CONFIDENTIAL
FM HONG KONG
TO IMMEDIATE F C O
TELNO 2422
OF 31101OZ JULY 91
CONFIDENTIAL
110
140410 MDHIAN 7346
HKB
233/1
TOP COPY Q DIST?
д
101
YOUR TELNO 1403: HMOCS MATTERS: ARRANGEMENTS
COMPENSATION/INCENTIVE SCHEME
THE QUESTION OF EARLY RETIREMENT AROSE IN THE CONTEXT OF THE HMOCS REPRESENTATIVES' STATEMENT THAT ONE OF THEIR PRINCIPAL REQUIREMENTS, IF NOT THEIR MAIN REQUIREMENT, WAS TO BE ABLE TO RETIRE WITH THEIR PENSION IN 1997 AS HAS BEEN THE CASE ELSEWHERE UNDER TRADITIONAL GENERAL COMPENSATION SCHEMES AT THE TIME OF INDEPENDENCE. WE EXPLAINED THAT THIS COULD ONLY BE DONE IN HONG KONG'S CASE BY HMG MEETING THE COST OF PENSIONS UNTIL SUCH TIME AS THE OFFICER REACHED NORMAL RETIREMENT AGE. WE BELIEVE WE INFORMED YOU SIMILARLY SOMETIME AGO. WE ALSO SAID THAT THE ALTERNATIVE WAS NOT TO INCLUDE A RIGHT TO RETIRE WITH EARLY PAYMENT OF PENSION IN THE HONG KONG SCHEME AS YOU ARE PROPOSING. YOU SHOULD APPRECIATE HOWEVER THAT THIS WILL MEAN THAT ONE OF HMOCS MEMBERS II PRIME CONCERNS WILL NOT BE MET.
2.
MIFT CONTAINS THE TEXT OF THE HMOCS ASSOCIATION'S RESPONSE TO THE MINISTER'S LETTER. THERE WAS NO DISCUSSION AND OF COURSE WE DID NOT TELL THEM THAT YOU WERE WORKING ON A SCHEME WHICH WOULD ALLOW FOR EARLY PAYMENT OF PENSION. WE HAVE NOT TOLD THEM ANYTHING ABOUT THE SCHEME YOU ARE WORKING ONE.
FORD
YYYY
ΜΑΙΝ
18
LIMITED
HKD
PS/LORD CAITHNESS
ADDITIONAL 1
MR FISH, PENSIONS DEPT ODR
NNNN
DISTRIBUTION
SIR J COLES
MR BURNS
This doesn't answer for the confusion in 19 HKG about early rettement et.
ge 3/8.
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CONFIDENTIAL