TNAG-2100-FCO40-2989-HM-Overseas-Civil-Service-(HMOCS)-policy-matters-1990 — Page 104

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(a)

their

(b)

pensions

Page

2

are being artificially depressed and they are being unfairly discriminated against; and

their

success

contributions past

and

to Hong Kong's economic growth give them a legitimate expectation of special assistance.

on

Reports have also been received that those small pensions, including widows, have suffered more serious hardship; and some have turned to social security.

5

measures

While a

It is difficult to quantify the extent of the actual hardship being suffered. The expectations of individuals and their personal lifestyles do not follow any fixed pattern and both factors have an important bearing on the issue. number of specific request s for the introduction of currency have been received, they do not, in protection themselves, necessarily signify that genuine hardship exists. On the other hand, it appears that small number of officers in the UK may be facing serious financial problems mainly because of the level of their pensions, although the effect of the value of the HK dollar on their pension payment s could further exacerbate the problem. Their specific problem (which is

in others

domicile) is

common of

to their

small addressed

receipt of

not

retired

pensions in this

irrespective memorandum. As evidence of genuine hardship

genuine hardship cases has yet to

relief will established, the subject of a separate examination (see paragraph 35 below).

be

Current Policy

6

The

and

Price

need

for special

policy

is

The

form the

were

in HK

On 1 December 1988 about 34,000 pensions were being

Government's paid.

to pay pensions dollars,

in order to maint ain the original purchasing in line with movements in power, to make periodic adjustments

Consumer the

believes Index (A).

Administration that, in the longer term, the maintenance of the HK/US dollar in the interests of link makes for stability which is clearly in the the community as a whole. Nevertheless, the resultant problem for about 2,300 overseas pensioners residing outside Hong Kong [mainly in Australia (270), Canada (100)

(100), India and Pakistan needs to be (330), New Zealand (60), UK (1,500), USA (70)]

>

addressed to determine whether special measures are justified.

Basis for Consideration

Distinction between Overseas and

Local Pensioners Based on Country of Domicile

7

For

exercise, this

it is

accepted

that Overseas

officers normally retire to their country of domicile, that is their country of origin for leave and passage purposes prior to retirement.

The

converse

is

retire and live in Hong Kong.

that

officers local

normally