ANALYSIS OF THE PROPOSED OVERSEAS ALLOWANCES ACT OF 1954

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP59-00224A000100690029-9
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 9
• Document Creation Date: December 9, 2016
• Document Release Date: August 25, 2000
• Sequence Number: 29
• Content Type: REGULATION

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Analysis of the Proposed Overseas
Allowances Act of 19511
Title I - Objectives, Definitions, and General Provisions
Sec. 101. This section states the objectives of the bill..
Sec. 111. This section defines terms used frequently in the bill. Two
of the definitions affect geographic coverage. "Continental
United States" is defined as the existing 118 States and the
District of Colupbia. Thus, Statehood for Alaska or Hawaii
would not automatically terminate territorial allowances and
differentials in those areas. The definition of Territories
and possessions excludes the Canal gone and the Trust Territory
of the Pacific Islands. The foreign allowance and differential
plan replaces the existing territorial plan in the Trust
Territory.
Sec. 121. This section continues the provisions of existing legislation
authorizing the President to establish rules regulating the
payment of allowances and differentials for overseas service.
See. 122. This section, as compared with existing statutes, extends
eligibility for foreign post differentials and for territorial
cost-of-living allowances and territorial post differentials to
employees whose rates of basic compensation are fixed adminis-
tratively. Present authorities for these forms of compensation
are limited to employees whose salaries are set by statute, such
as the
 as the Classification Act and postal groups. Other existing
overseas allowances are not restricted to my particular pay
group. The proposed language permits payment of allowances
and differentials to employees whose pay rates are fixed
administratively only if their rates correspond with rates
fixed for comparable work in the States and do not include
amounts for purposes considered in allowances and differentials
provided by this Act.
Sec. 123. This section continues and combines current provisions of
sections 116(j) and (k) of the Internal Revenue Code which
exempt overseas allowances, but not post differentials, from
Federal income tax.
TITLE II - Allowances and Differentials in Foreign Areas
Sec. 201. This section restricts payment of foreign allowances and differen-
tials to employees who are citizens or nationals of the Unites
States and stationed in foreign areas. Some forms of addi-
tional compensation at foreign posts are now restricted to
citizens by law; the others are so restricted by administra-
tive regulation. Use of the term "stationed" rather than
either "permanently stationed" or "assigned" which appear in
other acts (See Act of June 26, 1930 - 5 USC 118a, and section
901 FS Act - 22 USC 1131) is deliberate. The word "permanently"
is misleading since few employees remain at any one overseas
post for assignments sufficiently long to be considered
permanent. The average assignment is from two to four years.
The word "assigned" might prevent payment of a differential to
an employee
 an employee during a long period of detail at a hardship post.
The present general provision of law authorizing such payment
(207 Ind. Off. Appro. Act of 1949 - 5 USC 118h) contains the
word "stationed".
Part A - Quarters Allowances
Sec. 211. This section consolidates provisions of the Act of June 26,
1930 (P.L. 445, 71st Cong., 46 Stat. 818) and of section
901(1) of the Foreign Service Act of 1946 (P.L. 724, 79th
Cong., 60 Stat. 999) and makes certain revisions as indicated
below:
(1)
The temporary lodging allowance, now available only
to officers and employees of the Foreign Service,
is extended to officers and employees of other
agencies subject to the act.
A temporary lodging allowance of not in excess of
one month is also provided at the conclusion of a tour
of duty.
The provision in the Foreign Service Act of 1946
which restricts the amount that can be paid as a
temporary lodging allowance to the aggregate amount of
the per diem that would be allowed to the employee and
the members of his family if they were in travel status
is omitted.
(2) The quarters allowance, provided by section 901(1) of
the Foreign Service Act for the Foreign Service and by
the Act of June 26, 1930, for officers and employees
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of all agencies
 of all agencies whenever Government-owned or rented
quarters are not provided without charge, is continued.
Water is added to the utilities covered by the
quarters allowance.
Provision is ma4e for payment of an allowance to reimburse
personnel for unusual expenses incurred in the initial
repair, alteration, and improvement of substandard
dwellings.
Exemption from RS-36118 (31 USC 529) permits the Government to
advance funds to employees to meet landlords' demands for
advance rental payments. Such requirements where housing
is acute may be for as much as one year's rent. Employees
in the lower and middle brackets seldom have money available
to make advance payments and present legislation, with few
exceptions, prohibits the Government's advancing rental
allowances. *here advance rental payments are made under this
exemption,. the Government's interests will be protected by
regulation.
Part B - Cost-of-Living Allowances
Sec. 221. This section provides for the following cost-of-living
allowances for service in foreign areas:
Post Allowance: The proposed legislation gives
permanent statutory authority to all agencies operat-
ing overseas to pay post allowances. Although the pro-
posed language differs from that of existing legislation,
there is no actual legal change.
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(2) Transfer Allowance: There is no difference between
the scope of existing legislation and the proposed
legislation relating to transfers between foreign areas.
The change in language - from "establishment of his
residence at his post of assignment" to "establishing
himself at any post of assignment overseas" - is
made for the sake of clarity.
The proposed legislation also provides for a home
service transfer allowance available only when the home
assignment is between assignments to foreign posts.
(3) Separate Maintenance Allowance: The proposed legisla-
tion changes the phrase "country of assignment" to 1post
of assignment" in order to make the administration of
this allowance more flexible, practical, and economical.
(4) Education Allowance: The proposed legislation, if enacted,
will be the first permanent provision for assisting
civilian employees of all U. S. Government agencies
operating in foreign areas, wherever stationed, in
educating; their minor children. Such provision was
attempted in H.R. 9364, August 8, 1950, and S. 1985,
August 9, 1951, which proposed the establishment of free
Government schools abroad, or the granting of allowances
for tuition and costs at other schools, and necessary
transportation. The current proposal covers only
allowances and transportation.
 Existing legislation authorizing the Defense Depart-
ment to establish schools when needed is not affected
by this proposed legislation. Legislation authorizing
allowances similar to those described above will, of
course, be superseded.
Part C - Representation Allowance
Sec. 231. This section, for the first time, specifically authorizes a
representation allowance for all agencies operating in
foreign areas and for resident missions to international
conferences, such as the United States' Delegation to the
than a few agencies will require this allowance, and then only
in the case of senior officials.
Part D - Storage Allowance
Sec. 241. This section would extend to employees of other agencies
operating overseas the storage allowance now confined to
employees of the Department of State. It combines the
language in sections 911 (h) and (5) of the Foreign Service
Act and in the Department of State's 1954 Appropriation Act.
The "emergency" limitation, in 911(4), however, is eliminated
and, in lieu, a third proviso is inserted which authorizes
storage whenever storage would avoid the cost of transporting
effects from one location to another.
Part E - Official Residence Allowance
Sec. 251. This section, for the first time, permits payment, under
appropriate regulations, of funds for unusual housekeeping
expenses
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expenses to top officials of all agencies. Heretofore, an
allotment for such expenses was restricted by section 902
of the Foreign Service Act to the principal diplomatic or
consular officer at each post. Experience has shown that
certain ranking subordinates and a limited number of top
officials of other agencies are required by their positions
to maintain residences substantially larger and more elaborate
than their normal requirement, and, as a result, incur unusual
housekeeping expenses in the performance of their duties.
A proviso is included to require an accounting to the
President of all allowances and reporting of such expenditures
annually to the Congress.
Part F - Post Differential
Sec. 261. This section continues and extends existing authority for
payment of post differentials at foreign posts, based on
undesirable conditions of environment, at rates not in excess
of 25 percent of rates of basic compensation. Two authorities
exist at present: section 443 of the Foreign Service Act of
1946, for Foreign Service staff officers and employees; and
section 207 of the Independent Offices Appropriation Act,
1949, as amended, for all other departments. The language
of the two differs somewhat, but in accordance with standards
set by Executive Order 10,000, the Department of State has
established a single schedule of post differentials equally
applicable under both authorities.
 The proposed provision follows the language in section 207
of the Independent Offices Appropriation Act of 1949, as
amended. It extends authority for payment of post differentials
to Foreign Service officers and reserve officers of the State
Department, the only groups paid at statutory salary rates
for whom such authority is not now provided. Rates of salary
differential will continue to be determined by careful
analysis of environmental conditions at each post or area.
Resident Americans and certain other groups will be excluded,
as at present, through regulation.
Title III - Allowances and Differentials in Territorial Areas
Sec. 301. This section restricts payment of territorial allowances and
differentials to citizens or nationals of the United States.
Although not specifically required by existing statutes,
this conforms with prevailing current practice in territorial
areas.
This section authorizes territorial cost-of-living allowances
in territorial areas to offset differences from the cost of
living in Washington, D. C. The new authority corresponds
closely to the existing territorial cost-of-living provisions
of section 207 of the Independent Offices Appropriation Act,
1949, as amended. The principal change is the elimination
of the existing 25 percent ceiling on territorial cost-of-
living allowances and on the total of territorial cost-of-
living allowances and post differentials combined.
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Sec. 321. This section authorizes a storage allowance, a new allowance
in territorial areas, on the same basis as authorized in
section 241 for foreign areas.
Sec. 331. This section continues existing authority for territorial post
differentials, including the restriction to a maximum rate of
25 percent, provided by section 207 of the Independent Offices
Appropriation Act, 1949, as amended. Persons normally resident
in territorial areas will be excluded, as at present, through
regulation.
Title IV - Miscellaneous Provisions
This title contains various technical provisions normally attaching
to enabling legislation of this type. Provisions are included for
authorizing appropriations, repealing specified statutes, maintaining
rights and liabilities under repealed statutes, and continuance in force
of existing rules, regulations, and executive orders until regulations
under this Act rescind, modify, or supersede them.
It is proposed that the Act shall be effective the first day of the
first pay period svhicL begins after three months following the date of
enactment,