Governor-General (Annuities) Determination 2020

2020/57

Coat of Arms of New Zealand

Governor-General (Annuities) Determination 2020

Pursuant to section 8 of the Governor-General Act 2010 and to the Remuneration Authority Act 1977, the Remuneration Authority makes the following determination (to which is appended an explanatory memorandum).

Determination

1 Title

This determination is the Governor-General (Annuities) Determination 2020.

2 Commencement

This determination is deemed to have come into force on 1 April 2020.

3 Expiry

This determination expires on 31 March 2021.

4 Annuity for former Governor-General

(1)

The annual annuity payable under section 8(2) of the Governor-General Act 2010 to a person who has held the office of Governor-General for a total period of less than 2 complete years is $15,800.

(2)

The annual annuity payable under section 8(3) of the Governor-General Act 2010 to a person who has held the office of Governor-General for a total period of 2 or more complete years is the lesser of the following:

(a)

$15,800 for each complete year of the total period for which the person held the office (not exceeding 5 years):

(b)

$79,000 (the maximum annual annuity payable).

5 Revocation

Dated at Wellington this 7th day of April 2020.

Fran Wilde,
Chairperson.

Geoff Summers,
Member.

Len Cook,
Member.

Explanatory memorandum

This memorandum is not part of the determination, but is intended to indicate its general effect.

This determination is deemed to have come into force on 1 April 2020. It sets out the rate of the annuity payable to a former Governor-General.

The Remuneration Authority Act 1977 requires the Authority to consider a number of criteria in determining the annuity payable to a former Governor-General. The Authority must have regard to the need to be fair both to the people whose remuneration (including annuities) is being determined and to the taxpayer. And the Authority must take into account any prevailing adverse economic conditions.

Given the predicted effect that COVID-19 will have on the New Zealand economy, taxpayers, and society in general during the coming year, the Authority has made the difficult decision to maintain the rate of the annuity payable to a former Governor-General at the 2019/20 level. In making this decision, the Authority believes it has struck the right balance of being fair to the taxpayers and being fair to the group of persons who receive this annuity.

Therefore, the yearly rate of the annuity remains at $15,800 from 1 April 2020, with the maximum annuity payable remaining at $79,000 per annum.

The rate of the annuity is the same regardless of whether the former Governor-General held office for a total period of less than 2 complete years or for a total period of 2 complete years or more. If a former Governor-General held office for 2 complete years or more, the annual annuity payable is determined by multiplying the yearly rate by each complete year of the period that the Governor-General held office, up to a maximum of 5 years.

Section 9 of the Governor-General Act 2010 (the Act) provides that if a former Governor-General dies, the surviving spouse or partner is to be paid an annuity at half of the yearly rate that would have been payable if the person had not died.

Section 8(4) of the Act provides that the annuity is payable from the date that is 6 months after the date on which the person ceased to hold office as Governor-General.

The annuity recognises the contribution made to the country by a former Governor-General when that person was in the role and it also recognises the role of the former Governor-General’s spouse or partner. In addition, it takes account of the former Governor-General’s ongoing commitments after their term of office has ended.

This determination takes into account a range of factors, including the pay for other senior positions where the Remuneration Authority sets the remuneration.

This determination is for the year beginning 1 April 2020 and ending on 31 March 2021.

This determination expires on 31 March 2021.

Issued under the authority of the Legislation Act 2012.

Date of notification in Gazette: 9 April 2020.