Y
PP
7. Furthermore, $16:£1 is the least favourable general rate at which arguments about parity with UK pensioners could be defended across the board. Any less favourable
favourable rate would leave the safeguard for Police grades, almost 50% of serving officers, substantially below UK levels. Certainly, using parity as a defence of $26:£1, or even $20:£l say, would not be sustainable in the light of the number of cases that could be clearly demonstrated as being worse-off.
8. Indeed, it is not obvious to me how we could defend any general rate less than $16: £1. It would have no historical validity and, as I have said, would not approximate parity in individual cases. All we would be able to say is that Minister's considered the chosen rate to be sufficiently generous in the circumstances. I doubt this is cosistent with Treasury Counsel's advice that a safeguard scheme will be acceptable to the Courts if it can be defended as being fair.
9.
I attach some suggested bull points which you may wish to include in any future briefing on this subject.
DAVID TROTTER
Head of Overseas Pensions Department
Enc.