TNAG-0697-FCO40-847-Pension-scheme-for-governors-1978 — Page 20

SERVICEBALZONA ancient)

264

cc Mr Willby

Miss Matthews

Miss B Mann, Treas.

D L Peretz Esq Treasury Chambers Parliament Street

London SW1P 3AG

CF 292/205/06

25 October 1978

GOVERNORS' PÅNSION SCHEME

1.

A new pension scheme for retired colonial governors to replace the terms of the old scheme in the Governors' Pensions Act 1957 has been under consideration between CSD, FCO and ourselves for some years. The essential provisions and the necessary legal drafting were substantially complete in 1974 but progress since then has been slow. There have been two main reasons for this.

2.

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First, because the number of colonial governors is small - sixteen, with less than half of those pensionable under the Governors' Scheme and because most of then could look to some other HOCS or Diplomatic Service pension to form the mainstay of their retirement income there was no great pressure from their end, at least in the early stages, for the new Schene to be introduced. The second reason has been simply that other work in CSD has demanded greater priority and we too have been preoccupied with schemes and problems either affecting larger numbers of pensioners or with more serious political implications.

3. On the first point however, the climate has changed in the last year or two. The spread of independence to all but the smallest colonies has taken some of the prestige out of the job and FCO no longer find it so easy to recruit and appoint men of the experience and ability needed to fill the remaining posts of colonial governors. The incidence of inflation too has caused candidates for the posts and indeed serving governors nearing the end of their tour to be more critically concerned with the superannuation provisions. This change has led us to a position where the governors now in office are all aware that a new scheme is in preparation and should be in operation in time for their retirement.

4. The terms of the new Scheme have been approved by CSD and only points of legal drafting rensin to be dealt with before it is laid before Parliament. Time has slipped by however; CSD have been and still are under very heavy pressure on other urgent matters and I think it could be another two months before all the final details are settled and the Scheme laid in Parliament. It will require only negative assent and is of course completely non-controversial.

5. Our difficulty is that the new Scheme is being made under the terms of the Overseas Pensions Act 1973 and the cost now becomes an ODM liability instead of falling on a CSD vote under the terms of the Superannuation Act. No provision has yet been included in our Estimates because the Scheme has been with CSD up to a few months ago. In the coming few weeks however two colonial governors are due to

/retire...