Problem
CONFIDENTIAL
HMOCS PENSIONS
30th
Overseas
Overseas pensioners and serving
officers are becoming increasingly concerned at the effect
of the deteriorating sterling exchange rate on pensions.
We consider nis the question of sterling safeguards for
pensions should now be addressed.
Background
2.
When
should be
January
ExCo considered whether or not pensions
protected against currency fluctuations in
1989 they concluded that any scheme designed solely
for Overseas pensioners would be very divisive, cause
sericus problems with the rest of the civil service and
attract adverse public reaction. They decided, therefore,
that given the political realities of the situation, it
would be inappropriate for the Hong Kong Government to
introduce measures to protect the value pensions paid to
officers.
They nevertheless suggested that the
overseas
question
of sterling safeguards for HMOCS pensioners should
be pursued with HMG.
COVEIDOTUT