TNAG-2430-FCO40-3532-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1992 — Page 6

CONFIDENTIAL

(d) set 30 April 1993 as the final date for officers to make the transfer from contract terms to pensionable terms, otherwise the Secretary of State will not accept them as

members of HMOCS; and

that these decisions be set out in a statement by HMG to

prospective and current HMOCS as soon as possible. Our Legal

Consultant is content. His advice is that since the

submission and statement will have the effect of altering the Special Regulations, it should be approved by the Secretary of

State. But Mr Goodlad may feel that given the technical nature of the issues and the fact that no major new policy issues are involved, he can deal with the submission on behalf

of the Secretary of State.

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

buy.back.ADM

SLM

CONFIDENTIAL

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