MANAGEMENT IN CONFIDENCE
HKA 233/1
RECEIVED # DU MOTRY NO. 51 23 JUN 1978
DESK OFFICER
INDEX
No
PA
Mecan
23 June 1978 Doved Be
BU
26
в
276
REGSHRY
Action T
P.P. 24
Lee
11.5
29
E
HKA 233/1
D T. Hawkins Esq
Superannuation Division
Civil Service Department Whitehall
London
LAST
REF.
1629
GOVERNORS' PENSION SCHEME
1. I understand that at a meeting held in your office on 31 May to discuss the proposed new Governors' Pension Scheme, you asked the FCO representatives to provide details of the notional United Kingdom related salaries on which pensions will be
calculated.
2.
It may first be helpful to explain the relationship between the total emoluments of a Governor and the emoluments of an officer of equivalent grade in the United Kingdom, as already agreed between our two departments.
3. We divide the Dependent Territories broadly into three categories. First, the comparatively wealthy territories, which are willing and able to meet the cost of the Governor's emoluments in full as a matter of course and should continue to do so. They are: Hong Kong, Bermuda and Cayman Islands. Second, territories which are meeting the cost of the Governor's emoluments in full at present, but may not be able or willing to do so at some time in the future (Gibraltar, Falkland Islands and Belize). Third, those poorer territories where we "top up" salaries in a similar way to OSAS supplementation when the Governor is HMOCS or contract (ex-HMOCS). These territories are: Gilbert Islands, Tuvalu, Solomon Islands, St Helena, British Virgin Islands, Montserrat, Anguilla and Turks and Caicos; the first three are expected to become independent in 1978 and 1979.
4. The well established general rule is that the cost of the Governor's salary should fall on the local budget. However, this basic principle can raise difficulties with local politicians and the local legislature if the Governor's elemy (where this is provided for in the local estimates) is badly out of line with that of the next most senior expatriate officers (i.e. Chief Justice and Chief Secretary). The Chief Justice and Chief Secretary are likely to receive OSAS supplementation in the United Kingdom but this will not show up in the local estimates, thus making the Governors' total emoluments appear disproportion- ately high in relation to those of his immediate subordinates. In some circumstances this is politically embarrassing.
MANAGEMENT IN CONFIDENCE