TNAG-2397-FCO40-3484-Hong-Kong-Civil-Service-policy-1992 — Page 17

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Alan Rdgey

-

SPEAKING NOTE

FOR USE IN MEETING WITH HONG KONG CHINESE CIVIL SERVANTS'

ASSOCIATION (HKCCSA)

Responeer Kalido

ނވެ .

d. harch

RAshokan lelki

the Hong Kong Government are responsible for paying civil Tempor service pensions; this responsibility will pass to the SARG

in 1997

the payment of pensions is safeguarded in the Joint Declaration and the Basic Law [the reason HKG make this point

so often is because it is a very important safeguard]

pensions are now a statutory right and a statutory charge on

the general revenue

pension funding accounts for only a very small percentage of HKG's annual expenditure currently 3-4% and unlikely to rise

<

above 6% in the next 10-15 years

the Hong Kong economy would have to collapse for HKG/SARG not to be in a position to pay pensions

setting aside sufficient sums to cover 5 years funding would

involve taking about $15 billion out of the reserves. This is

a very substantial sum of money

the Hong Kong Government is aware of civil servants'

concerns and is examining various possible safeguard options.

Understand that no decisions have yet been taken

part Juding

will reflect the HKCCSA's views to HKG

hkccsa.goodlad/HKCIVIL/bp

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