TNAG-0266-FCO40-302-Responsibility-of-UK-for-colonial-expatriate-pensions-of-Hon-1972 — Page 27

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Co-operation and known as the Carr-Robertson Undertaking. The Undertaking stated that

"if for any reasons it should so happen in relation to the payment

of a pension that a pensionor found himself in financial difficulties Her Majesty's Government would feel obliged to take appropriato remedial action."

Payments are made to pensioners through ex-gratia loan advances, which are refundable in the ovent of a defaulting Government retrospectively rosuming responsibility.

6.

Certain overseas pensions have been taken over by Britain under special arrangements concluded with the Governments concerned. Tho important case is India, from whom in 1955 Her Majesty's Government took over pensions liability in return for a lump sum payment from India's sterling balancos of £83 million calculated on an actuarial basis (soo paragraphs 13 of annex). The outstanding capital value of this paymont as at 1st April 1971 is estimated to be of the order of £25-35 million.

7.

21

Britain's present annual financial rosponsibility for overseas pensions is thus nade up as follows:-

Ex-gratia loan advances to cover default Pensions paid by Governments in receipt

of budgetary eid

Pensions sums due to induconont allowances

Indian basic pansions (taken ovar in 1955)

£ million

1.1

0.5

1.1

3.0

Post 1955 supplomonts to India, Pakistan

and Burna

5.1

Other pension supplement payments

3.7

Miscellaneous other payments

0.3

Total Annual United Kingdom contributions to

expatriato pensions

14.8

The Present Problem

8.

In Juno 1969 a Ministry of Overseas Development mission visited Konya to negotiate a new supplementation (OSAS) agreement to cover the period 1971-76.

The Kenyan authorities stated firmly that they would not negotiato a new agreement until the ponsions issue had been reconsidered and settled in their favour. They made the point about an enforced package deal

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