It has been announced/reported today that incoming Governor General Sam Mostyn will be given a $200K+ pay bump over her predecessor:
Incoming governor-general Sam Mostyn will be paid more than $709,000 a year, a pay rise of more than $200,000 from her predecessor David Hurley.
But don’t forget the impact on the defined benefit pension Mostyn will receive for the rest of her days.
Let’s make the following assumptions.
Ms Mostyn is currently 59 (not assumed) and will “serve” for 6 years until she is 65.
As an educated, wealthy female in a first world country with access to first world healthcare, Mostyn will live until 90.
That means she will receive her pension for 25 years.
Most of these pensions pay 60% of final salary, inflation indexed, for the rest of the beneficiaries life. So let’s just assume 60%.
So that means the $200K annual salary bump translates to an extra $120K, indexed for the rest of Ms Mostyn’s days.
Assume 3% inflation and 4% time value of money (government borrowing rate) - both conservative assumptions given the current trajectory of debt, inflation and economic growth.
Throw this in to Excel and it translates into a net present value of over $3 million. That means, roughly speaking, this bit of generosity will cost tax payers over $4 million (6x the $200K pay bump plus $3 million NPV of the additional pension).
It’s so nice how our political overlords are not just generous but not transparent with how they spend our taxes.
It’s no wonder she is smiling.
Taht is more than the US president. He gets $US400000 plus $us50000 expenses $A692307 and he has to run the country. She is only ceremonial. What a joke. Pigs in the taxpayers swill trough.
Absolutely disgusting!!!