Parliamentary Annuities Determination 2021

2021/380

Coat of Arms of New Zealand

Parliamentary Annuities Determination 2021

This determination (to which is appended an explanatory memorandum) is made by the Remuneration Authority under section 43 of the Members of Parliament (Remuneration and Services) Act 2013 and in accordance with the Remuneration Authority Act 1977.

Determination

1 Title

This determination is the Parliamentary Annuities Determination 2021.

2 Commencement

This determination comes into force on 1 January 2022.

3 Annuity for former Prime Minister

The annuity payable under section 43(1)(a) of the Members of Parliament (Remuneration and Services) Act 2013 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) is payable at the yearly rate of the lesser of the following:

(a)

$11,100 for each complete year of the total period for which the person held the office:

(b)

$55,500 (annual maximum annuity payable).

4 Expiry

This determination expires on 31 December 2022.

5 Revocation

Dated at Wellington this 23rd day of November 2021.

Fran Wilde,
Chairperson.

Geoff Summers,
Member.

Dallas Welch,
Member.

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 2022, sets the annuity payable to a person who has held the 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 (No 2) 2020, which expires on 31 December 2021.

In making this determination and after consulting those affected, the Remuneration Authority (the Authority) took into account the mandatory criteria listed in section 18 of the Remuneration Authority Act 1977. In addition, it took into account section 18A of that 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.

Although the local economy has proven to be more resilient than predicted at this time last year, the further waves of COVID-19 recurring around the world continue to present a highly volatile and uncertain environment. Many sectors and regions around New Zealand continue to be challenged by localised outbreaks of the virus and by the movements in and out of alert levels. Given the continued global and local economic uncertainty, the Authority has taken a conservative approach in making this determination and has increased the annuities for former Prime Ministers by 1.9% for the 2022 year.

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 2022.

Issued under the authority of the Legislation Act 2019.

Date of notification in Gazette: 25 November 2021.