TNAG-2097-FCO40-2986-HM-Overseas-Civil-Service-(HMOCS)-general-correspondence-1990 — Page 84

CONFIDENTIAL

British public servant Colonial Civil Servant

Basic pension

£1,000

Local increase

Index-linking

500

£1,500

£1,000

200

300

£1,500

This system works satisfactorily for members of HMOCS who

served in our former colonies because the British Government

has taken over responsibility for their pensions and local

increases and pays them at a fixed rate of sterling (the

POA rate) eg Kenya pensions are paid at Kshs20 =

8.

£1.

Unfortunately as far as Hong Kong is concerned, the

absence of a POA rate has resulted in anomolies in the

calculation of SPOS for Hong Kong HMOCS pensioners. The sterling value of such pensions at retirement is taken as

the starting point for the calculation of the supplement.

The fluctuation in the Hong Kong exchange rate in recent

years has meant that pensioners retiring during that period

with similar Hong Kong dollar pensions are treated, for SPOS purposes, as though their basic pensions were different. The topping up supplement varies accordingly, in this

arbitrary manner.

9.

UK.

The pension increases awarded by the Hong Kong

Government in the last few years have exceeded those in the

When the Hong Kong dollar is relatively strong no

supplement is payable to any of the officers who retired in

recent years; and even when the dollar is weak (thereby

reducing the sterling value of the local increases) any

supplement payable represents only a small portion of a pensioner's income. From the pensioner's point of view, the

key consideration is that while SPOS guarantees a certain

ROFANE/3

CONFIDENTIAL