SECRET
XCX(93)54
(a)
(b)
(c)
a compensation scheme at a maximum cost of £39 million. There will be a cap on individual payments of £120,000 at January 1992 prices and payments will be phased over 5 years. Compensation factors will on average be about 20 per cent lower than the higher factors in the Hong Kong Government's own Limited Compensation Scheme;
a Sterling pension safeguard with a fallback safeguard rate set at HK$21:£1; and
amendment to the UK Supplementary Pension for Overseas Service Regulations (SPOS), as proposed by the UK Overseas Development Administration (ODA), to ensure that both exchange rate gains and losses are taken into account when calculating SPOS payments to cover UK annual pension increases.
HMG now intends to hold further consultations with the Hong Kong HMOCS Association.
Outline Of The General Compensation Scheme
12
The exact format of previous compensation schemes varied slightly from territory to territory according to local circumstances such as the pace of localisation and the need to assist in the retention of some former HMOCS officers. In the case of Hong Kong HMG will propose that the compensation scheme should come into effect on 30 June 1996 and be payable only to HMOCS officers who would still normally be in service on 30 June 1997. Compensation payments would be phased, with uprating for inflation and, for those who remain in service post 1997, the addition of interest. In the case of HMOCS officers who wish to retire upon the change of sovereignty, it is the intention that they should be allowed to proceed on pre-retirement leave or retire between 30 June 1996 and 30 June 1997, with the decision as to the exact date they depart resting with the Governor and the Secretary of State.
13
The General Compensation Scheme will be funded entirely by HMG. In practical terms the maximum amount of compensation is likely to be about twice the annual salary of an average HMOCS officer in 1996/ 97 or £120,000 in 1992 prices. Although the General Compensation Scheme
Executive Council
No comments yet.
Private notes are available after approval.