SPOS

- Understand your objections to amending SPOS, but from a political point of view it has much value. Apart from making the mechanism itself fairer, it would provide some benefit to existing pensioners and would much improve the package for

HMOCS.

The cost is relatively small: only £1-2 million per year.

[- I made the point earlier that we are aiming for a package

which is in overall terms acceptable to HMOCS. If you can

consider the SPOS amendment, we could contemplate a less generous sterling pension safeguard. If you think this option is worth exploring, we can ask our officials to put forward detailed proposals.]

sos.brief.ADM

SLM

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