TNAG-2101-FCO40-2990-HM-Overseas-Civil-Service-(HMOCS)-policy-matters-1990 — Page 117

1.

PENSION SAFEGUARDS

CONFIDENTIAL

3

6.

Turning to the topical issue of pension safeguards,

the existing arrangements provide for civil service pensions

to be paid out of the general revenue. Despite the fact that

under the pensions legislation, pensions are a right and a

statutory charge on government funds and the very firm

assurances given in the Joint Declaration and the Basic Law,

are worried about the security of their

civil servants

pensions.

7.

Staff

associations have put forward a number of

security to

the second

(Paper 2).

suggestions which they believe will give added

These are summarised in

their pensions.

information paper which we have provided

Basically, staff are seeking funding of pensions and payment

of their accrued pension benefits before 1997. Their worries

are indicative of a lack of confidence in the future. We

propose to give their proposals careful consideration to

to what extent, if any, their concerns can be met.

see

8.

First, however, we must assess the

financial,

economical, practical and

political implications of

each

of

CONFIDENTIAL