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the £/HK$ such as that prevailing at the signing of the
Joint Declaration. OSPA's concerns are set out in detail in
the attached note. We have pointed out that the annual
pension increases awarded by the Hong Kong Government have
tended to exceed comparable awards in the UK, with the
result that UK pension supplements are a very small - some cases non existent portion of the total benefits
received by HMOCS pensioners who have retired in recent
years (Lord Glenarthur's letter of 5 February).
or in
HMG should take over responsibility for payment of pensions
to Hong Kong HMOCS
10. OSPA have also expressed concern about what would
happen if the SAR Government failed to meet its pension
obligations to HMOCS members after 1997 and have asked for
assurances that in those circumstances HMG would take over
responsibility for the payment of basic pensions. OSPA claim that HMG have the power to do so under the Overseas
Pension Act 1973. Our position is set out in
Lord Glenarthur's letter of 5 February 1988 to Lord Grey,
the President of OSPA. We maintain that there is no reason
for us to give such an assurance because the Joint
Declaration specifically provides for the continued payment of pensions to overseas pensioners on terms "no less
favourable than before".
Limited Compensation Scheme
G
11.
In his letter of 25 April 1990 to Mr Maude,
Mr Pusinelli argued that a limited compensation scheme
should be introduced to compensate HMOCS officers who are
required to retire early or who are passed over for promotion due to localisation. If this matter is raised,
you could point out that a limited compensation scheme,
funded by the Hong Kong Government, was introduced in 1987
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