TNAG-2100-FCO40-2989-HM-Overseas-Civil-Service-(HMOCS)-policy-matters-1990 — Page 3

be regarded as

While the degree of hardship might

less severe than for pensioners, serving officers (both local,

and pensionable

contract staff) with overseas commitments would also be prompted to seek similar assistance.

overseas,

33

The proposal could therefore have a very significant adverse affect on civil service morale. Government would be

treatment granting privileged

of former to a group overseas officers which would be denied to the majority.

seen as

Other Observations

Report of the Review Committee on

Discipline Service Pay and Conditions of Service

34

Members

may

also

wish to not e that the Review Committee concluded

concluded that it should not put forward specific recommendations in response to strong represent at ions about the effect of the exchange rates on pay and particularly pensions. The Committee considered that the practical and present ational

out the introduction of problems ruled

any guarantees.

extract from the Committee's Report is at Annex F.

Assistance to Relieve Genuine Hardship

35

or

As

indicated

in

paragraph

5

above,

a

An

separate examination of whether measures are needed

are needed to provide financial assistance other forms of

to pensioners suffering genuine hardship will be undertaken. Any such arrangements could be restricted to overseas pensioners and

pensioners and would have to apply across the board. The Civil Service Branch will seek evidence of hardship

examine the consider how best it might be addressed.

cases,

ext ent

of

the problem

and

Summary

36

in

officers about

in the UK with pensions

reductions the

have they

Retired Overseas sterling paid

complain suffered in recent years. These they say are due to the HK/US dollar link, which exposes them to

to currency fluctuations they would not be affected by if the Government's policies were

considerations. Options driven by political pensions against

fluctuations have currency

not

for protecting been examined.

While protective measures could be devised, they would not be without their drawbacks, chiefly in relation to presentation in

various

quarters.

Nevertheless,

such

should measures

be

it is

introduced.

for

consideration Evidence of

whether declining living standards resulting in hardship will be sought

as a separate matter.