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(ii) If an entitled officer accepts a transfer (as defined in sub-paragraph (i) above) to a post carrying lower pensionable emoluments than his post in North Borneo/Sarawak, he will be granted compensation either:—

(a) calculated by multiplying the amount by which his annual pensionable of his new post by the factor appropriate to his age as set out in the table prepared

by the Government Actuary, at Appendix III: or

(b) equal to the compensation which would have been payable to him if he had retired at the date of his transfer,

whichever is the less, and the compensation shall be paid as set out in paragraph 6 above.

12. Officers who are required to retire during 1963 and subsequently to facilitate the introduction of constitutional changes

(i) An entitled officer who is required to retire in the circumstances described above will be entitled to the following benefits:—

(a) the compensation due to him will be paid in one lump sum as soon as possible after he has been given notice of his retirement,

(b) he will receive (before or as soon as possible after his departure on leave prior to retirement) a disturbance grant equal to one-quarter of his annual pensionable emoluments and this grant will not be liable to income tax either in the United Kingdom or in North Borneo/Sarawak;

(c) if he has less than six months' earned leave (including any deferred leave) standing to his credit when he leaves North Borneo/Sarawak, he will be granted additional leave to bring his period of leave up to a total of six months;

(d) he will receive full reurement passages and baggage concessions as if he had completed a normal tour;

(e) his pension will be calculated on the basis of the pensionable emoluments which he is drawing at the date of his retirement, and the "averaging" provisions of the Pensions Ordinance will not apply to him.

(ii) The decision whether or not a particular retirement falls within the terms of this paragraph will rest with the Public Service Commission.

13. Officers who are required to retire to facilitate the localisation of the Public Service

(i) The Government may inform the Service Commissions that, as a general policy, expatriate officers should be required to retire in sufficient numbers whenever suitably qualified local candidates are available for appointment or promotion and sufficient vacancies are not available to accommodate them, or, alternatively, it may inform the Service Commissions of the application of this policy to particular cadres from time to time It will be for the Service Commission concerned to determine whether suitably qualified local candidates are available who cannot be accommodated in existing vacancies and, if so, to select the individual expatriate officers who should be required to retire.

(ii) No officer who has been notified that he will continue to be employed for a minimum period in accordance with paragraph 3 above shall be required to retire under this paragraph before the expiry of that minimum period.

(iii) It will be for the appropriate Service Commission to determine, in the light of the public interest, what penod of notice should be given to an entitled officer who is required to retire in these circumstances, provided:—

(a) that, unless the officer is on vacation leave, the penod of notice shall not be less than six months resident service, or such shorter period as the officer, with the concurrence of the appropriate Service Commission, may wish to give;

(b) that, if an entitled officer is required to retire while absent from North Borneo/Sarawak on vacation leave, the special provisions set out in sub-paragraph (v) of this paragraph will apply;