Senior executive service (SES) transition to retirement

1. Purpose

1. The purpose of this guideline is to provide chief executives with guidance about the process for employing more than one person in a senior executive service (SES) role.

2. Authorising provisions

2. Sections 9, 10, 177, 188, 249 of the Public Sector Act 2022 (the Act).

3. Commencement

3. Effective from 17 January 2025.

4. Application

4. Public service entities (referred to as entity or entities) under section 9 of the Act.

5. Background

5. This guideline should be read in conjunction with relevant directives dealing with Recruitment and selection and the Senior executive service – employment conditions and the Act. Section 249 of the Act provides for the Public Sector Governance Council (the Council) to fix the maximum number and classification levels of full-time senior executive roles for each entity.
6. The chief executive of an entity may employ senior executives under section188(1) of the Act; however, the employment requires approval by the Public Sector Commissioner (the Commissioner) under section 188(2) of the Act. The directive on Senior executive service – employment conditions sets out the approval requirements.
7. Following approval of employment, chief executives of entities must confirm with the Commissioner by updating employment information and by ensuring the entities’ SES profile is current and accurate utilising the Executive Leadership Information System (ELIS) as appropriate or using standard documentation for entities without access to ELIS.

6. Guidelines

6. Transition to retirement – entity chief executive approval required.
   
   Under section 249 of the Act, the Council may fix the maximum number, and classification levels, of full-time senior executive roles in a public service entity.

   This means that the maximum number is determined by the number of full-time senior executive roles rather than the number of persons as was the case under the Public Service Act 2008.

   This change allows more than one person to be employed in a senior executive role at one time under a section 190 contract of employment, for instance, where there are part-time arrangements or when the substantive officer wishes to take extended leave to transition to retirement or prior to resigning.

   Previously, Commissioner approval for a special conditioned fixed term contract of employment had to be requested for the substantive officer to be employed with the same terms and conditions and to facilitate the senior executive role as vacant, thus enabling the entity to advertise and fill the role.

7. Process:
   1. An entity chief executive may approve a senior executive role to be advertised and a person employed where the incumbent has advised they will be taking pre-retirement leave:
      1. The substantive officer must provide their chief executive with written notice of their resignation or retirement on a nominated date as well as their intention to take leave prior and
      2. The chief executive must provide a written notice accepting the retirement/resignation date.
   2. The entity should ensure payroll systems are updated with the cessation date and separation processes are completed prior to the leave commencing including the return of all devices and removal of access.
   3. Under clause 8.2 of the Senior executive service – employment conditions (Directive 09/23), the entity must consult with the Public Sector Commission if the role will be advertised for a period of more than six months.
   4. Following endorsement by the Public Sector Commission, the entity may advertise and fill the role as a senior executive role in compliance with the directives Recruitment and selection and the Senior executive service – employment conditions.
   5. If the employment is approved by the Commissioner or entity chief executive, the entity must update the record in ELIS within 5 working days. This action officially notifies the Commissioner.

Public service entity is a department or entity mentioned in Schedule 1 of the Act.

Senior executive employed under section 188 of the Act.

Senior executive role is a role approved by the Council and which officers are engaged under section 190 of the Act.

Section 190 contract is employment of public service officers on contract as a senior executive.