CONFIDENTIAL #
8
Subject
Civil Service
Pension Issues
(AP 295/5/2C
(90))
Object
Latest Position
(1) To examine staff (1) On 19.2.91
requests for
pension
safeguards
(2) Briefing for
(2)
the Chinese
PSPG decided
option of offering a fund scheme instead of
that the
provident
pensions
to new recruits should be kept open. Also, a new option of a hypothecated pension fund scheme whereby officers can borrow from private institutions a certain percentage
pension
explored further. An analysis of the financial implications and feasibility of the option is being prepared
of
benefits
their
accrued
should
be
for
further consideration by PSPG. The option
of
"
allowing 75% commutation Of pensions has been assessed to be a non-starter with the Chinese.
A briefing for the Chinese on various pension proposals was held on 10 January. A forecast of pension expenditure expressed
a percentage of the Govern- ment's operating expenditure up
to year 2004/5 was handed over to
the Chinese with an
that the costs
as
manageable.
assurance
were clearly
Written answersS to
questions raised were handed to
the
Chinese
on
1 February.
UKREP has now advised the Chinese that we intend to process the proposals other than those dealing with pension safeguards at the meeting of the Standing Commission on 2 May.
CONFIDENTIAL **