aefl.mr/kw/16.17.1
Ра
HONG KONG:HMOCS PENSIONS
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CONFIDENTIAL
HKA 233/1
Handed out by
Treasu
cet reét
with Margolis er
24/1/92.
(14)
Meill
Annotated agenda basis for discussion with Richard Margolis, Smith New Court. Exploratory discussion, without commitment.
Background
Mr Margolis will be aware of Hong Kong HMOCS'concerns about maintaining the sterling value of their pension entitlements
up to and beyond 1997; HKG (and from 1997 SARG) and not HMG legally responsible for HMOCS' pensions;
under
Treasury, ODA and GAD met with HKG officials before Christmas
to discuss HMOCS' concerns; among the options
consideration were:
1
(i) to provide no safeguard (ie do nothing)
(ii)
for the HKG to capitalise HMOCS' pension entitlements (UK proposal with sub-options set out at Annex A);
(iii) use of private sector intermediary to fund and/or
manage HMOCS' safeguard;
Sub-options common to (ii) and (iii) include:
(i) extent of pensionable service covered (eg all
pensionable service, or service up to 1/1/92?);
(ii) timing of the takeover of pension payments from HKG (eg
from 1/1/92 or from 30/6/97?)
(iii) coverage and proportion of pension liability in capital
form versus stream of future payments;