“3A Transitional, savings, and related provisions

• The transitional, savings, and related provisions set out in Schedule 1AA have effect according to their terms.”

• “(3) This section—

  • “(a) applies to the Authority when determining the allowances of members of Parliament under section 12(1)(a)(i); but

  • “(b) does not apply to the Authority when determining the salaries of members of Parliament under section 12(1)(a)(i).”

• “(5) This section—

  • “(a) applies to the Authority when determining the allowances of members of Parliament under section 12(1)(a)(i); but

  • “(b) does not apply to the Authority when determining the salaries of members of Parliament under section 12(1)(a)(i).”

“18B Fixing salaries of members of Parliament

• “(1) For the purpose of any determination under section 12(1)(a)(i), the Authority must fix the salaries of members of Parliament in accordance with this section.

  “(2) A salary rate for a 12-month period from 1 July to 30 June (the relevant 12-month period) must be fixed so that—

  S_r + Su_r = (S_p + Su_p) × (a ÷ b) − P_r

  where—

  S_r

  is the salary rate for the relevant 12-month period

  Su_r

  is the amount of the superannuation subsidy that will be payable (in accordance with the determination made under section 12(1)(b) and (ba)) in the relevant 12-month period

  S_p

  is the salary rate for the 12-month period immediately before the relevant 12-month period (the previous 12-month period)

  Su_p

  is the amount of the superannuation subsidy that was payable (in accordance with the determination made under section 12(1)(b) and (ba)) in the previous 12-month period

  a

  is the average ordinary time weekly earnings for FTE employees in the public sector as determined by the Quarterly Employment Survey for each of the 4 quarters of the previous 12-month period, added together and divided by 4

  b

  is the average ordinary time weekly earnings for FTE employees in the public sector as determined by the Quarterly Employment Survey for each of the 4 quarters of the 12-month period immediately before the 12-month period referred to in item a, added together and divided by 4

  P_r

  is the amount of any change in the personal benefit or potential personal benefit that the Authority is required to take into account under section 16(2)(b) of the Members of Parliament (Remuneration and Services) Act 2013.

  “(3) In subsection (2),—

  “FTE means full-time equivalent as used in the Quarterly Employment Survey, being a measure of hours of work per week

  “Quarterly Employment Survey means the Quarterly Employment Survey published by Statistics New Zealand or, if that survey ceases to be published, any measure certified by the Government Statistician as being equivalent to that survey.

  “(4) For the purposes of applying the formula in subsection (2), the number resulting from dividing variable a by variable b must be rounded up or down to 4 decimal places (with 0.00005 or greater being rounded up).

  “(5) If the result of the calculation a ÷ b, as those variables are defined in subsection (2), is less than 1, the Authority must fix the rates of salaries for the relevant 12-month period as if the result of the calculation a ÷ b were equal to 1.

  “(6) Nothing in subsection (5) limits section 24.

  “(7) If the Authority is fixing a salary rate for the first time for a position for which there is no previous determination, the Authority must fix the rate consistently with a comparable position or positions for members of Parliament.”

• “(5) Notwithstanding any term included in any determination, the Authority must review and issue a determination for each position that is subject to its jurisdiction,—

  • “(a) in the case of the salaries of members of Parliament, at intervals of not more than 12 months in respect of each period of 12 months ending on 30 June; and

  • “(b) in the case of the allowances of members of Parliament, at intervals of not more than 3 years; and

  • “(c) in any other case, at intervals of not more than 3 years.”

• “(c) that, if changes to services provided increase or decrease any element of remuneration or other private benefit, the value of that increase or decrease should be taken into account by the Remuneration Authority in determining salaries under Part 2:”.

• “(iii) include in the determination or direction a statement of the value assessed under subparagraph (ii); and”.

• “(b) when fixing salaries for a relevant 12-month period (as that term is defined in section 18B(2) of the Remuneration Authority Act 1977), the Remuneration Authority must take into account only the value of any change in personal benefit or potential personal benefit that has arisen because of a change in entitlements compared with entitlements included in the previous determination or direction; and

• “(c) the Remuneration Authority must include in its determination of the salaries and allowances under section 8 a statement that sets out how it has taken values assessed under this subsection into account in determining salaries.”