Ref.: AP 295/75
A Note on the
Fixed Sterling Conversion Rate for Hong
for Hong Kong Pensions
of service
were
introduced
and from
Prior to 1947, certain officers
officers of the Hong Kong Government had their salaries and pensions paid in sterling. Consequent upon Government's adoption of the recommendations
new terms Salaries Commission, by the 1947 Hong Kong
with effect conditions 1.1.1947. Among the various changes introduced under the new terms was the removal of the distinction between sterling and All salaries and emoluments Hong Kong dollar paid officers.
to be expressed payable to public officers in Hong Kong were
Officers dollars henceforth.
on a sterling in Hong Kong
transferring
to
a dollar
salary were however allowed the option of either remaining on
of service their former terms salary under the new terms of service.
2.
In
response
or
staff to
over concern
payment
of
salaries and pensions in sterling, the problem was discussed the with the then Secretary of State in February 1948, and following arrangements were finally agreed and introduced in July 1952 :-
3.
(a)
(b)
(c)
the pensions and retiring gratuities awarded to officers employed by the Hong Kong Government on a sterling salary, who accepted conversion to a dollar salary under the terms of the 1947 Salary Revision, were to be paid in sterling at a fixed exchange rate of HK$16 to £l, unless they elected otherwise within a specified period;
officers elicible for the above concession were to have the right to elect at any future date to receive their pensions in Hong Kong dollars in the normal way, but once they had elected they, would not be able to claim the guaranteed exchange rate; and
So
its
if at any
the ong
reserve would Kong Government right to review the
the exchange rate future date pensionable emoluments or pensions were increased in consequence of a depreciation of the Hong Kong dollar in terms of sterling.
That is, the fixed sterling conversion rate only
on 2
were those eligible officers who applies to those
sterling salary prior to 1947 and had accepted conversion to a dollar salary under the 1947 Revision.
Civil Service Branch
June 1990
(0066p: 92)
B