TNAG-2101-FCO40-2990-HM-Overseas-Civil-Service-(HMOCS)-policy-matters-1990 — Page 178

(a)

(b)

(c)

CONFIDENTIAL

Paper 2

Information Papers on Civil Service Pensions

Summary of Staff Representations on Security of Pensions which are being examined

Pension derived.

payments should be

Investment should

funded and not revenue be offshore and diverse under professional trustee and professional fund management. There should be joint staff management and There should be indexation, currency protection and performance re-insurance.

control.

on

The pension

pension funds should be derived from an annual injection from the General Revenue Account until 1997 based

an actuarial assessment

of pension liabilities. A fixed percentage of the proceeds from land sales should be assigned for funding pension; and there should be matching contributions from the PRC.

If full funding is not possible, there should be a small reserve fund to cover the pension payment needs in a forecast period of five years roll-forward.

(a)

Civil servants retiring should be allowed 100% of their pensions.

to

commute

(e)

Civil servants should be paid the commuted value of their pensions before 1997, either in part or in full.

(£) A new provident fund should be set up to replace the

existing pension schemes.

(g)

The

value of pensions remitted overseas should be safeguarded against fluctuations in the value of the HK dollar.

CONFIDENTIAL