CONFIDENTIAL
NOTES ON EARLY RETIREMENT
Under previous schemes HMOCS officers have been permitted to take early retirement with immediate payment of pension. HK HMOCS have asked for the same treatment. However, unlike previous schemes an offer of early retirement is not within the gift of HMG, and is a decision for HKG. HKG's view has so far been that early retirement should not be granted as it would be divisive within the service, would draw a hostile response from the Chinese, and might affect the stability of the SAR in the period following the transition. However, this view might change depending upon the Chinese side's views on the future of expatriates in the civil service and HKG's policy to localise (especially senior) posts.
If officers were allowed to retire early, they could receive the commutable element of their pension before 1 July 1997. Any HMG safeguard would thus only apply to the non-commutable portion of the pension, thereby reducing HMG's overall contingent liability but at the same time bringing it forward by creating HMOCS pensioners sooner. Consideration might therefore be given to pressing with HKG at an early opportunity the case for extending early retirement to HK HMOCS.
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CONFIDENTIAL
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