TITLE 18.  Public Service System

 

Chapter 1.  General Provisions

 

Section 18.101.  Short title.  This Title is known and may be cited as the “State Public Service System Act.”

Background

Title 18, Chapters 1-6 added by State Law 6-131.

 

Section 18.102.  Definitions.  In this Title, unless the context requires otherwise, the following definitions shall apply:

(1)  "Adjusted base salary" means the total of base salary plus market place premiums and foreign service premiums.  If an employee is not entitled to either of these premiums, his adjusted base salary means his base salary.

(2)  "Base salary" means the specific rate of pay for a given pay level and step as contained within the base salary schedule established by law.  Base salary does not include differentials, premiums, or other allowances for night work, transfer, overtime, holiday work, travel per diem, or other similar compensation or reimbursement.

(3)  "Branch Head" means the head of each of the respective three branches of government: Governor for the Executive, Speaker for the Legislature and Chief Justice for the Judiciary.  For purposes of this Title, ‘Executive’ includes Kosrae State Government agencies, but does not include any authority, publicly financed enterprise or public corporation granted authority to retain and terminate employees upon such terms and conditions as it deems appropriate.

(4)  "Class" or "class of positions" means a group of positions sufficiently similar so that all can reasonably be identified by the same title, be filled by applying the same qualification standards, and be equitably compensated by the same salary level.  A class may consist of only one position or any greater number of positions.

(5)  “Director” means the Director of the Department of Administration and Finance.

(6)  "Eligible list" means a list of persons who have been found qualified for appointment to a position in a particular class.  Such a list may be either reemployment, promotional, or open-competitive.

(7)  "Eligible person" or "eligible" means a person whose name is on an active eligible list.

(8)  "Employee" means a person holding a position in the public service, whether permanently or otherwise.

(9)  "Management official" or "management" means a supervisor of a division, Branch Head or other person authorized to make appointments or changes in status of employees in public service.

(10)  "Open-competitive examination" means an examination for positions in a particular class, admission to which is not limited to persons employed in the public service.

(11)           "Open-competitive list" means a list of persons who have been found qualified by open-competitive examination for appointment to a position in a particular class.

(12)           “Oversight Board” means a three member board consisting of each Branch Head, or their designee, that will create and control policy and promulgate rules and regulations for the Public Service System.

(13)           "Position" means a group of duties and responsibilities assigned by the respective management official to be performed by one person, working full-time or part-time.  A position may be either occupied or vacant.

(14)           "Position Classification plan" means the arrangement in a systematic order of the titles of all classes existing in the public service, with a description of each class, as agreed to by the Oversight Board.

(15)           "Probation Period" means a period of probationary employment status of not less than 6 months nor more than 1 year from the beginning of an employee's service in a particular position or class in the public service.

(16)           "Promotional examination" means an examination for positions in a particular class, admission to which is limited to regular employees in the public service.

(17)           “Promotional list” means a list of persons who have been found qualified by a promotional examination for appointment to a position in a particular class.

(18)           "Public service" means all offices and other positions in the Government of the State of Kosrae not exempted by Section 18.107 of this Chapter.

(19)           "Reemployment list" means a list of persons who have been regular employees in the public service and who are entitled to have their names certified for appointment to a position in the class in which they last held permanent status, or in a related class in the same or a lower salary range for which they meet the qualification requirements.

(20)           "Regular employee" or "permanent employee" means an employee who has been appointed to a position in the public service and who has successfully completed a probation period.

Background

Subsections (2) and (3) amended by State Law 6-132.  Section amended by State Law 7-47.

Section 18.103.  Merit Principles.  The State Public Service System shall be administered in accordance with the merit principles set forth below:

(1)  Equal opportunity for all regardless of sex, race, religion, political affiliation, ancestry or place of origin.

(2) No discrimination against any person because of a physical handicap unconnected to his ability to perform effectively the duties of the position in which he is employed or in which he is seeking employment; provided that the employment of such physically handicapped person will not be hazardous to him nor endanger the health or safety of others.

(3)  Impartial selection of the ablest person for public service by means of tests which are fair, objective, practical and the avoidance of family hiring based solely on family status.

(4)  Just opportunity for competent employees to be promoted within the service.

(5)  Reasonable job security for competent employees, including the right of appeal from adverse personnel actions as provided in this Title.

(6)  Systematic classification of all positions through objective job analysis.

(7)  Fair and reasonable grievance procedures, appropriate to conditions of employment, for all employees.

(8)  Proper employer-employee relations to achieve a well-trained, productive, and happy work force.

Section 18.104.  Preference to citizens.  (1)  Notwithstanding the provisions of Section 103 of this Title, with a view to insuring full participation by FSM citizens and residents of this State in its public service, preference shall be given to qualified FSM citizens and residents of Kosrae State in making appointments and promotions and providing opportunities for training.

Section 18.105.  Tenure.  Every regular employee shall be entitled to hold his position during good behavior, subject to suspension, demotion, layoff, or dismissal only as provided in this Title and in any regulations, rules or directives adopted in pursuance thereof; provided, however, that the tenure of a contract employee is the term of his contract.

Section 18.106.  Nondiscrimination.  No employee in the public service shall be suspended, demoted, dismissed, laid off, or otherwise discriminated against because of sex, marital status, race, religious or political preference, place of origin, or ancestry.

Section 18.107. Application and exemptions.  The State Public Service System shall apply to all employees and positions in the government of the State of Kosrae now existing or hereafter established and to all personnel services performed for that government except the following, unless this Title or provisions are specifically made applicable to them:

(1) Members of the Kosrae State Legislature.

(2) The Governor and Lieutenant Governor of Kosrae State.

(3) Justices and other judges of the State courts.

(4) The Attorney General and Assistant Attorney General.

(5) Persons appointed by the Governor with the advice and consent of the Legislature.

(6) Court Counsel.

(7) The Legislature’s Legal Counsel.

(8) Persons or organizations retained by contract when the Branch Head has certified that the service to be performed is special or unique and non permanent and is essential to the public interest, and that, because of the degree of expertise or special knowledge required and the nature of the services to be performed, it would not be practical to obtain personnel to perform such services through normal public service recruitment procedures.

(9) Contract employees during life of the contract, except if renewed or amended.  

(10) Temporary positions, required in the public interest, for which the need does not exceed 6 months.

(11) Positions requiring part-time or intermittent work which does not exceed 60 hours in any calendar month.

(12) Positions filled by inmates, patients and students of institutions of Kosrae State.

(13) Members of any board, public corporation, commission, or similar body, in their capacity as such.

(14) Positions specifically exempted by any other law of Kosrae State.

Nothing in this Section shall be deemed to affect the public service status of any incumbent as it existed on the effective date of this Title.

Background

Amended by State Law 6-132.

Section 18.108.  Transition.

(1)  A regular employee holding a valid position in Kosrae State public service shall be admitted without examination, on or after the effective date of this Act, to a position of the same class or an equivalent class in the State public Service System.  In subsequently computing the seniority of such employee for retention or similar purpose, his time of service in the Kosrae State pubic service prior to the effectiveness of this Act, shall be credited in the same way as if it had been under the State Public Service System.

(2)  Persons presently under contract of employment for public service are not subject to this Title during the life of such contract.

 

 

Chapter 2.  Administration

 

Section 18.201.  Establishment of system.  There is hereby established in the Kosrae State Government a system of personnel administration based on merit principles and accepted personnel methods governing the classification of positions and the employment, conduct, movement and separation of public officers and employees.  This system of personnel administration shall be referred to as the “State Public Service System.”

 

Section 18.202.  Application of system.  The State Public Service System is applicable to all branches of the State Government.  Application and administration of the State Public Service System will be through a cooperative effort of the Branch Heads, the Oversight Board, and the Director.  The Oversight Board shall create and control policy and promulgate rules and regulations for the State Public Service System by unanimous consent.  The Branch Heads, or the Branch Head’s designee, is responsible for all hiring decisions, disciplinary actions, suspensions, terminations, reduction in force, promotion, administrative directives, and other specific decisions which affect their branch of government and are not inconsistent with Title 18 or the policies, rules and regulations adopted by the Oversight Board.  The Director shall be responsible for administering the public service system consistent with Title 18 and the policies, rules and regulations adopted by the Oversight Board.

            The Director shall maintain a current roster of all employees of the State Public Service System indicating the duties of each employee, the class of position held, the salary, and any other appropriate data.  The Oversight Board shall approve the position classification plan that identifies class specifications for each class within the State Public Service System, including appropriate pay levels.

            The Oversight Board shall approve the system of performance evaluation to be administered and utilized for appraising the productivity of the employees in the State Public Service System.  The Branch Heads shall utilize the performance evaluations for employees within their respective branches and transmit them to the Director for administrative purposes.

            The Oversight Board shall approve the system of recruitment and selection procedures and methods to be administered for employment in the State Public Service System.  The Director shall administer the system of recruitment and selection consistent with Title 18 and the policies, rules and regulations adopted by the Oversight Board.

Background

Repealed and replaced by State Law 7-47.

 

 

Chapter 3.  Hiring and Promotion of Employees

 

Section 18.301.  Recruitment and placement.  Except as otherwise provided in this Title, all positions covered by this Title and for which appropriations have been made shall be recruited by advertisement, for the period and by the media which are appropriate in the circumstances.  The advertisement shall include at least the position title, the salary, a brief description of the class, the location of the vacancy or vacancies, the qualification standards required, and the time and place of the examination, if any.  The closing date for filing applications shall be clearly stated.  On applications which are mailed, the date stamp of the post office on the mailing envelope shall be used to determine compliance with the deadline stated in the advertisement.

Section 18.302.  Position classification.  The position classification plan shall classify all positions subject to the provisions of the State Public Service System according to their duties and responsibilities and shall be grouped into classes on the basis of their similarities in duties, and responsibilities and desirable qualifications.  In preparing the position classification plan, the Director shall consult with the appropriate Branch Head and/or the management official.  The Oversight Board shall approve and adopt any position classification plan, including any reclassification plans, by unanimous consent.

Background

Repealed and replaced by State Law 7-47.

Section 18.303.  Examinations.

(1)  General Character.  There shall be competitive examinations, whenever possible and as determined by the Branch Heads, or as required in the position classification plan, to test the relative fitness of candidates for public service positions covered by this Act.  Examinations may be written, oral, performance or any combination thereof, and shall provide for ascertaining the physical and educational qualifications, experience, knowledge, and skill of applicants and their relative capacity and fitness for the duties of the positions they seek.  All examinations shall be free and, except for promotional examinations, shall be open to all candidates, but with such limitations in regard to health, physical condition, education, training, experience, and other relevant matters as are appropriate to the class for which the examination is given.  All examinations shall be administered by the Director, or such person as he may designate, to administer them.  All persons who have passed an examination may be required to take such physical examination as may be specified by the Director.

(2)  Promotional Examination.  Examinations may be promotional whenever, in the opinion of the Branch Head, such examinations are practical and for the best advantage of public service.  The Director shall give ample notice of any promotional examination.

(3)  Open-Competitive Examination.  Examinations shall be open-competitive whenever, in the opinion of the Branch Head, such examinations are practical and for the best advantage of the public service.  The Director shall give ample notice of any open-competitive examination.

(4) Noncompetitive Examination.  Noncompetitive examinations may be given when, in the opinion of the Branch Head, the class for which the examination is to be given calls for special qualifications which could not practically be evaluated through competition, or when the number of qualified candidates does not exceed the number of vacancies to be filled.

Background

Amended by State Law 7-47. 

Section 18.304.  Eligible lists.

(1)  General.  The Director shall establish and maintain separate eligible lists for all classes in which vacancies exist or are anticipated.  Eligible lists may be open-competitive, promotional or reemployment registration.  An eligible list may remain active for 1 year, except that the name of a person otherwise eligible may remain on a reemployment list for 3 years.  The active life of an open competitive or promotional list may be extended by the Director if candidates thereon remain available and there are more vacancies to be filled than names on the list.

(2)  Reemployment Lists.  Whenever any employee who has been performing his duties in a satisfactory manner, as shown by the appropriate records, is laid off or demoted because of lack of work or lack of funds, or has voluntarily accepted a position in a lower class, or whenever such an employee's position has been reclassified to a lower class, he shall have the right to have his name registered on the appropriate reemployment list for a period of 3 years thereafter by filing a written application for registration.  Such application form shall be provided to him at the time of notification of adverse personnel action.  A person on a reemployment list shall be eligible for certification to positions in the class in which he last held permanent status or in a related class, in the same or a lower salary range, for which he meets qualification requirements.

Background

Amended by State Law 7-47.

Section 18.305.  Filling of vacancies.  All vacancies and new positions in the public service shall be filled in the following manner:

(1)  Whenever there is a position to be filled, the management official or supervisor shall ask the Director to submit a list of persons eligible for the position.  The Director shall thereupon certify a list of all eligible applicants in the following order: first, re-employment lists; second, promotional lists, and third, open-competitive lists.  The management official shall make the appointment from the list of eligibles submitted to him unless he finds no person available and acceptable to him on the list, in which case he will ask the Director to certify a new list.

(2)  A management official may fill a vacant position in his department, office or other agency by promoting any regular employee therein without examination, if the employee meets the minimum class qualifications of the position to which he is to be promoted, and if the position is in the same series as the position held by the employee or is clearly an upward progression in the same career-ladder of positions; provided that a qualified employee who is an FSM citizen and resident of Kosrae State shall be given preference for promotion over a noncitizen, nonresident employee; and provided further, that when there is no material difference between the qualifications of employees holding the same citizenship status, the employee with the longest public service will receive first consideration for promotion.

Background

Amended by State Law 7-47.

Section 18.306.  Disqualification from appointment.

(1) Conviction of a felony shall not be a bar to employment in the public service unless the Branch Head determines that the nature of the felony renders the candidate clearly unsuitable for the position.  A pardon shall operate to remove any bar to employment which would have arisen as a result of the felony for which the pardon was granted.

(2)  The commission of or the attempt to commit any material deception or fraud in connection with any application or examination shall cause removal and permanent disqualification from appointment in public service, after proper notice and hearing.

Section 18.307.  Provisional and short term employment.

(1)  Provisional Appointment.  When there is no eligible person available on a list appropriate for filling a vacancy in a continuing position and the public interest requires that it be filled before eligibles can be certified, the Branch Head may authorize the filling of the vacancy through provisional appointment.  The Branch Head shall communicate to the Director the need for an examination. The Director shall proceed without delay to announce an examination to fill the vacancy.  The provisional appointment shall be made only to a person who meets the minimum requirements for the position and their appointment may continue only for such period as may be necessary to make an appointment from an eligible list but shall not extend beyond 90 days; provided that the Branch Head may extend the provisional appointment for a maximum of 90 additional days if an examination has failed to secure an eligible person.

(2)  Emergency Appointment.  To prevent the stoppage of essential public business, management officials may make emergency appointments, not to exceed 10 working days, to fill positions temporarily in any serious emergency when time is insufficient to follow normal appointment procedure.  The Branch Head may, for good and sufficient cause stated in writing by the management official concerned and to the Director, extend the appointment for an additional period not to exceed 20 working days.

(3)  Qualifications, Provisional and temporary appointees must meet the qualification requirements for the class of the position to be filled.

Background

Amended by State Law 7-47.

Section 18.308.  Probationary service.

(1) Every employee shall successfully serve a probation period before becoming a regular employee.  An employee whose services are unsatisfactory during his probation period may be dismissed from the public service at any time by the responsible management official.  An employee so dismissed shall have no right of appeal; but if the employee so requests, the Branch Head may, in his discretion, request the Director to insert the employee's name on the eligible list or lists for other positions in the same class.

(2)  A regular employee who is promoted or transferred to another position in the public service shall be required to serve a new probation period in his new position, but he shall be entitled to all rights and privileges of a member of the public service system except the right to appeal in case of removal from the new position, as distinguished from dismissal from the public service.

(3)  When a provisional or temporary appointee subsequently becomes a probationary employee, the period of service in provisional or temporary status shall be counted toward meeting the probation period required by this Section.

Background

Subsection (1) was amended by State Law 7-47.

 

Chapter 4.  Employee Rights.

 

 

Section 18.401.  Performance evaluations.  The Oversight Board shall develop a system of performance evaluation for the purpose of appraising the productivity of employees in the public service.  Each management official shall rate each employee under his jurisdiction at least once a year.  The Director shall standardize performance evaluation criteria for the same class in various Branches and develop evaluating procedures subject to the approval of the Oversight Board.  The Branch Head shall certify all final evaluations.  A copy of each evaluation shall be given to the employee affected, a copy shall be retained by the Branch Head and the original kept in the Director’s personnel files.  The management official shall give written notification to any employee whose performance in his position is substandard. Performance evaluations shall be used in determining eligibility for retention status in reduction-in-force, promotions, change in duties/reallocation decisions, transfers, change in status (as from probation to permanent, temporary to permanent, etc.) and step increases.

Background

Amended by State Law 6-132 and State Law 7-47.

Section 18.402.  Outside employment.

(1)  No employee subject to the provisions of this Title shall engage in any outside employment or other outside activity which is not compatible with the full and proper discharge of the responsibilities of his position or is otherwise prohibited by law.  It shall be deemed incompatible with such discharge of responsibilities for any such employee to accept any fee, compensation, gift, payment of expenses, or any other thing of monetary value in circumstances such that acceptance may result in, or create the appearance of resulting in:

(a)  use of office for private gain;

(b)  an undertaking to give preferential treatment to any person;

(c)  impeding government efficiency or economy;

(d)  any loss of complete independence or impartiality;

(e)  the making of a government decision outside official channels; and

(f)  any adverse effect on the confidence of the public in the integrity of the government.

(2)  No employee subject to the provisions of this Title shall receive compensation or anything of monetary value, other than to which he is duly entitled from the government, for the performance of any activity during his service as such employee within the scope of his official responsibilities.

Section 18.403.  Employee associations.  Employees shall have the right to form associations for the purpose of presenting their views to the government and shall be free from restraint or reprisal in exercising this right.  The government shall give reasonable opportunity to representatives of such associations to present their views.

Section 18.404.  Grievances.  The Oversight Board shall publish and enact regulations which prescribe a system for hearing the views of employees on their working conditions, status, pay and related matters, and for hearing and adjudicating grievances of any employee or group of employees.  These regulations shall ensure that employees are free from coercion, discrimination, and reprisals and that they may have representatives of their choice.

Background

Amended by State Law 7-47.

 

Section 18.405.  Leaves of absence.  Branch Heads, or other appropriate management officials, may grant leaves of absence, with or without pay, pursuant to regulations adopted by the Oversight Board.

Background

Repealed and replaced by State Law 7-47.

 

Section 18.406.  Resignation. Resignations shall be in writing.  If an employee ceases work without explanation for more than 6 consecutive working days, the management official shall file with the Branch Head and the Director a statement showing termination of employment because of abandonment of position.  The management official shall promptly transmit a copy of the statement to the employee by the most practical means.

Background

Amended by State Law 7-47.

Section 18.407.  Reduction in force. The Oversight Board shall develop and promulgate regulations, directives or rules to govern the conditions under which an employee shall be laid off from his position when lack of work or lack of funds make such action necessary.  In establishing such order of layoff, consideration shall be given, first, to the employee's individual merit, as shown by performance evaluations; second, to his qualifications of education, training and experience; third, to his seniority as measured by total creditable service.

Background

Amended by State Law 7-47.

 

Section 18.408.  Retirement.  An employee is not older than sixty years of age.  Subject to appropriation, an employee who has worked eighteen quarters for the public service and has retired from said employment after reaching fifty-five years of age may be eligible for pension benefits until he reaches sixty years of age.  The Director shall transmit to the Legislature, no later than September 1 of each year, a bill to appropriate the estimated amount of funds to be needed for the upcoming fiscal year, using for their estimate the rate of monthly benefits available to Social Security retirement beneficiaries.

Background

Amended by State Law 7-47.

Section 18.409.  Personnel Records.  The official personnel records of all employees, whatever their type of status, shall be maintained in one location with the Director and safeguarded for confidentiality.  The Director shall provide a copy of the personnel records to the Speaker of the Legislature and the Chief Justice of the Kosrae State Court for the employees of their respective branches.  The Director shall provide any employee a copy of their personnel records after a written request has been made.

Background

Added by State Law 7-47.

 

Chapter 5. Discipline

 

 

Section 18.501.  Suspension.  A management official may, for disciplinary purposes, suspend any employee without pay for such length of time as he considers appropriate but not to exceed 30 days  at any one time or 60 days in any 12 month period.  The management official shall transmit written notice to the Director upon suspension of an employee.  No single suspension for a period of more than 3 working days, whether consecutive or not, shall take effect until the management official transmits to the employee, by the most practical means, a written notice setting forth the specific reasons for the suspension and the employee's right to appeal.  A copy of the notice shall be filed with the Branch Head and the Director without delay.  With the approval of the Branch Head, an employee may be suspended for a period longer than 30 days pending the investigation  of any charge against him.  When an employee has been suspended pending such an investigation and the charge is subsequently dropped, he shall be reinstated in his position with full pay and benefits retroactive to the date of suspension.

Background

Amended by State Law 7-47.

Section 18.502.  Dismissal; demotion. A management official may, for disciplinary reasons, dismiss or demote an employee when he determines that the good of the public service will be served thereby. Demotions may also be made for reasons other than disciplinary ones; regulations, rules or directives shall specify the circumstances in which such demotions may be authorized.  No dismissal or demotion of a permanent employee shall be effective for any purpose until the management official transmits to the employee, by the most practical means, a written notice setting forth the specific reasons for the dismissal or demotion and the employee's rights of appeal.  A copy of the notice shall be filed with the Branch Head and with the Director without delay.

Background

Amended by State Law 7-47.

 

Section 18.503.  Appeals Panel. Each Branch Head shall appoint not fewer than five persons to constitute a panel from which ad hoc hearing committees may be drawn for the purposes set forth in this Title.  Each person shall be appointed for a two year term.  The Branch Head may remove any of his appointments for cause.  Persons appointed shall be nonexempt employees of the Kosrae State Government, of mature judgment and experience.  The panel should include at least one member from each of the three branches of government.

Background

Amended by State Law 7-47.

 

Section 18.504.  Appeals Process.  Any regular employee who is suspended for more than the 3 working days, demoted, or dismissed may appeal to the Branch Head or his designee within 15 calendar days after written notice of the suspension, demotion or dismissal has been transmitted to him.  Any regular employee who has a grievance which has been handled pursuant to the grievance procedure as set forth in regulations to be promulgated by the Oversight Board, and who is still unsatisfied with the final decision may appeal to the Appeals Board pursuant to the applicable regulations.  Upon receiving such appeal, the Branch Head, or his designee, shall form an ad hoc hearing committee of three members, drawn from the panel established under Section 18.503 of this Chapter.

(1)  The ad hoc committee shall comprise one member chosen by the Branch Head, one chosen by the appellant, and a third chosen jointly by the first two members.  If the first two members are unable to agree on the choice of a third member, the third member shall be selected by lot from among the remaining members of the panel.

(2)  No member of an ad hoc committee shall be an officer or employee of the division the appellant was or is assigned, or a close relative of either appellant or the responsible management official.

(3)  Members of the ad hoc committee shall not be entitled to additional compensation for such service, but shall be reimbursed for necessary expenses connected with any hearings to which they are assigned.

Background

Amended by State Law 7-47.

Section 18.505.  Hearing.

(1)  The hearing shall be held within 15 calendar days after the Branch Head receives the Appeal, unless the appellant requests a delay.  At the hearing, the appellant and the responsible management official shall each have a right to be heard, to present evidence, to be confronted by the adverse witnesses, and to be represented by counsel of his own choosing.

(2)  At the hearing, technical rules of evidence shall not apply and evidence shall be taken stenographically or by a recording machine.  The committee shall on its own motion or on that of the Branch Head of the appellant, management official or appellant, subpoena witnesses and tangible evidence, when such witness or evidence are relevant and material to the hearing.  Hearings shall be public except when the appellant requests a closed hearing.

Background

Amended by State Law 7-47.

18.506.  Recommendations. The committee shall prepare a full written statement of its findings of fact and its recommendations for action within 7 calendar days after the close of the hearing.  Its recommendations may include modification or reversal of the disciplinary action, from which appeal was taken.  They shall forthwith transmit that statement, with such supporting documentation as it deems appropriate, to the appropriate Branch Head and the Director.  The decision of the Branch Head and the Director shall be final.  The Branch Head shall transmit a copy of his decision to the Director and the Appellant within 14 calendar days of receipt of the recommendation of the committee.

Background

Amended by State Law 7-47.  Further amended by State Law 7-119.

 

Section 18.507.  Judicial review of contested cases.

(1)  A person adversely affected or aggrieved by a final decision made pursuant to this Chapter is entitled to judicial review of that decision in the Kosrae State Court.  The Court shall conduct a de novo trial of the matter and may receive in evidence any or all of the record from the administrative hearing that is stipulated to by the parties.

(2)  The reviewing court shall decide all relevant questions of law and fact, interpret constitutional and statutory provisions, and determine the meaning or applicability of the terms of an agency action.  The reviewing court shall:

(a)  compel agency action unlawfully withheld or unreasonably delayed;

(b)  hold unlawful and set aside agency actions and decisions found to be:

(i)  arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law;

(ii)  contrary to constitutional right, power, privilege, or immunity;

(iii)  in excess of statutory jurisdiction, authority, or limitations, or a denial of legal rights;

(iv)  without substantial compliance with the procedures required by law; or

(v)  unwarranted by the facts.

Background

Repealed and replaced by State Law 7-132.

 

Chapter 6.  Compensation

 

Section 18.601.  Salary schedule.

(1) There shall be a single salary schedule for all employees and positions in the public service.  The Director shall assign each class of positions to an appropriate salary level of such schedule based on the position classification plan adopted by the Oversight Board.

(2)  No salary schedule or change in any salary schedule for employees of the Kosrae State Public Service System, except those excluded by provisions under this Title, shall be effective unless it shall have been enacted into law by the Kosrae State Legislature. 

(3)  The salary of each public service position is pursuant to lawful classification by step and pay level of the position and to the base salary schedule of biweekly salary rate appearing in the following table:

 

Steps

1

2

3

4

5

6

7

8

9

10

Levels

 

 

 

 

 

 

 

 

 

 

1

83.16

86.86

91.25

94.25

97.94

101.64

105.95

110.26

114.57

118.89

2

86.86

91.25

94.25

97.94

101.64

105.95

110.26

114.57

118.89

123.20

3

91.25

94.25

97.94

101.64

105.95

110.26

114.57

118.89

123.20

129.97

4

94.25

97.94

101.64

105.95

110.26

114.57

118.89

123.20

129.97

138.75

5

97.94

101.64

105.95

110.26

114.57

118.89

123.20

129.97

138.75

148.45

6

101.64

105.95

110.26

114.57

118.89

123.20

129.97

138.75

148.45

158.85

7

105.95

110.26

114.57

118.89

123.20

129.97

138.75

148.45

158.85

169.93

8

110.26

114.57

118.89

123.20

129.97

138.75

148.45

158.85

169.93

181.89

9

114.57

118.89

123.20

129.97

138.75

148.45

158.85

169.93

181.89

194.57

10

118.89

123.20

129.97

138.75

148.45

158.85

169.93

181.89

194.57

208.21

11

119.84

126.43

134.97

144.40

154.52

165.30

176.91

189.27

202.53

216.90

12

126.43

134.97

144.40

154.52

165.30

176.91

189.27

202.53

216.90

231.88

13

134.97

144.40

154.52

165.30

176.91

189.27

202.53

216.90

231.88

248.06

14

144.40

154.52

165.30

176.91

189.27

202.53

216.90

231.88

248.06

265.44

15

154.52

165.30

176.91

189.27

202.53

216.90

231.88

248.06

265.44

284.02

 

16

165.30

176.91

189.27

202.53

216.90

231.88

248.06

265.44

284.02

304.39

 

17

176.91

189.27

202.53

216.90

231.88

248.06

265.44

284.02

304.39

325.36

 

18

189.27

202.53

216.90

231.88

248.06

265.44

284.02

304.39

325.36

348.13

 

19

202.53

216.90

231.88

248.06

265.44

284.02

304.39

325.36

348.13

373.37

 

20

216.90

231.88

248.06

265.44

284.02

304.39

325.36

348.13

373.37

398.47

 

21

221.05

236.47

253.04

270.74

290.17

310.16

331.86

355.92

379.85

406.69

 

22

236.47

253.04

270.74

290.17

310.16

331.86

355.92

379.85

406.69

435.25

 

23

253.04

270.74

290.17

310.16

331.86

355.92

379.85

406.69

435.25

465.53

 

24

270.74

290.17

310.16

331.86

355.92

379.85

406.69

435.25

465.53

498.09

 

25

290.17

310.16

331.86

355.92

379.85

406.69

435.25

465.53

498.09

532.35

 

26

310.16

331.86

355.92

379.85

406.69

435.25

465.53

498.09

532.35

 

 

27

331.86

355.92

379.85

406.69

435.25

465.53

498.09

532.35

 

 

 

28

355.92

379.85

406.69

435.25

465.53

498.09

532.35

 

 

 

 

29

379.92

406.69

435.25

465.53

498.09

532.35

 

 

 

 

 

30

406.69

435.25

465.53

498.09

532.35

 

 

 

 

 

 

The salaries provided herein are based on fifty-six hours of work in a bi-weekly pay period. 

Background

Amended by State Law 6-132.  Subsection (1) was amended by State Law 7-47.

Section 18.602.  Periodic review of plan. The Oversight Board shall periodically conduct necessary and appropriate studies of rates of compensation and pay-related practices in all geographic areas from which employees for the public service are normally recruited and shall adopt such amendments to the existing compensation plan as the Oversight Board deems appropriate; provided that when the amendment includes changes in the salary schedule, the rates or nature of differentials or allowances, or other subjects covered in this Title or in other laws, the Oversight Board shall review the recommendations for transmittal to the Legislature for its consideration, and that such amendment shall become effective only after it has been enacted into law.  In developing amendments, the Oversight Board shall give consideration to:

(1)  the minimum standard of living which is compatible with decency and health;

(2)  the general economic conditions of Kosrae State;

(3)  compensation practices and conditions of appropriate labor markets;

(4)  conditions of employment in the Kosrae State Public Service System;

(5) the financial resources estimated to be available to the State government; and

(5)                                                               such other matters as the Branch Heads may deem appropriate.

 

Background

Amended by State Law 7-47.

Section 18.603.  Premiums.  To recognize circumstances of employment which make it appropriate that recognition be given to labor market conditions outside of Micronesia, the following premiums are provided to public service employees.  When an employee is receiving a premium in addition to his base salary, the sum of his base salary plus premium shall constitute his adjusted base salary for the purpose of computing differentials:

(1) Market Premium.  (a)  An employee who is recruited in a location outside Micronesia, who is a noncitizen of Micronesia, and at the time of original hire, a nonresident thereof, may be paid a premium based on labor market conditions in the place of recruitment and on the level of the base salary. (b)  A citizen receives the base salary in the salary schedule provided under Section 18.601. If the employee is (i) professionally licensed in his field, when applicable (ii) has obtained an earned professional degree in law or medicine, an earned doctorate in any other field, or an earned degree in professional engineering awarded upon completion of a four-year course, from a college or university accredited by a competent authority in the jurisdiction where the college or university is located; and (iii) is employed in a position having a requirement for such degree, the employee also receives thirty-five percent of the market place premium using the United States of America as the relevant labor market.

(2) Foreign Service Premium.  An employee who is a citizen of the FSM and who is assigned to a permanent duty station outside Micronesia may be paid a premium based on labor market conditions in the place of assignment and on the level of the base salary.

Section 18.604.  Differentials.  To compensate for unusual circumstances of employment which create hardships for public service employees, the following differentials are provided for them;  provided that in no case may an employee receive differentials under both subsections (1) and (2) of this Section:

(1)  Night Work Differential.  An employee whose tour of duty includes regularly scheduled hours falling between 7:00 p.m. and 7:00 a.m. shall be paid a differential of fifteen percent (15%) of the adjusted base salary for all hours falling within that period.

(2)  Hazardous Work Differential.  An employee whose position entails unusual and extreme hazards to his health or safety shall be paid a differential of twenty-five percent (25%) of the adjusted base salary for all hours in which hazardous work is performed.

(3) Overtime Differential.  An employee shall be paid overtime differential at the rate of time and one-half of his adjusted base salary for all time when he is directed to work and does work in excess of 8 hours in 1 day; or when he is directed to work and does work a day or days beyond 5 days in a work week; provided that he has first worked a 40 hour week straight time; and provided further, that overtime work performed on a holiday shall be subject to subsection (4) of this Section.

(4)  Holiday Differential.  An employee who is required to work on a legal holiday shall be compensated at double his adjusted base salary for all such hours worked.

(5)  Typhoon Emergency Differential.  Employees who are required to work in a location and a period in which a typhoon or other natural catastrophe has been declared by competent authority, and in which other government employees are released [from] work because of such conditions, shall be compensated for the hours worked which such emergency remains in force at the rate of two and one-half times the adjusted base salary.  The differential provided in this subsection shall not limit the employee's right to any other differential or allowance to which he may otherwise be entitled by law or regulations.

(6)  Standby Differential.  An employee whose position requires him to remain in standby status or on call, subject to call at any time, for a regularly scheduled period of 8 or more hours in excess of a normal workweek, and who, in fact is frequently called during this period of scheduled standby, shall be entitled to a differential of twenty percent (20%) of the adjusted base salary.”

Background

Subsections (3) and (6) amended by State Law 6-132.  Subsection (6) was further amended by State Law 7-47.

Section 18.605.  Transfer allowance.  To compensate employees for unusual expenses resulting from changes of work location, the following allowance is provided to public service employees:

(1)  When an employee is recruited or transferred beyond normal commuting distance from his place of permanent residence for work elsewhere, he shall be entitled to all justifiable expenses connected with travel of himself and his immediate family to the new work location and transportation of a reasonable quantity of household effects.

(2)  He shall be entitled to an allowance equal to per diem at the established rate for the new duty station for a period not exceeding 15 calendar days from the date of entry into new position.

Section 18.606.  Performance increases.  When an employee’s performance, as determined through objective evaluation by the appropriate management official, has met accepted standards of productivity during a specified period (“the required period of acceptable performance”), his base salary is increased by one step in the appropriate level of the base salary schedule.  For an increase to step 2, 3, or 4, the required period of acceptable performance is 52 calendar weeks.  For an increase to step 5, 6, or 7, the required period of acceptable performance is 104 calendar weeks.  For an increase to step 8, 9, or 10, the required period of acceptable performance is 156 weeks.  No employee has a base salary above the maximum step prescribed for his pay level unless he was receiving such compensation on the effective date of this section.

Background                                                                                                                                    Added by State Law 6-160.  Prior Section 18.606, repealed by State Law 6-132.  

Section 18.607.  Cost of living adjustment.  In addition to any other compensation authorized under this Chapter, an employee is entitled to receive a cost of living adjustment in the amount provided by legislative appropriation for that purpose, if any.  A cost of living adjustment provided under this Section is not included in an employee’s base salary and shall be paid bi-weekly.

Background

Added by State Law 7-40.

 

Chapter 7.  Early Retirement Program

 

Background

Title 18, Chapter 7 added by State Law 6-122 and renumbered by State Law 6-136.

 

Section 18.701.   Short Title.  Chapter 7 of Title 18 of the Kosrae State Code shall be known and may be cited as the “Kosrae State Early Retirement Act of 1997”.

Section 18.702.  Purpose.  The purpose of this chapter is to lower the long-term cost of Kosrae State Government operations by establishing a program of early retirement for employees of the State Government due to the impending reduction in compact funding during the compact step-down and the potential termination of compact funding after the initial fifteen year compact period.

Section 18.703.   Findings.  the State finds that:

(a) The State must initiate and implement cost savings measures as it faces certain reductions and possible future termination of funds under the Compact of Free Association between the Federated States of Micronesia and the United States of America.

(b) the State cannot continue to provide essential public services unless cost-saving and cost reduction measures are implemented immediately.

(c) The State must ease the impact of the necessary cost-saving and cost-reduction measures on the people of the State of Kosrae.  An early retirement program will help to alleviate the fiscal difficulties facing the State of Kosrae.

 

Section 18.704.  Definitions.  As used in this chapter, unless the context clearly requires otherwise, the term:

(a) “Base Salary” means the specific rate of pay based on a fifty-six hour bi-weekly pay period, for a given pay level and step as contained within the Base Salary Schedule established by the State Public Service System Act of 1997, as amended.

(b) “Compact” means the Compact of Free Association between the Federated States of Micronesia and the United States of America.

(c) “Participating employee” means a permanent employee who qualifies to participate in the Program as set forth in Section 18.706.

(d)  “Permanent employees” means employees appointed to positions in the public service system who have successfully completed their probationary employment status.

(e)  "Probationary [employees]” means employees appointed to positions in the public service system who have not completed their probationary employment status for a period not less than six months and not more than one year.                    

(f)  “Program” means the early retirement program established and prepared within Kosrae State Government.

Background

Amended by State Laws 6-132 and 6-136.

Section 18.705.  Early Retirement Program: Commencement.

(a) the State hereby establishes a Kosrae State Early Retirement Program for the benefit of permanent employees recruited 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 end.

(d) Copies of certification shall be provided to each branch of the Kosrae State Government.

Section 18.706.  Eligibility; Procedures; Requirements.  Eligibility for the benefits under the program shall be determined as follows:

(a) Within 30 days of the commencement of the program, the Governor of Kosrae for the executive branch, the Chief Justice of Kosrae State for the judicial branch, the Speaker of the Kosrae Legislature, and the chief executive officer for each agency of the State Government shall submit to the Governor, or his designee, a list for their respective branch or agency.  Each list may be updated from time to time and shall include each position:

(1) Which shall be ineligible for inclusion in the program.  A position shall be ineligible if such position is exempt by law from provisions of the Public Service System Act, or provides essential public service and if abolished would cause the Kosrae State Government to fail to provide essential public services;

(2) Which shall be terminated because such position is redundant, inefficient, no longer funded or subject to abolishment from the public service without causing a failure by the Kosrae State Government to provide essential public services; and

(3) Which may be eligible for inclusion in the program.

(b) A permanent employee in a position which shall be terminated under section 18.706(a)(2) of this chapter shall be deemed a mandatory participant in the program subject only to the abolishment of the position.  Such abolishment may occur at anytime during the program period but not less than 60 days after the employee has received notice that the position is to be abolished.  Eligibility for compensation under the program shall be subject to the criteria in section 18.707(a)  of this chapter.

(c) A permanent employee in a position eligible for inclusion in the program under section 18.706(a)(3) of this chapter may participate in the program voluntarily by submitting written application to the Governor or his designee.  Eligibility for compensation under the program shall be subject to the criteria in section 18.707(a) of this chapter.

Section 18.707.  Compensation to employees under the program.

(a) Permanent employees eligible for participation in the program shall be eligible for compensation under the program if:

(1) There are funds available in the program; and

(2) Long-term cost savings would be achieved by the employee's participation in the program with compensation; and

(3) The respective branch or agency of the Kosrae State Government shall abolish the position without compromising essential public services or such position shall be filled by a permanent or probationary employee and such employee's previous position shall be abolished.

(b) Permanent employees eligible for participation in the program and eligible for compensation under the program shall receive the following compensation:

(1) Persons less than 55 years of age shall receive either:

(a) a lump sum payment equal to 48 bi-weekly base salary payments; or

(b) a lump sum payment equal to 24 bi-weekly base salary payments plus periodic payments equal to 26 base salary payments; or

(c) periodic payments equal to 52 bi-weekly base salary payments.

(2) Persons aged 55 or greater but not yet eligible for FSM Social Security Administration (hereinafter "SSA”) retirement benefits, shall receive a lump sum payment equal to 6 bi-weekly base salary payments and a monthly amount equal to such becoming eligible for SSA retirement benefits.  Such payment shall terminate upon the person reaching the age of 60 or applicable law.  The Director of Administration and Finance may enter into an agreement with the SSA authorizing the SSA to administer the monthly payments under this subsection.  The agreement may also provide for the collection of reasonable administrative fees by the SSA.  Should the participating employee die prior to the termination of the benefits under the program the deceased participating employee’s entitlements to compensation under the program shall survive and the remainder will be paid to person's or entities in accordance with the participating employee’s anticipated SSA monthly retirement benefit at age 60.

(3) Persons aged 60 or greater and eligible to receive SSA retirement benefits shall receive a lump sum payment equal to 6 bi-weekly base salary periods.

(c) Each compensation package due to an employee pursuant to this chapter 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 authorization; and                                                                                                                                 (4) Deduct therefrom any other adjustment which the employee may owe to the government, or add thereto any adjustment which the government may owe to the employee.

Background

Amended by State Law 6-136.  Further amended by State Law 7-1..

Section 18.708.  Employees in program not eligible for re-employment.  An employee who receives compensation under the Program shall not be eligible for re-employment by the State Government pursuant to the State Public Service System Act or employment pursuant to employment contract for a period of four years following the employee's departure from the public service under the program with the exception of elected and appointed positions subject to advise and consent.

Section 18.709.  Government shall provide counseling and training.  The Government shall provide out placement counseling and retraining for the participating employees during the transition period which shall be made optional and at the discretion of the participating employees.

Background

Amended by State Law 6-136.

Section 18.710.  Program Fund, uses, loan repayment and reversion of funds.

(a) The program shall be funded from loan proceeds or from funds from the General Fund otherwise appropriated for such use.  Upon disbursement of any loan proceeds, such funds shall be deposited in a Kosrae State Government Early Retirement Fund (hereinafter Retirement Fund) which is hereby created and established.  The Retirement Fund shall be separate from the General Fund or any other funds of the Kosrae State Government.  Money in the Retirement Fund shall be invested prudently and investment gains therefrom shall accrue within the fund.

(b) Funds in the Retirement Fund may only be withdrawn, unless otherwise provided by law, for the following purposes:

(1) Payment of compensation to employees participating in the program;

(2) Payment to the SSA for payments and the administration of monthly compensation to persons participating in the program under Section 18.707(b)(2) of this chapter;

(3) Repayment of any loan obligations directly related to the program; or

(4) Payment for training costs related to the program, but not exceeding $150,000 in total.

(c) In order to facilitate the repayment of the loan the State Government shall continue to appropriate funds equivalent to at least fifty percent of the costs for each position abolished and subject to compensation payments under the program.  The funds so appropriated shall be deposited in the Retirement and Repayment  Fund.  On or before September 30, 2001, the balance of the Retirement and Repayment  Fund must equal or exceed the principal amount borrowed for the program.

(d) Pursuant to the terms of the Financing Agreement, if, at any time during the term of the loan the amount in the State’s Trust Fund Account with the national government, plus the amounts in the Retirement Fund, exceeds the principal amount remaining for the loan, the amount in excess may be withdrawn from the Retirement Fund first, and then from the State’s Trust Fund Account if still in excess of the remaining principal amount of the loan.  Such withdrawals shall revert to the General Fund.  Any funds remaining in the Retirement Fund and the State’s Trust Fund Account after the loan has been paid in full shall revert to the General Fund.

Background

Amended by State Law 6-136.

Section 18.711.  Annual Report.  The Governor shall submit a report to the Legislature not later than the first Monday of February of each year regarding the condition of the Program, actual expenditures from 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 18.710 of this chapter.

Section 18.712.  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 provisions of this chapter.

 

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