TNAG-2097-FCO40-2986-HM-Overseas-Civil-Service-(HMOCS)-general-correspondence-1990 — Page 10

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Sir David Ford, KBE, LVO, JP.,

Chief Secretary,

Government Secretariat,

Lower Albert Road,

HONG KONG.

Pr

97

Manor Cottage,

Norton sub Hamdon,

Somerset, TA14 6SJ,

U.K.

December 4, 1990.

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I am greatly concerned about the fall in value to me of my Hong Kong Civil Service Pension. In 1989-90 the Crown Agents paid it to me at an average rate of exchange of $12.55 to 1.00. Although there was a welcome 10% increase in the pension in April, with the rate of exchange for my October pension at more than 16, I am receiving 12% less cash than last year, or, with inflation, at least 20% less in real terms. I am receiving no SPOS.

Furthermore, when I started receiving a pension in October 1984, the rate of exchange was 9.6935 so that with the current rules my pension is now effectively devalued in Britain by nearly 40% in cash terms let alone the effect of inflation. Since 1984 I have received only a negligible amount of SPOS from the British Government. Although I am a member (retired) of HMOCS, I am not receiving any effective support from the British Government to offset losses through currency fluctuations. It is all grossly unfair.

Through

I am aware that my problem is common to many pensioners. the (British) Overseas Pensioners Association I am particularly aware that the matter was considered by the Hong Kong Executive Council a year or so ago and that Colvyn Haye discussed the matter with yourself and others in Hong Kong earlier this year. It was alarming to learn that theGovernor was apparently under the impression that currency losses in pension were covered by SPOS; possibly Exco members were also.

Whilst theoretically the rate of exchange may improve, this seems less likely to happen to any significant extent now that Britain has entered the European exchange rate mechanism. With the large fall in value of the HK$ shortly before that event, it is particularly pressing that the pensions deficits in Britain be rectified soon.

I hear that the Hong Kong Government has undertaken to examine any serious hardship cases arising from exchange rate fluctuations. However it is not good enough that its pensioners should have to reach such a state and their poor treatment so far in this matter is quite contrary