17-DEC-1991 18:38
HK GOVERNMENT HOUSE
+852 521 1868
P.07
Adjustments are made by HMG annually and increases by overseas governemts are deducted and, should the value of the basic overseas pension go above the basic pension, the excess
is deducted as well. So SPOS can be and often is zero.
What happens when the sterling value of the overseas pension, which is what the pensioner receives, falls below the basic pension? Nothing, there is no topping up; SPOS applies only to increases not to the overseas basic pension. The pensioner is noi proiected from the effects of the wild cwings in currency exchange rates.
Since 1983 when the Hong Kong dollar was pegged to the US dollar Hong Kong HMOCS pensioners resident in the U.K. have seen the total values of their pensions (overseas plus SPOS) go down while those of their Home Civil Service counterparts have increased in an orderly fashion in line with inflation. This Association is of the view that the inconsistencies in the SPOS arrangements could be reduced by the adoption of a fixed rate of exchange determined by reference to the rate at an acceptable key date.
Compensation Arrangements
A limited Compensation Scheme for Certain Pensionable Officers has been introduced and has provided compensation to a very limited number of officers acknowledged by Government as having been superceded for promotion as part of the localisation policy. Many senior posts will be filled by local officers after 1997 and to ensure a smooth transfer it is necessary for local officers tó be in place before that date and consequently there is a progressive diminution in the promotion prospects for overseas officers.
Although there is provision in the Joint Declaration for overseas officers to continue serving in Hong Kong we have been advised that such service would not be compatible with continued membership of HMOCS. This will result in a significant change in the employment conditions and this Association considers that the affected officers should have the right to retire with their earned pension benefits and compensation at, or shortly before the transfer of sovereignty.
This Association considers that an early announcement should be made on a General Compensation Scheme. Compensation arrangements were made in other territories as they approached the end of colonial rule and, although the transfer of Hong Kong is still some years away, we are already into the transitional period and the officers concerned should know what there future prospects will be well in advance.
November 1991.
3
No comments yet.
Private notes are available after approval.