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of appointment to certain senior posts is reserved to the Secretary of State. We have delegated to the Governor authority to appoint and promote in professional Departments up to Deputy Director level, but no powers have been delegated in respect of Administrative officers at all. We regard them as the Governor's first eleven.
6. HMOCS membership is open to expatriate pensionable officers appointed by the Secretary of State or the Crown Agents. Membership brings the officer under the Secretary of State's umbrella in repsect of superannuation and compensation (eg topping up of pension at the age of 55 under the Pensions Increase Act and the security of pensions etc if Hong Kong disappeared). Membership is treasured.
7. The question of superannuation in the Public sector in Hong Kong has always been politically sensitive and has been kept under wraps for obvious reasons. The pension costs however are considerable and the subject was discussed with the Secretary for the Civil Service in London in 1975 and in Hong Kong in 1976. Mr West, Pensions Department, ODM, obtained further information on pensions in order to get a clearer idea of the possible eventual commitment. At intervals Staff Associations express concern for the security of pensions. They even approached
a local firm of salaries and pensions consultants in 1975.
8.
In the UK Civil Service an officer can now serve for a continuous period for as little as 5 years and qualify for a pension at the age of 60 years. Pension Legislation differs in Hong Kong but with 20 years to go until 1998 an Administrative Officer can still earn a pension of well over £6,000 per annum in that period if he gets to Staff Grade B or C in a normal
career.
9. The following questions are posed for discussion purposes:
i) What can be done to cover the potential liability for pensions that may fall on the UK? Can some Hong Kong reserves be kept in the UK to cover this?
ii)
What can be done to minimise pension liability without repercussions? For example employment of many low level staff on non-pensionable terms and middle level and senior staff (bath local and overseas) on agreement terms.
31 January 1978
CJ HALL
Hong Kong and General Department K273B
233-8768
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