CONFIDENTIAL
055246
MDHIAN 4782
INSIGNIFICANT. IT RELATES PRIMARILY TO THOSE OFFICES WHO RESIGNED SINCE 1987 UNDER THE NEW PENSION SCHEME WITH A DEFERRED PENSION PAYABLE AT AGE 55. WE DOUBT IF THERE ARE MORE THAN 5.
(E) DETAILS IN WATERS LETTER OF 21 NOVEMBER.
(F) WE ARE NOT SURE WHAT YOU REQUIRE HERE. THE PENSION SCHEMES FOR HMOCS OFFICERS ARE THE SAME AS FOR LOCAL OFFICERS AND ARE DEALT WITH UNDER (J). IF YOU ARE REFERRING TO THE COMPENSATION SCHEMES THESE AGAIN ARE NOT RESTRICTED TO HMOCS MEMBERS. YOU HAVE COPIES OF THE LIMITED COMPENSATION SCHEME AND THE SPECIAL SCHEME USES THE SAME FACTORS.
(G) THE ONLY ASSUMPTIONS MADE RELATE TO APPROXIMATELY 100 HMOCS OFFICERS ANTICIPATED TO LEAVE UNDER THE LIMITED COMPENSATION SCHEME FOR LOCALISATION, CONSTITUTIONAL CHANGE OR SENSITIVE SERVICE REASONS AND TO A FURTHER 70 LEAVING FOR SENSITIVE SERVICE REASONS UNDER THE SPECIAL COMPENSATION SCHEME. YOU HAVE THESE DETAILS ALREADY.
(H) APART FROM OFFICERS LEAVING AS IN (G) ABOVE AND OFFICERS REACHING NORMAL RETIREMENT AGE BEFORE 1997, ALL OTHER HMOCS OFFICERS ARE ASSUMED TO REMAIN IN SERVICE UNTIL 30 JUNE 1997.
(I) THIS ISSUE CAN BEST BE DISCUSSED WITH THE TEAM WHILST THEY ARE IN HONG KONG. ESSENTIALLY WE WISH TO KEEP A PROPORTION OF ALL HMOCS OFFICERS, PARTICULARLY THOSE IN THE POLICE.
(J) COPIES OF ALL PENSIONS ORDINANCES AND DEPENDANT PENSIONS LEGISLATION WILL BE PROVIDED TO THE TEAM ON ARRIVAL IN HONG KONG. YOUR COPIES ARE ESSENTIALLY ACCURATE ALTHOUGH THERE HAVE BEEN SOME MINOR AMENDMENTS. WE BELIEVE YOU ALSO HAVE A COPY OF THE PENSIONS ORDINANCE CAP 89 (THE OLD PENSION SCHEME). THE PENSIONS (INCREASE) ORDINANCE MAY BE AMENDED SHORTLY TO MAKE INCREASES IN ACCORDANCE WITH CPI(A) STATUTORY BUT THIS ONLY ENTRENCHES PRESENT ADMINISTRATIVE PRACTICE. THE LAST INCREASE WAS 10.43 PERCENT. YOU SHOULD ALSO HAVE COPIES OF THE DEPENDENTS PENSIONS LEGISLATION (WOPS CAP 94 AND WCPS CAP 79). THE MAJOR CHANGE ENVISAGED HERE IS TO MAKE THEM VOLUNTARY."
2. WITH REGARD TO (I), THIS APPEARS TO PERPETUATE THE MISCONCEPTIONS THAT THE COMPENSATION SCHEME AND STERLING SAFEGUARDS ARE ONLY BEING CONSIDERED AS A STAFF RETENTION MEASURE. THIS IS NOT THE CASE. THEIR PRIME OBJECTIVE IS TO MEET
PAGE
3
CONFIDENTIAL