R. A. Burns, Esq.
-2-
31st August, 1990
Retail Price Index in Britain. I am sure that Hong Kong pensioners at that time, and this Association, would have objected very strongly in the 1970s if Hong Kong had been excluded from the SPOS arrangements. Unfortunately there was the anomalous effect, although beneficial for Hong Kong pensioners, as a result of the Hong Kong dollar appreciating in terms of sterling and this has very much confused and prejudiced the situation. I enclose a copy of a memorandum which we prepared in December 1988 in order to explain the rather complicated situation which had arisen and to try to dispel some of the misunderstandings as to how the SPOS worked in respect of Hong Kong overseas pensioners.
As Sir Philip said at the end of paragraph 5, few Hong Kong pensioners retiring since 1976 actually receive any balance of the SPOS as in most cases their Hong Kong pensions increases, having been based on a higher percentage increase than the United Kingdom Retail Price Index, have exceeded their notional SPOS. However, with more Hong Kong dollars now being required to buy a pound sterling, the amount of their Hong Kong pensions increases in terms of sterling has reduced and so in some cases a balance of the SPOS becomes payable.
I am sorry to have written so much in trying to clarify some of the details of this rather confusing situation. The nub of the issue is that Hong Kong HMOCS pensioners, and serving HMOCS officers as potential pensioners, are very concerned at the falling value of their pensions, including pensions increases, when paid in or remitted into sterling both now and in the light of the likely value of the Hong Kong dollar after 1997. They therefore look to the Hong Kong Government to remedy this situation and for Her Majesty's Government to press them to do so.
Yours sincerely,
Enc.
well
N
тмої
(F.N.M. Pusinelli)
Chairman
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