CALLS to make legally binding the Government's promises on the civil service pension reserve fund were rejected. A legislator had suggested the draft resolution setting up the fund state a commitment to maintain its balance at a minimum of one year's estimated pension payment - $7 billion at 1994 levels. But Secretary for Civil Service Michael Sze Cho-cheung said the proposal would not be constitutionally appropriate. The move 'might imply automatic appropriation in the resolution'. The resolution, which was passed in the council yesterday, will authorise the Financial Secretary to administer the fund as he does under the Public Finance Ordinance. And the future $7 billion capital injection into the fund cannot be made before endorsement given by the Finance Committee. Mr Sze said a very clear commitment would still be made by sending the staff councils a written confirmation, as promised to them earlier during the consultation exercise. With the council's approval of the resolution, the fund is expected to be set up within the current financial year. The fund will remain part of the Government's fiscal reserves and will be placed in the Exchange Fund managed by the Hong Kong Monetary Authority. Interest and dividends would accrue to the Fund. Mr Sze said the future transfer of the $7 billion from the General Revenue to the fund would not lead to any increase in public expenditure.