TNAG-2097-FCO40-2986-HM-Overseas-Civil-Service-(HMOCS)-general-correspondence-1990 — Page 6

1. CC.

Mr Burns My Pant

2. Mr Shonc

Pl. could you draft

a

reply.

1. HKD for a departmental

reply please. I walker. 11/12

3

21, Mountbatten Way, Brabourne Lees,

Ashford,

Kent,

TN25 6PZ,

England.

elephone 0303 812705 21/2

Int.44 303 812705

Facsimile 0303 812705 Int:44 303 812705

The Earl of Caithness, The Minister of State,

Foreign & Commonwealth Office, London SW1 2AH.

Dear Lord Caithness,

9th. December 1990.

Under cover of a letter dated 4th. December from Mr. Alan Paul I have received a copy of your letter dated 29th. November to Mr.Keith Speed M.P.

Your letter to Mr. Speed attempts to explain the following statement taken from a letter from your predecessor, Mr. Francis Maude, to Mrs. Edwina Currie:

"...Most Hong Kong pensioners continue to do reasonably well certainly in comparison with their U.K. public service counterparts...

You make three points in support of Mr.Maude's claim:

(i) Hong Kong pensions accrue at a faster rate than U.K.pensions;

(ii) the Hong Kong Government has for many years awarded larger pension increases than those awarded by H.M.G.; and

(iii) Hong Kong salaries have for many years been higher than those in the U.K.

As to (i), I do not have a copy of the latest Hong Kong Pension Ordinance, but I understand that it is no longer correct to say that Hong Kong civil servants can receive full pension benefits after 33 1/3rd. years service. I believe that the length of service needed to obtain a full pension is now close to the period which U.K. civil servants have to serve.

However, I do not think the comparison is appropriate. I understand that until 31.5.1972 U.K. civil servants, or at least those in your department, were credited with 18 months for every year of service in Hong Kong. This is equivalent to a full pension after 26 2/3rd. years service compared with 33 1/3rd. years for Hong Kong civil servants. As the majority of existing Hong Kong pensioners will have completed the major part of their pensionable service before 31.5.1972 the application of the U.K. pension formula could well enhance their basic pensions and not as you imply reduce it.