MEETING WITH REPRESENTATIVES OF THE OVERSEAS SERVICE
PENSIONERS ASSOCIATION, 9 AUGUST 1990
Those present:
Mr Burns, AUS
Miss Marsden, HKD
Mr Stone, HKD
Mr Pusinelli
Sir Philip Haddon-Cave
Mr Colvyn Haye
Mr Stenton
1. Mr Pusinelli said that OSPA had been in correspondence with the FCO for a number of years and were grateful for this opportunity to put their case to Mr Burns in person. OSPA's main concern was the question of sterling safeguards for HMOCS pensioners from Hong Kong. Mr Burns said that as he had only just taken over his new responsibilities he also welcomed the chance to hear OSPA's views.
2.
Mr Haye explained that the absence of a sterling safeguard had caused genuine hardship for many Hong Kong pensioners. The sterling value of their pensions had depreciated by over a third because of fluctuations in the
£/HK$ exchange rate which had been 8:1 in 1985 was now only 14.5:1. The former Commissioner for Inland Revenue, for example, had written to the Chief Secretary pointing out that he was now £8,000 a year worse off than when he retired. Some pensioners had been forced to go out to work or even to sell their homes. Those on relatively modest pensions were obviously the worst affected. Retired policemen or firemen who had retired on pensions of £12,000 a year five years ago now found their pensions were only worth £7,000. There were about 1,500-2,000 Hong Kong pensioners in the UK who were affected by this problem to a greater or lesser degree. Mr Burns said that it was very useful to have these concrete examples.
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