made on an anniversary of the operative date Interest will become payable on the reassessed balance from the date when the recalculation is made.

(ii) Where a recalculation is made on the occasion of an officer's retirement interest will be paid, at the time the next instalment of compensation is duc, calculated as follows:—

5 per cent per annum on the balance of compensation due at the previous anniversary of the operative date for the period between the anniversary of the operative date and the date of retirement, plus 5 per cent per annum on the balance of compensation due on recalculation at the date of retirement from the date of retirement to the next anniversary of the operative date.

(iii) For the purpose of calculating interest the first instalment of compensation will be deemed to have been paid on the operative date.

9. Contract Appointments

(i) An entitled officer may request re-engagement on contract terms and, with the approval of the Public Service Commission, such officer may be so re-engaged on terms which are not more favourable than those he enjoyed before he retired. Such entitled officer will not be required to give the normal period of notice of retirement.

(ii) The contract will commence with effect from the first day of the month following the officer's acceptance of the offer of contract employment. The day immediately preceding the effective date for the commencement of the contract will be regarded as the last day of the officer's pensionable service for the purpose of computation of his pension and of final calculation of his compensation entitlement. Re-engagement on contract terms will not affect the officer'a entitlement to payment of pension and compensation under this Scheme as from the date of his retirement from the pensionable service.

(iii) Any leave due to the officer on the day on which his contract service starts will not be regarded as pensionable service, but will be added to leave earned under the contract and will earn gratuity.