DRAFT
File
No.
Your
Ref.
Tick as appropriate
S/O Letter
Unclass.
In Conf.
Draft by
Official Letter
Restricted
D S Fish
Despatch
Conf.
PS/Mrs Chalker
Minute
Secret
Memo
Top Secret
ENCLOSURES
Addressed
The Rt Hon John Patten MP
House of Commons
LONDON SWLA OAA
For Signature by
The Minister
TEL
FURTHER ACTION AND SPECIAL INSTRUCTIONS
DISK ENC = B:PATTEN
Return to Room No.
REFERENCES AND AMENDMENTS
F/S
54
16/10
Thank
ум
In
am
qur letter of 27 September to Tony Newton about Mr SW Rainbird
1 of 57 Southmoor Road, Oxford, OX2 6RF has been passée
rengiamer
her as my 1 Minista Department is responsible for certain overseas pensions matters.
Mr Rainbird was employed by the Government of Hong Kong from 1956
to 1979 and his retirement benefits are calculated under the laws
of that territory, and paid from local revenues in Hong Kong
dollars. As a former member of Her Majesty's Overseas Civil
Service (HMOCS), Mr Rainbird is also eligible to receive an
index-linked pension supplement (SPOS),
(SPOS), designed to top-up the
value of any Hong Kong increases to the same level as the
increases paid on an equivalent UK public service pension. SPOS
is not intended to supplement any shortfall in the sterling value
of the basic pension. This basic pension is the sole
responsibility of the Government of Hong Kong, who
as far as we
are aware, have no plans to protect pensions against adverse
exchange rate movements. However, the Hong Kong dollar is tied to
the US dollar, and this does provide a measure of stability for
externally paid pensioners.
Although in Mr Rainbird's case there has been a gradual decline in
the sterling value of his basic pension, he has been awarded Hong
Kong pension increases of 154% since retirement. An equivalent UK
pensioner, while having his basic pension constant in sterling
terms, has received increases to the value of 105%.
value of these Overseas
increases
exceeds the
Because the
equivalent
UK