This memorandum is not part of the determination, but is intended to indicate its general effect.
This determination, which is deemed to have come into force on 1 January 2017, increases the annuity payable to a person who has held the office of Prime Minister for not less than 2 years (whether for a continuous period or for periods totalling 2 years) (a former Prime Minister).
The yearly rate that forms the basis for calculating the annuity is increased from $10,160 to $10,345 with the maximum annuity payable being increased from $50,800 to $51,725.
Under section 43(1)(b) of the Members of Parliament (Remuneration and Services) Act 2013, the surviving spouse or partner of a former Prime Minister must be paid an annuity at half that yearly rate.
This determination continues the past practice of adjusting the annuities by having regard to growth in the New Zealand Consumers Price Index, and in Prime Ministerial remuneration.
The determination replaces the Parliamentary Annuities Determination 2016, which expired on 31 December 2016. The determination is for a year from 1 January 2017. The making of the determination was delayed beyond the expiry of the previous determination in order to allow the Remuneration Authority to carry out preparatory work, including consultation with those affected.
This determination expires on 31 December 2017.