BY FAX: 071 270 - 3387

TO:

Y

NIGEL WHITNEY

HKD/FCO

LONDON

FROM: ALAN N MCDONALD

OPD/ODA

EAST KILBRIDE

GTN TEL NO: 7243 GTN FAX NO:

Valg

7243

3576 4099

Dear Nigel

HONG KONG: COMPENSATION SCHEME FOR HMOCS OFFICERS

I have discussed the latest draft compensation scheme with Dave Fish and Richard Plumb and there is a general feeling here that we should devise new calculation and payment provisions which are closer to the provisions of the earlier general Compensation Schemes. I appreciate that this means a lot more work for Paul Fifoot but we really need to design a Scheme which is straightforward to administer and one which is easily understood. We believe that we

we should only depart from the traditional arrangements when there are good and defensible reasons for doing so. Such an approach will also make the Scheme more acceptable the Association and its members. We therefore offer the following comments and suggestions for inclusion in the draft Scheme.

2. Para 2: Definitions. We need a definition of "pensionable service". Service (whether under the Hong Kong Government or under a Scheduled Government as defined in the HK Pensions Laws} will count for compensation to the same extent as it will count in the computation of the officers retirement benefits.

3. Para 3: Retirement. Early Compensation Schemes provided that notice of retirement should be at least six months, although no period of notice could start before the operative date. However, a shorter period of notice could be accepted by mutual agreement between the Goverment and the officer. Fara 3 seema tu reflect these provisions but is the wording of the Scheme sufficiently clear and flexible enough for the officer, and indeed the HK Government, ie what do we really mean by "....after the introduction of this Scheme."? Do we mean

...after the operative date of this Scheme" to bring it into line with para 1 or is the Scheme going to be published at an earlier date so as to allow officers to retire as early as 30 June 1996?

N

4. Para 7: Officers not entitled to Compensation. Will it be possible for an officer to transfer to the Home or Foreign Service on or after the operative date of the Scheme? If the answer is yes, then the Scheme should make it clear that any compensation paid must be refunded

be refunded if there is no break in pensionable service as defined in the HK Pensions Laws.

F003

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