SECRET
137046
MDHIAN 5437
FACILITATE LOCALISATION, TO PERMIT CONVERTING BACK FROM PENSIONABLE TO CONTRACT TERMS, AND SO ON. ONCE YOU EXTEND SPECIAL ARRANGEMENTS BEYOND MEMBERS OF HMOCS, YOU COULD BE STARTING DOWN A VERY SLIPPERY SLOPE.
8. YOU ARE PROBABLY RIGHT, HOWEVER, THAT MANY POLICE OFFICERS ARE LIKELY TO PREFER TO STAY ON CONTRACT TERMS. IT IS OUR BELIEF, ALTHOUGH WE CAN GIVE NO GUARANTEES, THAT IF WE CONFIRM THE DEADLINE FOR CONVERTING TO PENSIONABLE TERMS, A FAIR NUMBER WOULD ELECT TO REMAIN ON CONTRACT. THIS WOULD BE PARTICULARLY SO IF THE COMPENSATION/INCENTIVE SCHEME WITH ITS LIMITED ATTRACTION WAS ANNOUNCED BEFORE THE CLOSING DATE. MOREOVER, EVEN THOSE WHO DID ELECT TO CONVERT TO PENSIONABLE TERMS COULD HAVE ONLY A MINOR EFFECT ON HMG'S CONTINGENT LIABILITY IN RELATION TO STERLING SAFEGUARDS. MANY, ESPECIALLY THE YOUNG ONES, WOULD NOT BE ABLE TO AFFORD TO BUY BACK THEIR PREVIOUS SERVICE FOR PENSION PURPOSES.
9.
THOSE WHO ELECT TO CONVERT TO PENSIONABLE TERMS CAN CHOOSE EITHER THE NEW OR OLD PENSION SCHEME. BUT, IF THE LATTER, THEY MUST DECIDE WHETHER OR NOT TO CONVERT TO THE NEW PENSION SCHEME BY 30 JUNE 1992, OR BY A LATER DATE IF WE WERE TO GRANT AN EXTENSION.
THE MARGOLIS REPORT IS NOW EXPECTED IN THE WEEK BEGINNING 17 MARCH.
10.
WILSON
YYYY
ΜΑΙΝ
29
HKD
FED
NEWS D
RMD
PS/LORD CAITHNESS
SIR J COLES
NNNN
DISTRIBUTION
29
MR BURNS
LEGAL ADVISERS//MISS BROOKS ODA//MR KERBY
ODA//MR FISH
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