30-APR-1992 15:08

PAUL FIFOOT

3372723755

50 years. and 5) B.

(References: JD 72 and JD 42; BL articles 100

Unlike many other territories where there was a localisation policy [which particularly affected the Administration and the Police], we are informed by the Hong Kong Government that there is no "localisation" programme in Hong Kong. It is our understanding that such retirements as may be necessary as a result of constitutional changes (e.g. because the relevant office may only be held by a Chinese national) will have been made before 1st July 1997 and compensatory provision has been made for such cases in the Hong Kong Government's limited compensation scheme. C. Hong Kong Officers with ten years service who are subject to Hong Kong's new pensions arrangements can retire with deferred pension. This is a common modern provision on a change of employment but was not the case in the past. D. The Scheme will be funded by the United Kingdom, not the Hong Kong Government, even though the latter has the financial capacity to do so. In determining upon the amount of benefitspayable under a scheme, the United Kingdom Government must have regard to contempory conditions in the United Kingdom, to the salaries and pension structure of members of the Hong Kong Civil Service as compared with those of the United Kingdom Civil Service, [and to the terms which apply to the latter when there are unilateral decisions as to changes of employment in circumstances such as privatisation or the establishment of agency status).

PRINCIPAL ELEMENTS OF THE PROPOSED SCHEME

4. The Team will, no doubt, wish to outline the principal clements of the proposed Scheme before tabling it and answering questions of detail. The main elements are set out below. Although the purpose of the discussions with the IIMOCS Association is to obtain their views on the Scheme and to receive and take careful note of any alternatives that they may propose, and to report such views and alternatives to Ministers, the Team should be careful not to give any impression that they are in a position to negotiate during the discussions particularly as regards the size of the first payment, the number of subsequent instalments, or the condition that an officer is only entitled to an instalment if he is serving at the date the instalment falls duc.

A. The proposed Scheme will apply to all permanent members of HMOCS in the Hong Kong service on 30th June 1997 who have not reached retiring age, are not on leave pending retirement, and have not received benefits under the long Kong Government's limited compensation scheme.

B. Every entitled officer will have his notional maximum benefit calculated on the basis of his age, years of pensionable service and salary of his 1997 post calculated at 1992 levels as enhanced to reflect the movement in the United Kingdoms Retail Price Index. The factor to be applied in each case will be determined for officers other than judges in accordance with the Tables set out in the Hong Kong limited compensation scheme for officers who are superceded. The Tables for judges are slightly different and take account of WHAT}

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