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CJIACG
CONFIDENTIAL
HER MAJESTY'S OVERSEAS CIVIL SERVICE (HMOCS)
BACKGROUND
1.
Ministers
There are about 700 members of HMOCS in Hong Kong. have recently been consulted on the future position and treatment of HMOCS in Hong Kong and have decided that:
(a) HMG should aim to agree with Hong Kong on a compensation scheme for HMOCS officers affected by constitutional change in Hong Kong, and it should be funded from Hong Kong revenue;
(b) HMG should aim to negotiate with Hong Kong in due course the provision of safeguards for the sterling value of pensions earned
under HMCCS up to 1997, but should consider further the nature and timing of any such safeguards in discussion with Hong Kong;
(c) HMG should be prepared, if specifically pressed, to reaffirm
previous undertakings given in the 1960s that HMG would pay loan
advances in lieu of pensions to HMOCS in the event of a pensions
default;
(d) Question of HMG taking over pension entitlements of HMOC S
officers in Hong Kong should be reviewed in 1990;
(e) HMOCS members who remain in pensionable service in Hong Kong after 1997 should relinquish their HMOCS status: question of
whether and how the benefits of such status should be retained for
pensionable service after 1997 should be considered in 1990s.
2. Hong Kong Government have been informed of these decisions.
However, they have yet to consult EXCO on the details of these arrangements, and are cocerned that points (b) and (c) are potentially divisive in terms of the different treatment likely to be accorded to local officers in Hong Kong. As a result, no public commitment has yet been made by HMG on (c), and we have answered
enquiry by the Overseas Pensioners' Association on (b) only with the line that HMG will be discussing the possibility of sterling
safeguards with Hong Kong.
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CONFIDENTIAL