Civil Service Department Whitehall London SW1A 2AZ
16
HKA 233/1 RECEIVED IN REGISTRY S
23 JUN 1978
Telephone (Direct dialling) 01-273 4097
(Switchboard) 01-273 3000
DESK OFFICER INDEX
PA.
REGISTRY Action Take
1.
J W Willby Esq
Ministry of Overseas Development
Eland House
Stag Place
LONDON SW1E 5DH
10
IN 2200
GOVERNORS' PENSION SCHEME
(27)
Your reference
PD 231/213/01
Our reference
S.52/01
Date
23 June 1978
I refer to our meeting on 31 May to discuss the proposed new Governors' Pension Scheme.
2. One of the points which was discussed and left for further consideration was the question of the possibility of making provision in the scheme for the payment of contributions for widows pension during service as a Governor by a person previously pensionable under the PCSPS to cover the contingency that he eventually opted for an aggregated award under the PCSPS. We have given thought to this but have come to the view that the arrangement is not possible unless the option to adopt the PCSPS terms was made at the beginning of the appointment as a Governor, and given the background to the existing option no doubt you would find this idea unacceptable on several counts. The point is that it is difficult to see how one could justify collecting contributions under the rules of a scheme when the person concerned was not a member of the scheme and where there was no
In the certainty that at the end of the day he would be covered. circumstances, therefore, it seems that we must fall back on the specific provisions of the PCSPS under which, for a Governor who opt for PCSPS terms, any outstanding widow's contributions must be deducted from the lump sum. I appreciate that this will result in a reduction of the lump sum but this is one of the factors which will have to be taken into account when the Governor makes his choice at the end of his service. The option gives him the opportunity of deciding which of the 2 alternative schemes will give him what he considers to be overall the better pension provision.
3. The other major point left outstanding at the meeting was the question of using notional diplomatic service salaries for pension purposes. I undertook to look into this but asked first for details of the notional salaries proposed together with the present pensionable salaries (and the date when these were first determined) for Governors currently in the past so that it would be possible to make a realistic appraisal of the effects of the proposal. As you know we are under instructions to finalise this matter by the end of the month and
I would be grateful if Hall or Benest could let me have this information fairly quickly.
Now sens. See Mr. Mc haven's letter of
M2 23.6-78
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