CHAPTER 5
Mandatory Retirement
§ 1201. Findings.
§ 1202. Mandatory retirement.
§ 1203. Ungraded employees.
§ 1204. Existing employment contracts.
§ 1205. Transition.
§ 1206. Severability.
Whereas, the Compact of Free Association between the Federated States of Micronesia and the United States of America is stepping down, leading to a phase of termination, or a permanently reduced level of funding; Whereas, the Chuuk State Government must reduce the size and funding requirements of its apparatus; Whereas, the Chuuk State Government is already experiencing financial constraints upon its ability to effectively deliver essential public services because of its excessive size, given projected levels of expected future revenues; and Whereas, the implementation of a mandatory retirement program to effect all Chuuk State Government employees upon their reaching the age of sixty (60) years old is a rational and non-discriminatory attempt to realize the necessary goal of State government labor force and funding reductions, through its effect upon those State employees with the longest service records, thereby affording them the greatest level of security through their accrued level of social security benefits; Now therefore, as a necessary step towards reducing the burdensome expense of an historically obsolete, untenable and expensive State government, the Third Chuuk State Legislature enacts this Act Chapter to implement the retirement of all Chuuk State Government employees upon their reaching the age of sixty (60) years old.
Source: CSL 3-95-27, § 1, modified.
Cross-reference: The constitutional provision on mandatory retirement is found in Art. XI, Section 4 of the Chuuk State Constitution. Section 4 states as follows:
Section 4. The State Government shall establish and administer a mandatory retirement plan for all employed residents of the State of Chuuk. Other residents shall have the option to participate in the plan. The plan shall be based on age or length of service, and shall provide for optional retirement after certain minimum standards have been satisfied. The Legislature shall prescribe by statute for the funding of the plan, and may appropriate funds to provide retirement benefits on account of service prior to the initial effective date of the plan. The plan shall be established and fully effective within 4 years from the date of ratification of this Constitution.
(1) Any employee of the Chuuk State Public Service System, upon reaching the age of sixty (60) years, shall retire from the Public Service within thirty (30) days from the attainment of the age of sixty (60) years.
(2) The Personnel Officer shall maintain age records of all Chuuk State Government employees for the purpose of implementing and enforcing the requirements of this Section. All branch and departmental public officials having responsibility for the hiring of personnel within their respective branches and departments shall coordinate with the Personnel Officer in the implementation and enforcement of the requirements of this Section as with regards to all Chuuk State Government employees within their responsibility.
(3) Any employee wishing to contest his or her retirement on the grounds that said employee has not reached the requisite sixty (60) years of age shall be entitled to a hearing as provided for by Section 1026 of this Act Title. He or she must submit in writing to the Personnel Officer a statement of his or her intentions, and an ad hoc hearing committee shall be chosen not later than fifteen (15) calendar days after the Personnel Officer receives such communication.
(4) Replacement of the retiree, if needed, must be from within the government.
Source: TSL 3-43, as amended by CSL 3-95-27, § 3, modified.
(1) All other Chuuk State Government employees considered as "ungraded" or "unclassified" , whose remuneration, salary or pay is not based on merit principles established by the Chuuk State Public Service System Act, T.S.L. No. 3-43 Chapter 1, or who in any way other than by merit principles receives remuneration, salary or pay from the State, and who are not otherwise specifically exempted from Public Service System applicability by Section 1031 8 of C.S.L. No. 3-43, this Title, shall be subject to the requirements of Section 25 of T.S.L. No. 3-43, as amended by 1201 of this Act Chapter, in all respects, except as otherwise specifically provided pursuant to any lawful employment or service contract existing between said employee and the State.
(2) The Director of Personnel and all branch and departmental public officials having responsibility for the hiring of unguarded employees within their respective branches and departments shall coordinate with each other regarding the implementation and enforcement of the requirements of Section 25 of T.S.L. No. 3-43 1201 as it regards all said employees within their respective responsibilities. For the purposes of this Act Chapter, "Chuuk State Government employees" do not include the State Governor, Lieutenant Governor, members of the Legislature, Justices of the Supreme Court, and persons in professional positions, whose services may still be needed.
Source: CSL 3-95-27, § 5, modified.
The provisions of this Act Chapter shall not impair, change, increase or decrease the obligations of any existing employment contract to which the State government is or becomes a party; except that contracts entered into, or subsequently renewed, after the effective date of this Chapter Act shall not provide for continued employment of the contracted State government employee after said individual reaches the age of sixty (60) years, unless said contract specifically provides on its face for continued employment of said individual beyond his or her attainment of sixty (60) years of
age.
Source: CSL 3-95-27, § 6, modified.
(1) Upon the effective date of this Chapter Act, all Chuuk State Government employees, graded or ungraded, having attained the age of sixty (60) years or older shall retire from their government employment within thirty (30) days. The Director of Personnel and those other branch and department public officials having responsibility for the hiring of personnel within their branches and departments, where applicable, shall, immediately upon the effective date of this Chapter Act, issue written notices to all Chuuk State Government employees, graded or ungraded, having attained the age of sixty (60) years or older on the effective date of this Chapter act, that said employees must retire from their government employment within thirty (30) days of the effective date of this Chapter Act. The thirty (30) days shall commence on the effective date of this Chapter Act, notwithstanding the date of receipt of the notice.
(2) Any employee of the State Government who is forced to retire pursuant to this Act Chapter, shall automatically be qualified and the same entitled to receive retirement benefits when the State has established and implemented its Retirement Plan as mandated by Section 4, Article XI of the Chuuk State Constitution or by any other retirement arrangement for employees of the State of Chuuk.
Source: CSL 3-95-27, § 7, modified.
Cross-reference: The constitutional provision on mandatory retirement is found in Art. XI, Section 4 of the Chuuk State Constitution. Art. XI, Section 4 states as follows:
Section 4. The State Government shall establish and administer a mandatory retirement plan for all employed residents of the State of Chuuk. Other residents shall have the option to participate in the plan. The plan shall be based on age or length of service, and shall provide for optional retirement after certain minimum standards have been satisfied. The Legislature shall prescribe by statute for the funding of the plan, and may appropriate funds to provide retirement benefits on account of service prior to the initial effective date of the plan. The plan shall be established and fully effective within 4 years from the date of ratification of this Constitution.
If any provision of this Act Chapter, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act Chapter which can be given effect without the invalid provision or application, and to this end, the provisions of this Act Chapter are severable.
Source: CSL 3-95-27, § 8, modified.