be paid in
а
a specified
at
Whereas there is no provision in the pensions legislation which says
pensions may not currency other than the Hong Kong dollar, and rate of exchange, the ordinances, inter-alia, provide for the payment of pensions based upon salary.
no legislative Hong Kong dollars and there is provision for payments to be made otherwise.
28
Salaries
are paid in or contractual
Legal advice confirms that although ex-gratia
it is
is considered arrangements could be introduced, on balance, it
authorise amended to
that the pensions legislation
legislation should be such a scheme. Without such authority, the proposed scheme is liable to be challenged in the courts.
Consultation with the Chinese Government
to
29
The question arises as to whether the Chinese side would need to be consulted on proposals to introduce ex-gratia would adjust
Such arrangement s
pensions.
arrangement s 1997 if the arrangement s probably not have implications after 1997 if the
revoked before then because the link with the US$ abolished, or HMG introduced alternative safeguards for members of HMOCS. However as abolition of the US$ link is contrary to Government's stated policy and there can be no certainty that
were
any
come
place, could It
alternative
introduction
implications
therefore, be prudent
safeguards of
ex-gratia which would
to
will
arrangement s
beyond 1997. carry
Chinese side approach the
int o
now
matter in advance.
was
the
have
would,
on the
30
side,
case.
If the arrangement s were discussed with the Chinese it could be difficult for the British side to argue the
of In view
the possible repercussions in the civil service and the community (see paragraphs 31 to 33, 37 to 38 below), it would be difficult to convince the Chinese side that the arrangements would contribute to a
to a smooth
smooth transition and have no adverse effects on the community.
Possible Repercussions
Within the Civil Service
31
overseas
Terms and
are,
officers
comparable.
Previous
conditions of service for local and
with
broadly exceptions, particular
from both local and represent at ions overseas staff associations for fixed sterling exchange rates for Hong Kong pensions have been resisted. If this position is changed for overseas pensioners, it would be very difficult to preclude 2,000 local pensioners who have retired overseas from seeking similar
They could argue
as same degree of hardship suffering the and their difficulty similarly monetary policy.
treatment.
stems
that
from
overseas the
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