TNAG-2033-FCO40-2896-Visit-by-Douglas-Hurd--Secretary-of-State-for-Foreign-and-Co-1990 — Page 133

II. PENSIONS

(a) Pension Safeguards

6.

3

-

events Recent

in

China have led

to a

Staff concern

resurgence of requests for improved pension safeguards. arises because Government meets pension

liabilities as they

Associated

with the

arise

change

out of current income.

sovereignty in

in 1997,

there

is widespread

unease about the risks consequent

upon pensions

pensions being dependent upon

general revenue.

non-hypothecated

7.

Staff have been seeking :

(1) funding of pensions; and

(ii)

payment

of accrued pension benefits before

1997.

pensions after 1997 on terms than before is guaranteed by the

that this

8.

The payment of

no

less

favourable

Joint

Declaration,

guarantee

expected and it is

will be embodied in the Basic Law.

are

now a

right

and are a

general revenue.

Pensions

statutory charge on the

Pensions will therefore be secure.

9.

Nevertheless,

in

the light of staff anxiety,

the Hong Kong

Government

is considering whether more