This determination comes into force on 1 April 2022 and expires on 31 March 2023. It sets out the rate of the annuity payable to a former Governor-General.

The Remuneration Authority Act 1977 requires the Remuneration Authority (the Authority) to consider a number of criteria when 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. The Authority must also consider any prevailing adverse economic conditions.

In last year’s determination, the Authority maintained the rate of the annuity payable to a former Governor-General at its 2019 level. This was in response to the significant impact that COVID-19 was having on the economy at that time.

Although it is predicted that there will be some short-term disruption to the local economy in the months ahead given the current challenge posed by the Omicron variant of COVID-19, the economy has proven to be more resilient than previously projected. Local economic activity has remained relatively solid in most sectors throughout the outbreak of COVID-19 and sectors such as travel and hospitality, which have been the most adversely affected, will gradually recover in the coming months as New Zealanders adapt to living with COVID-19 and restrictions progressively ease.

After considering the current economic environment and applying the factors that the Authority is required to take into account when determining a former Governor-General’s annuity, the Authority has decided to increase the annual annuity from $15,800 to $16,200 from 1 April 2022.

The annuity becomes payable 6 months after the date on which the former Governor-General ceased to hold office.

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 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.

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.