TNAG-2428-FCO40-3530-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1992 — Page 233

Mr David Fish,

Overseas Pensions Dept

ODA

HKA 233/1

543

Reference

HMOCS: EQUIVALENT UK GRADES

1.

I have studied the letter and calculations from the Governments Actuary's Department (GAD) which you sent under cover of your minute of 24 September.

2.

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5371

I am forced to agree that, certainly with respect to the admin grades, their comparison tables look to be fair. One could make a case that the Chief Secretary should be omitted from the table altogether, and that the Secretaries have a wider political role than their UK counter-parts. And I have never been entirely convinced that staff grade C equates properly to DS5 and grade 7 - Hong Kong officers tend to reach staff grade C at an older age. But I would not die in a ditch over the comparison. Overall the main grade comparisons from staff grade C to staff grade A seem to be quite fair.

Incidentally their appears to be an error in the minimum salaries attributed to the SAO/CEO grade. These should start at about £17,700. Given the way GAD have done the calculations, I do not think this makes much difference.

4. I am less well placed to consider the police grades. But again they appear reasonably fair. There is an exchange secondment scheme at, I think, Chief Superintendent level, and these 2 have been equated. It is also true, I understand, that many policemen are promoted on recruitment to Hong Kong so some of the lower equivalents are also fair. The Inspector grade here seems to be rather short and I wonder whether the Inspector/CIP comparison is fair.

5. The pension calculations are even more stark and it may be on their basis that the Treasury are now contemplating 30:1. I think we can make a case that the pension comparisons are a little harsh- for example under the new pension scheme the retirement age for AOs is 60 and the earning rates slower. But given that the earning rates are still more generous than in the UK, the HK$/£ ratio will still be higher than 22:1

What to do?

5. These figures will make it more difficult to argue with the Treasury either for the 1991 average exchange rate (13.76) or the historical rate 16:1. It also makes it more

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