TNAG-2427-FCO40-3529-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1992 — Page 183

CONFIDENTIAL

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Note pg 385 of the menutes attached.

our lobbying has had some effect. NOTE FOR EXECUTIVE COUNCIL

23/7

PUBLIC SERVICE: PENSION SAFEGUARDS

A pretty poor memorandum, What's the recommended Course?

INTRODUCTION

There continues to be considerable concern within the Civil Service about security of pensions. This paper briefs Members on the latest position.

BACKGROUND

2

The Hong Kong Government believes that pensions are secure. Pensions are both a statutory right and a statutory charge on the General Revenue. Pensions expenditure over the next twelve years is forecast at only 4% - 5% of Government's recurrent annual operating expenditure. The Joint Declaration and the Basic Law contain specific guarantees that the SARG shall pay pension benefits irrespective of nationality or place of residence.

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However staff remain anxious. Pension security is a major psychological issue affecting morale within the Civil Service. Concern pervades all levels of the Service and the subject is invariably raised when Civil Service Branch meets staff representatives. In view of this, a number of ways of providing additional pension safeguards have been examined.

Proposals for additional pension safeguards

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The main options which have been explored are -

(a) higher commutation of pensions;

(b)

a Provident Fund Scheme for civil servants;

Executive Council