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previous cases it had never been paid less than 6 months
before the change, and there had usually been a process of
phased retirements beforehand.
18. They argued that we should find an exchange rate
mechanism which operated neutrally. Taking the calender year of 1991, as we proposed, seemed arbitrary.
They would
but
be prepared to consider any alternative proposal, BUT did not wish to make the definite suggestion themselves. Given
the significant fluctuations between the pound sterling and
the Hong Kong dollar it might be better to take a longer
period, eg from the date of the signing of the Joint
Declaration up to the change of sovereignty in 1997, or from
the date that the Hong Kong dollar ceased to be pegged to
sterling. There was a relationship between the exchange
rate used for these purposes and that used for the purpose
of the sterling safeguard of pensions.
19. Our proposals should take account of the later retiring age of the judiciary: they welcomed the fact that we had prepared a separate table showing actuarial factors for judges due to retire at 65.
20. They did not demur when we suggested that, in the
absence of detailed comments from them, we could perhaps
make the inference that, if the Ministers were to decide on a
benefits proposal on the lines suggested, they would prefer
the shortest possible phasing period with the largest possible initial instalment.
21. When we said we did not know what inference to make
about a point raised by many individual officers, that 1997
salaries rather than 1992 equivalents upgraded by movements
in the UK RPI should be the basis of calculating benefits,
Mr Cartland said that we could make an inference by
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