TNAG-1848-FCO40-2623-House-of-Commons-Select-Committee-on-Foreign-Affairs-enquiry-1989 — Page 8

as

While the degree of hardship might be regarded less severe than for pensioners, serving officers (both local,

and contract staff) pensionable

with overseas commitments would also be prompted to seek similar assistance.

overseas,

33 adverse

The proposal could therefore have a very significant affect on civil service morale. Government would be of former group granting privileged treatment overseas officers which would be denied to the majority.

seen

as

to

а

Other Observations

F

Report of the Review Committee on

Discipline Service Pay and Conditions of Service

34

Members

may

the Review

also wish to not e that Committee concluded that it should not put forward specific recommendations in response to strong represent at ions about the effect of the exchange rates on

on pay and particularly pensions. The Committee considered that the practical and present ational problems

of introduction

any guarantees. extract from the Committee's Report is at Annex F.

ruled

out the

Assistance to Relieve Genuine Hardship

35

paragraph

5

above,

a

An

separate

As indicated in examination of whether measures are needed to provide financial or other forms of assist ance to pensioners suffering genuine

Any such arrangement s hardship will be undertaken.

could not be restricted to overseas pensioners and would have to apply across the board. The Civil Service Branch will seek evidence

examine the of hardship cases,

ext ent

consider how best it might be addressed.

of

the

problem

and

Summary

36

Retired

overseas

officers in the UK with pensions in sterling complain about paid

the reductions they have suffered in recent years. These they say are due to the HK/US dollar link, which exposes them to currency fluctuations they would not be affected by if the Government's policies were not driven by

for political considerations. Options

protecting been examined. fluctuations have pensions against currency While protective measures could be devised,

could be devised, they would not without their drawbacks, chiefly in relation to presentation in various

be

consideration Evidence of

quarters.

Nevertheless,

it

whet her

such

measures

should

be

is introduced.

for

declining living standards resulting in hardship will be sought

as a separate matter.