TNAG-0697-FCO40-847-Pension-scheme-for-governors-1978 — Page 72

Foreign and Commonwealth Office London SW1A 2AH

DL Hawkins Esq

Superannuation Division

Civil Service Department Whitehall

SW1A 2AZ

LAST

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Telephone 01-

if Mittall "AHK & Dept.

Your reference

Our reference

27

PR

Register Naked

R+. Bhd. 13/

Daja 11 July 1978

HKA 233/1

E.Gregon.

RECEIVED IN REGISTRY NO. 51

13 JUL 1978

DESK OFFICER

INDEX

PA

REGISTRY

Action Taken

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GOVERNORS PENSION SCHEME

1.

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Thank you for sending us a copy of your letter 8 5279 23 June to Willby, in ODM, about the proposed new Governors' Pension Scheme.

2. We note that you do not now believe it would be possible to make provision in the scheme for the payment of contributions for widow's pension during service as a governor, by a person previously pensionable under the PCSPS, in case he eventually opted for an egg- regated award under the PCSPS. This is disappointing since, as you acknowledge, in the event of such a governor opting for an aggregated award under PCSPS terms, outstanding widow's pension contributions would have to be deducted from the lump sum, a much less advantageous arrangement than payment of contributions during service.

But we recognise the practical difficulties to which you have drawn attention. Subject to Willby's views therefore, we would not dissent from your conclusions.

3. You will now have received McLaren's letter of 23 June, with details of present Governors' pensionable emoluments and the proposed UKRPE. I should be grateful for your confirmation of my understanding on one point. This is that when the UKRPE system is applied, there would be reserved rights for present incumbents in whose cases it would be more advantageous to base the GPS award on the pensionable emoluments actually in payment at the time of retirement. Reserved rights of this sort would be particularly important in the case of the present Governor of Hong Kong.

We note your comments on the problems involved in taking account of promotion in absentia in the calculation of pensionable pay for an aggregated PCSPS award under the revised scheme. We would not want to press this point further, provided it was clearly understood that sympathetic consideration would be given to any individual case in which an officer would be put at an unfair disadvantage through the absence of such provisions. The only case of which we are aware in which this point could be relevant is that of the present Governor of Hong Kong; but even in this case it would probably be to the Governor's advantage to opt for separate awards for DS and Governors

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