TNAG-2060-FCO40-2938-Hong-Kong-Overseas-Service-Pensioners--Association-(OSPA)-1990 — Page 63

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E

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the £/HK$ such as that prevailing at the signing of the

Joint Declaration. OSPA's concerns are set out in detail in

the attached note. We have pointed out that the annual

pension increases awarded by the Hong Kong Government have

tended to exceed comparable awards in the UK, with the

result that UK pension supplements are a very small - some cases non existent portion of the total benefits

received by HMOCS pensioners who have retired in recent

years (Lord Glenarthur's letter of 5 February).

or in

HMG should take over responsibility for payment of pensions

to Hong Kong HMOCS

10. OSPA have also expressed concern about what would

happen if the SAR Government failed to meet its pension

obligations to HMOCS members after 1997 and have asked for

assurances that in those circumstances HMG would take over

responsibility for the payment of basic pensions. OSPA claim that HMG have the power to do so under the Overseas

Pension Act 1973. Our position is set out in

Lord Glenarthur's letter of 5 February 1988 to Lord Grey,

the President of OSPA. We maintain that there is no reason

for us to give such an assurance because the Joint

Declaration specifically provides for the continued payment of pensions to overseas pensioners on terms "no less

favourable than before".

Limited Compensation Scheme

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11.

In his letter of 25 April 1990 to Mr Maude,

Mr Pusinelli argued that a limited compensation scheme

should be introduced to compensate HMOCS officers who are

required to retire early or who are passed over for promotion due to localisation. If this matter is raised,

you could point out that a limited compensation scheme,

funded by the Hong Kong Government, was introduced in 1987

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