TNAG-2686-FCO40-3888-Hong-Kong-Her-Majesty-s-Overseas-Civil-Service-(HMOCS)-poli-1993 — Page 112

Over the course of time, officer A's actual pension increases as a result of local increases and from any SPOS payments. year 2005 his pension profile could look something like this:

By the

£30,000-

SPOS

Increase

£27,000-➖➖➖➖➖

Local

Increases

£25,000--

Basic

Pension

Safeguard

level £15,000

In all previous discussions with the Treasury we have been working on the basis that the safeguard would apply to the basic pension (in the above diagram this would require the sterling

value of the pension to fall from £27,000 to £15,000) and this remains the FCO/ODA position. But the Treasury now want it to

apply to both the basic pension and to SPOS (in the above

diagram this would require a fall in the sterling value of the

pension from £30,000 to £15,000). If the Treasury proposal is accepted it would reduce further the chances of HMG incurring

any liability and by the same token reduce the value of the

safeguard to HMOCS pensioners.

prop.mech.ADM

SLM