CONFIDENTIAL
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MDHOA 701 ▼
CONTRACTS WITHOUT THE OPTION TO JOIN HMOCS BUT WITH COMPENSATING IMPROVEMENTS IN OTHER TERMS? WE SHOULD BE GRATEFUL IF YOU COULD CAREFULLY CONSIDER THIS OPTION: AS SEEN FROM HERE THE CONTRACT POLICE OFFICERS ARE A DISCRETE GROUP FOR WHICH HKG MIGHT BE ABLE TO OFFER INCENTIVES TO STAY IN SERVICE, WITHOUT UNACCEPTABLE WIDER REPERCUSSIONS.
4. OUR IMPRESSION IS THAT MANY OF THESE OFFICERS, PARTICULARLY THE YOUNGER ONES, WOULD LIKE TO STAY ON CONTRACT TERMS, ENJOYING MONEY IN HAND AND A SUBSTANTIAL GRATUITY, RATHER THAN OPTING FOR PENSIONABLE TERMS. A PRIORI IT OUGHT TO BE POSSIBLE TO STRUCTURE THE CONTRACTS THEMSELVES SO AS TO PROVIDE EFFECTIVE INCENTIVES TO SERVE ON UP TO AND BEYOND 1997.
5.
HMG'S FINANCIAL INTEREST IN AVOIDING THESE OFFICERS' JOINING HMOCS WOULD NATURALLY INCREASE IF A UK-FUNDED STERLING SAFEGUARD WERE AGREED. THIS CONSIDERATION, ADDED TO THE SPOS IMPLICATIONS, MEANS THAT WE SHOULD NOT AUTOMATICALLY EXCLUDE MAKING THEM ELIGIBLE TO BENEFIT (IN SOME FORM) UNDER OUR COMPENSATION/INCENTIVE SCHEME WITHOUT REPEAT WITHOUT THEIR FIRST BECOMING MEMBERS OF HMOCS: IE FOR HMG TO CONTRIBUTE TO THE CARROTS WHICH MIGHT ENCOURAGE THEM TO STAY ON CONTRACT
TERMS AND OUTISDE HMOCS.
6. WE NEED TO CLEAR OUR MINDS QUICKLY ON THE POSSIBILITIES PARTICULARLY IF CONSULTATIONS WITH THE HMOCS ASSOCIATION ARE TO BE HELD BEFORE EASTER. WE APPRECIATE THAT THESE OFFICERS COULD BE SWAYED IN THEIR DECISION BY WHATEVER HMG INTENDS TO DO WITH REGARD TO STERLING SAFEGUARDS. AT THIS STAGE, WE CANNOT BE CONFIDENT THAT WE SHALL BE ABLE TO MAKE A DEFINITIVE ANNOUNCEMENT BY THE 30 JUNE DEADLINE FOR OFFICERS TO DECIDE WHICH PENSION ARRANGEMENTS TO ADOPT. BUT OUR NEGOTIATING HAND WITH THE TREASURY WOULD BE SOMEWHAT IMPROVED IF WE COULD DEMONSTRATE THAT, AS A RESULT OF INGENUITY IN HANDLING ARRANGEMENTS FOR CONTRACT OFFICERS, THE NUMBER OF HMOCS OFFICERS WAS LIKELY TO BE MUCH LOWER THAN THE MAXIMUM EARLIER DISCUSSED.
7. ON A RELATED POINT, GRATEFUL TO KNOW WHETHER OFFICERS CURRENTLY ON CONTRACT TERMS, WHO HAVE THE RIGHT TO CHANGE TO PERMANENT AND PENSIONABLE TERMS, WILL BE ALLOWED SO TO OPT AFTER THE 30 JUNE DEADLINE. IF SO WILL THEY HAVE A CHOICE BETWEEN THE
OLD AND NEW SCHEMES?
8.
FINALLY, GRATEFUL TO KNOW WHETHER THE MARGOLIS REPORT IS YET
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