}

aef1.1g/kw/10.8.7

CONFIDENTIAL

Options Paper on package for Hong Kong HMOCS

1. Sterling safeguard

A.

(i)

(ii)

Options involving private sector

Feasibility of a private sector scheme providing a full pensions safeguard.

Partial private sector solution:

HMOCS/HKG would need to approach the private sector

to safeguard the commutable element; HMG to

safeguard the non-commuted element;

(iii) If HMG announces scheme; individuals would still be

free to make their own arrangements at their own risk.

(iv)

Any others?

B. Options for HMG safeguard scheme

Issues for consideration:

(i) to limit the constituency eligible for the safeguard:

(ii)

eg to exclude contract workers (ie those not signed up

to join HMOCS by 30 June 1992.

different approaches to triggering a safeguard:

(a) Fixed trigger point:

eg 16:1

22:1

30:1

CONFIDENTIAL

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