TNAG-0697-FCO40-847-Pension-scheme-for-governors-1978 — Page 97

HKA 233/1

MANAGEMENT IN CONFIDENCE

DL Hawkins Esq

23 June 1978

Certain PiN COLOR L

emoluments linked to UK equivalents. These comprise a notional equivalent to a UK salary plus an inducement element. We consider that all Governors covered by the new Governors' Pension Scheme should be brought into line; Willby set out the case for this in his letter to you of 29 June 1977.

9. The attached list gives the present UK equivalents for all posts and the notional UK related pensionable emoluments as at 1 January 1978 which we recommend should be applied where the post is filled by a Governor pensionable under the Governors' Pension Scheme. (The calculations are in line with those for HMOCS officers.)

10. I understand that at the meeting on 31 May you were concerned that by putting Governors' pensions on to a UKRPE footing we should be using a notional basis for calculation of pension in excess of the actual basis. You suggested that this would be justifiable only if Governors' actual salaries had not been revised for some years. It has, in fact, been the practice for some time to assess Governors' pensions on the basis of & "topped-up" salary related to the emoluments of an officer of equivalent grade in the British Home or Foreign Service plus overseas allowances. Ag Willby explained in paragraph 5 of his letter of 29. June 1977 a change to a UKRPE basis would break no new ground. It seems to us no more than a sensible rationalization.

11.

The effect of this change in terms of the pensionable salary to be used for calculation of pension would vary from territory to territory. There would be an increase in the pensionable emoluments of Governors of poorer territories. For example, in the Solomon Islands the Governor's pensionable emoluments as at 1 February 1978 are £11,085 (£7,515 salary plus £3,570 topping- up). Under a UKRPE system his pensionable emoluments at that date would be £14,322. Similarly, in the Gilbert Islands the Governor's pensionable emoluments are £10,176 (£7,368 salary plus £2,808 topping-up) as against a UKRPE figure of £13,192. In Hong Kong, by contrast, the effect would be to decrease the level of pensionable emoluments in relation to actual salary. The salary of the Governor of Hong Kong as at 1 February 1978 is £38,796 whereas the appropriate UKRPE would be £23,966. In between these two extremes the figures in respect of the Governor of the Cayman Islands are £13,704 and £13,192 respectively.

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MANAGEMENT IN CONFIDENCE

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