394
SECRET
112470
MDHIAN 7792
HKA 233/1
TOP COPY Q DIST ?'
SECRET
FM HONG KONG
TO IMMEDIATE F C O
TELNO 1601
OF 121015Z JUNE 92
INFO PRIORITY PEKING, UKREP JLG HONG KONG
PERSONAL FOR RICKETTS, HKD FROM DEPUTY TO GOVERNOR
PEKING:
PERSONAL FOR AMBASSADOR
UKREP: PERSONAL FOR GALSWORTHY
393
YOUR TELNO 947: PUBLIC SERVICE PENSIONS FUNDING
1.
la
THANK YOU FOR YOUR THOUGHTS ON THE FUNDING OF PUBLIC SERVICE PENSIONS. WE HAVE NOT REACHED ANY FIRM CONCLUSIONS, BUT AS SEEN FROM HERE IT WOULD BE DIFFICULT TO PROCEED WITH ANY OF THE LOCAL PENSION SAFEGUARD OPTIONS.
2.
THERE APPEARS TO BE SOME MISUNDERSTANDING OF OUR POSITION ON THE PARTIAL FUNDING OPTION. WE HAVE CONSIDERED THIS ONLY IN THE SENSE OF A ONE YEAR ROLL FORWARD PENSION RESERVE FUND SUFFICIENT AT ANY ONE TIME TO MEET THE FOLLOWING YEAR'S ESTIMATED PENSION AND COMMUTED PENSION GRATUITY EXPENDITURE. WHILST THE FUND MAY NEED TO BE TOPPED UP ANNUALLY FOR THE FIRST FEW YEARS, OUR THINKING DOES NOT INCLUDE ANY PROPOSAL TO SET ASIDE AN INCREASING ANNUAL SUM FROM THE RESERVES TO GENERALLY FUND PENSIONS.
3.
OUR EXPERTS WOULD BE PLEASED TO BRIEF COX (HKD) ON 19 JUNE (LATE AFTERNOON) AND 20 JUNE AND PROVIDE A COPY OF OUR PAPER ANALYSING ALL THE LOCAL PENSION SAFEGUARD OPTIONS.
WILSON
YYYY
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