TNAG-2428-FCO40-3530-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1992 — Page 12

CONFIDENTIAL

(d) inform all officers that they must make the transfer

from contract terms to pensionable terms within six months,

otherwise the Secretary of State will not accept them as

members of HMOCS; and

that these issues should be promulgated to prospective HMOCS

as soon as possible. Our Legal Consultant is content and has

advised that these measures require the Secretary of State's

personal approval.

Background and Argument

BOUGHT BACK PENSIONABLE SERVICE

3. When officers in Hong Kong are permitted to transfer from

contract terms to pensionable terms, the Hong Kong Government

(HKG) also allow them to "buy back" pensionable service- so

that they are eligible to receive a pension for the whole or any lesser period of their total service. The officer may buy

back service by repaying the contract gratuities (25% of

salary plus interest) he received over that period.

4. We now know that there will be a final rump of about 120

contract officers who are likely to meet the criteria for

membership of HMOCS. In addition, a number of contract

officers have, over the years, transferred and been admitted

as members of HMOCs. We need to decide whether any service

these officers buy back should count as "pensionable service"

for the purposes of our compensation scheme. Such service

will make a difference. Compensation is based on age, salary and length of service. Compensation increases for each year

of service until 10 years have been reached- and until the

proposed cap, £120,000, on the compensation is reached.

Since

buy.back.ADM

SLM

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