pressure is particularly strong among the expatriate police officers
on contract terms who will have to decide very soon whether to
transfer to pensionable terms. The officers concerned claim that
they cannot properly exercise the option to transfer to pensionable
terms until they know whether there will be a General Compensation Scheme. There is a similar problem related to the new pension
scheme promulgated in 1987 which provides for retirement at 60
(instead of the normal age of 55) with a slower pension earning rate but with the possibility of commuting 50% of salary in a lump sum
instead of 25%. Those wishing to take advantage of this scheme
have to make their minds up by July 1992. This is a real deadline
which cannot be extended. If we do not make any announcement about
a scheme before then, those concerned could claim that important
information had been withheld from them which could have affected
In such circumstances legal action could not be
their decision.
ruled out.
27.
For presentational reasons in Hong Kong, there would also be
advantage of announcing the scheme soon after the Nationality Bill
becomes law and starts to be implemented in the autumn. It would
enable us to point out that something was being done for both
expatriate and local staff.
28. Given the need to consult the Chinese and the staff
associations, it is unlikely that we will be in a position to
announce the scheme until the beginning of next year. But we should aim to put a paper to the Chinese before JLG XVI at the end of
September with a view to announcing the scheme after JLG XVII.
Next steps
29.
Since 18 months have elapsed since Ministers last considered this matter and our proposals have not yet been put to the Prime Minister, the next step would be to minute to her.
WEDABH/10
CONFIDENTIAL
A R Paul