aefl.mr/kw/16.17.1
CONFIDENTIAL
(iv) capitalisation in instalments.
(v) HKG argued of political/presentational difficulties of
special treatment for HMOCS alone;
Purpose of meeting
to explore scope for measures under option (iii) which will satisfy HMOCS and HKG at reasonable cost to HKG.
Determinants of any scheme for HMOCS or wider group:
inputs: HK $ payments by HKG;
output: capital sum for HMOCS pensions to be transferred
to
ODA between now and 1997; benefit payments to other civil servants reflecting capital accumulated.
Possible private sector schemes under (iii)
(a) loans in respect of pensions scheme (as outlined in
Mr Margolis study)
То what extent are future pension benefits seen as
collateral? Precedents?
1
Most feasible way of funding (borrowing) at cost likely to attract pensioners to take-up the scheme; prospects
for fixed-rate funding;
Extent to which HKG guarantee necessary (to financial intermediary in respect of SARG default risk; to HMOCS pension holders against interest/exchange rate risk);
Does any scheme for Hong Kong civil servants need an
exchange guarantee when their commitments will be in the local currency?