CONFIDENTIAL
OVERSEAS PENSIONS POLICY
Report by a Working Party of Officials
A Working Party of officials has considered a proposal by the Ministry of Overseas Development that in 1971 Her Majesty's Goverment should assume
greater responsibility for the cost of the pensions of British Officers
retired from the public services of countries which were formerly British
dependencies.
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Background
2. It has been a fundamental principle in Her Majesty's Government's
relations with the overseas countries that responsibility for the payment of
pensions to officers in the public service remains with the Governments
that replaced the British administration. The basis for this is that the officers were indeed servants of the countries in which they were cployed ·
and their entitlement to pension, which is simply a form of deferred salary, derives from local legislation. Effect has usually been given to the prin-
ciple by means of a Public Officers Agreement at the time of independence.
3. While maintaining this fundamental principle, Her Majesty's Government
has however helped overseas Governments with the cost of pensions in various
ways. Some Governments, e.g. Malawi, unable to balance their budget, have
received direct budgetary grants-in-cid to cover the short-fall between revenue and public expanditure, including that on pensions. Second, Governments with whom there are agreed Overseas Service Aid Schemes (OSAS)
designed in part to enable them to retain the services of overseas officers after independence, are reimbursed a portion of subsoquont pensions costs related to the induconont allowances which Her Majesty's Government has provided as an addition to the local salaries paid by the Governments. Third, Her Majesty's Goverment pays pensions supplements to overseas pensioners on the sano scale as are paid to home civil servants and similar
pensioners in Britain, and so protects the overseas Governments from cost- of-living clains for increased ponsions. Her Majesty's Government has
also provided assistance to overseas Governments in the form of loans to meet
the cost of commuting ponsions and to pay their half share of compensation
payments for premature termination of career.
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