CONFIDENTIAL
125364
MDLIAN 9628
9.
UNDER THE PENSION BENEFITS ORDINANCE (CAP 99), WHICH GOVERNS THE NEW PENSION SCHEME, PENSIONABLE SERVICE COMMENCES FROM THE AGE OF 18 IN RESPECT OF ALL STAFF. EXCEPTION HOWEVER IS MADE FOR SERVING NON-PENSIONABLE OFFICERS WHO TRANSFER TO THE NEW SCHEME. THERE IS THEREFORE INCONSISTENCY IN TREATMENT OF NON-PENSIONABLE OFFICERS WHO JOINED THE SERVICE BEFORE THE NEW PENSION SCHEME AND THOSE WHO JOINED AFTERWARDS.
10. AT THE REQUEST OF STAFF, THE HONG KONG GOVERNMENT HAS REVIEWED THE POSITION AND NOW INTENDS, ON GROUNDS OF CONSISTENCY AND EQUITY, TO AMEND THE TWO PENSIONS ORDINANCES TO PROVIDE THAT ALL SERVICE REGARDLESS OF AGE SHOULD COUNT FOR PENSION. HOWEVER, IT IS NOT INTENDED THAT THIS SHOULD APPLY RETROSPECTIVELY TO OFFICERS WHO HAVE ALREADY LEFT THE SERVICE.
11.
BECAUSE THERE IS A LIMITATION ON THE MAXIMUM AMOUNT OF PENSION ONE CAN ACCRUE (MAXIMUM PENSION CANNOT EXCEED TWO-THIRDS OF HIGHEST SALARY), THE MODIFICATION IS UNLIKELY TO HAVE ANY SIGNIFICANT EFFECT ON THE COST OF PENSIONS.''
ENDS
WE ARE FAXING TO MS MAJOR (HKD) AND C. PIGGOT (PEKING) A DRAFT OF THE PAPER FOR HANDING OVER TO THE CHINESE (PARA. 3 ABOVE).
WILSON
YYYY
DISTRIBUTION
60
MAIN
57
.HONG KONG AGREEMENT
.(RESTRICTED)
LIMITED
HKD
HD/FED
RESEARCH D (FE)
PUSD NEWS D
PS/MR MAUDE
PS/LORD BRABAZON MR GILLMORE
MR MCLAREN
ADDITIONAL
3
MR WHOMERSLEY LEGAL ADVISERS MS BARRETT LEGAL ADVISERS MR FIFOOT LEGAL ADVISERS
NNNN
PAGE
3
CONFIDENTIAL
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