Confidential
Hong Kong Persion Contingency find.
Reference
HKG to make annual payments into the fund. Amount to be decided each year in light of fiscal position, but target, HIC $4 bn at 1992 prices.
Shiny
fund to be managed by Exchange fund Office: say 50% to be invested off shore.
Fund shd make transfers to Cheral revenue, up to say 50% of any year's persions payments, if :
(a) there is
sand
an economic / fiscal down-turn of a specific scale, eg comemor GDP growth dropping below 1 2% revenue from existing takes dropping by more than say 5% from one year to the next RPI inflation out-stripping
>
GDP growth by more than x; and for
(G) the trangfer is approved by
a majonty of the fund Board of Dulctors (how to be appointed? including civil service staff association reps ?)
conveste
Any way of building in exchange-rate protection ? All funds to be held in us dollars and pensioners to be able to elect to receive up to 25% of pension to us dollars at $7.80: $1 (ar such lower percentage of covered by the previous year's growth of the Fund) ?
as could be
subsequent
Or fund to cover only commutable sums? or only rece
only recurrent payments?
CODE 18-77
Confidential