"
B
4.
HMOCS pensioners' feelings have evidently been further
aroused by a letter which Mr Maude wrote to Mrs Edwina Currie which included the statement that "most Hong Kong pensioners continue to do reasonably well, certainly in comparison with their UK public service counterparts". This
letter was subsequently published in "Voice", the official
publication of the Association of Expatriate Civil Servants
of Hong Kong, and has generated a number of letters. The
main purpose of Mr Speed's letter is to seek an explanation
of this statement.
5.
Mr Speed's constituent also refers to the inadequacies of the Supplementary Pensions for Overseas Service (SPOS). Hong Kong HMOCS pensioners have long pointed out the deficiencies of the SPOS system as it applies to those who retired after 30 June 1976. It it is arbitary, since whether or not pensioners benefit from it depends in large measure on the prevailing rate of exchange between the Hong
Kong dollar and sterling on the day of their retirement.
The higher the then sterling value of their pension, the more likely they are to benefit from SPOS. Secondly, it is seen as inadequate, because if does not address the central
problem of exchange rate fluctuations: it is solely concerned with pension increases and not the basic value of
the pension.
6.
The ODA (who take the lead on these issues) are considering whether the SPOS system can be reformed to take
some account of falling sterling values of the basic
pension. The Treasury are, however, likely to be resistant
because of the cost implications and because of the wider implications any change might have on the question of sterling safeguards.
JONAFL/2
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