TNAG-2101-FCO40-2990-HM-Overseas-Civil-Service-(HMOCS)-policy-matters-1990 — Page 160

A

3.

Assuming that there is no difference between the future UK inflation increases and HK's, the cost to HMG in respect of the sterling conversion of the pensioner's HK pension will be as follows

(a) if the exchange rate is fixed at #1 : HK12.8

If prevailing

exchange

rate becomes

Payment by HKG to HMG

Payment by HMG to

pensioner

Cost to HMG

*

f1:

HKD 11

1,746

1,500

-246 (cain)

21:

HKD 12

1,600

1,500

-100 (gain)

1: HKD 13

1,477

1,500

+23

:

1 HKD 14

1,371

1,500

+129

21: HKD 15

1,280

1,500

+220

1: HKD 16

1,200

1.500

-300

(b) if the exchange rate is fixed at ♬1 : HK 11.5

If prevailing

Payment

exchange

by HKG

Payment by HMG to

rate becomes

to HMG

pensioner

1 HKD 11

1,746

1,670

Cost to HMG *

Z -76 (gain)

21: HKD 12

1,600

1.670

70

21: HKD 13

1.477

1,670

1 HKD 14

1,371

1,670

299

1 HKD 15

1,280

1,670

390

21: HKD 16

1,200

1,670

470

The calculations do not reflect the cost of SPOS which would of course be added to arrive at the total amount

of sterling pension which the pensioner may receive under the proposed system. This cost will be offset by the amount of HK pension increases which can exceed the level of UK inflation increases.

:

TO SHA

AC: A CI-II Q6.

ун ESOOH 1009

ааа