ANNUAL LEAVE ESCROW ACCOUNTS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP60-00442R000100090040-1
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: December 12, 2016
• Document Release Date: April 30, 2002
• Sequence Number: 40
• Publication Date: September 10, 1953
• Content Type: MFR

Approved F4 Release ____.__,_ . T.A-RDP6O-OO4. ROOO1OOO9OO4O-1
COPY JRITY INFORMATION
COPY
10 September 1953
Memorandum for the Record
Subject: Annual Leave Escrow Accounts
1. Proposed Dispatch hasizes another difficulty
confronting this Agency in is attempts to harmonize its administration
with statutes and regulations of general application designed for normal
Government administration. Per our conversation, I have signed the pro-
posed dispatch as coordinating officer and bring it to your attention as
a matter for further reference to the DD/A.
2. Recent legislation, namely Title 2 of Public Law 233, 82nd
Congress, as amended by Public Law 102, 83rd Congress, cited pc ularly
as the "Annual and Sick Leave Act of 1951" establishes ceilings against
further accumulations of leave, provides for the current liquidation of
earned leave, and ultimately directs agencies to reduce accumulations to
specified levels. Suffice to say the present escrow account arrangement,
whereby the annual and sick leave is frozen as a credit to the account of
the employee pending his return to the Agency, is out of step with the
aforesaid legislation, and should be acknowledged as a necessary Agency
departure from conventional principles of Government administration due
to the unique character of Agency operations.
3. Alternative solutions to the problem are indicated below and
pertinent comments have been added:
A. Lump-sum Leave Payment - This is really a
fiction inasmuch as the employee concerned does not in fact
leave the employment of the Government. In addition,, adverse
tax consequences would result inasmuch as the lump-sum payment
would be taxable as income in the calendar year received. In
addition, inasmuch as the Government has now generally been
placed on the same leave system, except for statutory home leave
benefits, the lump-sum payment cannot be made on the basis of
transferring to a different leave system.
Be Transfer - Public Law 102, 83rd Congress,
now provides that in the case of transfer of an officer or
employee between positions under different leave systems....
RECURITY INFORMATION
Approved For Release 2002/06/24: CIA-RDP60-00442ROO0100090040-1
 Approveor Release4 CIA-RDP60-42R000100090040-1
SECURITY INFORMATION
without a break in service, the annual and sick leave to
the credit of such officer or employee shall be transferred
to his credit in the employing agency on an adjusted basis
in accordance with regulations to be prescribed by the Civil
Service Commission."
C. Forfeiture - Although the decisions of the
Comptroller General have been somewhat strict in the field of
"forfeiture" I believe the action of this Agency would be
legally questionable were it to state that all leave to the
credit of an employee under the circumstances concerned would
be forfeit.
D. Escrow Account Arrangement - This obviously
is the most equitable arrangement- The extension of the "home
leave benefits" of Public Law 233 (section 203F) would mater-
ially assist,, though not eliminate., the solution of this prob-
lem. Under Public law 102 the agencies are directed to reduce
accumulation to 30 days within a reasonable period of years
consistent with the exigencies of the public and "to make such
reports with respect to the action taken as may be requested
by the Civil Service Commission."
/8/
25X1A9A
Assistant General Counsel
Approved For Rele iGimmowf Ff?$ 4RDP60-00442R000100090040-1