(UNTITLED)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP59-00224A000100690003-7
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 15
• Document Creation Date: December 9, 2016
• Document Release Date: August 25, 2000
• Sequence Number: 3
• Publication Date: June 14, 1955
• Content Type: REGULATION

Approved For Release 2001103101: CIA-RDP59-00224A000100690003-7
To consolidate and revise certain provisions of law relating to
additional compensation of civilian employees of the Federal Government
stationed outside the continental United States and in Alaska, except as
otherwise authorized herein, and to facilitate recruitment, reduce turnover,
and compensate for extra costs and hardships due to overseas assignments.
Be it enacted by the Senate and the House of Representatives of the
United States of America in Congress assembled, That this Act may be cited
as the "Overseas Allowances Act of 1955."
Sec. 101. The Congress hereby declares that the objectives of this Act
are to improve and strengthen the administration of Federal Government
activities overseas by -
(1) codifying into one Act certain provisions of law compen-
sating United States citizen employees of the United States
Government stationed outside the continental United States
and in Alaska for extra costs and hardships due to overseas
assignments;
(2) providing uniform treatment for personnel of all agencies
of the Federal Government overseas to the extent justified
by relative conditions of employment;
providing a basis for the more efficient and equitable
administration of those provisions of law;
(4) facilitating the recruitment and retention of the best
qualified personnel for service in overseas areas.
Approved For Release 2001103101: CIA-RDP59-00224A000100690003-7
 Sec. 111. When used in this Act, the term -
(1) "Government" means the Government of the United States of
America;
(2) "Government agency" means any executive department, board,
bureau, office, agency, commission, or any other establishment
of the Federal Government; or any corporation wholly owned
(either directly or through_gne or more corporations) by the
United States;
(3) "Continental United States" means the existing 48 States and
the District of Columbia;
(4) "overseas" means all areas not included in the continental
United States as defined in paragraph (3) of this section;
(5) "Foreign areas" means all areas, including for the purposes
of this Act the Trust Territory of the Pacific Islands and
bases leased by the United States in foreign areas, but
exclusive of the continental United States, the Canal Zone
and the Territories and possessions of the United States;
(6) "Territories and possessions of the United States" means
Alaska, Hawaii, the Commonwealth of Puerto Rico, the Virgin
Islands, Guam, American Samoa, and all possessions of the
United States;
(7) "Employee" means a civilian in the service of the Government,
as more specifically defined in regulations of the President,
and including ambassadors, ministers, and officers of the
Foreign Service, but excluding members of the Senate and House
Approved For Release 2001103101: CIA$QP ~ 7{I~ DB'.Kd.
 Sec. 121. Allowances and differentials authorized by this Act shall be
paid only in accordance with regulations prescribed by the President
establishing rules governing payment and rates at which payment shall be
made, and defining the area, groups of positions and categories of per-
sons to which each rate applies.
Sec. 122. Notwithstanding the provisions of RS 1765 (5 U.S.C. 70), allow-
ances and differentials provided by this Act are authorized for employees
(a) whose rates of basic compensation are fixed by statute and (b) whose
rates of basic compensation are fixed administratively in conformity with
rates paid by the Government for comparable work in the continental United
States, without taking into consideration allowances and differentials
provided by this Act, except as otherwise provided by this Act.
Sec. 123. Notwithstanding the provisions of Sec. 111 (5) and (6) above,
the President may, for purposes of this Act, designate the Panama Canal
Zone to be treated either as a Territory or possession or as a foreign
,area if in his judgment the best interests of the United States will be
served thereby; and in the event the designation is for treatment as a
foreign area, the President shall specifically authorize each type of
allowance or differential to be paid; Provided, That during such time as
extra compensation for any group of employees in the Panama Canal Zone is
otherwise specifically provided by law, no differentials or allowances
authorized in this Act, except those provided in Sec. 221(4)(ii) and
Sec. 241(c), shall be paid to such group.
Sec. 124. Section 912 of the Internal Revenue Code of 1954 is amended to
read as follows: "The following items shall not be included in gross income,
Approved For Releajfya90Y~3/ lC"DUA WOfVM9QQ tion under this subtitle:
 (1) Overseas Allowances: - In the case of civilian officers and
employees of the United States Government, amounts received
as allowances or otherwise (but not amounts received as
differentials), under the provisions of the Overseas Allowances
Act of 1955 or Title IR of the Foreign Service Act of 1946, as
amended.
(2) Cost of living allowances: - Amouhts received as cost-of-living
allowances under legislative authority other than those cited in
sub-section (1) above, in accordance with regulations approved
by the President."
See. 201. The allowances and differentials authorized by this title may
be granted to Government employees who are citizens or nationals of the
United States stationed in foreign areas, except as otherwise provided.
Sec. 211. Whenever Government-owned or rented quarters are not provided
without charge, one or more of the following quarters allowances may be
granted where applicable:
(1) A temporary lodging allowance for the cost of temporary
quarters incurred by the employee and his family upon
first arrival at a new foreign post, for a period not in
excess of three months after first arrival or until the
occupation of residence quarters, whichever shall be
shorter, and for a period not in excess of one month
immediately preceding final departure from the post sub-
sequent to the necessary evacuation of residence quarters,
Approved For Release 2001103101: CIA-RDP59-00224A000100690003-7
 -5-
provided that expenditures for temporary quarters are in fact
incurred;
(2) A living quarters allowance for rent, heat, light, fuel, gas,
electricity and water, without regard to the limitations of
RS 3648, as amended, (31 U.S.C. 529);
(3) Under unusual circumstances payment or reimbursement for
extraordinary, necessary and reasonable expenses, not other-
wise compensated for, incurred in initial repairs, alterations
and improvements to his residence at the foreign post of
assignment.
Sec. 221. The following cost-of-living allowances may be granted where
applicable:
(1) A post allowance to offset the difference between the cost
of living in Washington, D.'C. and the foreign post;
(2) A transfer allowance for extraordinary, necessary, and
reasonable expenses, not otherwise compensated for, in-
curred by an employee incident to establishing himself
at any foreign post of assignment or at a post of assign-
ment in the continental United States between assignments
to foreign posts;
(3) A separate maintenance allowance to assist an employee who
is compelled by reason of dango:rous, notably unhealthful,
or excessively adverse living conditions at his foreign
post, or for the convenience of the 3overnment, to meet
t atonal expense of maintaining his wife or minor
Approved For Release 2001103101: CIA-R 59-00 00 100690003-7
 -6-
dependents or both elsewhere than at the foreign post of
assignment;
(4) An education allowance or payment of transportation costs
to assist an employee with the extraordinary and necessary
expenses not otherwise compensated for, which must be
incurred by reason of his service abroad, in providing
adequate education-for his dependents, as follows:
(i) An allowance not to exceed the cost of obtaining such
elementary and secondary
educational services as are ordinarily provided without
charge by the public schools of the United States plus,
in those eases where adequate schools are not available
at the post, board and room, and periodic transportation
between the post and the nearest locality where adequate
schools are available, without regard to the limitations
of R.S. 3648, as amended (31 USC 529); Provided, That the
amount of the allowance granted shall be determined on
the basis of the educational facility used.
(ii) The cost of transporting dependents to and from United
States ports of entry, as designated by the head of his
agency, to obtain an American secondary or undergraduate
college education, not to exceed one trip each way for
each dependent for the purpose of obtaining each type of
education; Provided, That no allowance payments under (i)
above shall be made for any dependent for whom transportation
is paid under this subsection. Notwithstanding provisions
contained elsewhere in this Act, transportation may be
Approved For Release 2001103101: CIA-RDP59-00224A000100690003-7
 -7-
authorized under this subsection for dependents of
U. S. citizen civilian employees in the Panama Canal
Zone for the purpose of obtaining undergraduate college
education, under such regulations as the President may
prescribe.
Sec. 231. The Administrative Expenses Act of 1946 (60 Stat. 806) as amended,
is hereby further amended by adding thereto a new section, as follows:
"Sec. 22. Under such regulations as the President may prescribe,
funds available to the departments for administrative expenses
may be allotted to posts in foreign areas and to resident missions
to international organizations for representation purposes in the
promotion of official policies and programs."
Sec. 241. (a) Section 911, paragraphs (4) and (5) of the Foreign Service
Act of 1946 (22 U.S.C. 1136 (4) and (5) are hereby amended to read as
follows:
"(4) The cost of packing and unpacking, transporting to and
from a place of storage, and storing the furniture and
household and personal effects of an officer or employee
of the Service, when he is absent from his post of assign-
ment under orders, or when he is assigned to a post to
which he cannot take or at which he is unable to use such
furniture and household and personal effects, or when it is in the
public interest or.more economical to authorize storage; Provided
Approved For Release 2001103101: CIA-RDP59-00224A000100690003-7
 g ::
That in no instance shall the weight of the effects stored
together with the weight of the effects transported exceed
the maximum weight limitations fixed by regulations, when
not otherwise fixed by law;
"(5) The cost of packing and unpacking, transporting to and
from a place of storage, and staring the furniture and
household and personal effects of an officer or employee
of the Service in connection with assignment or transfer
to a new post, from the date of his departure from his last
post or from the date of his departure from his place of
residence in the case of a hew employee and for not to
exceed three months after arrival at the new post, or until
the establishment of residence quarters, whichever shall
be shorter; and in connection with separation of an officer
or employee of the Service stationed overseas, the cost
of packing and unpacking, transporting to and from a place
of storage, and storing for a period not to exceed three
months, his furniture and household and personal effects
transported at Government expense."
(b) Section 5(a)(1)(D) and (E) of the Act of June 20, 19119 (63 Stat.
209; 50 u.S:c. 403(a)(1)(D) and (E) are amended to read as follows:
"(D) Thu cost of packing and unpacking, transporting to and
from a place of storage, and storing the furniture and
household and personal effects of an officer or employee
of the Agency, when he is absent from his post of assign-
ment under orders, or when he is assigned to a post to
which he cannot take or at which he is unable to use such
Approved For Release 2001103101: CIA-RDP59-00224A000100690003-7
 -.9-
furniture and household and personal effects, or when it is in the
public interest or more economical to. authorize storage; Provided,
That in no instance shall the weight of the effects stored
together with the weight of the effects transported exceed
the maximum weight limitations fixed by regulations, when
not otherwise fixed by law;
"(E) The cost of packing and unpacking, transporting to and from
a place of storage, and storing the furniture and household
and personal effects of an officer or employee of the Agency
in connection with assignment or transfer to a new post,
from the date of his departure from his last post or from
the date of his departure from his place of residence in
the case of a new employee and for not to exceed three months
after arrival at the new post, or until the establishment
of residence quarters, whichever than be shorter; and in
connection with separation of an officer or employee of the
Agency stationed overseas, the cost of packing and unpacking,
transporting to and from a place of storage, and storing for
a period not to exceed three months, his furniture and
household and personal effects transported at Government
expense."
(c) The first section of the Administrative Expenses Act of 1946 (60
Stat. 806; 5 U.S.C. 73b-1) as amended, is further amended by adding at the
end thereof the following new subsection:
11(e) Whenever any civilian officer or employee is assigned to
a permanent duty station outside the continental United
States to which he cannot take or at which he is unable
Approved For Release 2001103101: CIA-RDP59-00224A000100690003-7
 - 10 -
to use, his household good and personal effects, or
whenever the head of the department concerned authorizes
storage of any such property in the public interest or for
reasons of economy, storage expenses (including related
transportation and other expenses) may be allowed such
officer or employee in accordance with regulations pre-
scribed by the President; Provided, That in no instance
shall the weight of the property stored under this subsection
together with the weight of property transported under sub-
section (a) exceed the maximum weight limitation provided
by subsection (a)."
(d) Notwithstanding provisions contained elsewhere in this Act, payments
under subsection (c) of this section may be authorized without regard to the
limitations of Section 122, and in addition they may be authorized for U. S.
citizen civilian employees in the Panama Canal Zone, and for non-U. S: citizen
civilian employees in foreign areas or in the Territories and possessions.
PART E - OFFICIAL RESIDENCE EXPENSES
Sec. 251. (a) The Administrative Expenses Act of 191t6 (60 Stat. 806) as
amended, is hereby further amended by adding thereto a new section, as
follows:
"Sec. 23. Under such regulations as the President may prescribe,
funds available to the departments for administrative expenses
may be allotted to posts in foreign areas for the purpose of
defraying the unusual expenses incident to the operation and
maintenance of official residences suitable for the chief
representatives of the United States at such posts and such
other senior officials of this Government in foreign areas as
Approved For Release 2001103101: CIA-RDP59-00224A000100690003-7
the President may designates"
 Approved For Release 2001103101: CIA-RDP59-00224A000100690003-7
(b) The last 7 lines of Section 8 of the Act of October 10, 19119, "An
Act to amend the United Nations Participation Act of 1945" are hereby amended
to read as follows:
"amended (31 U.S.C. 679), and unusual expenses similar to those
authorized by section 23 of the Administrative Expenses Act of
1946, as amended by this Act, incident to the operation and
maintenance of such living quarters, and such other expenses
as may be authorized by the Secretary of State; all without
regard to section 3709 of the Revised Statutes, as amended
(41 U.S.C. 5)."
Sec. 261. A post differential may be granted on the basis of conditions of
environment which differ substantially from conditions of environment in the
continental United States and warrant additional compensation as a recruitment
and retention incentive. Additional compensation paid as a post differential
shall not in any instance exceed 25 percent of the rate of basic compensation.
rate differential authorized by this title may be granted to employees in a
Territory or possession of the United States (hereinafter referred to as a
except as otherwise provided.
"territorial area") who are citizens or nationals of the Un,-terStates / To
the maximum extent consistent with efficient administration, persons to be
employed in a territorial area shall be recruited within the area.
Sec. 302. For purposes of this title recruitment outside a territorial area
shall be considered to include all persons directly recruited or transferred
 Approved For Release 2001103101: CIA-RDP59-00224A000100690003-7
- 12 -
territorial
not normally residents of the/area and whose presence there can be deter-
minded to be of a temporary nature primarily attributable to such reasons
as U. S. military service, employment by other Federal agencies or public
or private firms and organizations under conditions of employment which pro-
vide for their return to the place of residence outside the territorial area,
formal study, travel for pleasure or business, and provided that during
territorial
such period of temporary absence residence is maintained outside the/area.
PART A - PREVAILING RATE DIFFERENTIAL
Sec. 311. A prevailing rate differential may be granted to employees re-
cruited in the territorial area whenever it is determined that salary rates
prevailing in the territorial area or at the post of assignment in the
territorial area for comparable kinds and levels of work are higher than the
rates of basic compensation fixed by statute for such employees. Employees
recruited outside the territorial area may be granted the prevailing rate
differential in lieu of the cost-of-living allowance and/or post differential
authorized by this title.
PART B - POST DIFFERENTIAL
Sec. 321. A post differential may be granted to employees recruited outside
the territorial area on the basis of conditions of environment in the terri-
torial area or at the post of assignment in the territorial area which differ
substantially from conditions of environment in the continental United States
and warrant additional compensation as a recruitment and retention incentive.
Additional compensation paid as a post differential shall not in any instance
exceed 25 percent of the rate of basic compensation. A post differential
shall not be paid to any employee while he is receiving a prevailing rate
differential.
Approved For Release 2001103101: CIA-RDP59-00224A000100690003-7
 Approved For Release 2001103101: CIA-RDP59-00224A000100690003-7
PART C - COST -OF-LIVING ALLOWANCE
Sec. 331. A cost-of-living allowance to offset the idfference between the
cost of living in Washington, D. C., and the territorial area or the post of
assignment in the territorial area may be granted to employees who are re-
cruited outside the territorial area. A cost-of-living allowance shall not
be paid to any employee while he is receiving a prevailing rate differential.
PART D - SAVING PROVISION RELATING TO COST-OF-LIVING ALLOWANCE
Sec. 341. Any employee recruited in a territorial area who is receiving a
cost-of-living allowance on the effective date of regulations issued under this
title and who is continuously employed in the same territorial area shall, for
a period of one year after issuance of such regulations, continue to receive
the allowance payable under such regulations to employees recruited outside
the territorial area, in lieu of any prevailing rate differential, unless the
prevailing rate differential is at least equal in amount to his cost-of-living
allowance; Provided, That such employee shall not receive any increase in his
cost-of-living allowance under such regulations; Provided further, That his
cost-of-living allowance shall be reduced by an amount equal to the amount of
any increase or increases in his rate of basic compensation.
TITLE IV - MISCELLANEOUS PROVISIONS
Sec. 401. Appropriations of additional funds as may be required to parry out
the purposes of this Act are hereby authorized. Funds available for the
fiscal year 1956 to any Government agency, as defined in section 111(2) of
this Act, are hereby made available for the purposes of this Act in accordance
with authority granted herein and such regulations as the President may pre-
scribe.
Sec. 411. The following statutes or parts of statutes and all amendments
Approved For Release 2001103101: CIA-RDP59-00224A000100690003-7
thereto are repealed:
 Approved For Release 2001103101: CIA-RDP59-00224A000100690003-7 - 14 -
(1) That part of the Act of June 26, 1930 which reads 11and, where
such quarters are not available, may be granted an allowance
for living quarters, including heat, fuel, and light, not-
withstanding the provisions of section 1765 of the Revised
Statutes (U.S.C., title 5, sec. 70)Ir; and the phrase "or
allowances in lieu thereof" in the first proviso of said Act
(ch. 622, 46 Stat. 818; 5 U.S.C. 118a).
(2) Sections 443, 901, 902, 903, and 1051 of the Foreign Servicel
Act of 1946, as amended (ch. 957, 60 Stat. 999-1040).
(3) Section 207 of the Act of April 20, 1948, as amended (62 Stat.
1949; 62 Stat. 1205; 5 U.S.C. 118h).
Sec. 421. Any statute that is not repealed by section 411 but which is
inconsistent with any of the provisions of this Act shall be considered as
having been amended or superseded by such provisions.
Sec. 431. (a) The repeal of the several statutes or parts of statutes accom-
plished by section 411 shall not affect any act done or right accuring or
accrued, or any suit or proceeding had or commended in any civil cause,
before such repeal, but all rights and liabilities under the statutes or
parts thereof so repealed shall continue, and may be enforced in the same
manner as if such repeal had not been made; subject, however, to the pro-
visions of section 441.
(b) Any reference in statutes or regulations to those statutes or
parts of statutes repealed by this Act shall be construed hereafter to refer
to the Overseas Allowances Act of 1955.
Sec. 441. The repeal of the several statutes or parts of statutes accom-
plished by section 411 shall not be construed as a revival, up to the
effective date of this Act, of any statute or part of a statute that may
Approved For Release 2001103101: CJA-RDP 9-0 224A0001006900 7
have previous been repealed by implication.
 -15-
Sec. 451, Notwithstanding the provisions of the Act and until such time as
regulations are issued thereunder, employees shall continue to be paid
allowances and differentials in accordance with rules and regulations issued
pursuant to the laws in effect immediately prior to the enactment of this
Act, and such rules and regulations may be amended or revoked in accordance
with the provisions of such laws.