TNAG-2293-FCO40-3305-Official-visits-from-Hong-Kong-to-China-1991 — Page 13

1.

1.1

1.2

1.3

ICT

HMOCS Pensions and Compensation/Incentive Scheme

Exploratory proposal, without commitment

HMG assumes responsibility for HKG pensions and UK- pensions increase for Berving HMOCS, HMOCS pensioners and deferred pensioners.

Transfer of ́ responsibility matched by transfer payment to HMG by HKG of capitalised current valus of liabilities for basic pensions and HK pensions increases, and for widows and dependents pensions.

In parallel, HMG provides for complementary compensation/incentive arrangements, in sterling

terns.

2.

Issues for Discussion

2.1

Timing of Transfer

Optiona

}

1992

2.2

2.3

Preference

Coverage of Transfer

Options : a)

bl

Preference

later date

December 1992

accrued benefits at- time of: transfer

include future service

Liabilities as accrued at date of transfer, based on salary at that date.

Treatment of Future Service if not covered by

Transfer

pensionable by HKG without

Options : a)

sterling protection

b)

non-pensionable but

gratuity-earning

A.