WED 16 SEP 92 18:15
PG.82
布政署
12 2 # 銓
科
香港下厘道
CIVIL SERVICE BRANCH GOVERNMENT SECRETARIAT LOWER ALBERT ROAD HONG KONG
STRICTLY PERSONAL AND CONFIDENTIAL
*31* Our Ref.:
(47) in CSB-S/8 VI
*S✯ YOUR Ref..
4 September 1992
горц copus to
:
Ms Came
too.
Mr. J.K. Gray,
Deputy Chairman,
Hong Kong Bank,
1 Queens Road Central, Hong Kong
bom John,
Pension Safeguards
K.Y. Yeung has
shown
nor Fish Me Mars me
:
Miss Paris File &
pis
your letter of
17 August 1992 on the subject of pension safeguards.
I fully accept that the proposed loan scheme is not an effective means to safeguard any default in pension payments.
What I'd like to do now is explore the feasibility of modest loan schene to safeguard the Sterling value of the commuted pension gratuities for some 300 senior officers retiring between now and 2002. The total siza of the loan required could be around HK$600-700 million in the ten-year period åt 1991-92 prices.
Under such a scheme, an officer might take out a loan from the Bank in Hong Kong dollars, equivalent to his accrued commuted pension gratuity five years before retirement, and placa it in sterling fixed deposit. The- officer would repay the loan, together with any. administrative changes, in Hong Kong dollars and withdraw the Sterling fixed deposit at the and of the five year period.
•
M
I should be grateful for your advice on thes feasibility of such: a schemes and: the likely costs to: officers involved, that is interest rate margin and loans fee.
16
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