CONFIDENTIAL
(3) Amendment to the
Supplementary Pension for
Overseas Service (SPOS)
Regulations (cost £1-2M pa)
(3) No amendment to the SPOS
Regulations.
In addition the Treasury are proposing a different mechanism for the pension safeguard scheme which would reduce further the
benefit of the safeguard to officers.
7. If the Prime Minister agrees to convene a meeting, the pressure will be on to split the difference. I consider that
there is scope for a reasonable compromise to be reached if the
the Secretary of State and the Governor agree that we
accept some concessions. A possible compromise might be:-
Compensation Scheme
To agree that officers who retire in 1997 should receive
compensation based on full factors, whereas officers continuing beyond 1997 would receive half factors. This would be opposed
by the HMOCS Association, but would have to be justified on the
grounds that officers who chose to serve beyond 1997 had less need for compensation for loss of career prospects. It would reduce the cost of the scheme by about £4 million (over 6
years).
Pension Safequard
To continue to reject the Treasury's principled position of basing the safeguard on comparability with UK civil servants,
but to agree to move from 16:1 to, say, 19:1. To accept, but only as part of an overall deal, the Treasury's proposed
mechanism.
sub.hmocs.ADMIN
JEB
CONFIDENTIAL