TNAG-2431-FCO40-3533-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1992 — Page 19

CONFIDENTIAL

HONG KONG: HM OVERSEAS CIVIL SERVICE: OPTIONS PAPER ON STERLING SAFEGUARDS AND COMPENSATION

The assumptions underlying the various pension safeguard options and costs in this paper are set out at Annex A.

I.

OPTIONS FOR HMG FUNDED ARRANGEMENTS

STERLING SAFEGUARDS FOR PENSIONS

i)

ii)

OPTION A.

FIXED TRIGGER

OPTION B.

iii) OPTION C.

iv) OPTION D.

UK COMPARATOR

AVERAGE EXCHANGE RATE OVER EXTENDED PERIOD

EXCHANGE RATE AT DATE OF RETIREMENT

v)

OPTION E.

HMG PROFITS FROM HMOCS WHEN HK$ IS STRONG

vi) SUB-

COMPONENT.

HMG TO UNDERWRITE NON-COMMUTABLE ELEMENT

vii) SUB-

COMPONENT.

PRIVATE SECTOR SCHEME

COMPENSATION

vii) OPTION A. ORIGINAL PROPOSAL

ix)

OPTION B. HMOCS PROPOSAL

X) OPTION c. NEW OPTION

xi) OPTION D. NEW OPTION

II.

OPTIONS WITHOUT HMG FUNDING

xii) OPTION A. NO ASSISTANCE

xiii) OPTION B. HKG INSTRUCTED TO PAY FUNDS TO HMG

III

xiv) SUPPLEMENTARY PENSION FOR OVERSEAS SERVICE

options.1.

SLM

CONFIDENTIAL

1

OPTIONS

PAPER