11 November 1993
BY FAX
NIEU 15
Foreign & Commonwealth
Office
315
London SWIA 2AH
Telephone: 071-
Paul Fifoot Esq Legal Consultant
_HKA 233/1
UJJAN 1994
Dear Paul,
ARRANGEMENTS FOR HMOCS
1.
As I mentioned over the telephone this morning, agreement has at last been reached between the Treasury and the FCO on the package of benefits for HMOCS officers in Hong Kong. The package will comprise:
- A compensation scheme costing £39 million. The compensation factors will be some 20% lower than the full factors in the Hong Kong Government's Limited Compensation Scheme. GAD are preparing the relevant compensation table.
A sterling pension safeguard using the mechanism proposed by the Treasury (ie the safeguard to apply to the total pension) with the safeguard rate set at HK$21:£1.
- The amendment to the SPOS Regulations proposed by the ODA.
I would be very grateful if you would provide a further draft of the sterling pension safeguard scheme taking into account the above.
2.
3. As requested, I confirm that we should not try to provide in the compensation scheme for early retirement with immediate payment of pension to continue after the change in sovereignty. The draft scheme will need to be amended to reflect this.
4.
It
You asked me to check the reason why a date earlier than 30 June 1997 is necessary for qualifying for compensation. is because officers, other than those who have been permitted to go earlier under the phasing arrangements, must be able to retire on pension with compensation while the approving authorities for retirement remain the same. They should therefore be able to retire on pension with compensation no later than 30 June 1997. The Hong kong Government have
cons.let.ADM
SLM