CONFIDENTIAL
Background
1. The Overseas Service Pensioners Association (OSPA) was
formed in 1960 through the amalgamation of several regional
Pensioners Associations. It has a membership of about 12,000
retired HMOCS officers who served in various dependent
territories, including Hong Kong. Lord Glenarthur met with a delegation from OSPA in 1987, but since then we have only
dealt with them through correspondence.
2.
HMOCS officers who served in Hong Kong have their
pensions paid in Hong Kong dollars. The HKG's terms and
conditions of service have never included any protection
against devaluation of the Hong Kong dollar. A number of
pensioners living in the UK who retired when the Hong Kong
dollar was very strong (between HK$8: £1-HK$10: £1) have at
times experienced a serious decline in the sterling value of
their Hong Kong pensions, particularly when the rate went to
over HK$15:£1.
3.
OSPA are pressing on behalf of their Hong Kong members
for HMG to provide a sterling guarantee based on the personal
exchange rate at the date of each pensioner's retirement. We
are not considering such a scheme because it could result in
persons who retired within a few months of each other
receiving very different levels of guarantee (eg before and
after 'Black Wednesday'). There would also be significant
financial implications.
4.
OSPA are also pressing for amendment to the SPOS Regulations. These Regulations, which came into effect in
1976, provide some benefit to pensioners by supplementing the
sterling value of the locally awarded pension increases paid
to former overseas civil servants to the same level as the
increases paid on an equivalent UK public service pension.
ospa.bckg.ADM
SLM
CONFIDENTIAL
1
No comments yet.
Private notes are available after approval.