TNAG-2101-FCO40-2990-HM-Overseas-Civil-Service-(HMOCS)-policy-matters-1990 — Page 116

CONFIDENTIAL

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civil service) are now on the NPS, of whom about 30,000 are

officers who have opted to join the scheme, and about 30,000

are officers appointed since 1 July 1987. More officers are

expected to opt for the NPS before the option period expires

on 30.6.1992.

4.

As explained previously, in the long term the NPS

will reduce pension costs in comparison with the old pension

arrangements. Statistics also show that the NPS has not had

any adverse effect on the stability of the civil service.

Despite an increase in wastage rate from 4% to 6% in the past

three years, the percentage of resignations with deferred

pension under the NPS (in respect of officers with more than

10 years' service) has remained roughly the same.

5.

The Chinese Side have asked for an estimate of the

expenditure on pensions up to and beyond 1997.

pleased to provide the

(hand over the paper).

We are

forecast prepared by our Treasury

CONFIDENTIAL