CONFIDENTIAL
OBJECTIVE OF COMPENSATION SCHEME?
- Our initial proposal designed to provide a measure of compensation and incentive to encourage officers to serve after 1997. Consultations with the Association made clear that many officers do not want to serve the SARG, and that the scheme would effectively force them to do so. If we pursue the original scheme many officers may leave before 1997. - We cannot now offer less than a traditional compensation scheme, with the aim of encouraging officers to stay at least until 1997.
EARLY RETIREMENT?
- The Governor has been reviewing the case for granting HMOCS officers the right to retire early on full pension. I expect him to be able to make recommendations next week. Even if he intends granting early retirement, he would need to consult ExCo and the Chinese. Government Actuaries estimate that a general right to retire would reduce the contingent liability for HMG by about 30%. Should also obviate the need to consider further the private sector option. We can press the Governor on that next week.
EXTENSION TO OPTION DEADLINE FOR NEW PENSION SCHEME?
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HKG have not reached any decision on whether the December deadline should be extended.
def.pnts.ADM
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CONFIDENTIAL
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