TNAG-0698-FCO40-848-Policy-and-commitment-on-pensions-for-public-servants-in-Hon-1979 — Page 35

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2

CONFIDENTIAL

Reference...

PD201/77/01

(3)

C J Hall Esq MBE

Hong Kong and General Dept

Foreign and Commonwealth Office London SW1

HKA 233/393/1

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PENSIONS AND PENSION LIABILITIES IN HONG KONG

PA

حمد

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an Taken

No jule IP.P.

1. Thank you for your minute of 1 February about the superannuation liabilities of the Hong Kong Government and the problems these raise. As you know in our visit to Hong Kong in late 1976 we were trying to glean more information to help us in determining what the Hong Kong liabilities were without revealing our hand to the local authorities and thus giving rise for undue concern on their part. As it happens the amount of information which I was able to gather in was derisory and did not really add much to what we had already on record. In fact as it turned out most of my time in Hong Kong was spent dealing with the problem of the new widows and Orphans Pension Scheme which the Hong Kong authorities were anxious to introduce and was causing them some difficulty.

2.

Since then we have in fact been in almost continuous correspondence with Hong Kong about their new Widows and Orphans Pensions law and scheme and this has occupied most of the time we have been able to devote to Hong Kong pension matters. Fortunately it now seems that the Hong Kong Scheme is settled and will be introduced fairly soon. As I see it the introduction of this new Scheme embracing as it does such a wide field of the Hong Kong Government pensionable service gives us through the Government Actuary here a catalyst for determining what the Hong Kong liabilities etc may be. The new Widows and Orphans Pension Scheme gives a pension related to the officer's own pension and if therefore we are able to establish more clearly the contributors and pensioners of that scheme and information about those who have opted to remain in the current scheme together with existing Widows and Orphans pension costs and liabilities I have no doubt we should be able to produce a better picture of the pension situation overall. I had mentioned our difficulties and this possible course of future action to the Hong Kong Department on earlier occasions and I thought it was mutually accepted that unless/were to go baldly into the Hong Kong pensions arena and so cause difficulties which we were earlier anxious to avoid we had to await a settlement of the Hong Kong Widows and Orphans arrangements and then move on from there.

We

3. Unless you see any reason for more urgent action in this matter or can suggest any alternative course I hope that you will be able to accept that we must tread slowly and warily and can only proceed by way of the Actuary through the guise of a review related to the widows and orphans position. Although I am giving up this evening responsibility for Pensions Department I am going on a fortnight's leave and when I come back I take over as Head of PSE

I am continuing to be available for consultation and advice and this is one area where I shall continue to direct operations. Perhaps we could have a word about this problem after I get back from my leave, say in the first week of. March.

CODE 18-77

(HMSO 12/76)

JL West

Pensions Dept 10 February 1978

CONFIDENTIAL