Superannuation Vote, since they regard it not as a demand-led pensions obligation but a fresh foreign policy commitment. would require primary legislation.
It
b)
Sterling Pension Safeguard.
5.
Treasury officials accept that the contingent liability to meet additional pension costs if the safeguard is triggered would fall on the Superannuation Vote, whatever level is eventually agreed. The timing of any payment would be dependent on exchange rate movements beyond the agreed trigger point.
c)
6.
Supplementary Pensions for Overseas Service (SPOS)
The cost of any amendment to the SPOS regulations will also be charged to the Superannuation Vote. Treasury officials agree, but as with the pension safeguard this has not yet been endorsed by Treasury Ministers. These would apply to existing pensioners as well as to new ones. At current exchange rates we think that costs would be around £600,000 in the first full year after the scheme comes into operation.
7. Officials in both wings are considering how best to reconcile our need to make an offer soon to HMOCS in Hong Kong with safeguarding the Secretary of State's PES negotiating position next year, and will submit recommendations shortly.
feli
Amen
PD M FREEMAN
(B198)
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