TNAG-2100-FCO40-2989-HM-Overseas-Civil-Service-(HMOCS)-policy-matters-1990 — Page 53

Ref.: AP 295/75

A Note on the

Fixed Sterling Conversion Rate for Hong

for Hong Kong Pensions

of service

were

introduced

and from

Prior to 1947, certain officers

officers of the Hong Kong Government had their salaries and pensions paid in sterling. Consequent upon Government's adoption of the recommendations

new terms Salaries Commission, by the 1947 Hong Kong

with effect conditions 1.1.1947. Among the various changes introduced under the new terms was the removal of the distinction between sterling and All salaries and emoluments Hong Kong dollar paid officers.

to be expressed payable to public officers in Hong Kong were

Officers dollars henceforth.

on a sterling in Hong Kong

transferring

to

a dollar

salary were however allowed the option of either remaining on

of service their former terms salary under the new terms of service.

2.

In

response

or

staff to

over concern

payment

of

salaries and pensions in sterling, the problem was discussed the with the then Secretary of State in February 1948, and following arrangements were finally agreed and introduced in July 1952 :-

3.

(a)

(b)

(c)

the pensions and retiring gratuities awarded to officers employed by the Hong Kong Government on a sterling salary, who accepted conversion to a dollar salary under the terms of the 1947 Salary Revision, were to be paid in sterling at a fixed exchange rate of HK$16 to £l, unless they elected otherwise within a specified period;

officers elicible for the above concession were to have the right to elect at any future date to receive their pensions in Hong Kong dollars in the normal way, but once they had elected they, would not be able to claim the guaranteed exchange rate; and

So

its

if at any

the ong

reserve would Kong Government right to review the

the exchange rate future date pensionable emoluments or pensions were increased in consequence of a depreciation of the Hong Kong dollar in terms of sterling.

That is, the fixed sterling conversion rate only

on 2

were those eligible officers who applies to those

sterling salary prior to 1947 and had accepted conversion to a dollar salary under the 1947 Revision.

Civil Service Branch

June 1990

(0066p: 92)

B