BRITISH GURKHA PENSION
POLICIES AND EX-GURKHA
CAMPAIGNS: A REVIEW
Presented at:
Gurkha Welfare Inquiry
All Party Parliamentary Group on Gurkha Welfare
House of Commons UK
Wednesday 12th March 2014
Centre for Nepal Studies UK (CNSUK)
Outline of the presentation
Introduction (CNSUK and Gurkha Pension Report)
Lokendra Dhakal
Gurkhas and Pension Issues: An Overview
Dr Chandra Laksamba
Some important issues for consideration
Dr Krishna Adhikari
Way forward
Prof. David Gellner
Introduction (CNSUK and Gurkha
Pension Report)
Lokendra Dhakal
Introduction to CNSUK
 CNSUK is registered in 2007 in England
and Wales(Companies Act 1985)
 Motto: ‘Advancing knowledge
on Nepalis’
 Main research activities include:
 Population and Migration
 Ethnic Minorities and integration
 British Gurkha
 Religion and Culture
 Partnership with organisations and communities to promote
research and bilateral interests between Nepal and the UK
Centre for Nepal Studies UK (CNSUK)
Contributors
Dr Chandra Kumar Laksamba (CNSUK)
(Team Leader)
Dr Krishna Prasad Adhikari
(CNSUK/University of Oxford)
Mr Lokendra Purush Dhakal
CNSUK)
Professor David Gellner
(University of Oxford)
Why this
report?
Aim of the Reports is:
1. To provide information and background on the
unresolved Gurkha pension issue; and
2. To assist participants in the debate to achieve a
nuanced and balanced understanding that
recognises the positions of diverse
stakeholders, and thereby, to assist in the
search for appropriate solutions.
Methods
• This is partly the result of two initial symposia
followed by a series of interactions with
Gurkha organisations operating in the UK, as
well as with other stakeholders.
• Review of existing treaties, court verdicts, and
other literature on Gurkha issues.
Gurkhas and Pension Issues: An
Overview
Dr Chandra Laksamba
Historical Background
“Bravest of the brave, most generous of
the generous, never had a country
more faithful friends than you”
Sir Ralph Turner MC
History: Huge participation
•
Recruitment began in July 1815
•
In the First World War, there was a total of 20 Gurkha
battalions with 120,000 Gurkha soldiers participating in the
war. They comprised 2.12% of Nepal’s population.
(The 16,000-strong Nepal Army was deployed to replace Indian Army
for the frontline duty. Furthermore, the entire Nepal Army was placed
on standby for the UK's disposal. )
•
In the Second World War, out of a 6,283,649 population of
Nepal, a total of 131,000 Nepali citizens were engaged as
Gurkha soldiers in frontline action.
History: Huge gains and losses
• In two World Wars: 12 Victoria Cross
(VC) including 4,700 bravery medals,
commendation letters and certificates
were awarded to Gurkhas.
• 1 x VC awarded in the Borneo
Confrontation in 1965.
VC Kulbir Thapa – 1st World War
• Total of 13 VCs awarded to Gurkhas.
• But approximately 43,000 Gurkha
soldiers were killed in action, thousands
disappeared without any trace, suffered
casualties, disabilities and war trauma.
VC Tul Bahadur Pun – 2nd World War
VC Ram Bahadur Limbu
Since the separation from Indian Gorkhas
in 1947, a total of 269 British Gurkha
soldiers have been killed in active service.
Among them:
• 204 Gurkhas were killed in Malaysian
Emergency, the highest number since
the Second World War.
• 59 were killed in the Borneo
Confrontation,
• 3 died in Hong Kong,
• 2 died in the Falklands conflict and 1 in
Bosnia.
• In the ongoing Afghan war a total of 15
soldiers have been killed, 54 wounded,
and more than 100 disabled.
• Sugauli Treaty 1816 - the treaty
covered neither recruitment policy
nor the pay, pension, and welfare of
Gurkha soldiers.
• Indian independence, split of
Gurkhas into Indian and British
Forces
• Bilateral and Tripartite Agreement
(TPA) - incorporation of Indian Pay
Code despite Nepal’s Observation
and Suggestions.
Major policies and changes
 GPS
 AFPS 1975
 AFPS 2005
 TPA 1947
 GTACOS reviewed in 1955
 GTACOS reviewed in 1981
 GTACOS reviewed in 1996
 Ministerial review 1999
 Amendment to the Immigration Rules 2004
 GTACOS reviewed in 2006
 Gurkha Offer To Transfer (GOTT) 2007
 Amendment in immigration rules in 2009
Gurkhas by pension status
Pre-1948
retirees
Mixed: GPS plus AFPS 75
280
25000
2,161
20000
15000
10000
5000
542
6,534
5000
Mixed: GPS plus AFPS 75
(Deferred until 60 due to
less than 22 years service)
Rtd btn 1
Apr. 1975
and 1 July
1997
Retired
between
1948 and
1975
20,774
Pre-1948
retirees
GPS
Holders
To apply
AFPS 2005
(equal)
3,500
0
No pension
With pension
Serving
Gurkhas by Pension Status and Type
Ser
ving
Pensioners
Non-pensioners
Types
Pre-1948 retirees
Number
Unknown
(C. 5,000
in GWT)
Retired between 1948
and 1975
6,534
Retired between 1
542
April 1975 and 1 July
1997 (with no service
pension)
Pension
Welfare Charity Benefit
(WCB) of £40/month
(Selected, needs-based).
WCB of £40/month
(Selected, needs-based).
WCB of £40/month
(Selected, needs-based,
total 3,438 people
receive WCB).
Remarks
Not allowed to come to the
UK.
Allowed to settle in the UK
with 4 years’ service.
Not qualified for Preserved
Pension that British get with
at least 2 years’ service.
Allowed to settle in the UK
with 4 years’ service.
Enlisted before 1 Oct. 20,774*
GPS (Around
Not allowed to transfer to
1993 and retired
(incl. 6,870 £223/month for Riflemen AFPS.
before 1 July 1997
widows)* with 15 years’ service). Allowed to settle in the UK.
Enlisted before 1 Oct. 2,161
Stay in GPS until 60 and For the purpose of after 60
1993 and retired after (incl. 38
then switch to a mixed
pensions, service until 1 July
1 July 1997 with less widows)
regime of GPS and AFPS 1997 (actuarial) is counted
than 22 years of
75.
23-36% only.
service
Enlisted before 1 Oct. 280
Allowed to transfer from Service until 1 July 1997
1993 and retired after (incl. 10
the GPS to AFPS 75
(actuarial) is counted 23-36%
1 July 1997 with 22 or windows) (mixed regime).
only.
more years of service
Enlisted since 1
3,500
AFPS 05
Full and equal pension and
October 1993
pay (since 8 March 2007).
Some Examples of Unequal Pensions and Benefits
Table 3: Comparative pension scales in 1989
Rank
British pension per Gurkha pension per Difference (%)
annum
annum
WOI
£5,269
£498
958%
Captain
£6,348
£606
948%
Source: House of Commons (1989). The Defence Committee’s First Report
on the Future of the Brigade of Gurkhas.
Rapid rise in Gurkha pension in recent years
Service credit for Gurkha soldiers’ service before 1 July 1997
Source: Pension Policy Instruction (2009: 25)
Comparison of Pension per-annum in 2013 (in GBP)
British and and Commonwealth
Veterans WO2 in AFPS 1975 after 22
years service:
Gurkha WO2 in GPS/AFPS (enlisted
before 1 October 1993 and retired in
2006 (after 1997) after 22 years
service:
Gurkha WO2 in GPS (enlisted before
1 October 1993 and retired before 1
July 1997) after 22 years service
£12,909.00
£6,840.00
£4,043.16
Other Comparisons
British
Gurkha
Terminal grant 1n 1989 (WOI with 22 £15,807
years services)
0
Death cum Retirement Gratuity and
Resettlement grant (WOI with 22
years services in 1989)
0
£4,292.84
Preserved pension at the age of 60
(now 65) for service above 2 years
Yes
No
War disablement pension
Available
Not available
National insurance
Charged and
welfare benefits
given
Charged but
welfare benefits
not entitled
Large number of redundant Gurkhas in the1960s and early 1970s with 4-9
years service received £300-360 one-off payments, which was several
times less than what their Commonwealth counterparts had received.
Other Comparisons
GPS pensioners: It is important also to note that the terminal grant
paid as part of the transfer would not be available. This is because
the GPS pensioners received their tax-free lump sum when they left
the Army, and the UK tax rules do not allow the payment of another
tax-free lump sum.
(Source: Gurkha Offer to Transfer (GOTT) Hand Book page 27.)
Rise of Ex-Gurkha
Organisations
Summary of court cases related to Gurkha pensions
Claimant Filed Filed at Main claim
s
Year (Court)
Decision
Hari
Bahadur
Thapa
Gyanraj Rai
1998
Not qualified for full pension, as 80% service was
outside UK because joined the Army as Gurkha.
GAESO
(P. Gurung,
G. Thapa,
H. Pun)
GAESO
(Purja case)
2002
Born in the UK, joined British Gurkha and became a UK
citizen but discriminated on a pension (Racial
discrimination).
Supreme Issue a ‘Court Order’ to GoN to review the TPA. The
Court of clause ‘Indian Pay Code’ of the TPA has discriminated
Nepal
against Gurkhas’ pay and pensions and should be
nullified.
High
Compensation for Japanese Prisoners of War (POW)
Court, UK (amount already received from Japan by the UK
Government for all in British India Armed Forces).
High and
Appellate
Courts,
UK
High
Court, UK
Equal pay, pension, and welfare (on a par with
Commonwealth citizens and British counterparts).
Due to an expectation to discharge in Nepal, the
issue of equality not applicable. No party is a
winner; but need to settle by mutually recognising
each other’s positions.
Case was not allowed – a weak starting point for an
assertion of indirect discrimination on age grounds.
High
Court, UK
High and
Appellate
Courts,
UK
Settlement for all Gurkhas.
Granted (with 4 years or more service).
Allow all to transfer of pension from GPS to AFPS, and
count the service on a year-for-year basis for those on
such transfer.
The High Court verdict stated: “Disinclined to grant
any relief by reason of delay” and referred to section
31(6) of the Senior Courts Act 1981 and the
detriment to good administration.* The Court of
Appeal dismisses the application for judicial review.
ECtHR
The significantly lower pension entitlement of Gurkhas
On-going
retired or having served before 1 July 1997 amounts to
differential treatment on the basis of nationality, race and
age, and is in violation of the ECHR.
2000
2002
K. Shrestha, 2008
K. Purja, S.
Gurung
GAESO
2008
BGWS
2009
BGWS
(On-going)
2011
Tribunal,
UK
The applicants alleged that they were discriminated
against in their entitlement to an Army pension on the
basis of their age and/or nationality.
Case dismissed citing that the nature of the case was
beyond the boundary of the country’s constitutional
and legal ground.
Granted. The ex-Gurkhas would receive "ex-gratia"
payments of £10,000 each from a fund set up to
benefit the British POWs.
Some important issues for
consideration
Dr Krishna Adhikari
The UK Government’s Position

Gurkha soldiers are fairly treated (in some case even
better than the British)
(Immediate pension in 15 years vs 22 years of British soldiers)

Welfare and charity supports
 Pensions cannot be changed retrospectively (implications
will be huge, affecting millions)
 The cost of changing Gurkha pensions will be huge (and
unnecessary)
 Gurkhas in the UK are paid means-tested benefits
(pension credit and housing benefits)
Five Key Issues:
•
•
•
•
•
Fundamental Human Rights
Changed context: ‘Legal’ and ‘fair’ vs ‘legal’ and
‘equal’
Cost implications: myths and realities
Internationally comparable cases: UK lags behind
TPA needs updating on bilateral basis
The UK’s commitment to human rights
 The United Nations Declaration on Human Rights
Article 23 (b):
“Everyone, without any discrimination, has the right to equal pay for
equal work.”
 ECHR 1950, Article 1, states: And the Article 14 states:
The enjoyment of the rights and freedoms set forth in this Convention
shall be secured without discrimination on any ground such as sex,
race, colour, language, religion, political or other opinion, national or
social origin, association with a national minority, property, birth or
other status.
 ILO Equal Remuneration Convention (100) :
‘equal pay for equal job’s, and ‘equal pay for jobs of equal value’.
The Changed Context
 “The Gurkha Pension Scheme (GPS) is a very fair
scheme” Kevan Jones, MP, the Under Secretary of State for Defence, 16 July 2009
 Gurkhas receive double payment: as per IPC and top ups. ...
It is fairer for the quality of life in Nepal. ...Gurkha benefits
are designed for Gurkhas to be recruited and to retire in
Nepal.
“... public interest to remedy an historic injustice in the UK
Government’s previous treatment of Gurkha veterans.” [2013]
EWCA CIV 8, Para 115. 48
 Most ex-Gurkhas are lawful residents in the UK
 Currently serving Gurkhas’ benefits are equalised
30000
25000
Number of Gurkha Pensioners (between 1997
and 2011)
20000
15000
10000
5000
0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Pensioners
Widows
Total
Source: Gurkha
Manning and
Records Office,
2011)
Linear (Total)
Costs associated with an elderly ex-Gurkha couple living in
Aldershot (rough estimates, June 2013) in GBP
Local Housing Allowance (1-bedroom flat)
Council Tax Benefit
Pension Credit
Winter Heating Allowance
Bus Passes (estimated value)
NHS and Social Care (difficult to estimate)
Total (per annum)
7,200.00
1,116.00
11,520.00
200.00
840.00
11,700.00
32,676.00
Is the UK lagging behind?
 India’s equal treatment to Gurkhas
 Change of French policies towards its foreign veterans
 USA’s treatment of Filipino veterans
Tripartite Agreement
The TPA controversy:
1. Illegal
2. Legal but irrelevant
3. Perfect
Compendium of various documents,
bipartite and tripartite agreements,
observations and suggestions, and
responses
Bilateral agreement between UK and India
“the basic rates of pay admissible to Gurkha Officers and
soldiers serving HM Government shall approximate to
those laid down in the present Indian Pay Code ...” (TPA
1947, Annexure I, Section C, Article 11).
Nepal Government’s Suggestions
In all matters of promotion, welfare and other facilities the Gurkha
troops should be treated on same footing as other units in the parent
army so that the stigma of ‘mercenary troops’ may for all time be
wiped out. (TPA 1947, Annexure III, Section G, Article 1)
Response of British Government
In his letter to the Maharaja of Nepal dated 7th November, the terms
of which were acknowledged and confirmed by the Maharaja on the
9th November, Mr Symon made clear that “subject to the limitations
of finance and supply, welfare facilities would be provided for
Gurkha troops on similar lines to those provided to British (United
Kingdom) troops”... that the United Kingdom Government in no
way regarded Gurkha troops as mercenaries, and they would form
an integral and distinguished part of the British Army. (TPA 1947,
Annexure III, ection H, Footnote 1)
The way forward
Prof David Gellner
THE WAY FORWARD
Gurkha pensions and welfare policies need to be made compatible
with those of the parent British Army by:
1.
discarding GPS as it currently operates and upgrading it in line with AFPS 75, or
allowing all GPS pensioners to opt for AFPS 75;
2.
discarding the 23-36% proportions of service prior to 1 July 1997 for AFPS 75, and
accepting them on a year-for-year basis;
3.
entitling all non-pensioners retired after 1 April 1975 with over 2 years of service
to receive the Preserved Pension at the age of 60;
4.
providing all non-pensioners who were redundant before 1 April 1975 with a
monthly subsistence allowance to bring their standard of living to the same level as
British veterans who left the British Army with no Service Pensions, but who are
nevertheless eligible for Department for Work and Pensions (DWP) benefits; and,
5.
abrogating the TPA and signing a bipartite UK-Nepal agreement to reflect the
unique circumstances of the British Gurkhas and the changed context of British
Gurkhas’ service
There are two further important points with regard to pay and
pensions:
• The UK Government should acknowledge that Gurkhas were not
always treated equally in the past and that such inequality has been
rectified for serving Gurkhas since 8th March 2007;
• Demands for retrospective compensation may well have a
considerable degree of legitimacy and ways need to be found to
address the issue.
Thank you
Q &A