Explanatory memorandum
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 2021, sets the annuity payable to a person who has held office of Prime Minister (a former Prime Minister) for not less than 2 years (whether for a continuous period or for periods totalling 2 years). It replaces the Parliamentary Annuities Determination 2020, which expires on 31 December 2020.
In making this determination and after consulting with those affected, the Remuneration Authority took into account the mandatory criteria listed in section 18 of the Remuneration Authority Act 1977 (the Act). In addition, it took into account section 18A of the Act, which requires the Authority to consider prevailing adverse economic conditions. This is an important criterion at this time, given the negative impact that COVID-19 is having on the New Zealand economy and society.
Accordingly, this determination maintains the annuity for former Prime Ministers at the 2020 level, which is $10,900 per annum up to a maximum annuity payable of $54,500.
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 expires on 31 December 2021.