AMENDING THE CENTRAL INTELLIGENCE AGENCY ACT OF 1949

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75B00380R000700130002-3
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 24
• Document Creation Date: December 16, 2016
• Document Release Date: May 25, 2005
• Sequence Number: 2
• Publication Date: August 11, 1966
• Content Type: REPORT

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89TII CONGRESS HOUSE OF REPRESENTATIVES REPORT
;?d Session No. 1835
AMENDING THE CENTRAL INTELLIGENCE AGENCY
ACT OF 1949
AUGUST 11, 1966.-Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
Mr. PHILBIN, from the Committee on Armed Services, submitted the
following
REPORT
The Committee on Armed Services, to whom was referred the bill
(H.R. 16306) to amend the Central Intelligence Agency Act of 1949,
as amended, and for other purposes, having considered the same,
report favorably thereon with amendments and recommend that the
bill as amended do pass.
The amendments are as follow:
On page 2, line 3, strike "2030(b)" and insert "2303(b)".
On page 2, strike line 9 and insert in lieu thereof "mean the Di-
rector, the Deputy Director, or the Executive Director."'
On page 2, line 18, strike "subsituting" and insert "substituting".
On page 4, line 13, change "months" to "months' ".
On page 6, line 4, strike "limitaiton" and insert "limitation".
On page 7, line 5, insert a comma after the word "Director" and the
following language: "not to exceed $100 per day,".
On page 8, line 3, strike the word "District" and insert the word
"Director".
On page 8, line 18, and on pages 9 and 10, strike all of section 112.
On page 10, line 17, insert "Agency" before the word "Retirement".
On page 11, line 3, strike "or" and insert `of".
On page 11, line 21, strike "in" and insert "into".
On page 19, line 9, strike "Agency'." and insert "Agency."'.
EXPLANATION OF AMENDMENTS
The bill has been amended in several instances. Most of the amend-
ments do not involve matters of substance but are merely technical in
nature or are designed to correct typographical and other similar
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2 AMEND THE. CENTRAL INT'ELLIGEN-CE' AGENCY ACT OF 1949
errors. Three of the amendments, however, do involve matters of
substance and they are as follows:
(1) In section 102 there appears the language "(b) In the exercise
of the authorities granted in subsection (a) of this section, the term
`Agency head' shall mean the Director and the Deputy Director."
It was requested by the CIA that the Executive Director be included
within the term "Agency head" and the latter part of the above
quoted language reads in its amended form "* * * the term `Agency
head' shall mean the Director, the Deputy Director, or the Executive
Director."
(2) In section 109 the original language of the bill authorized the
Director of the Central Intelligence Agency to employ advisory per-
sonnel who would "receive. compensation at rates determined by the
Director * * * " The bill as amended by the committee places
an upper limit of $100 per day on the compensation of such advisory
personnel.
(3) The original bill contained a section 112 which would have au-
thorized the Director of the Central Intelligence Agency to receive
gifts for the benefit of or for use in connection with the Agency or for
the benefit or welfare of employees of the Agency or their dependents.
The underlying purpose of this benefit was undoubtedly laudable but
the language was so broad as to cause the committee concern. Also,
since the language went beyond any authority that appears to be
available to any other Government agency, it wos felt that the section
should be carefully redrawn and considered as separate legislation.
PURPOSE OF rHE BILL
The purpose of the proposed bill is to provide for technical amend-
ments to legislative authorities; pertaining to the Central Intelligence
Agency. Sonic of the provisions are necessary to achieve desired
legal clarification of existing Agency authoiity,others are necessary
to provide authorities which have been granted by Congress elsewhere
in Government for travel, medical care, claims, retirement, and similar
housekeeping-type programs.
BACKGROUND
Most, but not all, of the functions and activities for which authority
would be granted by. this bill have been performed by the Central
Intelligence Agency under other less precise authorities. There is,
therefore, very little in this bill which is, strictly speaking, new legis-
lation. Since the bill covers a variety of subjects, many of them
wholly unrelated one to the other, it is believed that the most im-
mediately understandable method of explaining what the bill will do
is deal with each section on an individual basis, explaining, where
necessary, the law today (or absence of it), how the bill would change
or provide authority, and the reasons underlying the change or grant
of authority. Particular note will be made of and emphasis placed
upon all new authorities sought by the bill. Ready reference to exist-
ing law (or its absence) and the changes contemplated by this bill can
he had by reference to the .Ramseyer at the end of this report.
There are 20 sections in this bill, many of there unrelated to each
other. There is, therefore, no feasible way to summarize briefly what
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AMEND THE CENTRAL INTELLIGENCE' AGENCY ACT OF 1949 3
the bill will do since it does so many and varied things. This report
will, therefore, deal as briefly as possible with each of the sections.
However, it can be said that three of the sections merely provide
short titles or correct citations to conform to the code. Nine sections
do nothing more than bring the CIA Act into conformity with appro-
priate modifications which have been made to the Foreign Service
Act, and four sections merely conform the CIA Retirement Act to
recent changes made in the Civil Service Retirement Act. And
another section only provides for the settlement of claims overseas.
Section 101
Section 101 does nothing but provide a short title for title I.
Section 102
The Armed Forces Procurement Act of 1947 has now been codified
in title 10 of the United States Code. Section 102 merely takes
cognizance of this fact by citing the code.
Section 103
Section 103 makes two amendments to the CIA Act. First, it
inserts the word "abroad" after the word "assigned" so that. the
pertinent portion of the language reads "employees assigned abroad
to duty stations outside the United States * * *". The significance
of the word "abroad" is to provide a definition as to what "abroad"
means. Specifically it makes clear that Hawaii and Alaska are
considered to be "abroad".
The second amendment is to change the word "shall" to the word
"may" in introducing the many authorities which the Agency has
with respect to travel expenses, transportation of furniture, packing
and unpacking, leaves of absence, hospitalization in the case of illness
or injury, establishing first-aid stations, and so forth.
Testimony before the committee indicated that experience has
revealed that the literal provision of a travel or leave benefit, for
instance, at all times and in all circumstances in exactly the same
manner, is not appropriate and therefore permissive rather than
mandatory authority should be provided.
REST AND RECUPERATION
Section 104
Section 104 provides a new authority. It will permit the Agency
to pay the travel expenses of officers and employees of the Agency.
and members of their families to travel from a hardship post to an
areas having different environmental conditions for rest and recupera-
tion. Such travel is limited to one round trip during any continuous
2-year tour and two round trips during any continuous 3-year tour.
The Foreign Service Act contains this authority for Foreign Service
personnel.
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4 AMEND THE, CENTRAL INTELLIGENCE AGENCY ACT OF 1949
Section 105
Not infrequently, assignment of Agency employees to their per-
manent posts of duty requires a deviation from the most direct route
to another Agency post in order to provide orientation and training.
Under existing law the family of the employee must either wait in
the United States or proceed ahead of him to the permanent post.
Section 105 of the bill would permit the payer: ent of travel expenses
for the family to accompany him to the interim stopoff point.
This authority is provided in the Foreign Service Act for Foreign
Service personnel.
HOME LEAVE
Section 106
Existing law grants authority to the Agency to order employees for
home leave upon "completion of 2 years' continuous service abroad
* * *". Section 106 would raise this to 3 years for posts which are
roughly comparable to the United States and would authorize ordering
an employee for home leave at 18 months in the case of hardship posts.
This same authority appears in the Foreign Service Act for Foreign
Service personnel.
Section 107
Existing law permits the Agency to pay the travel expenses of em-
ployees who suffer illness or injury abroad to the nearest locality where
a suitable hospital exists. Sometimes hospitalization is not required
but medical care is needed.
Section 107 would eliminate the limitation of hospitalization and
substitute "medical care." The section also extends this benefit to
dependents.
It also provides for the payment of the cost of treatment for such
illness or injury of an employee and, in the case of dependents, pays
the cost of treatment but with a $35 deduction and a maximum
limitation of 120 days of treatment. This limitation does not apply
where it is determined that the illness or injury is caused by the fact
of location of the dependent in the foreign area. The extension of
both travel and treatment expenses to dependents is new.
This benefit is one provided in the Foreign Service Act for Foreign
Service personnel and their dependents.
Section 108
Section 108 would permit necessary orientation and language
training for members of an employee's family where this is considered
necessary because of the particular duties of the employee at the new
assignment post. Normally this training would be restricted to the
employee's wife.
This authority is provided in the Foreign Service Act for Foreign
Service personnel.
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AMEND THE CENTRAL INTELLIGENCE AGENCY ACT OF 1u99709130002-3
Section 109
The CIA uses the National Security Act of 1947 to appoint advisory
committees and other advisory personnel. Section 109 would place
this authority in the CIA Act itself and would also remove the limita-
tion of $50 per day. The AEC, FAA, and NASA can, for example, go
up to $100 per day. Payment under the new language in section 109
would have an upper limit of $100 per day.
REEMPLOYMENT RIGHTS
Section 110
Section 110 would provide a new authority for the Agency which
would permit an individual to transfer from another Department or
Agency to CIA for a specified time, agreed upon by the two Agencies,
and upon completion of the assignment afford the individual statutory
protection in reemployment.
Testimony before the committee indicated that this authority would
be of considerable assistance in filling critical engineering and scientific
disciplines during emergencies.
Similar authority is provided in the Foreign Service Act.
CLAIMS AUTHORITY
Section 111 r
Section 111 provides a new authority relating to the settlement of
claims abroad. Today CIA has no authority to settle claims for loss
of or damage to real or personal property or for personal injury or
death. This section would provide that authority to an upper limit
of $10,000. This kind of authority in one form or another is available
to the State Department and to the military departments.
SHORT TITLE
Section 201
This section merely provides a short title for title II. Incidentally,
all of title II deals with the Central Intelligence Agency Retirement
Act. It should be understood that the Central Intelligence Agency
has two retirement systems: the regular civil service retirement for
the vast majority of its employees and its own CIA retirement system
for a relatively small number of employees.
DEFINITION "CHILD"
Section 202
Section 202 does three things : First, it eliminates the requirement
that a child be dependent upon a parent retiree in order to receive
a survivor annuity. The present definition of a child requires that
the child receive more than half his suport from the participant
to be eligible. This requirement could defeat a survivor annuity
based on the service of a working mother. This support requirement
was eliminated from the Civil Service Retirement Act by the 89th
Congress.
Second, it also raises from 21 to 22 the maximum age for receiving
survivor annuity payments as a student and increases from 4 to 5
months as the maximum absence from school which may be permitted
without terminating the survivor annuity. This will aid survivor
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THE, 'CE'NTRAL INTELLIGENCE- AGENCY ACT OF 1949
children enrolled in trisemester programs to secure employment and
earn money without losing their annuity.
This same action was taken by the 89th Congress for student bene-
ficiaries under the Civil Service Retirement Act.
Lastly, it permits a natural child to share in the distribution of any
money in the CIA retirement and. disability fund. The act today
clearly permits a natural child to receive an annuity but it is not en-
tirely clear with respect to lump-sum benefits. This would correct
this deficiency.
A similar provision amending the Civil Service Retirement Act was
approved by the 89th Congress.
Section 203
WinOw'S ANNUITY
This section permits the annuity of a widow or a dependent widower
to continue in the event of remarriage. This is similar to the law
applicable to survivor annuitants under the Foreign Service Act and
is in keeping with the plan approved by the 89th Congress for survivor
annuitants under the Civil Service Retirement Act.
Section 204 CHILD'S ANNUITY
This section provides for the commencement and termination (late
for a child survivor annuity and assures that the survivor annuity of
a student may be resumed even though it had previously been ter-
minated, as for example, because of military service. Today once an
annuity has been terminated because of an absence between school
terms in excess of the maximum absence authorized, the annuity
cannot be resumed.
A similar amendment to the Civil Service Retirement Act was
approved by the 89th Congress.
ANNUITY COMMENCEMENT DATE
Section 205
This section. makes a technical change in the law which will author-
ize the commencement of an annuity as soon as the individual enters
it nonpay status. Under existing law, an annuitant must wait: until
the beginning of the month following his date of separation.
This will conform the CIA retirement system to the civil service
retirement system in this respect.
TRANSFER OF CONTRIBUTIONS
Section 206
Under existing law, an individual who transfers into the CIA retire-
ment fund from some other Government retirement system can trans-
fer his contributions from the other fund to the CIA fund, but there
is no provision for transfer of the Government contribution to such
fund.
Also, when an individual transfers from the CIA retirement fund
to some other Government retirement fund, there is no provision for
the transfer of either the Government's contribution or his own con-
tribution to the non-CIA retirement fund. This section would correct
the inequities of this situation.
The Civil Service Commission is wholly in accord with this change.
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AMEND THE' CENTRAL INTELLIGENCE A C
REEMPLOYMENT OF ANNUITANTS
Section 207
The small group of employees who are under the CIA Retirement
Act retire, on the whole, some 10 years earlier than employees under
the Civil Service Retirement Act. These retirees therefore, with few
exceptions, will need to seek a second career. They do not acquire
status in the competitive service and much of their experience and
competence cannot be readily related to normal Government positions.
It is probable, therefore, that they would have to accept a Government
position, at least initially, several grades below their position in the
CIA at the time of retirement. This section would authorize an
annuitant who is retired from the Agency to be reemployed in the
Government and to retain the salary of the new position, plus so much
of his annuity, which when added Co the new salary, would not exceed
his salary at the time of retirement.
For example, if a CIA GS-13 (salary of $12,893) retires with an
annuity of $6,000 and then enters other Federal employment at the
GS-11 level (salary, $9,221), he would actually receive only $3,221 for
his services. This section would permit the retiree to receive his
earned salary of $9,221 plus $3,652 of his $6,000 annuity bringing him
up to his previous salary level of $12,873.
It is pointed out that this relates to very few people. It is pointed
out, too, that a retired military reservist can retain both his civilian
salary and his entire annuity and that a retired Regular officer can
retain his salary plus the first $2,000 of his annuity and 50 percent of
the balance of it.
COST-OF-LIVING ADJUSTMENT
Section 208
This section will bring the cost-of-living provision of the Agency's
Retirement Act into line with provisions which currently apply to
civil service and military retirees. During the first session of the
89th Congress, the cost-of-living provision for military retirees was
amended to gear increases to quarterly rather than average calendar
year Consumer Price Indexes. Later in that session similar lgeislation
for the benefit of the entire civil service system was approved.
TITLE III
FEDERAL EMPLOYEES PAY ACT
Section 801
The Central Intelligence Agency is now excluded from the Federal
Employees Pay Act of 1945, as amended, by regulation of the Civil
Service Commission, but not by law. This section would exclude the
CIA by law.
The Agency has developed a salary administration program which
adheres closely to the principles and standards of the Classification
Act regarding the classification of positions, establishment of entry
salary rates, and the grant of merit and quality step increases and
conforms generally to the principles and standards of the Pay Act re-
garding premiun pay and hours of work. However, it has been
necessary for the Agency to deviate somewhat from the specific
practices required by the act to accommodate peculiar problems in-
herent in its mission and functions.
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Z5 AMEND THE 'CENTRAL INTELLIGENCE AGENCY ACT OF 1949
FISCAL DATA
Enactment into law of this measure will involve a total additional
cost for the first year in the approximate amount of $239,000.
DEPARTMENTAL DATA
This bill is part of the administration's legislative program for the
89th Congress as is evidenced by letter dated April 6, 1966, from the
former Director of the Central Intelligence Agency which is attached
hereto and made a part of this report.
CENTRAL INTELLIGEN"^ AGENCY,
Hon. JOHN W. MCCORMACK Washington, D.C.. April 6, 1966.
,
Speaker, House of Representatives,
Washington, D. C.
DEAR MR. SPEAKER: This letter transmits for the consideration of
the Congress, a draft bill to amend the Central Intelligence Agency
Act of 1949, as amended, and for other purposes. The purpose of
the proposed bill is to provide for technical amendment to legislative
authorities pertaining to the Central Intelligence Agency. Provi-
sions relating to personnel benefits, claims arising in foreign areas
and acceptance of gifts are included to accomplish purposes which we
believe necessary.
We consider enactment of the proposed bill to be essential to the
effective performance of our mission and would appreciate early and
favorable consideration. The Bureau, of the Budget has advised that
there is no objection to the presentation of the proposed bill to the
Congress from the standpoint of the administration's program.
Sincerely,
W. F. RABORN, Director.
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Approved For Release 2005/06/06 : CIA-RDP75B0038OR000700130002-3
 Approved For Release 2005/06/06 : CIA-RDP75B0038OR000700130002-3
EXISTING LAW THE BILL AS REPORTED
federal Employees Pay Act of 1945, as amended (5 U.S.C. SEC. 301. Section 102(b) of the Federal Employees
902(b)) Pay Act of 1945, as amended (5 U.S.C. 902(b)), relating
to exemption from coverage under the Act, is amended
by striking out "and" immediately preceding "7" therein
and by inserting before the period at the end thereof ";
and (8) officers and employees of the Central Intelligence
Agency."
Approved For Release 2005/06/06 : CIA-RDP75B0038OR000700130002-3