CONFIDENTIAL
HONG KONG: HER MAJESTY'S OVERSEAS CIVIL SERVICE (HMOCS)
The present position on the package of benefits for Hong Kong HMOCS officers can be summarised as follows.
Compensation Scheme
The latest estimates for the cost of the the Treasury and FCO proposals for a compensation scheme are £32 million and £46 million respectively.
Officials have agreed that it should be possible to devise an The scheme would acceptable scheme at a cost of £39 million. include a cap on payments of £120,000 uprated in line with UK RPI, and compensation factors approximately 20% lower than
the factors proposed by the FCO.
Sterling Safequard
The latest GAD estimates for the maximum contingent liability (ie the Hong Kong Dollar becomes worthless) for the proposed sterling pension safeguard for a range of exchange rates and using the different mechanisms proposed by the Treasury and the
FCO are as follows:
Trigger Level
Treasury
Foreign Office
HK$26:£1
£106 million
£150 million
HK$22:£1
£142 million
£177 million
HK$16: £1
£230 million
£244 million
Supplementary Pensions for Overseas Service
This is a policy matter covered in the Cabinet Office paper.
The position remains unchanged.
hmocs.ADM.JRB
CONFIDENTIAL
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