14:15
ODA EASTKILBRIDE
NO. 013
005
ง.
AS FÖR IV BUT WITH HMG MEETING THE COST OF EARLY RETIREMENT
Arguments in favour
As for IV above.
plus
If HMG were to foot the bill it should be possible to persuade the Hong Kong Government to agree to let HMOCS officers go early.
Arguments against
It would be very expensive and there would be fierce resistance from the Treasury.
It could well induce the SARG not to pay the pensions and lump sums when they become due.
There could still be a damaging (for both Governments) reaction from local staff who would like similar treatment, particularly those who have benefitted from the Nationality proposals.
RECOMMENDATION
7. In terms of achieving our objective of maximising continuity and in terms of securing Treasury support, I incline towards vigorous exploration of the possibility of pursuing Option IV. The cost to HMG would be as for Option III, ie still within the financial parameters of the scheme agreed by the Treasury.
8. The real stumbling block is likely to be the Hong Kong Government. The Governor has made it clear that he does not favour offering the right to retire because of the likely adverse reaction from local staff and because he believes that a sudden
exodus of expatriates would send all the wrong signals and significantly affect the efficiency of Government. Despite the present Governor's views it seems to me that there are two ways in which the HK Government might take steps to help in this situation. First they could approve the UK Compensation Scheme under their pensions ordinance, and by so doing, allow the Governor to permit beneficiaries to retire with immediate payment of pension -CAP99 11 i refers - "an officer may be paid pension, upon his retirement in accordance with any Compensation Scheme, whether or not he has completed qualifying service of not less than 10 years".