could be adopted for Similar arrangement s
if if the pensioners domiciled elsewhere, for example,
fell below 25% of the 10 year the Hong Kong
in Annex D. exchange rate for the currencies shown basis, the trigger point would be
dollar
Australian dollar
7.39
Canadian dollar
6.51
Indian Rupee
0.80
New Zealand dollar
5.81
Pakistan Rupee
0.64
overseas value of
average On this
which, with the exception of Canadian dollar, would warranted
up
not have
to 31 December a monthly
any supplement s the payment of 1988. A Canada domiciled pensioner in receipt of pension of $5,000 (the average pension paid) would be eligible for a supplement of $13 up to that date (Annex E).
Financial Implications
25
Some and the The 1,500
The additional cost of granting a pension supplement 21 to 24 above would in the manner described in paragraphs depend on the relative strength of the Hong Kong dollar. 2,300 overseas pensioners reside out side Hong Kong, annual cost of their pensions is about $140 million. UK pensioners draw annual pensions totalling $99 million; the $6 million. For the UK 100 Canada pensioners draw about
the HK dollar ten cent s depreciation of pensioners, every against sterling below the level of £1: HK$14 would cost about $710,000 per annum. If the exchange rate reached £1: HK$16, the additional annual cost would be about HK$14.2 million. the Canada pensioners, every ten cents depreciation of the HK cost about $90,000 per dollar below the trigger point would
annum.
For
Drawbacks
26
are Pensions
If an
as
the pensions scheme were
set a
under of right paid legislation.
ex-gratia compensation introduced administratively, it would not be possible to trigger point at say $10: £1 (and its equivalents) below which
clawed back. the supplement
could
be
pensions
Although
such
an
be
arrangement would be desirable, for it to be introduced would
to ordinances provisions of
is the legal
and authorities
require
the
amended. Other
consultation
the
Chinese
that difficulties,
the with
repercussions also need to be assessed.
position, possible