into operation arrangements to stabilise and thus to safeguard the sterling value of their pensions.
In the past we have made several proposals as to how such a safeguard could be achieved, whether by amending the SPOS Regulations or whether by the take-over of their pensions at a fixed rate of exchange under the Overseas Pensions Act 1973, possibly with some arrangement for reimbursement by the HK Government, including post-1997 by the HK SAR Government.
We realise that to some extent since the devaluation of sterling last September some of the "heat" has gone off this issue, as with the HK$ being tied to the US$, the HK$ has appreciated in terms of sterling from around HK$15 = £1 to currently around HK$11
However, there are still a number of pensioners who retired when there were fewer than HK$11 to the £stg, and so they are still suffering a loss in the sterling value of their pension each month. On the other hand those who retired with a "personal exchange rate" of more than HK$11 to the £stg are losing any resultant benefit as any additional payment in sterling of their pension becomes an "overseas increase" which is then deducted from their SPOS. The effect of this very volatile floating value of the HK$ means that a pensioner never knows from one month to the next what the amount of his pension cheque will be. create difficulties for the pensioners and can be exceedingly embarrassing at times when the HK$ is "yo-yo-ing" in terms of sterling particularly when the pension cheque in one month is substantially less than that of the previous month(s).
As long ago as November 1987 Lord Glenarthur, who was then the Minister of State responsible for Hong Kong affairs, received a delegation led by our President Lord Grey to discuss this issue. Since then the matter has been pursued through correspondence, but as I have already pointed out without any progress or solution being found. In the final paragraph of my letter of 18 November I indicated that Lord Grey and/or myself with a small delegation of HK overseas pensioners, as representing the Association, would be very willing to come and discuss this situation with you. I believe that that would now be helpful, and I shall be grateful if you will agree to receive us as soon as convenient.
Yours sincerely,
arouelle
F.N. Pusinelli Chairman
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