CONFIDENTIAL
2
In order to keep the lid on the pot, which is
now beginning to boil over, we need a commitment that HMG
a Compensation Scheme for HMOCS and outline
will
introduce
consultation
may
arrangement of the Scheme on which
This is required by Christmas 1991 at the
proceed.
latest.
to speed
I should therefore be grateful for all you can do
things along and any further news which you might
feel able to provide.
On the general security of pensions issue
referred to
in the article, we have, as you are aware, now
secured Chinese acceptance of the proposal to make pension
adjustments in
with the movement of the local
accordance
Other
consumer price index a statutory right. The necessary
legislation will be introduced as soon as possible.
pension safeguard options are still being investigated
although most proposals are unrealistic. We now have a
consultancy study underway on hypothecated pension funds
whereby an officer might secure a loan from a private
sector bank against his eventual pension entitlement.
CONFIDENTIAL