TNAG-2422-FCO40-3524-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1992 — Page 191

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HMOCS PENSIONS: STERLING SAFEGUARDS

1. The 1954 and 1960 White Papers state that HMOCS pensions

should be "safeguarded" when HMG cease to be responsible for the Government of the territory of their service. The

extent of the safeguard is not defined in the White Paper,

but subsequent practice has been consistent and in no case have HMOCS officers been left unprotected against currency

fluctuations.

2.

In

Since the formation of HMOCS in 1954, 40 territories

where HMOCS officers served (see note below) have ceased to

be British Dependent Territories or protectorates. In

addition Bermuda has attained full internal self-rule and

the East African Community has been wound up, both

necessitating similar arrangements for HMOCS officers.

all 42 cases HMG have ensured that the sterling value of

HMOCS pensions (and not just the local currency value) has

been safeguarded, ie officers have received payments at an

exchange rate at least as favourable as before the Secretary

of State ceased to be responsible for the territory's government. The present position is as follows:

- in 3 cases (Bahamas, Bermuda, Brunei) the local

governments are committed to paying the full pension at a

fixed (safeguarded) exchange rate to sterling (and there

are no immediately foreseeable political or economic

reasons for them to cease to honour this commitment: in

practice their currencies have appreciated against

sterling, and they pay at above the safeguarded rate);

- in 37 cases (list attached) HMG now pay the full pension

in sterling;

- in 2 cases (Somaliland protectorate and Aden) HMG pay

NJCABJ/1

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