YSC, Title 8.  Public Officers & Employment
 
 
 
Chapter 5:  Early Retirement

501.  Short title.
502.  Purpose.
503.  Findings.
504.  Definitions.
505.  Early retirement program; commencement.
506.  Procedures; requirements.
507.  Compensation to employees under the program.
508.  Employees in program not eligible for re-employment.
509.  Governor authorized to obtain loan for the program.
510.  Loan repayment; escrow account; and reversion of funds.
511.  Freeze on step-increase in annual salaries; reduction in average salary,
            compensatory time; and overtime compensation.
512.  Annual report.
513.  Act supersedes other laws.
514.  Severability.

     501.  Short title.
     Chapter 5 of Title 8 of the Yap State Code shall be known and may be cited as the "Yap State Early Retirement Act of 1996".

           Source:  YSL 4-35 1, modified.

     502.  Purpose.
     The purpose of this chapter is to establish a program of early retirement for employees of the State Government due to impending reduction in compact fundings during the compact step-down and the termination of compact fundings after the compact period.

           Source:  YSL 4-35 1, modified.

     503.  Findings.
     The State finds that:

    (a)  The impending reduction in compact fundings during the remaining years of the compact period and the termination of compact fundings after the compact period as required by the terms of the Compact of Free Association with the United States require the State to initiate and implement immediate cost-saving and cost-reduction measures in order to continue to provide essential public services.

    (b)  The State's economic situation has not yet developed to an adequate level that will enable the State to continue to provide essential public services in the absence of cost-saving and cost-reduction measures.

    (c)  To ease the impact of the necessary cost-saving and cost-reduction measures on the employees and the public in general, the State finds that an early retirement program as opposed to mandatory reduction in force as authorized by the Yap State Public Service System Act is the least drastic and most viable option available to the State to implement and at the same time still provide essential public services within the limited fundings available thereto during the compact step-down and later on after the compact termination.

           Source:  YSL 4-35 1, modified.

     504.  Definitions.
     As used in this chapter, unless the context clearly requires otherwise, the term:

    (a)  "Base salary" means the specific rate of pay for a given pay level and step as contained within the Base Salary Schedule established by the State Public Service Salary Act of 1979 as assigned to an employee whose position is determined for abolishment under the Program, which specific rate of pay is subject to all deductions required by laws.  The term does not include differentials or allowances for standby, night work, transfer, overtime, holiday work, travel, per diem, or other similar ones.

    (b)  "Compact" means the Compact of Free Association with the United States of America.

   (c)  "Permanent employees" means employees who have been appointed to positions in the public service system who have successfully completed their probationary periods.

   (d)  "Probationary employees" means employees appointed to positions in the public service system who have not completed their probationary employment status for a period of one year from the beginning of their service in the particular positions or class and who may, after one year, become permanent employees.

   (e)  "Program" means the early retirement program with its eligibility requirements and benefits as defined in this chapter.

           Source:  YSL 4-35 1, modified.

     505.  Early retirement program; commencement.

    (a)  There is hereby established a Yap State Early Retirement Program for the  benefit of permanent employees recruited and retained pursuant to the State Public Service System Act whose positions may be abolished from the public service system in a manner consistent with this chapter and the economic realities of the State.

    (b)  The Program shall begin on the date the Governor certifies that there are funds available in the Program for disbursement to employees and shall continue from the date of certification for a period not to exceed two years.

    (c)  The certification shall clearly state the date when the program will begin.

    (d)  Copies of the certification shall be provided to each branch of the State Government, and the traditional councils.

           Source:  YSL 4-35 1, as amended by YSL 4-51 1, modified.

     506.  Procedures; requirements.
     Once the Program commences, the following procedures for implementation of the program shall be followed:

     (a)  The respective government officials shall within one month submit to the Governor a list of the positions which may be abolished and still maintain essential public services, and a recommended schedule of when each position listed would be abolished.  The list of positions and the schedule for abolishment shall be prepared in the following manner:

               (1)  The Governor shall identify such positions to be abolished in the executive branch, the Speaker for positions in the legislative branch, the Chief Justice for positions in the judiciary branch, and the chairmen of the Councils of Pilung and Tamol for positions in their respective councils.

               (2)  Each government official as provided in paragraph (1) of this subsection shall submit the list of positions with the recommended schedule for abolishment to the Governor who shall approve the same, or return it with his comments or recommendations to the appropriate official for further action.

               (3)  All lists of positions to be abolished and the corresponding schedules for abolishment shall be approved by the Governor before they shall be presented to the Chief of Personnel for implementation.

              (4)  The Governor may require any other relevant information in addition to those specified in this subsection.

   (b)  The employees as permanent employees whose positions have been identified to be abolished shall be given written notices at least 60 days prior to the date established for the positions to be abolished.  The notices shall be given by the Chief of Personnel with copies to the respective government officials who shall, upon receipt of the notice, prepare and submit for processing the necessary personnel action forms.  The notice shall include, but not limited to, the following:

              (1)  The title and location of the position to be abolished;

              (2)  The reasons why the position is to be abolished;

              (3)  The date on which the position will be abolished;
 
              (4)  The amount of the lump-sum salary compensation which the employee will be entitled to from the government;

              (5)  The dates for the period covered by the lump-sum salary compensation;

              (6)  The date on which payment will be made to the employee;

              (7)  Other benefits such as annual leave lump-sum payment which the employee may receive by reason of his early retirement;

  (8)  Any anticipated deduction from the lump-sum salary compensation, such as leave advances, salary advance, per diems or other travel advances, or any other form of liability owed to the government;

  (9)  The requirement that employees who retire under the program shall not be eligible for re-employment by the State Government as provided under section 508 of this chapter, until after September 30, 2001; and

  (10)  Any other relevant information which the Chief of Personnel deems necessary.

   (c)  Probationary employees whose positions are identified to be abolished shall also be given notices similar to the ones required under subsection (b) of this section.  However, such employees may not be entitled to compensation under the Program.

           Source:  YSL 4-35 1, as amended by YSL 4-59 1, modified.

     507.  Compensation and retraining to employees under the program.

    (a)  Compensation to all permanent employees whose positions are abolished under the Program shall cover a period of time based on funds made available to the Program as determined by the Governor.  Each employee shall receive a lump-sum payment based on the current base salary the employee earns from his position.  In the absence of a loan or grant for the Program, the Governor, after consultation with the Legislature, may utilize the funds in the escrow account as defined in section 310 of this chapter for payment to employees eligible under the Program provided that payments to the employees from the account shall be based on funds appropriated for each fiscal year as authorized by the section.

   (b)  The period of time upon which the lump-sum payment will be based shall be for a period of two years for every permanent employee retiring under the Program who has two or more years of employment in the public service system before the legal age of retirement under the social security program of the Federated States of Micronesia.  For any permanent employee retiring under the Program who has less than two years of employment in the public service system before the legal age of retirement under the social security program of the Federated States of Micronesia, the lump-sum payment shall be for the remaining period of employment under the public service system.

   (c)  Each lump-sum payment due to an employee pursuant to this section shall be subject to the following adjustments prior to disbursement:

              (1)  Deduct therefrom any annual or sick leave advance;

              (2)  Deduct therefrom any salary advance;

  (3)  Deduct therefrom any per diem or other travel advances including outstanding travel authorizations; and

  (4)  Any other adjustment which the employee may owe to the government, or which the government may owe to the employee.

   (d)  The Governor is authorized to utilize a portion of the loan or funds of the Program for retraining and counseling of retirees under the Program and other government employees whose positions are abolished by the State during the Program, provided that this portion of the loan or funds to be used for retraining and counseling shall not be used for personnel.

           Source:  YSL 4-35 1, as amended by YSL 4-51 2, modified.

     508.  Employees in program or in any similar program not eligible for re-employment.
     Any employee who receives compensation under the Program or under any similar program of the National Government or any state of the Federated States of Micronesia shall not be eligible for re-employment by the State Government pursuant to the State Public Service System Act or an employment contract until after September 30, 2001.

          Source:  YSL 4-35 1, as amended by YSL 4-59 2 and YSL 4. 88 1, modified.

     509.  Governor authorized to obtain loan and pledge security for the program.
     The Governor is hereby authorized to negotiate and obtain a loan or funds for the Program.  The loan or funds received for the Program shall be used only in the manner authorized by this chapter.  The Governor is further authorized to pledge State funds as security necessary to secure the borrowing as well as to satisfy any financial obligations attributable to the State related to or resulting from such borrowing.

           Source:  YSL 4-35 1, as amended by YSL 4-59 2, modified.

     510.  Loan repayment; escrow account; and reversion of funds.
     To facilitate the acquisition and repayment of the loan authorized under section 309 of this chapter, the State shall continue to appropriate funds for any position abolished and vacated pursuant to the Program in the same amount budgeted for each fiscal year for each respective position held  by  the employee.  The funds so appropriated shall be deposited by the Governor or his designee in an escrow account in a bank to earn interest and may only be withdrawn, unless otherwise provided in this chapter, by the Governor or his designee for the purposes of repayment of the loan used for the Program when the terms and conditions of the loan so used require repayment.  After full repayment of the loan, any remaining balance of the funds so deposited in the escrow account shall revert to the General Fund of the State of Yap.

           Source:  YSL 4-35 1, modified.

     511.  Freeze on step-increase in annual salaries; reduction in average salary.
     The Governor is hereby authorized to impose a freeze on step-increases in the annual salaries of all employees in the public service system.  If the financial condition of the State so dictates, the Governor may, as a last resort, reduce the average salary of all employees in the public service system in an amount he determines as appropriate.

           Source:  YSL 4-35 1, as amended by YSL 4-51 3, modified.

     512.  Annual report.
     The Governor shall submit a report to the Legislature not later than the first Monday of May of each year regarding the condition of the Program, actual expenditures from the Program for the last completed fiscal year, estimated expenditures for the fiscal year in progress, a full accounting of the funds received by the State for the Program, and a full accounting of funds deposited in the escrow account as authorized in section 510 of this chapter.

           Source:  YSL 4-35 1, modified.

     513.  Act supersedes other laws.
     The provisions of this chapter shall supersede in their entirety any other provisions of any State laws that may be interpreted as inconsistent with any provision of this chapter.

           Source:  YSL 4-35 1, modified.

     514.  Severability.
     If any provision of this chapter, or amendments thereto, or application thereof to any person, thing or circumstances is held invalid, the invalidity does not affect the provisions or application of this chapter, or amendments, that can be given effect without the invalid provision or application, and to this end the provisions of this chapter, and the amendments thereto, are severable.

           Source:  YSL 4-35 1, modified.