clear assurances about the continued payment of pensions after 1997. There is no reason to believe that this undertaking will not be honoured by the future SARG. Pension payments represent only a very small percentage of annual recurrent expenditure, and the Hong Kong Government has every confidence that future pension payments can be met.
Nevertheless, the Hong Kong Government are considering whether any further measures can be taken to address the concerns expressed by your members and other civil service staff associations. While full funding of pensions has been ruled out for financial reasons, careful consideration is being given to other possibilities, including partial funding of pensions, higher commutation of pensions and the establishment of a provident fund.
Thirdly, the question of pay parity for all the Disciplined Services. I can assure you that we and the Hong Kong Government attach great importance to the role of the Disciplined Services in maintaining the stability and security of Hong Kong in the crucial years up to 1997. The additional salary increase recommended for Junior Police Officers in the recent pay review for the rank-and-file in no way detracts from this.
I understand that the Standing Committee on Disciplined Services salaries and conditions of service will submit its advice on pay for the officer ranks towards the end of the year. The Committee's advice will be considered by the Hong Kong Government as a matter of priority.
Youre howel
inti Tible
Peter Tibber
Private Secretary to The Earl of Caithness
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