CODE 18-77

Mr Ricketts

CONFIDENTIAL

Me Whitney

Reference

ра We spoke

W578

HMOCS: REMAINING POLICY ISSUES ON OFFICERS TRANSFERRING FROM CONTACT TO PENSIONABLE SERVICE TO HMOCS STATUS

W578

on

1. We have now received comments from Mr Fifoot (Flag A) the submission and on a draft statement to be circulated to officers. Mike Waters has also commented on the statement (Flag B). I have amended both documents to take account of their comments. Revised drafts are at C and D.

2. Mr Fifoot advised (para 4 of his letter) that since the submission and statement will have the effect of altering the Special Regulations, it should be approved by the Secretary of State himself. This is unfortunate. I have included in the Recommendation paragraph a reference to this advice so that the Secretary of State does not think we are bothering him unnecessarily.

3. Mr Fifoot has asked (page 2 of his letter) whether HKD is still unwilling to follow up on his suggestion that HKG should be asked to make a contribution from the gratuities refunded towards the extra cost of the compensation scheme of counting bought back service as pensionable. I don't know if Fifoot's idea has been discussed before but I think it is a non-starter: HKG would object as refund of gratuities finance higher pension entitlements; and there is an obvious China angle (HKG assets being passed to HMG).

4.

The letter from Waters reveals one point of which previously we were unaware: officers can make a commitment to buy back pension over an extended period and do not have to pay one lump sum. We therefore do not have to give them so much time in which to reach a decision. We can also set the same deadline irrespective of whether officers switched to pensionable service before or after 26 July 1991. I have mentioned this to Fifoot who has asked to consider the point.

4. There is one other point raised by Waters (para 1 of his letter) which we might discuss before the submission is finalised.

NC G Whitney

Hong Kong Department WH 304 270 2651

9 November 1992

cc: Mr Morris

rem.iss.ADM

SLM

CONFIDENTIAL

HKA 233/1

Recid

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