TNAG-2101-FCO40-2990-HM-Overseas-Civil-Service-(HMOCS)-policy-matters-1990 — Page 6

of the civil service during the transition and of the real of civil servants about the security of their pensions. However there is also some public worry about civil servants attempting to 'cash in' their pensions and leave Exploitation of this, particularly by the China-funded media, is possible if the approach is made public. There may also be reference to the lack of pension or provident funds for most of the ordinary workforce, although the traditional

private sector envy of public sector pensions is toned down now that many civil servants would prefer lower-risk alternatives to pensions.

PUBLICITY

13

There will be no publicity on the approach to the Chinese side and no Legislative Council brief issued. Points that would need to be emphasized, however, should the issue become public and a subject of interest are

(a)

(b)

(c)

(a)

Government is

concern because

over

very aware of real staff the security of pensions of the uncertainty of the 1997 But any consideration of pensions is with a view to long-term strengthening of employee protection and social security as well;

factor.

Government is just as keen on the private sector establishing suitably improved

provident funds on a voluntary basis;

major changes to the funding of civil service pensions require resources of an impractical scale;

Chinese interest is understandable.

and

(Deputy

Secretary (Civil Service), Mr K O SHIPLEY Principal Executive Officer (Civil Service), Mrs C Willis will attend for this item).

2 November 1990

(CSB AP 295/5/2-C (90))

COUNCIL CHAMBER