FILE
PW Hus.
AECS
NEWSLETTER
3/1991
PENSIONS
HMOCS Officers Pensions
T
he Pensionable Service Committee is considering
a scheme suggested by a Committee member whereby the U.K. Government would be requested to take over responsibility for HMOCS officers' pensions.
The suggested scheme is that from an implementation date, (say 1.4.92) HMG would assume responsibility for the payment of pensions in sterling to retired HK HMOCS officers. HKG pensions, in HKD would continue and HKG would remit these pensions to HMG at current exchange rates. HMG would convert the HKD amount of an officer's pension into £ at an agreed fixed exchange rate and the resultant amount in GDP would form the pensioner's GUARANTEED INITIAL STERLING VALUE. This would be the amount of pension paid by HMG.
The agreed fixed exchange rate would be the average exchange rate over the period from when the GBP/HKD link was broken (when GBP was floated in early 1972) until the day prior to implementation of the proposal (31.3.92).
Average Exchange Rates HKD/GBP_between 1972 and 1990 were:
(These figures will need some refinement owing to past variations in the method of calculation).
(An alternative method would be to have a personal average exchange rate covering the period of each officer's service).
Subsequent annual adjustments to the pension would be made based on percentage adjustments to UK civil service pensions. The adjusted pension therefore would have a MAINTAINED INDEX-LINKED STERLING VALUE. No SPOS would be required. HKG would also remit to HMG at current exchange rates the amounts of the HKG annual adjustments to pensions.
Any commuted pension gratuity would be paid to the pensioner in GBP converted at the agreed fixed exchange rate.
HMOCS members who wish to see a full description of the suggestion can obtain a copy of Paper P1/91 (Revised) from the AECS office. Comments on the suggestion are invited. These can be given in writing to the AECS office or by telephone to me on 572 4347.
Peter Leeds
Chairman Pensionable
Service Committee.
1972
13.40
1982
10.64
1973
11.80
1983
11.06
1974
11.60
1984
10.47
1975
10.30
1985
10.15
1976
8.20
1986
11.48
1977
8.94
1987
12.80
1978
9.00
1988
13.92
1979
10.64
1989
12.81
1980
11.60
1990
13.92
1981
11.31
Overall Average
11.26
'The Bulletin'
"After we've put the paying of pen- sioners out to tender we'll put the receiv- ing of them out to tender...”
VOICE, 3/1991 13
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