FILE
105
12 March 1992
Seat.
BY FA
FAX
AM 12/3
D Fish Esq
Pensions Department ODA
East Kilbride
Dear Dave,
HMOCS: STERLING SAFEGUARDS
нка 233/1
RECEIVER
12 MAR
ド
1.
Jamie Mortimer (Treasury) rang me this afternoon to ask me about our view that HMG have a duty to ensure that the sterling value of HMOCs pensions is protected after constitutional change. I ran through some of the points in Annex A of the paper enclosed with the Secretary of State's minute of 11 February.
2.
I
Mortimer was particularly interested in past practice. said I believed that in all previous territories ceasing to be dependent a POA set a fixed sterling exchange rate for pension payments. However in most territories, ie the aid-worthy ones (perhaps 20 or 30), HMG, which under the 1960 White Paper had already been paying about half the pension, eventually stepped in as an aid measure and took over the payment of the entire pension. In the other cases, ie Bahamas,? Bermuda (still a DT) and Brunei, the territory itself continued to pay the pension at a fixed sterling exchange rate. Thus in all cases HMG has ensured that the sterling value of pensions is safeguarded. In addition UK pensions legislation has made all HMOCS pensions eligible to attract UK pension supplement, in accordance with the complicated SPOS rules.
3.
I said, however, that I would need to double-check my facts with you. Mortimer said he would be grateful if I could do so. In particular he would welcome a list of the former dependent territories where HMG now pay the HMOCS pensions and a list of the former dependent territories which themselves give the sterling safeguard (and a list of any
NJCABF