SECTIONAL ANALYSIS OF A PROPOSED BILL TO AMEND THE GENERAL INTELLIGENCE AGENCY ACT OF 1949, AS AMENDED, AND FOR OTHER PURPOSES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-04360A000100060001-2
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 25
• Document Creation Date: December 12, 2016
• Document Release Date: January 23, 2002
• Sequence Number: 1
• Content Type: REPORT

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SECTIONAL ANALYSIS OF A PROPOSED BILL TO
AMEND THE CENTRAL INTELLIGPTTCE AGENCY ACT
OF 1949, AS AMENDED, AND FOR OTHER PURPOSES
OGC Has Reviewed
Under Section !(a) of the Central Intelligence A^;eL_cs.- Act of 1949
the Agency is aut'_;ori zed to exercise certain procurement authorities
contained in the Armed Services Procurement Act of 1911-7. The specific
sections of the A med Services Procurement Act, the authorities of -Thich.
CIA vas authorized to exercise, were in.cornorated by refe"en.ce in
Section 3(a) of the CIA Act of 1949. Since passage of the CIA Act,
additional functions have been assigned to the A.jency. This, and added
experience, indicate the need to exercise other authorities contained in
the A:.med Services Procurement Act of 191-7
Under Section,2(c) of the Procurement Act, the Armed Services may
negotiate purchases and contracts without advertising in seventeen listed
circumstances. The Agency is authorized by Section 3(a) of the CIA Act
to negotiate in ten of'thene circumstances. The Logistics Office has
requested that the remaining negotiation authorities of Section 2(c)
be given this Agency.
This increase in Agency negotiation authorities, to ma`_:e them the
same as those of the Kmed Services, would be accomplished by modifying
Section 3(a) of the CIA Act to authorize the Agency to exercise all the
authrrities c ntained in Section 2(c) of the Armed Services Procurement
Act.
The Agency has substantial and vitally necessary programs in fields
*here research and development, standardization of equinment and
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provision of new or stand-by production facilities is a necessity. The
negotiation authorities contained in Sections 2(c) (11), (13), (14), and
(16) of the Armed Services Procurement Act are requested to facilitate
this work.
In addition, in the field of procurement the Agency faces generally
all the problems encountered by the Armed Services although in some cases
only to a minor degree. For this reason it is felt appropriate to request
inclusion of the negotiation authorities in Sections 2(c) (8) and (9) of
the Armed Services Procurement Act as these circumstances are actually
encountered although they were not foreseen at the time the Central
Intelligence Agency Act of 1949 was enacted.
Medical facilities are provided our personnel in certain necessary and
legally allowable circumstances. As indicated by Section 2(c) (7) of the
Armed Services Procurement Act, there should be authority to purchase these
by negotiation, since considerations of quality and exact composition often
must outweigh a small difference in price.
To further contribute to brevity and clarity, the reference to
Sections 3 and 4 of the Armed Services Procurement Act has been deleted
from Section 3(a) of the CIA Act. These are only two of a number of
provisions in the Armed Services Procurement Act and elsewhere which
apply to our procurement and are followed as a matter of course.
Section 7 of the Armed Services Procurement Act, -providing for
delegations of authority and covering procedures for making determinations,
is,,included in the CIA Act of 1949 as Sections 3(c) and (d). It is proposed
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to delete these sections of the CIA Act and incorporate Section 7 by
reference.
In fulfilling its unique mission, the Agency lets contracts from time
to time for important and novel research and development work. Such con-
tracts often must extend over a relatively long period in order to accom-
plish the desired result and do not accommodate themselves to fiscal year
limitations. The proposed Section 3(b) authorizes such contracts for
periods up to five years.
Certain procurement authorities can be exercised under the Armd
Services Procurement Act and the CIA Act of 19+9 only after a determina-
tion has been made by the "head of the Agency." The CIA Act of 19+9
defines this term (previously referred to as "Agency head") to mean the
Director, the Deputy Director, or the Executive of the Agency. At the
time of the passage of the CIA Act, the Agency had an Executive who
exercised many of the authorities currently under the jurisdiction of the
Deputy Director (Support). It is, therefore, determined to redefine the
term "head of the Agency" for the purposes of this section.
SECTION 2.
The deletion of the words "its territories, and possessions," from
Section 5(a) of the CIA Act of 1949 will enable CIA to equate certain
benefits to its employees stationed in U. S. Territories and possessions
with those paid to CIA employees in foreign areas. These benefits, not
presently available to employees stationed in the Territories and
possessions, are largely in the field of allowances, including quarters
and transfer allowances. This amendment will correct an inequity which
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now exists due to the fact that in certain U. S. possessions and Territories
living costs are at times considerably higher than at foreign posts.
SECTION 3.
As presently worded Section 5(a)(l)(D) authorizes the Agency to pay
the cost of storing furniture and household effects of an employee when
he.is assigned to a post where he cannot take such effects because of
emergency conditions. This language is similar to the basic Foreign
Service authority which has been modified in subsequent appropriation
acts by deletion of the requirement for determination of emergency
conditions. In many situations it is considerably less expensive for
the Government to store effects than to ship them. This can occur with-
out regard to emergency conditions. The experience of the Government
generally has been such that the less restricted approach is taken in
the proposed Overseas Allowances Act. This amendment will eliminate the
requirement for determination of emergency conditions and will result
in less over-all cost to the Government.
SECTION 4.
This proposed section will extend to CIA employees the same authori-
ties granted to members of the Foreign Service of the United States by
p. D. 22 of the 84th Congress, and its language is substantially identical
to Section 11 of that Act. It will permit payment of one trip to a
United States port of entry and return to his parent's post abroad during
high school and another during college. The financial and morale problems
which this section attempts to allay are serious, particularly for those
employees with more than one child of school age. The cost of the
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education and the travel within the United States will still have to
be borne by the individual or his parents.
SECTION .
Section 5(a)(2) of P. L. 110 presently authorizes the Agency to
charge expenses in connection with travel and transportation to the
appropriation for the fiscal year current when any part of the travel of
its personnel begins notwithstanding that the travel may not be completed
during that current fiscal year. This authority now is limited to
travel involving permanent change of station. The reasons underlying
the original authority, i.e., ease of administration, appear to be
equally applicable to temporary-duty travel and this amendment would
authorize similar handling of travel expenses whether the travel in-
volved permanent change of station or temporary duty.
SECTION 6.
This proposed section is substantially similar to Section 933(a)
of the Foreign Service Act (P. L. 721), except that this authority
which is applicable to U. S. citizens will also extend to aliens who
are residents of the continental U. S. or its territories and possessions
at the time of employment. This is designed to cover a unique problem
for CIA, which in the nature of its operations must recruit a large
number of highly qualified foreign technicians or specialists. This
amendment would facilitate this recruitment and would also facilitate
the re-1?=erieanization of desirable aliens in this category.
An additional reason for this amendment is to bring this section
up to date through the deletion of obsolete references (5 U.S.C. 30,
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30(a), and 30(b) have been repealed) and to ensure that employees are
eligible for return home after two years overseas, even though they may
not have accumulated 30 days' leave during that period, as is possible
under current law for certain classes of personnel.
SECTION 7.
This proposed section extends the statutory home leave provisions
of the Annual and Sick Leave Act of 1951 to CIA employees stationed over-
seas, and thus places CIA employees on a similar basis to members of
the Foreign Service in this regard. The phrases "and as it may hereafter
be amended" are inserted in order to equate proposed CIA legislation to
the Corbett Bill of 8 February 1955 (H. R. 3820). In the event that
H. R. 3820 is passed, there would be no need for this proposed section
of the CIA legislation.
SECTION 8.
Section 5(a)(5)(A) of the CIA Act of 1949 authorizes the agency to
pay the travel expenses of an officer or full-time employee of the Agency
to a suitable hospital or clinic and return in the event of illness or
injury to such person requiring hospitalization, if such employee is
assigned abroad in a locality where a suitable medical facility does not
exist. It further provides that if such person is too ill to travel un-
attended, the Agency may also pay the travel expenses of an attendant.
The proposed amendment extends these authorities to members of the
employee's family who accompany the employee on his assignment abroad
and who incur illness or injury requiring hospitalization. Because of
the location of some of the CIA posts of assignment, adequate medical
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facilities are not always available. As the members of the employee's
family find themselves in these localities solely because of the employee's
employment with CIA, as adequate medical facilities are often lacking, and
as the cost of travel for a dependent to adequate hospital facilities is
often quite ex-nensive, it is felt that it would be appropriate for the
Agency to bear such costs.
SECTION 9.
This nnroposed section will amend existing CIA statutory authority to
authorize the payment by CIA of the cost of treatment -here illness or
injury renuiring hosnita_l.ization has been incurred by a member of the
family accomnanying an officer or full time emnloyee of CIA on assignment
outside the continental United States However, payment will be made nrly
where such illness or injury occurs through circumstances directly related
to the duties or duty station of such officer or employee. This section
establishes a criterion for these dependent benefits in r.eruiring a causal
connection. between the illness or injury, and the -lace and nature of the
employee's assignment. A considerable number of CIA employees and their
families are located in, areas of the t.rorld. *'here serious diseases such
as polio, acute hepatitis and tuberculosis are endemic, Treatment of the
nature ',erein proposed is available for
the families r)f military per. snnnel
statinn.ed abroad- and failure to provide similar treatment for. CIA person-
nel has been a handicap in recrui_tin for and assigning of 1-ey personnel to
many critical areas of the world. These same considerations apply with
respect to the nronosed amendment in Section B.
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SECTION 10.
Section 5(a)(5)(D) of the CIA Act of 1949, as present1,r worded,
grants substantially the same authorities providing physical examinations
and inoculations to Agency employees as were granted to employees of the
Foreign Service under Section 91+3 of the Foreign +Jervice Act of 1946.
Section 12 of the Foreign Service Act Amendments of 10,55 authorizes the
administration of physical examinations and inoculations to dependents
although in the past this has been clone in practice. There had been some
concern that existing law did not clearly authorize the practice; there-
fore, this amendment was considered a technical clarification of the
existing authority. The proposed amendment to Section 5(a)(5)(D)
accomplishes the same purpose.
SECTION 11.
This new provision will allow the extension of certain medical
benefits to CIA employees who are assigned abroad on temporary duty on
the same basis as to those on permanent duty. The possibility of line-
of-duty illness or injury is equal in both cases. It will also provide
for the Agency to pay the cost of preparing and transporting the remains of
a CIA employee who dies while an temporary-duty status abroad, as is
presently provided for those who die while on permanent duty overseas.
The proposed amendment will thus equalize benefits in this category for
CIA and Foreign Service personnel. It had been originally intended that
they would be equal, but the present language of Section 5(a) of P. L. 110
expressly restricts the coverage of such benefits to personnel assigned
to permanent-duty stations overseas. There is no such restriction in
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Foreign Service legislation, and these benefits are presently available to
all such personnel irrespective of Trhether they are in a temaorary-- or
permanent-d.uty status.
SECTION 12.
Sections 901(1) and 901(2) of the Foreign Service Act of 194" were
i.necr orated by reference into Section 5(b) of the Central IL-Itelli;ence
Agency Act of 1919. Since that time, Section 901(2) of the Foreign Service
Act has been amended, and there is a possibility of further amendment in
the proposed Overseas Allo.ran.ces Act. This proposed language brings CIA
authority regarding allowances in line w.writh existing or proposed provisions
in other 1 egisl_ation. In addition to the provision of allowances there
has been included as a new subsection. 5(b)(3) basic authority for the
Agency to --)ay most differentials. The Foreign Service Act, as amended,
has Been used as the Cori nc'.-hDa1 model.
SECTION 13.
The existing lair nor provides that Foreign Service personnel are
entitled to exclude from ,gross income for income tax purposes the various
allowances authorized them under the Foreign Service Act. It is desirable
that the Agency have similar authority in view of the fact that the prow
visions of this nro'osed bill will establish separate and basic authority
for the A ency to pay similar al1oTrances. In the proposed Overseas
Allowances Act the law relating to exclusion for tax purposes of allowances
received by other Government employees is proposed to be amended to provide
only that allowances received under the provisions of t"'l.at Act would receive
benefit of exclusion. Therefore, it is desirable that the Agency receive
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its own authority in this field if its employees are to enjoy the same
tax treatment as all other Government employees abr. -,d.
SECTION 114
This proposed amendment authorizes CIA tr, pay a death gratuity of
$1,000 to the survivor of an Agency employee, immediately upon official
notification of death.
The need for such a payment arises from the unusual security require-
ments imposed upon Agency personnel, which in turn cause certain in-
equities to the survivors by causing delays in receiving the monetary
benefits to which such survivors would normally be entitled.
Acquisition of existing death benefits, provided by the Civil Service
Retirement Act of 1920, as amended by the Federal Employees Compensation
Act of 1916, as amended, and by commercial insurance, is contingent upon
compliance with certain administrative requirements. The primary purpose
of the Retirement Act is to supply a subsistence fund over a period of
years and not to alleviate the immediate financial burdens attendant upon
the death of a breadwinner. The death gratuity is aimed at the latter.
In normal Government employment the facts and records necessary to effect
fairly rapid payment of claims or benefits may be made available by the
agencies concerned. In the case of CIA, security factors inherent in
the intelligence function often cause inordinate but unavoidable delays
to arise in the acquisition, processing, and review of data required to
prove the claims. It is frequently impossible to supply the complete
information necessary to substantiate the claims to the Civil
Service Commission or Bureau of Employees Compensation without
jeopardiz.ng intelligence sources. As a result the survivors of
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employees are often at a disadvantage, particularly during the period
immediately following the employee's death, when ready cash is urgently
needed to tide over current and accrued obligations and meet emergency
needs.
L. survey of CIfL death cases in 1952-1953 indicates that the
settlement of decedent's accounts with the Agency has taken from 1
to 10 months, with the average running approximately 3-1/2 ~.lonths.
Leave records and financial accounts must be settled before a claim for
benefits may be submitted. Delays have been particularly apparent in
connection with accounts which must be returned from overseas.
Precedent for the payment of death gratuities exists in the
military services, which have been authorized to pay a death gratuity
since 1908. This gratuity consists of an amount equal to six months'
pay at the rate received by the officer or enlisted man at time of
death.
During the past three years approximately 18 employees have
died each year. This would represent an average yearly cost of
$18,000 to the Agency. The cost of administering this program would
be negligible, as death gratuity payments would involve a minimum of
administrative procedures.
SECTION 15,
Under present statutory authority, CIA is authorized to employ
15 retired officers of the armed services, whose emplo3rLsent by the
Federal Government would be otherwise barred by other statutory
limitations on the employment of such officers. This proposed amendment
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would raise the number of such officers who could be e;..iployed by CL's
from 15 to 35. It was pointed out in the report of the Clark Coil.littee,
and this Agency concurs in its conclusion, that increased use should be
made, if possible, of the talents of retired .military officers whose
ability and experience fit them for the types of work done by this Agency.
SECTION 16.
Section 3548 of the Revised Statutes provides that there shall be
no advance of public -money unless authorized by the appropriation con-
cerned or by law, or by certain stated exceptions in Section 3048; it
provides further that in contracts for the performance of services or
the delivery of articles of any description for the use of the United
States, payment shall not exceed the value of such service or article
delivered previous to such payment. This provision works a hardship
in certain foreign countries, whose laws or customs require advance pay-
ments, particularly of rent. Frequent exceptions have been made to this
provision of law; e.g., for payaents made for the Bureau of Customs in
foreign countries (31 U.S.C. 529 b), for the enforcement of customs and
narcotics laws (31 U.S.C. 529 f), the Office of Scientific Research and
Development (31 U.S.C. 529 h), and for advance payments of office rent
in foreign countries by the Bureau of Foreign and Domestic Commerce. This
statute is also specifically waived for the armed services, and the Depart-
anent of State has acquired an exception in its current Appropriation Act
(P. L. 133 of 7 July 1955).
SECTION 17.
This proposed section provides a retirement standard for CIA
personnel within the framework of the Civil befvice Retirement Act.
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It provides that for the purpose of computing eligibility for retirement
and the amount of the annuity to be received, each year of service abroad
as an employee of CIA shall be credited as one and a half years of service,
and each such year of service abroad shall serve to lower the retirement
ages prescribed in the Civil Service Retirement Act by six Months. It is
also provided that voluntary retirement shall not be alloued for such
employee until he has reached the age of 50. This section also provides
that the annuities payable under the Retirement Act shall not be reduced
because of the lowering of the annuitant's retirement age under this
section. CIA feels that retirement benefits should not accrue to its
employees merely because of employment with the `Agency. It feels that
these benefits should arise primarily because of overseas service with
the Agency. Although there is no exact precedent for this proposed
amendment, the retirement provisions of the Foreign aervice .Lct of 1940,
and of 5 U.S.C. 691(d) with respect to certain investigatory personnel,
are similar.
SECTION 18.
This provision corrects a typographical error in Section 10(a)(1) Of
the Central Intelligence Agency Act of 1949. The authority which was
intended to be granted by this clause was the authority to pay claims
under the Federal Tort Claims Act (Chapter 171), but the chapter number
was omitted from the final printed versions of the bill as passed.
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to amend t1.~e Central Intelligence Agency Act of 1949; as amended;
and for other purposes.
Be it enacted the Senate and House of Representatives of the
United States of.America in Con. press assembled,
SEC 'ION '1. Section 3 of the Act entitled the Central Intelligence
Agency Act of 1949, a;Pproved June 20, 1911.9, as amerded (63 Stat.20
50 U.S.C. 1+03a) (hereinafter referred to as "such Act), is amended to
read as follows:
"(a) In the -o. erformance of its functions, the Central
Intelligence Agency is authorized to exercise the authorities
contained in sections 2(c), 5, ", :, and 10 of the Armed Services
Procurement Act of 1947, approved Feb. 19, 19110, as amended
(62 Stat. 21, 111 U.S.C. 151).
"(b) Contracts of the Agency for services and use of
facilities for research or4evelopment may be for a term not
to exceed five years, and may be extended for an additional
-period not to exceed five years, subject to the availability
of appropriations therefor.
"(c) For purposes of this section, the term "agency head"
shall mean the Director and Deputy Director of Central Intelligence
.faF~
and the Deputy Directors of the Agency."
88CrxON 2. The first sentence of Section 51a) of such Act is
amended by striking out the words "its territories,and possessions,
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SECTION 3. Section 5(a)(1)(d) of such Act is amended by
deleting the words ", because of emergency conditions, " and by
adding after the semicolon the words "or T;rhen such storage would
avoid the cost of transporting such effects from one location to
another."
SECTION 4. Section 5(a)(1) of such Act is amended by inserting
a semicolon in lieu of the period at the end of Section 5(a)(1)(F)
and inserting a new subsection "(G)" which shall read as ollows:
"(G) pay the travel expenses incurred by an officer or
employee of the Agency who is assigned to a post outside the
continental United States, in transporting dependents to and
from United States ports of entry designated by the Agency, to
obtain an American secondary or college education, not to exceed
one trip each way for each dependent for the -purpose of obtaining
each type of education."
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SECTION 5. Section 5(a)(2) of such Act is amended to read
as follows:
"Charge expenses in connection with travel of personnel,
their dependents, and transportation of their household goods
and personal effects, to the appropriation for the fiscal year
current when any part of either the travel or transportation
be{;ins pursuant to previously issued travel orders, notwith-
standing; the fact that such travel or transportation may not
all be effected durim. such fiscal year, or the travel orders
may have been issued during the prior fiscal year."
SECTION 6. Section 5(a)(3)(A) of such Act is amended to read as
follows:
"(3) (A) Order to the continental United States or its
Territories and possessions on leave of absence as provided by
law, every officer and employee of the A,ency who is a citizen,
or an alien who was a resident of the continental United States
or its Territories and possessions at time of employment, upon
cgmpletion of two years' continuous service outside the continen-
tal United States, or as soon as possible thereafter."
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SECTION 7 Section 5(a)(3) of such Act is amended by inserting
at the end thereof a new subsection'(D)" which shall read as follows:
"(D) The provisions of Section 203(f) of the Act of October 30,
1951 (65 Stat. 679, 5 U.S.C. 2061), and as it may hereafter be
amended, shall be applicable to officers and employees of the
Agency, and such officers and employees shall be subject to the
limitations as to the accumulation of leave applicable to officers
and employees in the Foreign Service of the United States under
the Department of State as provided in Sections 203(c) and (d)
of the Act of October 30, 1951 (65 Stat. 679, 5 U.S..C. 2061),
and as it may hereafter be amended."
SECTION 8. Section 5(a)(5)(A) of such act is amended to read
as follows:
"(5)(A) In the event of illness or injury incurred while
on assignment outside the continental United States, requiring
hospitalization of an officer or full-time employee of the
Agency or of a member of the family accompanying such officer
or employee on such assignment, not the result of vicious habits,
intemperance, or misconduct on the part of such persons, in a
locality where there does not exist a suitable medical facility,
pay the travel expenses of such officer or employee, or member
of his family, by whatever means are considered appropriate
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without re;;ard to the Standardized Government Travel Reuulations
and Section 10 of the Act of March 3, 1933 (47 Stat. 1516;
5 U.S.C. ';3b), to the nearest locality where a suitable medical
facility exists and on the recovery of such individual pay for
the travel expenses of return to the post of duty of such officer
or employee, or member of his family. If such officer or employee,
or member of his family, is too ill to travel unattended, the
Abency may also pay the travel expenses of an attendant;".
SIC'i'IQN 9. Section 5(a)(5)(C) of such Act is amended to read as
follows:
"(5)(C) Pay for the cost of treatment of illness or injury
requirin hospitalization at a suitable medical facility, wher':
such illness or injury is incurred --
"(i) in the line of duty 'by an officer or full time
employee of the Aency while such person is assit,ned out-
side the continental United States, or
"(ii) by a rne:-,iber of the family accompanyin such
officer or employee on assignment outside the continental
United States, where such illness or injury occurs through
circumstances directly related to the duties or duty station
of such officer or employee:
"Provided, That such illness or injury is not the result of
vicious habits, intemperance, or misconduct on the part
of such persons."
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Sic`1ION 10, Section 5(a)(5)(D) of such Act is amended by inserting,
"and their dependents" after the word ''Agency" and again immediately
before the period at the end of tiie Section.
SECTION 11. Section 5(a) of such Act is amended by inserting at
the end thereof a new subsection "(~)" which shall read as follows:
'~($} Subsections (5)(A), (5)(C), (5)(D), and (6) of this
Section are also applicable to officers and employees of the
Agency assi?ned to temporary duty outside the continental United
States."
SECTION 12. Section 5(b) of such Act is amended by striking; out
all of the words of the section after the word "Agency" and insertin; in
lieu thereof the following:
"(1) allowances, wherever Government owned or rented quarters
are not available at a post outside the continental United States,
for living; quarters, heat, light, water, fuel, gas, and electricity,
including; allowances for the cost of lodgin,;, at temporary quarters,
incurred by an officer or employee of the Agency and the members of
his family upon first arrival at a new post, fora period not in
excess of three months after such first arrival or until the
occupation of residence quarters, whichever period shall be shorter,
up to but not in excess of the aggre1ate amount of the per diem
that would be allowable to such officer or employee for himself
and the members of his family for such period if they were in
travel status:
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(2) cost-of-living allowances whenever --
"(A) the cost of living at a post outside the continental United
States is proportionately so high that an allowance is necessary
to enable an officer or employee of the Agency at such post to
carry on his worth efficiently;
"(B) extraordinary and necessary expenses not otherwise compen-
sated for are incurred by an officer or employee of the Agency
incident to the establishment of his residence at any post of
assignment outside the continental United States or at a post of
assignment in the continental United States between assignments
to posts outside the continental United States;
"(C) an allowance is necessary to assist an officer or employee
of the Agency who is compelled by reason of dangerous, notably
unhealthful, or excessively adverse living conditions at his post
outside the continental United States or for the convenience of
the Government to meet the additional expense of maintaining his
wife and minor children elsewhere than at the post of his assignment;
"(D) extraordinary and necessary expenses, not otherwise compensated
for, must be incurred by an officer or employee of the Agency, by
reason of his service outside the continental United States, in
providing for adequate elementary and secondary education for his
dependents; allowances under this subparagraph for any post shall
not exceed the cost of obtaining such educational services as are
ordinarily provided without charge by the public schools of the
United States plus, in those cases where adequate schools are not
available at the post, board and room, and periodic transportation
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W %W
between the post and the nearest locality where adequate schools
are available; if any such officer or employee employs a less
expensive method of providing such education, any allowance paid
to him shall be reduced accordingly; no allowance ,shall be paid
under this subparagraph for a dependent for whom a travel allowance
has been paid under subsection 5(a)(l)(G):".
(3) a foreign post differential or a territorial post
differential on the basis of conditions of environment which
differ substantially from conditions of environment in the
continental United States and warrant additional compensa-
tion as a recruitment and retention incentive. Additional
compensation paid as a foreign post differential or territorial
post differential shall not in any instance exceed 25 per centum
of the rate of basic compensation.
SECTION 13. Section 5 of such Act is amended by inserting
at the end thereof a new subsection (c) which shall read as follows:
"Amounts received as allowances pursuant to the provisions
of section 5(b)(l) and (2) of this Act shall not be included in
gross income, and shall be exempt from taxation under the Internal
Revenue Code of 1951+, as amended, and as it may hereafter be
amended."
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SECTION 14. Section 5 of such Act is amended by inserti_n.; at the
end thereof a new subsection (d) which shall read as follo*rs:
"(d)(1) Under such regulations as the Director may pre-
scribe, the Agency shall have authority out of appropriations
made available to it to pay the sum of ;1)1,000.00 as a death
gratuity immediately upon official notification of the death of
any officer or employee of the Ag;enc r. The +aymen.t of the death
,gratuity authorized by this subsection shall be in addition to
other benefits to which the de,er-)dents or the estate of the deceased
may be entitled under any other ;?rovisior_ , f la*r.
"(2) The death gratuity authorized by this subsection shall
be ?aid to or for the living survivor or surviv,:rs of the deceased
officer or em>>loyee designated by the officer or employee from ore
of the classes listed belor.* or in the absence of a;- r desi' nation
to the living survivor or survivors of such officer or employee
first listed )elo7.r.
"(A) Snouse.
"(B) Children (without regard to their age or marital
status) in equal shares.
"(C) Any dependent or dependents of the deceased in
equal shares.
"(D) Parents in equal shares.
"(E) Brothers and sisters (including those of the half
blood and those through adoption) in equal shares.
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"(3) If a survivor dies before receiving the amount to
which entitled under this subsection, such amount shall ze '-paid
to the then livin survivor or survivors first listed ti-der sub.-
section (d)(2).
"(!.) The -payments made under the provisions of this su'o-
section shall not be as-,unable, shall 'oe exempt from taxation,
shall be exem-pt from the claims of creditors, includinn any claim
of the United States, and shall not be subject to attachme_.t, levy,
or seizure by or under any le3al or e _uitabl.e -process Trhatever
either before or after receipt by the nayee.
"(5) (A) No certifyin or disbursing officer shall be liable
for any amounts erroneously -paid or over?oaid under this subsection-
to a woman as a 'spouse' or t a -person as a 'child' in the absence
of fraud, cross nelience, or criminality on the part of such
"(B) The Director may vraive the rec:`very of any such
erroneous -nayments or over-payments *.rh.en such recovery mould be
against e quit- and rood conscience.
"(C) The determination of the Director as to denendency
under subsection (d)(2)(C) is conclusive upon the General Accounting
Office. "
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SECTION 15. Section 6(f)(1) of such Act is amended by strikin:
out "fifteen." and inserting in lieu thereof the folloTwr1_n-: "thirty-five".
SECTION 16. Section 6 of such Act is amended by the insertion of
a semicolon in lieu of the ?period at the en-id of subsection "(f) " and
by the addition of a new subsection. which shall read as foll_o*.rs:
"(p) Make payments without regard tnn section 3-11r' of the
Revised Statutes (31 U.S.C. 529), when made -
"(1) in compliance with the la=ss of foreign
countries or their ministerial regulations, and
"(2) for rent in foreign countries for such
rDeriod as may be necessary to accord with local custom."
SECTION 3_7. Such Act is amended bar inserting a new Section 9 which
shall read as f cllowrs :
"Section 9. (a) For the -cur ose of computing eli;ibjility;
for retirement and the amount of the annuity under the Civil
Service Retirement Act (Act of 22 May 1920, as amended, c U.S.G.
691) each year of service outside the continental United States
as an employee of the Agency after i$ September 1.947 shall bbe
credited as one and one half ,rears cf service and each such year
shall serve to lower the retirement ages prescribed in. the Civil
Service Retirement Act by six months: Provided, That voluntary
retirement shall not be allowed until such persons shall have
reached 50 years of age. Such additional credits shall be granted
proportionately for fractional years f service.
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"(b) No annuity -paid under the Civil SerT-ice Retirement
Act shall be reduced s-.lely because the annuitant has retired
at an are 1oT;rered in accordance -ith the nr5 visions of sub-
section (a) of this Section. Tlie -',base are nr vided bar the Civil
Service Retirement Act for comnutin a nercenta.r;e reduction in
annuities shall be reduced the same amount as the reduction
in retirement a se made in accorda.-ice Tait'''!. subsection (a) of this
Section."
SECTION 18. Section 1O(a)(1) of such Act is amended b insertin;
"Cha>>ter 171 of" immediatejy before "20 U.S.C. ".
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