Gurkha Pension Scheme (GPS) rates and pension regulations are based on those of the Indian Army. The link to Indian pensions is maintained whenever there are changes and GPS pensions adjusted accordingly. This includes changes introduced every 10 years by the Indian Central Pay Commissions (CPC), which adjust the levels of pay and pensions for personnel in the Indian Army. Other changes introduced to pensions between CPCs are also implemented such as the change to weightage effective from 1 January 2006.
The Indians rebased their pension rates in the 5th CPC effective from 1 January 1996 with a fitment weightage increase of 40% from 1 January 1996, and GPS pensions were increased accordingly to keep level.
For the 6th CPC effective from 1 January 2006, but only announced in November 2008, the Indians gave their pensioners another 40% fitment weightage increase but this was not copied across the GPS because most GPS pension rates were already above double the Indian rate, and so did not need to be adjusted.
However, where necessary, for a small number of pension rates, action was taken to bring them up to double the level of the Indian rate. The new age uplift for those aged 80 and above was also introduced. Following the 6th CPC and effective from 2006, the Indian authorities split pension arrangements for their personnel with a new scheme for those retiring from 1 January 2006. When the 6th CPC was announced in November 2008 the GPS was a closed scheme and so the basis for the GPS has been taken as the pre 2006 Indian scheme.
The Indian authorities have recently introduced a change to their pensions called One Rank One Pension (OROP). How the OROP affects the GPS is still being assessed and details of any changes necessary will be published when authorised.
Details of the 7th CPC are starting to be released by the Indian Government but the specific changes for Indian Army pensions have not yet been published by the Indian Ministry of Defence. According to the Indian Ministry of Finance letter F.No.38/37/2016-P&PW(A) (ii) of 4 August 2016 separate orders will be issued by the Indian Ministry of Defence in regard to Armed Forces pensioners/family pensioners.
Once the details of how 7 CPC affects Indian Army pensions are known they will be assessed and implemented as necessary for the GPS.