TNAG-2096-FCO40-2985-HM-Overseas-Civil-Service-(HMOCS)-general-correspondence-1990 — Page 168

-CONFIDENTIAL

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that

the

Board

of

Directors

of

the

schemes

be

given

discretionary

power

to accept

bona-fide

dependants

not

otherwise

covered

Deneficiaries as

(e.g.

wives of

post-retirement marriages).

(E) Separate Funding of the Schemes

23.

Staff

request separate

funding

of the two

dependant pension schemes to safeguard future payments.

24.

The UK Government Actuary's Department (GAD) nave

assessed that

at

1986

$1,664 prices,

and Million

$2,370

Million

would

be

required

to

fund the

WOPS

and

WCPS

respectively

to

meet tae cost

of benefits

for

past

service.

Financially, this

is amount

not

prohibitive in

Comparison

with

the

$2mS

required

for

funding

service

pensions,

out

the

two

cannot issues

be

considered

in

isolation. Funding of pensions, in full or in part, is an

impracticable proposition

because

of financial and

political

commitments

considerations.

With

Government's existing

for

Capital

expenditure

and

planned

development, it would not be appropriate nor possible to

set

aside તુ massive SUR for a civil service pension fund.

Funding only the dependant pension schemes is not supported

because

(i) this could fuel yet stronger staff pressure

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