DW A Blye Esq

21 Mountbatten Way

Brobourn

Lees ASHFORD

Kent TN25 6PZ

30 October 1990

Thank you for your letter of 3 October about the position of Hong Kong pensioners.

At the middle ranking and the more senior levels, which is where HMOCS members tend to serve, Hong Kong salaries have for many years been higher than those in the UK. Their pensions naturally reflect this. Moreover, they pay less tax and enjoy various other expatriate benefits. As a general rule they are able to accumulate more savings than UK civil servants.

I appreciate that fluctuating exchange rates have, over a given period, affected the value of pensions, and I note what you say about the attitude of pensioners to the SPOS arrangements. These matters are kept under review but I have to say there there are no plans to change the present arrangements.

EELAJD

A R Pauli

Hong Kong Department

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