CONFIDENTIAL
XCCI(92)46
reserves as possible for the use of the SARG. We advised them that this was not a practicable or desirable proposition for the reasons given in paragraph 18 above. We did however tell them that we would be examining other pension safeguard options and would consult them before any decision was taken.
24
It is possible that the Chinese would disagree with any decision not to do anything more to address staff concerns about security of pensions. They may take sides with the staff and press for some form of funding.
Other Factors
25
It should be noted that members of Her Majesty's Overseas Civil Service (HMOCS) Association in Hong Kong have been pressing HMG for an undertaking that the Sterling value of pensions will be preserved. HMG is actively considering this matter. The outcome could have an effect on the sentiment within the Civil Service on the overall issue of pension safeguards.
The Way Ahead
26
In the short term, it is proposed to continue discussions with staff. When these have been concluded, this Council will be approached for a decision on whether any additional pension safeguards should be provided. Thereafter the Chinese will have to be consulted, and, depending on their reaction, the matter may need to be referred back to this Council.
27
This process needs to be completed if at all possible by the end of November 1992 so that an announcement can be made to staff a month in advance of 31 December 1992. This is the date by which staff must exercise their option to transfer to the New Pension Scheme if they wish to do so.
10 July 1992
(AP 295/5-C (92) VI)
COUNCIL CHAMBER
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