Q6 Will payments be made pro rata for the year in which I retire, die or otherwise leave the service?
A6
Yes ??
Q7 How will relatives get at my money if I die?
A7
We will supply everyone with a standard legally acceptable form to ensure that you do not die intestate as regards this money, if you wish.
Q8 Why not make payments direct to officers? How will HMG invest the money? What will the tax position be: both for lump sums granted and on interest/investment income?
A8 (i) Not appropriate in Hong Kong circumstances to pay direct. (ii) Money in interest bearing accounts at prevailing rate. (iii) UK (?) tax payable on lump sums. (What was past practice?) Interest paid net of tax.
Q9 If there is a breakdown post 1997 in the arrangements envisaged under the JD, will HMG introduce arrangements to allow (former) HMOCS officers to retire with early payment of pensions?
A9 Do not envisage any breakdown (this will not hold the line).
(Pressed hard) ?? [Can we say nothing? I doubt it. We shall probably be forced to say, at least "it would be for the Government of the day to take whatever measures it feld appropriate".]
REGABY/2