TNAG-2419-FCO40-3521-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1992 — Page 176

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

be maintained for its full period whether or not the territory concerned becomes independent. Her Majesty's Government hopes that by this means the maintenance of the necessary cadre of skilled manpower will not be interrupted by the occasion of independence.

13. It will therefore be necessary for Her Majesty's Government and each Government that wishes to participate in the arrangements to settle the details of the agreement between them after consultation with local staff associations. While the individual agreements will have to be within the framework of the offer outlined in paragraph 9 and within the broad objectives of the arrangements, Her Majesty's Government accepts that there may need to be some variation in applying them from one territory to another and hopes that it will be possible for each agreement to be shaped to meet the particular circumstances of the territory concerned.

14. Each such agreement will need to provide that in the new circum- stances responsibility for determining the amount of the inducement element in pay will rest with Her Majesty's Government. The intention is that, subject to reasonable safeguards, Her Majesty's Government will meet the cost not only of the existing inducement element but of any increase in that element which may arise in future. Since it will also meet half the cost of passages and compensation it will expect decisions on these matters to be reached jointly with the overseas Governments concerned.

15. Her Majesty's Government recognises that there are certain categories of overseas pensionable officers who have been appointed to the service of territorial Governments otherwise than by selection by or under the authority of a Secretary of State or the Crown Agents. Officers who are not covered by the provisions of individual Agreements as indicated in paragraph 9 may be confident that the assurance given in paragraph 12 of Colonial No. 306 (see Appendix A) will continue in full force and effect.

Compensation

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16. Some of the earliest compensation schemes, in providing as their main feature a lump sum payable to an officer whenever he chose to retire after an appointed date, tended to encourage early voluntary retirement. Later schemes have tried, with only limited success, to counterbalance this by making advances to officers continuing to serve in anticipation of the freezing" the com- compensation due to them on retirement and by pensation due to a serving officer at its maximum-i.e. by permitting the officer to preserve his right to compensation, which is reckoned according to age and salary, at the maximum amount it reaches at any time after the scheme has begun, instead of allowing it to decline with age, as most schemes broadly provide for officers over 40. In one or two schemes local conditions have been such that the transfer of the Secretary of State's authority to an executive Public Service Commission has not of itself prejudiced the career of expatriate officers and compensation has at this A recent scheme stage been limited to individual cases of loss of career.

has sought to strike an equitable balance between the rights and interests of the officer and those of the employing Government by the provision of two scales of compensation, one providing for a sum payable by instal- number of vears to all entitled officers whether or not they

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17. The preceding paragraph describes some of unc existing compensation schemes, but the terms of future schemes: remain, as has been the case in the past, a matter to be settled betweeli Her Majesty's Government and the Government of the territory concerned, after consultation with the local staff association and in the light of the circumstances prevailing in the territory. The time for this is normally when the Secretary of State's ultimate responsibility for the Service is transferred to local hands through the establishment of an executive Public Service Commission, but compensation may need to be paid, earlier in individual cases for loss of office or premature retirement owing to con- stitutional change. It may need to be paid also to any local officer appointed by the Secretary of State or on his behalf who is able to show to the satisfaction of the Secretary of State that his career in the public service has been prejudiced by constitutional change, or that, because of such change, he has reasonable grounds for anxiety about his career. The problems to be solved vary from territory to territory and it would therefore not be proper, even if it were possible, to seek to anticipate the discussion Nevertheless, of future schemes by prescribing their details in advance. there are certain broad principles which in the opinion of Her Majesty's Government should be applied in any future compensation scheme in order to reflect the interests of both the officers and the Government concerned. Among those principles are the following:-

(a) When the Secretary of State's control passes to an executive Public Service Commission, overseas officers should be entitled to retire with compensation calculated with actuarial advice and taking account of age, salary and length of service. Where officers are free to continue in service, it is undesirable that compensation should be paid in a form which would constitute an inducement to retire, as has been the case in some earlier schemes. The method adopted for the payment of compensation may well vary from territory to territory in accordance with local conditions, and would only be decided upon after full discussion with the staff association corcerned and in agreement with the local Government;

(b) Officers who are required to retire as a result of constitutional change are in any case entitled to the payment of compensation in one lump sum at the time of retirement, and the principles for arriving at the scale of compensation would result in a rate somewhat higher than that established for those who are free to continue to serve; (c) Whatever the circumstances in which an officer retires as a result of constitutional change, it would normally be desirable that salary changes made after the introduction of the compensation scheme. but before the officer retires should be reflected in the sums payable ; (d) Compensation schemes should also provide an inducement to individual officers to continue to serve so long as their services are required. This might be done by a variety of means, such as the payment of compensation by instalments where officers can continue to serve if they wish or an additional payment to those who elect to stay. Procedure and cost

number of officers employed at the

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