JAN-1993 19:01
PAUL FIFOOT
DE72723755
ne Scheme should indicate whether the draft should be changed to make their task easier. I would be grateful for a description of how they would go about operating it.
(II) A point of principle is in the passages. in square brackets in section 4(1)(b)(ii) and (2). The point is this. If the officer (or indeed, if you decide on a notional reduction of a dependant's pension, the dependant) receives a full pension from HK but is only credited with the equivalent of a reduced pension for the purposes of his UKPB, he will nevertheless receives SPOS on his full pension. Are we to take into account the full SPOS or only the SPOS attributable to the reduced pension in determining whether the pension guarantee can be invoked ? The matter can be argued either way. If only a notional pension is guaranteed, it is not logical to take account of anything that is not attributable to the notional pension; and hence you cross out "total" in section 4(1)(b)(ii). On the other hand, since SPOS is itself a protection against some of the hazzards of the future, is it not reasonable to take the whole amount paid as SPOS in respect of a pension when determining whether any further relief is payable; and hence cross out "notional" in section 4(1)(b)(ii) and the passage in square brackets in section 4(2).
Sections 5 and 6: are, I think, straightforward. It needs to be kept in mind that we may not get full or prompt co- operation from the SAR and that we may have to rely on obtaining information from pensioners themselves.
Additional note: Pensions may be payable to people in other parts of the world. The exchange rate as between HK and those parts of the world may be more favourable for pensioners than that between HK and the UK. Should we include a provision to the effect that, if the Secretary of State is satisfied that if that is the case as regards any country where a pensioner is permanently resident, he may apply section 4(1)(a) as if the reference to £ were a reference to the currency of that country?
P. 07/08
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