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1.

HMOCS Pensions and Compensation/Incentive Scheme

1.1

HMG

1.2

1.3

Exploratory proposal, without commitment

assumes responsibility for HKG pensions and UK for serving HMOCS, HMOCS pensioners and deferred pensioners.

pensions increase

Transfer of responsibility matched by transfer payment to HMG by HKG of capitalised current value of liabilities for basic pensions and HK pensions increases, and for widows and dependents pensions.

In parallel, HMG provides for complementary compensation/incentive

terms.

arrangements,

in

sterling

2.

Issues for Discussion

2.1

Timing of Transfer

Options : a)

1992

b)

later date

2.2

2.3

Preference

Coverage of Transfer

December 1992

Options : a)

accrued

b)

Preference

benefits at time of

transfer include future service

Liabilities as accrued at date of transfer, based on salary at that date.

Treatment of Future Service if not covered by

Transfer

pensionable by HKG without

Options : a)

sterling protection

b)

non-pensionable but

gratuity-earning

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