TNAG-2101-FCO40-2990-HM-Overseas-Civil-Service-(HMOCS)-policy-matters-1990 — Page 95

CONFIDENTIAL

For information

6 November 1990

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XCCI (90) 65 Copy No.

NOTE FOR EXECUTIVE COUNCIL

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VALUE OF PENSIONS FOR OVERSEAS PENSIONERS :

PUBLIC SERVICE :

CURRENCY PROTECTION

1990

INTRODUCTION

14111

This

memorandum informs Members of the present position with regard to requests for protection of the value of pensions paid overseas against currency fluctuations. This information was requested at the meeting held on 23 October

1990.

BACKGROUND

2

In

recent years there has been a marked deterioration in the Hong Kong dollar exchange rate against sterling. This has led to many requests from overseas pensioners in the UK for steps to be taken to protect the value of their pensions.

3

On 31 January 1989, Members considered memorandum XCC (89) 22 and the Council ADVISED and the Governor ORDERED, inter alia, that -

4

(a) no measures should be introduced at this stage to protect the value of pensions paid overseas against currency fluctuations;

(b)

(c)

further research should be conducted on possible schemes to safeguard pensions paid overseas against extreme fluctuations; and

the Administration should continue to pursue with the British Government the question of pension protection for members of Her Majesty's Overseas Civil Service (HMOCS).

to

The decision against introducing any measure protect the value of pensions paid overseas against currency fluctuations was made having regard to the following

(a)

providing pension safeguards for overseas pensioners

on a selective basis would be divisive for the civil service. It would be difficult to justify protecting pensions of a overseas pensioners and not pensioners who choose to live

small group of those

of

local

abroad;

CONFIDENTIAL