TNAG-0991-FCO40-1210-Policy-on-salaries-and-pensions-for-civil-service-in-Hong-Ko-1980 — Page 137

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Mr Willby

Pensions Dept., ODA

(Eland House, Room E503)

HONG KONG PENSIONS

AKKC 430||

RECEIVED IN. Y NO. 51

2 1 MAY 1980

DESK OFFIE

INDEX

No

PA

RIMR

REGISTRY

Action Taken

17 Aw2/

1. The Standing Committee on Directorate Salaries and Conditions of Service (the "Ross" Committee), in its Seventh Report, submitted to the Governor on 24 April 1980, stated at paragraphs 44 and 45:

2.

"44. We have again examined this subject and made com-

parisons with the private sector. Our conclusion is that there is not a great deal of difference in overall benefits between Government and the better private sector schemes. There is, however, greater flexibility in the private sector in choosing between investment of benefits to produce regular income like a Civil Service pension and taking a lump sum to meet the needs of (say) house purchase.

45. We have in previous reports recommended an increase in the 25% commutation to lump sum option for the Civil Service pensioner, but we are advised that no such change will be possible. On the other hand, we consider there may be a case for reviewing the multiplying factor of 12.5 used in the calculation and recommend that this be pursued. The benefits of any change would not of course be restricted to the Directorate."

At its meeting on 6 May 1980, the Hong Kong Executive Council noted that the question of commutation of pension would be taken up again with the FCO. I should be grateful if you would please keep me informed should Hong Kong raise this question with you direct.

20 May 1980

RJ M Ritchie (Ms)

Hong Kong and General Department K242 233 3988

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