RESTRICTED
Attachment to Ser.S
e ciec a 1/5/92.
(Jee para 4)
HMOCS PENSIONS: STERLING SAFEGUARDS
The 1954 and 1960 White Papers state that HMOCS pensions should be "safeguarded" when HMG cease to be responsible for the Government of the territory of their service. The extent of the safeguard is not defined in the White Paper, out subsequent practice has been consistent and in no case have HMOCS officers been left unprotected against currency fluctuations.
2.
In
Since the formation of HMOCS in 1954, 40 territories where HMOCS officers served (see note below) have ceased to be British Dependent Territories or protectorates. In addition Bermuda has attained full internal self-rule and the East African Community has been wound up, both necessitating similar arrangements for HMOCS officers. all 42 cases HMG have ensured that the sterling value of HMOCS pensions (and not just the local currency value) has been safeguarded, ie officers have received payments at an exchange rate at least as favourable as before the Secretary of State ceased to be responsible for the territory's government. The present position is as follows:
- in 3 cases (Bahamas, Bermuda, Brunei) the local
governments are committed to paying the full pension at a fixed (safeguarded) exchange rate to sterling (and there are no immediately foreseeable political or economic reasons for them to cease to honour this commitment: in practice their currencies have appreciated against sterling, and they pay at above the safeguarded rate);
in 37 cases (list attached) HMG now pay the full pension in sterling;
- in 2 cases (Somaliland protectorate and Aden) HMG pay
NJCABI/1
RESTRICUM EAT