The conclusions are very obvious points -
all too clear, but to make three
in
(i) Because of a depreciating HK dollar I was, terms of my PER, already £413.57 per month worse off (before the new pension increase).
(ii) Despite the 1st April pension increase and because of the continuing fall in the value of the HK dollar I am now £670.54 per month worse off in terms of my PER.
(iii) As at 1st August the ten percent increase which would have given a monthly Sterling increase of £166, at 1st April rates, has degenerated into a loss of take-home pay of £50 in just four months, i.e. exchange rate fluctuations between April and August have totally negated the pension increase and take-home pay compared to the pre-increase position is £50 per month less!
In real terms, therefore, I am worse off by more than £8000 per annum compared with the value of my pension at the PER rate at date of retirement adjusted for pension increases. For me that is a major financial loss. For officers who were lower down on the pay scales such losses must be reaching crisis proportions.
up
I am sure that you have been told of Hong Kong Government pensioners who have been obliged to take employment here because they simply can no longer manage on what was a perfectly adequate pension at the time of their retirement. I certainly know of some. The prospects are that matters can only get worse unless the Hong Kong Government is prepared to assist.
problems which to 1997 and
But I
One recognises the many political confront the Hong Kong Government in the I am aware of the argument that any assistance to expatriate officers would be viewed with disfavour in Beijing. But cannot believe that the Hong Kong Government (not excluding the Chinese members of EXCO) can regard the financial jeopardy in which pensioners find themselves because of exchange rate swings as anything but grossly inequitable. Nor do I believe that
introduction of adequate safeguards and assurances would in fact irreparably harm relations with the authorities in Beijing.
no
was
I believe that these matters were aired in Executive Council
time some
but that ago
decision conclusive reached. May I ask you to seriously consider returning to Council on this topic a second time - I am sure that you would find no shortage of retired pensioners more than willing to write the EXCO paper for you!
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2/.
وسو
يعك
(Victor A. Ladd