B
(d) The question of taking over the pension entitlements of HMOCS officers in Hong Kong, at the expense of the
Hong Kong Government, should be reviewed in 1990. [Capitalised value of entitlements in 1997 would be £210 million, at current prices and exchange rates.]
(e) Members of HMOCS who remain in pensionable service in Hong Kong after 1997 should relinquish their HMOCS
status. A decision should be taken later whether and how
the benefits of this status should be retained for
pensionable service in Hong Kong after 1997.
(f) The decisions on recommendations (a) to (e) above
should form the basis of official responses, here and in
Hong Kong, to enquiries about the position of HMOCS.
4. A tread that runs through all these areas of concern is the question of a sterling safeguard. A separate submission on (a), compensation arrangements is being circulated. This submission deals with the problems and ramifications of
sterling safeguards, primarily for pensions. A separate submission will be required on (e), what statements should
be made regarding pensionable service beyond 1997. Historical Centext
The
5. In colonies going towards independence it has been the practice, in all cases, to conclude a Public Officers Agreement (POA) with the successor Government regarding
treatment of HMOCS officers. A feature of almost all POA's
was the inclusion of a clause which stipulated the sterling
rate at which pensions of HMOCS officers would be paid.
financial liability was regarded as one for the newly independent country to meet. In practice, however, HMG's pension takeover programme, initiated in 1970, removed this
burden from most of our former colonies. Hong Kong, and
other wealthy dependencies, were excluded from the scheme.
ROZAUD/3