33-PP-1890
FOLL
The main part of the Scheme
Para 2(4): I have stated that the Scheme will operate on the relevant pensions laws as in force when the Scheme is made: i.e. no later changes to those laws will be taken into account.
Para 3(1)(a): The recent amendments to the dependants' pension laws extend those laws to enable benefits to be provided to illegitimate children and female "co-habitees", and provide that a nusband's entitlement to a dependant's pension is no longer subject to the test of financial dependency and that a spouse who re-marries will retain his or her dependant's pension. To what extent are we prepared to accept these changes and to guarantee the pensions granted or continued accordingly ?
Para 3(2): 1 return to a point which I have made before. This is a Scheme for a sterling guarantee. Is it justifiable to apply it where the pension moneys (or gratuity) are not transferred out of Hong Kong (or China) and should we not make provision for a different threshold where pension moneys are transferred to some country other than the United Kingdom where the exchange rate may be more favourable to the pensioner than the rate for sterling ? On the first point, the Zambian POA arragements for a sterling safeguard (and a check should be made to see if it is typical) only operated in respect of pensions payable outside Zambia. In the present case pensions will be paid in Hong Kong so we cannot provide the same test, but we could require evidence that an equivalent sum was transferred out of Hong Kong.
Annex I
Head A(c) and corresponding provisions of other Heads: I have assumed this provision is intended to balance paragraph 4(2)(c) of the main part of the
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