TNAG-1848-FCO40-2623-House-of-Commons-Select-Committee-on-Foreign-Affairs-enquiry-1989 — Page 6

could be adopted for Similar arrangement s

if if the pensioners domiciled elsewhere, for example,

fell below 25% of the 10 year the Hong Kong

in Annex D. exchange rate for the currencies shown basis, the trigger point would be

dollar

Australian dollar

7.39

Canadian dollar

6.51

Indian Rupee

0.80

New Zealand dollar

5.81

Pakistan Rupee

0.64

overseas value of

average On this

which, with the exception of Canadian dollar, would warranted

up

not have

to 31 December a monthly

any supplement s the payment of 1988. A Canada domiciled pensioner in receipt of pension of $5,000 (the average pension paid) would be eligible for a supplement of $13 up to that date (Annex E).

Financial Implications

25

Some and the The 1,500

The additional cost of granting a pension supplement 21 to 24 above would in the manner described in paragraphs depend on the relative strength of the Hong Kong dollar. 2,300 overseas pensioners reside out side Hong Kong, annual cost of their pensions is about $140 million. UK pensioners draw annual pensions totalling $99 million; the $6 million. For the UK 100 Canada pensioners draw about

the HK dollar ten cent s depreciation of pensioners, every against sterling below the level of £1: HK$14 would cost about $710,000 per annum. If the exchange rate reached £1: HK$16, the additional annual cost would be about HK$14.2 million. the Canada pensioners, every ten cents depreciation of the HK cost about $90,000 per dollar below the trigger point would

annum.

For

Drawbacks

26

are Pensions

If an

as

the pensions scheme were

set a

under of right paid legislation.

ex-gratia compensation introduced administratively, it would not be possible to trigger point at say $10: £1 (and its equivalents) below which

clawed back. the supplement

could

be

pensions

Although

such

an

be

arrangement would be desirable, for it to be introduced would

to ordinances provisions of

is the legal

and authorities

require

the

amended. Other

consultation

the

Chinese

that difficulties,

the with

repercussions also need to be assessed.

position, possible