Governor-General (Annuities) Determination 2021

2021/51

Coat of Arms of New Zealand

Governor-General (Annuities) Determination 2021

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 2021.

2 Commencement

This determination comes into force on 1 April 2021.

3 Expiry

This determination expires on 31 March 2022.

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 24th day of March 2021.

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 comes into force on 1 April 2021 and expires on 31 March 2022. 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.

Although economic activity in New Zealand has picked up over recent months, COVID-19 is continuing to have a significant impact on the wider economy, which is predicted to last for some time. The sustainability of the recent improvements in the economy remains highly uncertain, particularly as New Zealand continues to cycle in and out of alert levels, and is contingent on the path of the virus and the speed and efficacy of global immunisation programmes.

Therefore, the Authority has maintained the rate of the annuity payable to a former Governor-General at its current level. The yearly rate of the annuity remains at $15,800 from 1 April 2021, 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.

Issued under the authority of the Legislation Act 2012.

Date of notification in Gazette: 26 March 2021.