HMOCS: NATURE OF SCHEME PROPOSED

In considering the comments received from the Association

and individual officers, we note that many seem to be based

on an argument that the arrangements should be of traditional compensation schemes. We should make clear that we have drawn up a special scheme, geared to Hong Kong's unique circumstances, to provide benefits on 30 June 1997 and subsequently to officers and ex-officers of HMOCS. This is not a traditional general compensation scheme of the kind normally provided by the government of a territory maintaining independence: it is not possible for the

Government of Hong Kong to provide such a scheme. (HMOCS officers have been fully integrated within the Hong Kong public service for many years, and many non-HMOCS officers have expressed concern about their own position after the change of sovereignty). Instead it is a special benefits scheme, funded by HMG in the United Kingdom, which provides elements of compensation and incentive. It is drawn up in circumstances not specifically envisaged in the White Papers

of 1954 and 1960. The scheme takes account of the following

points:

(a) The detailed and binding commitments in the Joint Declaration of 1984 regarding continuity of Hong Kong's

systems and way of life for 50 years from 1 July 1997, and in particular the commitments regarding the public service.

(b) Hong Kong's pensions legislation, in particular the provision under the new pensions scheme of officers voluntarily retiring after 10 years service and preserving

their entitlement to earned pension, payable from normal pensionable age (this is a common modern provision on a

change of employment).

(c) The advanced state of Hong Kong's development compared

with previous dependent territories; the relatively high

NC2ACU/1

A

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