TNAG-2421-FCO40-3523-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1992 — Page 19

CONFIDENTIAL

116316 MDHOAN 3205

SERVICE CAN RETIRE WITH AN IMMEDIATE PENSION, WITH THE GOVERNOR'S APPROVAL. THERE APPEAR TO BE THREE POSSIBILITIES REGARDING SUCH OFFICERS:

PROVISON COULD BE MADE THAT THE GOVERNOR SHALL NOT WITHHOLD HIS APPROVAL EXCEPT IF DISCIPLINARY PROCEEDINGS ARE PENDING (AS SUGGESTED IN PARAGRAPH 4 ABOVE). THIS WILL ENSURE THAT SUCH OFFICERS COULD RETIRE ON PENSION WHEN THEY REACHED 45.

TO CATER FOR THOSE UNDER 45 IN 1997, PROVISION COULD BE MADE TO ENTITLE ANY HMOCS OFFICER WHO IS SUBJECT TO THE OLD PENSIONS ORDINANCE (AND HAS A SPECIFIED NUMBER OF YEARS QUALIFYING SERVICE) TO RETIRE WITH A DEFERRED PENSION.

WE COULD TAKE THE LINE THAT IF ANYONE WISHES TO RETIRE WITH A DEFERRED PENSION HE SHOULD OPT FOR THE NEW PENSION TERMS. THIS THIRD POSSIBILITY IS OBVIOUSLY THE SIMPLIST BUT IT NEEDS TO BE CONSIDERED WHETHER THERE ARE OTHER FACTORS IN THE NEW PENSIONS ORDINANCE WHICH OFFICERS MIGHT JUSTIFIABLY SAY WOULD BE DETRIMENTAL TO THEM IF THEY WERE ''FORCED'' TO OPT FOR IT.

8

THE ISSUES CANVASSED IN PARAGRAPHS 4,5,6 AND 7 ALSO RAISE QUESTIONS AS TO HOW ANY NECESSARY CHANGES MAY BE MADE TO THE EXISTING PENSIONS LAW AND WHETHER SUCH A CHANGE SHOULD BE MADE BY YOU OR BY THE PROCEDURE OUTLINED IN PARAGRAPH 3 ABOVE. SINCE ANY CHANGES, OR THEIR AFFECTS, WOULD ALSO NEED TO SURVIVE 1997, WE WOULD ALSO NEED TO CONSULT THE CHINESE. GRATEFUL FOR YOUR VIEWS AND THOSE OF PEKING AND UKREP JLG.

9. SEE MIFT.

HURD

YYYY

ΜΑΙΝ

40

DISTRIBUTION

40

.HER MAJESTY'S OVERSEAS

.CIVIL SERVICE RESTRICTED

HKD

LEGAL ADVISERS//MISS BROOKS

FED

*

OVERSEA PENSIONS/ODA//MR FISH

PS

PS/MR GOODLAD

PS/PUS

SIR J COLES

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