SEAS DEV ADM
HKA 233/ File copy
Speerte achin
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NO. 028
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548
Reference
From: D S FISH
(Ext 3444)
Date: 2 October 1992
378
Mr M Stone
へ
Hong Kong Department/FCO
1. Thank you for your minute
28 September.
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enclosed a draft
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of 2 October with which you reply to Kevin Woodfield's letter of
2. I very much agree that we should try to limit the paper to Ministers to options which are realistic and have some base in logic. I can already see the paper becoming too unwieldy for Ministers to come to terms with. The variable trigger is really a Treasury proposal to redress the balance between Hong Kong and UK salaries. Your draft points out the inequity of an arrangement based solely on the rate at the date of retirement and a Treasury response that "this is what you use for SPOS" would be no justification at all two wrongs,
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3. As you know, I have argued for some time see my minutes of 8 and 19 June that the early retirement option should be looked at very carefully.
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see the benefits of increased early retirement rather differently from the Treasury. They are looking at it as a device to reduce the pensions bill and thus the contingent liability. have been more concerned about the possibility of satisfying the aspirations of HMOCS officers; we know they will fight to the end for a general right to retire early with immediate payment of pension. I have also had in mind the fact that a more widely available early retirement option could significantly reduce the compensation bill falling to HMG. The Treasury do not yet appear to have focused on this angle, but they probably will before long. And when they do they are likely to press more strongly for the early retirement option to be pursued vigorously. Ministers could agree to do this and at the same time endorse a compensation and sterling safeguard package. The options paper could give Ministers a definite steer in this direction, making it clear that decisions cannot await a final resolution of the early retirement issue.
D S FISH
Overseas Pensions Department
2 October 1992
No comments yet.
Private notes are available after approval.