TNAG-2222-FCO40-3193-Hong-Kong-Civil-Service-general-policy-1991 — Page 27

Subject

CONFIDENTIAL

機密

Object

- 5

Latest Position

Civil Service Pension issues

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

To examine staff requests for pension safeguards

PSPG decided that the option of offering a provident fund scheme to new recruits should be kept open. Also, a new option of hypothecated pension fund, whereby officers can porrow from private institutions a certain percentage of their accrued pension benefits should be explored further. On the latter,

Mr R Margolis will be commissioned to conduct a feasibility study.

At JLG XIX in June, the Chinese expressed their preference for partial funding i.e. a $15 billion reserve fund.

At JLG XX in September the Chinese were told that such a fund was unnecessary and the cost would be prohibitive. While other options are being examined, it is unlikely that they would prove feasible in view of the costs involved.

At JLG XX the Chinese confirmed their agreement to the

modifications to existing pension arrangements. Consultation with advisory bodies and staff have been completed and legislation will now be introduced.

GF 323

CONFIDENTIAL

機密