CONFIDENTIAL
CALL ON MR GOODLAD BY THE OVERSEAS SERVICE PENSIONERS
ASSOCIATION (OSPA)
Points to Make
Aware that the value of Hong Kong pensions affected by
fluctuations in the exchange rate.
Hope that Hong Kong pensioners have seen an increase in the
sterling value of their pensions as a result of the depreciation
of sterling relative to the Hong Kong dollar.
We are examining the question of sterling pension protection
in the context of providing a package of benefits for HMOCS
officers.
- Can't go into much detail on the package at this stage, but
can inform you that the safeguard would not guarantee the
sterling value of pensions at the date of an officer's retirement. Rather, its purpose would be to provide protection
against a serious decline in the value of the Hong Kong dollar
relative to sterling.
Superkenankan Pension to Overeas Service
Aware that some of your members are not happy about the
operation of the SPOS Regulations. We are examining possible
modifications to the Regulations but we need to decide first on
the safeguard. Should also forewarn you that modifications to
the SPOS Regulations would have financial implications and would
therefore need to be agreed within Whitehall. This might not be
easy given the current public expenditure climate.
Implementation of the sterling safeguard is not being held up
pending a decision on the proposed compensation scheme. However, it is not realistic to expect a final decision to be
taken on the safeguard until the cost of package as a whole is
known.
ospa.pnts.ADM
SLM
CONFIDENTIAL