TNAG-1259-FCO40-1599-The-Future-of-Hong-Kong---special-study-by-FCO--August-1982--1983 — Page 121

SECRET

Separate

annek

C.

Liability for Pensions and Compensation for Public Officers and their Dependants

Present Position

21.

The Hong Kong Government is under a liability to pay

pensions and other retirement benefits granted to members

of the Hong Kong public service and to their widows and other

dependants under Hong Kong pensions legislation It is

responsible for paying pensions etc already granted to or in

respect of retired officers and as pensions etc are granted

to or in respect of serving officers or their retirement,

it will be responsible for paying these also. HMG have no

legal liability at present for paying these pensions.

Pensions etc are calculated and paid in Hong Kong dollars

except that SPOS payments for HMOCS officers

are converted into sterling at the rate of exchange

prevailing at the relevant date of retirement and paid

accordingly. In the event of the complete collapse of the

exchange rate of the Hong Kong dollar, HMG might be obliged

to fix upon an arbitrary rate of exchange for the

conversion of Hong Kong dollar pensions into sterling payments.

Maintenance of Existing Arrangements

22.

So long as the United Kingdom retains its present

responsibility for the government of the colony, HMG will be

able to ensure that pensions etc granted to retired

Hong Kong public officers and their widows and dependants

will continue to be paid from Hong Kong Government funds.

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13 SECRET

/Constitutional