Administrative Order No. 225

Findings

I, Frank H. Murkowski, Governor of the State of Alaska, make the following findings:

1. Provisions of ch. 57, SLA 2001, commonly known as the retiree rehire provisions of HB 242, permit certain retirees who return to work in positions normally covered by the public employees’ and teachers’ retirement systems to waive active coverage under the retirement systems and continue to receive state retirement benefits while working.
2. The purpose of the retiree rehire provisions of HB 242 is to provide a management tool to help address existing and anticipated recruitment problems faced by public employers who participate in the retirement systems. The executive branch of state government is currently facing demonstrated recruitment difficulties in a variety of job classes, particularly those job classes that require specific education or that require a strong professional work history that is usually gained over a period of time working in a professional field.
3. Consistent application of the retiree rehire program of HB 242 is especially important for recruitment for positions in the classified service to ensure that the principles of collective bargaining are consistently met. Furthermore, it is essential that managers in all state agencies anticipate and plan for the eventuality of retirement of the state’s seasoned workforce in the classified service in a manner that does not undermine the state’s workforce or create morale problems among less experienced staff who are preparing for promotional opportunities created by retirement of their coworkers.
4. The retiree rehire provisions of HB 242 sunset on July 1, 2005, and legislation extending the use of this valuable management tool and addressing participation by current rehired retirees is unlikely to pass and be enacted into law unless the retiree rehire program is properly managed to meet the Legislature’s original intent.

Orders

Under the authority of art. III, secs. 1 and 24, of the Alaska Constitution, I, Frank H. Murkowski, Governor of the State of Alaska, order the following regarding appointment of rehired retirees to positions in the classified service of the executive branch of state government:

1. The hiring authority shall use the following competitive process for recruitment:
   1. an applicant must be recruited through a competitive process before an appointment is made;
   2.  the recruitment must have been posted on Workplace Alaska for at least 15 days before an appointment is made;
   3. the hiring authority must consider all applicants before making the appointment; and
   4. if the selected applicant would be appointed using the retiree rehire provisions of HB 242, the applicant must have been separated from state service for at least 30 days.
2. Before a position is offered to an applicant using the retiree rehire provisions of HB 242:
   1. the recruitment described in (1) of this Order must have resulted in an applicant pool of fewer than five qualified, eligible, and available applicants;
   2. the hiring authority must demonstrate why no other applicant will have the knowledge, skills, or ability to perform the duties of the positions after the full probationary period; and
   3. the approval for the hire must have been secured in writing from the director of personnel in the Department of Administration.
3. Within 60 days after receipt of the director of personnel’s approval under (2)(C) of this Order and the acceptance of the position by the person under the retiree rehire provisions of HB 242, the hiring authority shall work with the division of personnel in the Department of Administration to develop a plan that addresses:
   1. the critical components of the position;
   2. the knowledge, skills, and abilities that need to be developed in the workplace to assure that the work can be accomplished when the rehired retiree leaves state service; and
   3. a development plan for accomplishing the transfer of knowledge.
4. Step placement for the salary of an appointee under the retiree rehire program of HB 242 shall be determined by the hiring authority in accordance with applicable statutes, personnel rules, collective bargaining agreements, and enforceable policies and procedures.
5. State agencies are encouraged to develop a strategic view of human resource needs, including the development of a workforce plan, with the assistance of the division of personnel, to address the future needs of the state agency.

Definition

In this Order, “state agency” means a department, office, or other organizational unit of the executive branch of state government; “state agency” includes a state board, commission, authority, or independent state agency assigned to a department for administrative purposes.

Applicability

This Order applies to all appointments made to the classified service of the executive branch of state government on or after the effective date of this Order.

This Order takes effect immediately.
DATED at Juneau, Alaska, this 8th day of March, 2005.

/s/Frank H. Murkowski
Governor