5
5.
If it were decided that a study should. take place to determine,
more accurately, the size of the pensions liability that could fall on HMG, the first step, I think, would be to consider what are the possible forms that the benefits might takeand how they would be calculated. Having determined what are the possibilities. the next step would be to consider whether an estimate of the capital value of the benefits that might be awarded is sufficient indication of the size of the liability or whether a projection of the cost each year in the future of those benefits, on a pay-as-you-go basis, would be more useful. Finally we could consider what data we would need to make the estimates that are required and, if it is not possible to obtain data from Hong Kong and to discuss it and their scheme with them, whether there is any data and knowledge of the scheme which is available and which might permit us to make some sort of estimate.
Yours sincerely,
RT FOSTER
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