CONFIDENTIAL

3. No later application for membership of HMOCS will be

entertained notwithstanding that it remains open to members of the Judiciary to apply for transfer to

pensionable terms in Hong Kong, and the Special Regulations for HMOCS will be amended accordingly.

4.

In reviewing their proposals for a scheme for members

of HMOCS in Hong Kong, HMG have had regard to the factors

which may be used to calculate any compensation benefits.

They have concluded that since it was clear, following

the signature of the Joint Declaration, that the

prospects of a career as a member of HMOCS enjoying the

protection of the Secretary of State were limited by the

change in sovereignty in 1997, the service factor to be taken into account for the purpose of calculating any compensation benefits in respect of those who applied,

or apply, to become a member of HMOCS after the date of

ratification of the Joint Declaration (27th May 1985)

will be the period of their service since their

application for membership of HMOCS was received by the

Hong Kong Government. This decision in no way affects an

officers ability to buy back pensionable service under

the regulations made under the Hong Kong pensions laws or the counting of such service for pensions purposes. HMG's policy with regard to supplementary pension for

overseas service is not affected by this decision. No

policy decisions have yet been made on the question of a

sterling safeguard for HMOCS pensions.

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