TNAG-2100-FCO40-2989-HM-Overseas-Civil-Service-(HMOCS)-policy-matters-1990 — Page 196

pressure is particularly strong among the expatriate police officers

on contract terms who will have to decide very soon whether to

transfer to pensionable terms. The officers concerned claim that

they cannot properly exercise the option to transfer to pensionable

terms until they know whether there will be a General Compensation Scheme. There is a similar problem related to the new pension

scheme promulgated in 1987 which provides for retirement at 60

(instead of the normal age of 55) with a slower pension earning rate but with the possibility of commuting 50% of salary in a lump sum

instead of 25%. Those wishing to take advantage of this scheme

have to make their minds up by July 1992. This is a real deadline

which cannot be extended. If we do not make any announcement about

a scheme before then, those concerned could claim that important

information had been withheld from them which could have affected

In such circumstances legal action could not be

their decision.

ruled out.

27.

For presentational reasons in Hong Kong, there would also be

advantage of announcing the scheme soon after the Nationality Bill

becomes law and starts to be implemented in the autumn. It would

enable us to point out that something was being done for both

expatriate and local staff.

28. Given the need to consult the Chinese and the staff

associations, it is unlikely that we will be in a position to

announce the scheme until the beginning of next year. But we should aim to put a paper to the Chinese before JLG XVI at the end of

September with a view to announcing the scheme after JLG XVII.

Next steps

29.

Since 18 months have elapsed since Ministers last considered this matter and our proposals have not yet been put to the Prime Minister, the next step would be to minute to her.

WEDABH/10

CONFIDENTIAL

A R Paul