CONFIDENTIAL
ANNEX D(2)
STERLING SAFEGUARDS
Modified Traditional Arrangements (funded by HMG)
1.
This scheme is the same as that in Annex D(1), except that HMG, not the SAR Government, would fund the early payment of pensions (until normal retirement age) and would guarantee a sterling rate for all HMOCS pensions.
2. The scheme would correspond to the practice, as distinct from the original intention, in almost all the former dependent territories. Although the Public Officers' Agreements made each territory responsible for financing the pension safeguards in the first instance, it became apparent by the late-1960's that these arrangements were placing an excessive burden on the finances of many newly independent territories. HMG therefore agreed to intervene as part of an aid initiative: since 1971 HMG have financed the safeguards except in the territories which, because of their relative wealth, were not considered aid-worthy (Bahamas, Brunei and Bermuda: all of which have since remained economically healthy, with strong currencies and no political objections to safeguarding HMOCS pensions).
NC3AAB
CONFIDENTIAL
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