TNAG-0697-FCO40-847-Pension-scheme-for-governors-1978 — Page 111

CODE 18. 77

LAST

„Referanca

HKA233/

RECEIVED IN REGISTRY NO. 51 - 8 JUN 1978

10

Mrs Gregory

NESE

15 16 29 46

GOVERNORS' PENSIONS.

DESK OFFICER INDEX

PA

No

REGISTRY

Acton Taken

BXX

1. I had a long meeting this morning with the pension experts to discuss and try and finalise the proposed new Governors' Pension Scheme. Mr Hawkins (and one other) represented CSD. Mr Wilby (and one other) represented ODM who are responsible for the GPS. Mr Barrett (PSD) and I represented the FCO.

2.

Mr Hawkins has been told by CSD to finalise the GPS by the end of June.

3.

CSD had three main points to discuss:

(i)

(ii)

(iii)

Notional UK related salaries on which pensions will be calculated;

Notional promotion;

Widows and Orphans pension for Governors.

4. As regards (i) above, I agreed that I would produce the basic material on notional UK related salaries. We need to refer CSD to the correspondence in which UK equivalents were agreed; set out current Governors' salaries and 'topping up' (giving the date of last review in each case), set out salary of up to date UK equivalent and add to it an inducement element for each DT (OMD Department of ODM can provide us with the inducement element % at present in use) to provide a total notional UK related salary for pension purposes.

5. CSD are not able to agree to pension calculated on a notional promotion. The particular case in question is that of Sir Murray MacLehose who was promoted from DS 2 to DS 1. I pointed out that although a Hong Kong Governor's term of office was normally 5 years Sir Murray's (and any other Governor elsewhere) had had his term of office extended because his services were still needed in Hong Kong. It was in no way his fault that he could not return to the Diplomatic Service to take up a DS 1 appointment and so qualify for a pension under the PCSPS at the DS 1 level. Hawkins did agree that exceptionally they would look at Sir Murray's pension on a DS 1 basis (as though seconded) if necessary. I suggested that the alternative of a pension calculated under the current GPS on present HK salary (HK) 282,000) plus frozen DS 3 pension (plus pension increases from 1971 which would more than double DS 3 pension) might be more advantageous. Hawkins will look at this.

6. There was a rather woolly discussion on Widows and Orphans pensions. HMOCS Governors do not have any Widows and Orphans scheme, but under the GPS a Governor can allocate a portion of his pension to his widow. A seconded DS officer continues his contributions if he remains in receipt of a DS salary. If he goes on to a Governor's salary (eg Hong Kong and Bermuda) widows and orphans contribution is deducted from final lump sum if pension is calculated on PCSPS. If calculated on GPS a DS officer will not contribute after taking up appointment. Hawkins will write about this.

17..