Page:Agreement concerning certain overseas officers serving in Sabah and Sarawak 7 May 1965.pdf/6

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 * "pension" means the pension payable to a designated officer under pensions Laws and Regulations applicable to him, including any sum paid to him by way of commutation of such pension, but excluding any compensation;


 * "Secretary of State" means one of Her Majesty's Principal Secretaries of State in the United Kingdom.


 * (2) Reference in this Agreement to Sabah shall in relation to any period prior to the appointed day be construed as a reference to North Borneo.


 * 2. In the event of the Government of Malaysia on or after the appointed day paying the allowances, and providing for the passages referred to in clause 3 of this Agreement, the Government of the United Kingdom will, in accordance with such procedure as may mutually be agreed between the said two Governments, reimburse the Government of Malaysia the following sums:


 * (a) the aggregate amount of the allowance, referred to in paragraphs (a) and (b) of clause 3 of this Agreement, and paid to designated officers less such sum as may be agreed by the said two Governments as being equivalent for the purpose of this Agreement to the proceeds of taxation payable by designated officers on the inducement allowance referred to in paragraph (a) of clause 3 of this Agreement;


 * (b) one half of the aggregate amount paid by the Government of Malaysia in providing for designated officers the passages referred to in paragraph (c) of clause 3 of this Agreement;


 * (c) that part of any gratuity paid by the Government of Malaysia to a designated officer which accrues to that officer by virtue of the addition to his emoluments, after the appointed day, of the inducement allowance referred to in paragraph (a) of clause 3 of this Agreement;


 * (d) that part of any pension paid by the Government of Malaysia to a designated officer which accrues to that officer by virtue of the addition to his pensionable emoluments, after the appointed day, of the inducement allowance referred to in paragraph (a) of clause 3 of this Agreement which shall bear the same proportion to the total pension payable to that officer by the Government of Malaysia as the total amount of inducement allowance as aforesaid paid to him by the Government of Malaysia bears to the aggregate pensionable emoluments earned by him, before or after the appointed day while in the public service of the Government of Malaysia.

No. 8058