CONFIDENTIAL
it
the
places an artificially low cap of £120,000 on
This would bite on a scheme. compensation
far higher percentage of officers than in past
schemes. But I think this is justifiable in the
present climate.
the Sterling pension safeguard rate of HK$16: £1
a proportion
will
protect only
of officers'
pensions.
contingent
7.
My proposed
million more per year for 6 years than your proposal.
maximum
compensation
scheme would cost £2
The
arising liability
from a pension
safeguard
set
nominally at 16:1 looks substantial.
But it
would only apply if the Hong Kong dollar became worthless.
In
We
that apocalyptic situation, we would no doubt be having to help Hong Kong pensioners anyway since the successor
would have defaulted on pension payments. government have constructed our safeguard proposal so that the Hong
Kong dollar would in practice have to fall well below 16:1
before HMG paid anything.
In
my
view,
it would be a
serious mistake for us to put forward a scheme which stands
no
chance
of being
accepted
a8
reasonab
officers or pensioners and from which we would,
last scheme, be driven back.
CONFIDENTIAL
by the HMOCS
as with the
а
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