(ii) Entitled officers who remain in the Service on pensionable terms after the operative date shall be entitled, on retirement, to commute a further one-sixteenth of their pensions earned in respect of their service in North Borneo/ Sarawak for each completed year of service after the operative date, in accordance with the special table of commutation factors set out in Appendix IV provided that deferred leave (ie.. vacation leave due to an officer in excess of vacation leave earned in respect of his final tour of service) shall not count as service in respect of which the officer may commute an extra one-sixteenth of his pension.
(iii) An entitled officer will be permitted to commute the whole or any part m excess of the statutory provisions of the pension earned in respect of his service in North Borneo Sarawak up to a maximum of £300 in accordance with the special table of commutation factors set out in Appendix N, but any excess of pension over £300 will be forfeited
(iv) Officers who are pensionable under the Oversea Superannuation Scheme are not entitled under the Regulations of that Scheme to commute any part of their pensions but instead receive a smaller pension and a lump sum which is equivalent to one-quarter of a normal pension multiplied by a factor of 10. North Borneo/Sarawak will add to this lump sum to bring it up to the amount which would have been payable if the officer had not been eligible for a pension and a lump sum but had been eligible for a pension calculated on a pension constant of one-sixhundredth for each month of service and had been able to commute one-quarter of that pension in accordance with the table referred to in sub-paragraph (1) above.
16. Incidence of Income Tax
(i) Compensation payments (whether paid in a lump sum or by instalments), disturbance grants and capital sums paid in respect of commutation of pensions, whether paid to the officer or (in the event of his death) to his dependants or his legal personal representatives shall not be liable to income tax either in the United Kingdom or m North Borneo/Sarawak.
(ii) Interest paid on the balance of compensation due to an entitled officer (after the initial payment has been made) may be liable to income tax either in the officer's country of residence or in North Borneo Sarawak or in both, according to the circumstances of the officer and subject the provisions of any Double Taxation Agreement where applicable.
17. Disciplinary proceedings which may affect the pension or compensation of an entitled officer serving after the operative date
(i) If any decision of a Service Commission has the effect of withholding, suspending, reducing or otherwise altering to his detriment any pension compensation or other retiring benefit due to or in respect of an entitled officer, be or his lcgal personal representatives as the case may be shall have the right to appeal against the decision to an Appeals Board whose decision shall be final. The Appeals Board will be composed of one member selected by the Chief Minister, one member selected by an association representing public officers or a professional body nominated by the entitled officer concerned, and one selected by the two other members jointly, to be Chairman of the Board. An officer shall be entitled to legal representation before the Board.
(ii) If an entitled officer, who has retired from the pensionable service with compensation and has been engaged on contract terms, terminates his contract or has his contract terminated for any reason. this will not affect the payment of his pension or the payment of any balance of compensation due to him.
18. Officers on temporary transfer from the Home Civil Service
An officer on temporary transfer from the Home Civil Service who is in the service of the North Borneo/Sarawak Government on the operative date and who would then have been an entitled officer if he had not been serving on temporary transfer if he returns to the Home Civil Service to a post carrying lower pensionable emoluments than the post he holds in North Borneo/Sarawak, shall receive (after the date of his return to the Home Civil Service) compensation calculated as in paragraph 11 above, provided:—
