Mr Jox
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Mr McDonald) have come back with their comments: mainly in the note at the end. These should
Imake for greater accuracy. Sw2114
HMOCS PENSIONS: STERLING SAFEGUARDS
faxed to
249
Mr fish; asked for comments.ow,5/4 HKA 233/1
1.
The 1954 and 1960 White Papers state that HMOCS pensions
should be "safeguarded" when HMG cease to be responsible for the Government of the territory of their service. The
extent of the safeguard is not defined in the White Paper,
but subsequent practice has been consistent and in no case have HMOCS officers been left unprotected against currency
fluctuations.
2.
In
Since the formation of HMOCS in 1954, 40 territories
where HMOCS officers served (see note below) have ceased to
be British Dependent Territories or protectorates. In
addition Bermuda has attained full internal self-rule and
the East African Community has been wound up, both
necessitating similar arrangements for HMOCS officers.
all 42 cases HMG have ensured that the sterling value of
HMOCS pensions (and not just the local currency value) has
been safeguarded, ie officers have received payments at an
exchange rate at least as favourable as before the Secretary
of State ceased to be responsible for the territory's
government. The practical arrangements for achieving this have varied. The present position is as follows:
in 3 cases (Bahamas, Bermuda, Brunei) the local governments are committed to paying the full pension at a fixed (safeguarded) exchange rate to sterling (and there
are no immediately foreseeable political or economic
reasons for them to cease to honour this commitment: in
practice their currencies have appreciated against
sterling, and they pay at above the safeguarded rate);
- in 37 cases (list attached) HMG now pay the full pension
in sterling;
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