2.
PAYMENT OF PENSIONS
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Serving pensionable officers and those who have already retired are particularly concerned about the security and the maintenance of the real value of their pensions.
The normal retirement age for pensionable officers is either 55 under the "Old Pension Scheme or 60 under the "New" Scheme (with an option for serving officers to retire at 55). The value of the pensions earned relates to length of service and officers have to serve 33 1/3 or 37 1/2 years respectively before they earn the maximum pension. Nearly all such officers on overseas terms are members of H.M. Overseas Civil Service (HMOCS).
Security
As regards the security of pensions there are grave doubts about the post-1997 situation particularly after the events of June 1989 in China. Members of this Association are seeking reassurance in the form of a guarantee from HMG that, in the event of а default by the SAR Government, responsibility for payment will be assumed by HMG as has been the case elsewhere.
There is also the worry
that a future SAR Government may adopt measures, for example by changes in taxation or exchange control, that will have the effect of reducing the value of pensions.
HMG is aware of the situation. During the visit to Hong Kong the Secretary of State for Foreign and Commonwealth Affairs, Mr. Douglas Hurd, held a press conference on 16th January 1990; in response to a question on the Civil Service 'brain drain' and a suggestion for a pension fund, he said, "I know that the Agreement with the Chinese the Joint Declaration
-w
- does provide that pensions should be paid after 1997 on terms not less favourable than those at present existing. That is a clear commitment, but I also know that, because of anxieties which have been expressed, Government of Hong Kong is looking to see if there are ways in which that clear assurance can be buttressed so as to relieve the anxiety you mention."
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