TNAG-2268-FCO40-3267-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1991 — Page 147

CONFIDENTIAL

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MDHOAN 7992

CONFIDENTIAL

FM FCO

TO IMMEDIATE HONG KONG TELNO 1403

OF 30140OZ JULY 91

HKE 233/1

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HMOCS MATTERS: COMPENSATION/INGENTIVE SCHEME ARRANGEMENTS

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DURING LORD CAITHNESS' VISIT TO HONG KONG WE UNDERSTAND THAT THERE WAS SOME CONFUSION ABOUT ONE ASPECT OF THE PROPOSED COMPENSATION/INCENTIVE SCHEME: IE YOU HAD GAINED THE IMPRESSION THAT EARLY PAYMENT OF PENSION WOULD BE INVOLVED (AND THAT HMG WOULD PAY THIS UNTIL THE OFFICER CONCERNED REACHED NORMAL RETIREMENT AGE WHEN THE SARG WOULD TAKE OVER). IN FACT THE SCHEME WE ENVISAGE DOES NOT/NOT INCLUDE A RIGHT TO RETIRE WITH EARLY PAYMENT OF PENSION. THIS WAS EXPLAINED IN PREVIOUS TELEGRAMS, FROM OUR TELNO 2252 OF 5 SEPTEMBER 1988 UP TO OUR TELNO 1302 OF 16 JULY 1991, WHICH NOTED THE NEED TO AVOID RAISING EXPECTATIONS THAT OFFICERS WOULD HAVE THE OPTION TO RETIRE IN 1997 WITH EARLY PAYMENT OF PENSION.

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WE UNDERSTAND THAT THE MEMBERS OF THE NEW HMOCS ASSOCIATION WERE QUITE PLEASED WITH THE STATEMENT THAT WE WERE ABLE TO AGREE WITH THE TREASURY. WE WOULD BE GRATEFUL FOR A FULLER READ OUT OF THE MEETING AT WHICH YOU GAVE THEM LORD CAITHNESS' LETTER INCORPORATING IT. DID YOU TELL THEM THAT WE WERE WORKING ON A SCHEME WHICH WOULD ALLOW FOR EARLY PAYMENT OF PENSION? HURD

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MR FISH, PENSIONS DEPT, ODA

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SIR J COLES

MR BURNS

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