be regarded as
While the degree of hardship might
less severe than for pensioners, serving officers (both local,
and pensionable
contract staff) with overseas commitments would also be prompted to seek similar assistance.
overseas,
33
The proposal could therefore have a very significant adverse affect on civil service morale. Government would be
treatment granting privileged
of former to a group overseas officers which would be denied to the majority.
seen as
Other Observations
Report of the Review Committee on
Discipline Service Pay and Conditions of Service
34
Members
may
also
wish to not e that the Review Committee concluded
concluded that it should not put forward specific recommendations in response to strong represent at ions about the effect of the exchange rates on pay and particularly pensions. The Committee considered that the practical and present ational
out the introduction of problems ruled
any guarantees.
extract from the Committee's Report is at Annex F.
Assistance to Relieve Genuine Hardship
35
or
As
indicated
in
paragraph
5
above,
a
An
separate examination of whether measures are needed
are needed to provide financial assistance other forms of
to pensioners suffering genuine hardship will be undertaken. Any such arrangements could be restricted to overseas pensioners and
pensioners and would have to apply across the board. The Civil Service Branch will seek evidence of hardship
examine the consider how best it might be addressed.
cases,
ext ent
of
the problem
and
Summary
36
in
officers about
in the UK with pensions
reductions the
have they
Retired Overseas sterling paid
complain suffered in recent years. These they say are due to the HK/US dollar link, which exposes them to
to currency fluctuations they would not be affected by if the Government's policies were
considerations. Options driven by political pensions against
fluctuations have currency
not
for protecting been examined.
While protective measures could be devised, they would not be without their drawbacks, chiefly in relation to presentation in
various
quarters.
Nevertheless,
such
should measures
be
it is
introduced.
for
consideration Evidence of
whether declining living standards resulting in hardship will be sought
as a separate matter.