TNAG-2100-FCO40-2989-HM-Overseas-Civil-Service-(HMOCS)-policy-matters-1990 — Page 181

KGROUND NOTE

1.

Expatriate officers serving in our former colonies were employed by the

local government and not HMG. Their salaries and pensions were paid from

local revenues. At independence responsibility for pensions passed to the

incoming government.

2. By the early 1960s it had become clear that some countries could not

afford to pay pension increases in line with those paid to public servants in

the UK. Because of the special obligation HMG recognised for expetriate

officers who had been recruited to overseas service under the auspices of the

Secretary of State, these pensioners were included in the provisions of the UK

Pension Increase Acts. They receive a supplementary pension to top up any

overseas pension increases to UK levels. Expatriate Hong Kong civil service

pensioners are already covered by these arrangements.

3. Many of the newly independent countries found it increasingly difficult

to meet their pension obligations. Therefore in 1970, as an Aid initiative,

the British Government offered to relieve them of some of their pension burden

by taking over responsibility for certain expatriate pensions. This exercise

was not completed until the early 1980s.

Again at

4. The history of Indian pensions is a little different.

independence responsibility for expatriate pensions passed to the incoming

Governments of India and Pakistan. However, the British Government continued

to act as the paying agent when pensioners were paid outside Asia. In 1955,

to simplify administration, the British Government offered to take over formal

responsibility for the pensions it was paying, on receipt of a lump sum to

meet their future costs. India accepted this offer but we were unable to

reach agreement with Pakistan. The expatriate Pakistan

Pakistan pensions, and а

handful of Indian pensions left out of the 1955 Agreement, were eventually

taken over under the 1970 initiative.

5.

to

The 1970 initiative was restricted

those independent countries

considered to be "aid worthy", Hong Kong does not satisfy this criterion and

there are no plans for HMG to Lake over responsibility for paying its

expatriate Civil Service pensions in 1997.