CONFIDENTIAL
III
SUPPLEMENTARY PENSION FOR OVERSEAS SERVICE (SPOS)
It is proposed to change the way in which the SPOS regulations are operated as regards Hong Kong pensioners. At present, the regulations mean that there is a reduction in the supplements paid if the Hong Kong dollar exchange rate rises above the level prevailing at the pensioners' date of retirement, but no account is taken if exchange rate falls. It is proposed to remove this anomaly.
The cost of introducing the SPOS amendment at current exchange rates would be about £lm, and at 16:1 it would rise to about £2.2m.
Hong Kong Department
11 November 1992
options.1.
SLM
CONFIDENTIAL 15