Dated at Wellington this 15th day of December 2004.
B A Wakem,
This memorandum is not part of the determination, but is intended to indicate its general effect.
This determination, which comes into force on 1 January 2005, is substantially the same as the Judicial Superannuation Determination (No 2) 2003. That determination provided for a maximum superannuation subsidy of 25% of the salary payable to a judicial officer who is not a member of the Government Superannuation Fund (the GSF), subject to a 6.25:1 ratio of subsidy to contribution.
This determination provides for a maximum superannuation subsidy of 30% of the salary payable to a judicial officer who is not a member of the GSF, subject to a 7.5:1 ratio of subsidy to contribution. The rationale for the increase is to achieve a more equitable position for judicial officers who are not members of the judicial GSF.
Judicial officers who were appointed before 1 July 1992 are eligible to remain members of the judicial superannuation scheme under the GSF. The Government Actuary has previously assessed that the inherent subsidy in the judicial superannuation scheme under the GSF during the 16 years of service that counts for benefits would be well in excess of 30% of salaries.
Last year, for judicial officers who were appointed after 1 July 1992, the available subsidy was increased to 25% of gross salary with effect from 1 January 2004. The Remuneration Authority noted then that there was an inequity between the 2 groups of judicial officers with respect to the value of their superannuation entitlements. As the Authority noted, this situation needed to be addressed because it was a significant element in the willingness of people approached to become part of the judiciary, to serve in that capacity. The Authority indicated at that time that a further adjustment would be considered in its review of judicial remuneration in 2004.