SUPPORT BULLETIN FOR INFORMATION OF HEADQUARTERS AND FIELD PERSONNEL

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-04724A000200050006-3
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 15
• Document Creation Date: December 9, 2016
• Document Release Date: July 27, 2000
• Sequence Number: 6
• Publication Date: April 1, 1959
• Content Type: BULL

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SUPPORT BULLETIN
FOR INFORMATION OF HEADQUARTERS
. AND FIELD . PERSONNEL
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'1H tpt is part of am fnlegrated
fie. If separated from the file it must be
subjected to individual systematic review.
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PURPOSE
The Support Bulletin, published periodically, is designed to keep head-
quarters and field personnel informed on administrative, personnel, and
support matters. The Support Bulletin is not directive in nature but
rather attempts to present items which, in general, are of interest to all
personnel and, in particular, of interest to those employees occupying
various support positions. Suggestions and constructive criticism from
both headquarters and field personnel are encouraged.
NOTE: - This bulletin is for information only. It does not con-
stitute authority for action and is in no way a substitute
for regulatory material.
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EFFICIENCY AND TRAINING
Field personnel will be interested in the
following remarks made recently by the Dep-
uty Director to members of the Office of
Training at headquarters :
"I'd like to talk briefly about an all-year-
round theme : that of efficiency. Every year
in support -of the Organization program, the
Director and I - and others= appear before
the Bureau of the Budget and the congres-
sional committees. It's essential that we go
before these people knowing,. without reserva-
tion in our hearts, that resources in the.Or-
ganization are being used with a maximum of
efficiency. There -are formal reporting mech-
anisms in existence which aim at giving us
this assurance, but these formal mechanisms
never give the whole story. There is always
the danger that.management facts may be
different from worker facts, and the differ-
ence may be extremely important.
."So today I am appealing to the informal;
that is, to the spirits and attitudes of all
Organization employees to accept, along with
the senior executives, the responsibility for
identifying, digging out, and eliminating in-
efficiency, and thus insuring that our per-
sonnel is in full gear. This task can be a
keg of worms, but if everyone goes at it seri-
ously; the need for more formal and unde-
sirably rigid approaches diminishes.
"This is one of our greatest challenges.
Our Organization is doing very well gener-
ally. This past year we have absorbed many
chores; in fact, over 400 man-years of work
without increases in personnel strength. We
are producing a better product and respond-
ing with increased competence on every front.
While we can't, because of the nature of our
business, blow our horn loudly over our ac-
complishments, each of us can personally be
proud of them. But let's not rest on our
laurels. Let's not -give way to that trait of
human nature to be eternally-on the lookout
for a place to park. If water rests, it stag-
nates; if we rest, we rust. So it is the job
of all of us to put up `No Parking' signs for
ourselves and for our colleagues. Inaction
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and inefficiency must go; flexibility and com-
petence must expand. Our motto should be
`No Parking .Here.'
"Now what can the Office of Training do
about this? Your courses provide the oppor-
tunity. for Organization employees to become
more flexible, more capable, and, we hope,
more efficient. But there is always the ques-
tion: Are 'we training all the right people?
"Last year, I asked you to come up with
new and positive ways of unleashing the cre-
ative energies of our people and of increasing
our overall competence. This year, I'm go-
ing to remind you of an old saw which may
offer further challenge. You have all heard
the saying `The operation was a success, but
the patient died.' Most of our training has
been efficient, but is it doing the patient as
much good as it should? Our employees have
learned, but have they been able to convert
their learning to on-the-job situations or
does their job performance remain substan-
tially as it was before their training? Let's
look into this in the coming year. If the
answer is yes to this latter question, then we
may have inefficient use of our resources. If
our training courses are practical and well-
developed, application will normally follow,
wanting only for the opportunity.
"However, I fully support the Organiza-
tion's need to train people in subjects which
today may not be immediately applied. This
is necessary-if we are to grow. It is particu-
larly true of language training where lead
time is a key factor. But wherever possible,
let's not allow our efforts to be frustrated.
Of course, in no event should the tail wag
the dog. But, assuming that the training is
based on, sound requirements, let all of us be
sure that there are no practices of of ganiza
tion inhibitions which restrict or block appli-
cation of new skills.
"Take your places in identifying and cut-
ting out inefficiency and deadwood. Spread
the word. Continue to do a good job of train-
ing in order to make people want for take
your courses. Continue to look for new ways
to get employees into your hands who, should
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have training. The task will be tougher this
coming year thane in years past. We shall all
be competing more than ever with tight ceil-
ings, heavy workloads, and priorities, but we
must all get into the act of doing our share
to move the Organization and its. products
forward. So let's make the operation a suc-
cess and have the patient live.
"Some of you may recall the story about
the erection many years ago of the statue
of General Robert E. Lee in Richmond.
Someone made the comment that it would
take a lot of horses to pull all of those tons
of metal all the way uptown, whereupon
so heone replied, `Horses! Don't let's have
horses pull General Lee. -Let's pull him our-
selves!' The idea caught like wildfire and
swept throughout the city. Pulling on that
cable, on the prescribed day, were rich men
and poor men, lean men and fat men, white
men, black men, school girls, and even society
matrons, tripping about on their spool heels.
Amid the laughter and tears, the songs and
cheers, they drew the General's statue in tri-
umph to the place where it sits today, look-
ing out toward his beloved Southland. As
soon as it reached its destination, every per-
son wanted a piece of that rope; and for days
afterwards, he would pull a small piece of
hemp from his pocket, hold it up, and with
pride say to his friends, `I had hold of the
rope. Did you?'
"If we are to accomplish our complex mis-
sion, we need ever-increasing skill and com-
petence; this fact spells `training' in capital
letters. Each of us should be able to say `I
had a hold on the rope.'
MANAGEMENT TOOLS
DATA PROCESSING - INTRODUCTION
TO AUTOMATION
Some call it I.D.P. (Integrated Data Proc-
essing), some call it E.D.P. (Electronic Data
Processing), and still others call it A.D.P.
(Automatic Data Processing). In all cases
Data Processing is the function of record-
ing, moving, storing, and using information
and has been going on since man first
learned to scratch pictures in rock. With
the increasingly complicated socio-economic
developments of this era, the problems of
Data Processing have become incredibly in-
volved and 1-rand-processing of data is, in
most cases, no longer economically sound.
It simply costs too much and the results are
rarely available for management use on a,
timely basis.
Everyone is familiar, to some degree at
least, with the tremendous strides in the pro-
duction and distribution of all kinds of prod-
ucts of industry. The management of
records or paperwork has admittedly not
kept pace with technological developments
in other fields, and this is as true in govern-
ment as it is in private industry. Machines
are commonly used to produce things rapidly,
to transmit information quickly over long
distances, and to distribute products on a
timely basis. The next step is logical and
inevitable. Machines must be used to process
data if production and distribution of things
is not to bog down in a sea of manually
managed paperwork.
Although, in its present context, machine
management of data is a relatively new field,
it is based on principles of automatic and
semiautomatic machine operations which
people have accepted for years: the type-
writer, the adding machine, thermostats or
the automatic setting of off-on electrical
switches, the player piano, and wire commu-
nications machines. In each of these hereto-
fore different fields of relative automation,
people have provided the only link between
one field and another. Today, it is possible
to mechanically or electrically link machines
in these various fields and use them auto-
matically or semiautomatically to do, with
minimum human intervention, one inte-
grated paperwork-processing job. Obviously,
great strides have been made in the develop-
ment of such machines to permit them to
be so used, but there is nothing really mys-
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terious about them. People are still needed
to supervise the operation of these machines
and a whole new industry provides employ-
ment to more than compensate for the grad-
ual decrease in office personnel which in-
'creased use of machine-processing of data
will bring.
Even though the field is a relatively new
one, there are all sorts of machines and sys-
tems for Data Processing which have been
developed by the various manufacturers in
collaboration with actual or potential cus-
tomers. Some kinds of paperwork jobs lend
themselves to machines more easily than
others, and these are the ones which are
usually integrated into a machine system
first. In all cases, however,, much study is
required before a sound decision can be
made on:
1. Which paperwork procedures are logical
ones for machine application in a given
industry or Government agency?
2. Which machine or machines will do the
job most effectively?
3. What provisions, if any, should be made
now for future expansion?
4. Will the savings be substantial enough
to warrant the kind of investment re-
quired. (These things are expensive.)
There are a number of machine applications
to paperwork now being used in both indus-
try and government; in some areas of paper-
work, the savings are already apparent, in
others there are still obstacles to be overcome.
It was stated initially that some people
call machine processing I.D.P., some call it
E.D.P., and some call it A.D.P. The basic
objectives of all are the same and they have
many procedures in common; however, they
are somewhat different, Electronic Data
Processing always involves electronic manip-
ulation of information; Automatic Data
Processing may or may not involve electronic
equipment; usually A.D.P. is concerned with
various electrically operated mechanical ma-
chines; Integrated Data Processing describes
the integration of various data into one sys-
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tern which may employ electronic, electric,
or electro-mechanical machines, or a judicious
combination of all three. In" all cases, of
course, the human element remains of sig-
nificant importance. People are what make
machines work.
Subsequent articles will deal with various
aspects of I.D.P. in more detail and will in-
clude brief, simple descriptions of the major
types of available equipment and their most
efficient uses.
DOCUMENT CONTRO
The next time you receive a piece of Organi-
zation mail, consider for a moment the num-
ber of control processes it went through to
reach you. Then ask yourself if the docu-
ment control measures in your office are effi-
cient, and is each one - the receipting, num-
bering, logging, reviewing, abstracting, dat-
ing, time-stamping, coding, sorting, or cover-
sheeting - really necessary for every piece
handled?
These control measures, of course, have
their place in the Organization. But when
their overuse or complexity unnecessarily in-
creases clerical costs, or delays decisions and
actions vital to both headquarters and the
field, a close look into the causes of the trou-
ble is needed. For example, a recent Govern-
mentwide study pointed up that a problem
generally exists if:
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1. An excessive amount of time (from
two to four hours depending on the size
and physical layout of the component)
elapses between the receipt of a document
in a registry and its delivery to the action
desk.
2. All initial control operations (includ-
ing routing) for one document take more
than five minutes.
3. More than 15 percent of the total in-
coming documents receive control process-
ing in addition to that required for security
purposes.
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4. A routing slip or control form is placed
on virtually every incoming or outgoing
document.
When these danger signs show up it's a
safe bet that document control measures (ex-
clusive of those required for security control)
exceed those really needed to answer these
questions about documents that call for
action or decision:
1. Has _a particular document been re-
ceived, and, if so, to whom and when was
it sent for action?
2. Has a particular document been re-
leased, and if so, what action was taken
and to whom and when was it sent?
These questions can be quickly and simply
answered by three forms available in head-
quarters or the field. These are: Form 779,
Locator and Control Record (headquarters
and field) ; Form 238, Document Control
(headquarters only) ; Form 240; Courier Re-
ceipt and Log Record (headquarters only).
All three are multipart forms designed to
provide at one writing enough copies to meet
several, needs at different control points.
Here's how these forms work:
1. Forms 779 and 238 are six-part sets
printed on NCR (No Carbon Required)
paper. The six parts provide copies for
logging and cross-referencing at the regis-
try level and at subordinate points. The
3" x 5" slips not only eliminate,the need
for log books, but also provide a ready com-
munications medium for, notifying a cen-
tral registry of the disposition of a docu-
ment at a subordinate point. The file loca-
tor reference to the document can also be
shown on Form 238.
2. Form 240 is a four-part carbon inter-
leaved set. At one writing, copies of the
form are made for addressing, receipting,
and logging of classified material trans-
mitted within headquarters through the
courier system. The form meets all secu-
rity requirements for logging material
classified up through Secret.
3. Form 240 is also designed for use with
the new headquarters Chain Envelope,
This envelope has been approved for trans-
mitting within headquarters material clas-
sified up through Secret. It may also be
used as the outer wrapper for double-
wrapped material, except that which is
classified Top Secret. In addition to meet-
ing these security requirements, the new
envelopes offer these advantages :
Save time - You can address an envelope
and 'attach. a receipt in one operation.
Simply insert the receipt in the window
pocket on the face of the envelope. If a
courier receipt is not needed, insert a 3" x
5" card or slip of paper and write in the
address.
Save money-These envelopes may be
used repeatedly,
Save safe space - Safe space will not be-
needed for used envelopes since names and
addresses will not appear on them.
The Organization, vitally concerned about
the effect of document controls on the. time-
liness of decisions reaching the field, has in-
cluded the improvement of these controls in
the objectives of its Records Management
Program. Guidance may be obtained. from
your Records Officer, and, in headquarters
also from the Records Management Staff.
YOUR SUGGESTION AWARDS PROGRAM
During the past five months the Organi-
zation has_ adopted 93 employee suggestions
for which the Suggestion Awards Committee
has paid awards totaling $2,355. The indi-
vidual awards ranged from Letters of Appre-
ciation to $600. The suggestions described
below represent calculated net tangible sav-
ings to this Organization of over $22,888 for
the first full year of operation, plus many
intangible benefits. In addition to the cash
awards, each person received a formal Letter
of Commendation, a copy of which went into
his Official Personnel Folder.
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One suggester, who consistently sends in
good ideas; earned $145 for his proposal to
use a cheaper quality of paper for raw re-
ports, thus achieving tangible savings of
$4,620.
Another person- proposed a solution to a
technical. communications problem involving.
the NEMS 966 Video Patch Cord. Within a
six=moritl- period, approximately 50 percent
of the Model 966 cords had failed, primarily
because of the small area provided for a
hand-hold on the connector when effecting a
disconnect. The suggester fabricated a bet-
ter hand-hold. Although the proposed modi-
fication was not considered practical for gen-
eral use the suggestion caused the manufac-
turer to modify the design, and to agree to
supply to the Organization, free of charge,
modification kits for each of the connectors
purchased. The suggester earned a cash
award of $50 for his contribution.
One employee modified the photographic
light tables presently used by photo inter-
preters in the inspection, editing, and evalu-
ation of film transparencies. When a film
transparency is moved across a rough or hard
surface, long horizontal scratches are made
in the sensitive film emulsion, resulting in a
marked decrease in the subsequent utility of
the film. In attacking this problem, the sug-
gester designed and built a Mylar conveyer
belt to rotate around idle rollers. Thus, the
film rides on the belt and never comes in con-
tact with any other object. This new method
of spooling film has reduced the wear and
tear of transparencies by 80 percent. The
suggester has received $600 so far, and credit
has also gone to his two supervisors who were
active in helping him design and build this
device. His patent rights have been estab-,
lished through the Organization's Patent
Board and that Board has also applied to
the United States Patent Office for a patent
for him. It is believed that when the device
is marketed, additional awards will be forth-
coming through more extended use by other
Government agencies and by commercial
firms.
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A significant new technique for microfilm-
ing and photbstating books is the use of a
book-holder with foam rubber padding. In
this procedure it is necessary to maintain the
copy plane absolutely parallel to the film
plane. The foam rubber serves as a balanc-
ing cushion and automatically brings the
tops of the two sections of an open book to
the same plane at all times. The person who
proposed this received an award of $150.
One analyst showed a great deal of in,
genuity in adapting the use of a 20-power
stereoscopic microscope to analyze' minute
objects on aerial photographs. There was on
the market no stereo-microscope adapted for
the photographic stereo viewing. The sug-
gester realized the need for this type of in,
strument was very pressing, and his effort
made possible the use of the instrument about
18 months before, it was produced commer-
cially. The Committee voted a $50 award for
this idea.
One person proposed that the light tables
in darkrooms be equipped with a second light
(a red safelight) for the inspection of nega-
tives, which facilitated large-quantity pro-
ductions.
Another suggester earned an award of $40
for his proposal to use a cheaper commercial
product in printing operations as a fountain
etch and as a plate etch. This idea caught
fire and additional awards may be forthcom-
ing from its use in other Government
agencies.
Another group of suggestions helped to cut
out unnecessary administrative and clerical
red tape.
The proposal for the 'discontinuance of
date-stamping on certain newly created index
cards earned an award of $30 for the sug-
gester who had observed that this practice
had outgrown its usefulness. The savings
realized are estimated to be $330 annual
rental for the Pitney-Bowes Tickometer and
approximately $200 a year in salary for the
Tickometer operator.
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. A streamlining of procedures which ef-
fected simultaneous distribution of requests
for security approvals for one category of
personnel has cut down the time lag by sev-
eral weeks and. merited an award of $50.
A short-cut in desensitizing documents
bearing a certain communications indicator
was devised. The ?suggester proposed that
extra copies of abstracts be furnished to facil-
itate the desensitizing procedure.
In the Cable Secretariat, where increasing
files of 3" x 5" reference cards posed serious
space and maintenance 'problems, a proposal
that the information be transferred to Flexo-
line Strips earned the suggester $100.
Our continuing interest in improving se-
curity prompted other award-winning sug-
gestions.
Three. suggesters proposed that personnel
going. overseas be provided with a central
storage place. for the retention of vital.per-
sonal unclassified papers such as wills, mar-
riage certificates, 'mortgages, and insurance
policies; and classified and unclassified pa-
pers of a personal or quasi-personal nature
which the employee will need to re-establish
himself at headquarters. When this idea
was adopted the Committee voted an award
of $75 to be shared equally by the three
employees.
These practical ideas contribute to the
efficiency of our operations and it is hoped
will stimulate 'other worthwhile suggestions
from our readers.
Please remember to advise the Executive
Secretary, Suggestion Awards Committee, if
any of the above suggestions are usable in
your office.
LENGTH OF OVERSEAS TOURS OF DUTY
It is increasingly desirable to standardize
as much as possible the ,length of overseas
tours of duty of the various Career, Services.
Several of the Career Services have in the
past adhered rather strictly to a two-year
tour of duty in order. to insure that the maxi-
mum number of key people received the bene-
fits of overseas service. This objective has
been largely accomplished. In consideration
of the fact that at least some weeks are re-
quired after an employee reaches his overseas
post before he is able to assume full responsi-
bilities and that his last few weeks before
departure for the States are used in part to
phase out, a two-year tour in many cases is
not economical. It is believed that in most
instances the best interests of the Organiza-
tion would be served by having employees
either extend their tours `for a third year or
come to the States on leave following over-
seas assignment and return to their posts for
a second two-year tour of duty. However, it
is basically sound to make initial assignments
for a two-year tour of duty in order to pro-
vide flexibility to both the Organization and
the employee if for any reason at all it ap-
pears desirable to limit the tour of duty to
two years.
Except for posts where, for hardship or
other special reasons, a tour shorter than two
years has been adopted, personnel will con-
tinue to be assigned to overseas posts initially
for two-year tours of duty. Sometime after
the completion of one year and before the
completion of 15 months of overseas duty a
decision should be made by the Head of the
Career Service whether:
1. The employee returns home on a
permanent-change-of-station basis at the
end of the two-year tour,
2. Extends his tour for a third year, or
3. Takes home leave and returns to his
post for a second two-year tour of duty.
The Chief of Station should forward to
headquarters his recommendation concern-
ing the length of an employee's tour, taking
into consideration the des}res and comments
of the employee and his supervisor. The ap-
propriate Career Board will make its decision
based on the need or desirability of the serv-
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ices of the employee in another assignment
or the need to assign another employee to
the overseas position in question. In all cases,
the Career Board will notify the employee
through his Chief of Station of the decision
concerning the length of his tour.
PRIVATE PROPERTY LOSS CLAIMS
In two, recent decisions, the 'Headquarters
Board of Survey found it necessary to recom-
mend that the approving authority disap-
prove an employee's claim for reimbursement
for loss of his personal and household effects
by fire. The losses suffered by these em-
ployees were more severe because of the lack
,of insurance coverage. The circumstances of
these disapproved claims and Organization
policy for honoring claims are summarized
here to remind Organization personnel of
the necessity for making appropriate insur-
ance arrangements to protect their private
property.
As a general rule, civilian departments and
'organizations have no statutory authority to
pay claims for damage or loss of private prop-
erty. Insurance coverage is the personal re-
sponsibility of the individual employees, at
their personal expense, if they desire protec-
tion against loss. Accordingly, employees of
this Organization, including those under
should insure their
privately owned property against the risk of
loss or damage while in transit, storage, quar-
ters, or other authorized places and situations,
if they do not wish to personally accept that
risk. The Organization does not provide in-
surance for such purposes and the fact that
the Organization provides services and ar-
rangements, and sometimes accepts custody,
for storage, etc., does not mean that the Or-
ganization accepts total responsibility for the
property.
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In accordance with the provisions of R and
- special claims may be submitted
to the Organization on account of the loss,
damage, destruction, capture, or abandon
ment of privately owned property, which oc-
curred without negligence on the part of the
owner. These claims will be honored when
the reviewing authorities determine that op-
erational circumstances or security factors di-
rectly related to Organization service justify
reimbursement from confidential funds. In
the absence of insurance coverage, a claim will
not be honored unless (1) security, cover, or
extenuating circumstances precluded proper
insurance coverage, or (2) negligence on the
part of the Organization is determined to be
the principal cause of loss, or (3) the loss is
a direct result of performance of operational
duty, sensitive circumstances, or other ex-
traordinary reasons which merit special con-
sideration. If the property was insured, a
claim,will be honored by the Organization .if
security or cover considerations preclude reim-
bursement by the insurer or by another liable
entity such as commercial carrier or storage
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In the first of the two disapproved claims
referred. t
above, an employee was trans
ferred PC`overseas and the Organization pro-
I VF vided services to the employee in arranging
for pick-up and storage of his property by a
commercial storage company, at Organiza-
tion expense. The employee stated that he
failed to insure because he was not cognizant
of that personal responsibility. He mistaken-
ly assumed that the Organization was accept-
ing total responsibility for the property and
would do whatever was necessary in regard
to insurance. Some time later, the storage
contractor's warehouse was destroyed by fire.
The contractor denied negligence and dis-
claimed responsibility for the loss of the em-
ployee's property (worth several thousand-dol-
lars) because the fire was probably attribut-
able to a boy arsonist. The original claim
and appeal were denied by the Organization
because (1) there was no Organization re-
sponsibility for the property or loss thereof,
and (2) the claimant was not precluded by
security or cover considerations from seeking
relief by contesting the contractor's denial
through legal action, or by claiming against
a private insurer, and (3) the claimant failed
to carry insurance.
In the other disapproved claim, the Or-
ganization reimbursed the employee for rental
of a private local residence which, he leased
near his overseas post, and the Organization
provided heaters for his benefit. A fire de-
stroyed the residence and all of the employee's
clothing and household effects valued at sev-
eral thousand. dollars. The exact cause of
the fire was not definitely established, but the
local fire department reported that the most
likely cause was possibly a defective heater.
Although the Claims Board was not unmind-
ful of the magnitude and circumstances of
this loss, it was necessary to disapprove the
claim because :
1. The Organization had no custodial re-
sponsibility for the property and no mainte-
nance responsibility for the heaters or quar-
ters, even though the premises were Govern-
ment quarters provided under authority of
FR 45-1050. There was no evidence to indi-
cate that the heaters were defective when
issued.
2. The claimant, failed to carry insurance.
The circumstances of his cover would not have
precluded his making a claim against a pri-
vate insurer.
3. The loss was not related to security or
cover factors of Organization service.
IT'S INCOME TAX TIME
Reporting and paying of income taxes are
the personal responsibility of the individual
employee. We have a direct concern, how-
ever, in an employee's failure to meet his legal
obligations promptly and in a manner com-
patible with his cover status, because of the
security and cover hazards . involved. Em-
ployees overseas especially should familiarize
themselves with the requirements of States
or other taxing jurisdictions to which they
may have obligations.
Federal tax returns and estimated returns
are due 15 April 1959. U.S... citizens living
overseas on 15 April have until 15 June 1959
to file, provided they pay six percent interest
on the tax due from 15 April until the tax is
paid. The due dates and requirements of in-
come tax returns vary for States and. other
taxing jurisdictions and each employee should
get this information through his administra-
tive officer or chief of installation, through
the local embassy, or if necessary by direct
correspondence with a particular taxing juris-
diction.
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Some new provisions of Federal tax law of
importance to employees are :
I. The technical requirement to include as
income amounts received as reimburse-
ments for travel expenses and to deduct
therefrom actual expenses does not ap-
ply to. employees receiving per diem not
over $15 per day or mileage not exceed-
ing 121/2 cents per mile for travel within
the continental U.S. Also, the require-
ment does not apply to travel outside
the continental U.S. if the per diem is
not more than 125 percent of the per
diem rates specified in the Standardized
Government Travel Regulations, Appen-
dix I, revised, and also stated in R and
2..The simplified Form 1040A may now be
used if the gross income is less than
$10,000, is reported on Forms W-2 with
no more than $200 of other wages, in-
terest,..and dividends, and the standard
(10 percent) deduction is taken.
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Notice dated 16 January
1959, and Book Dispatch No. 1071, dated
30 January 1959, provide additional informa-
tion. Instructions for filing tax re-
turns are contained dated
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12 March 1955, and ted 26 25X1 A
November 1954, and change 1 thereto dated
18 April 1955.
LIBERALIZED INCENTIVE AWARDS
PROPOSED
Senator Hubert Humphrey, speaking re-
cently at the eleventh annual Arthur S.
Flemming Awards Luncheon, expressed the
view that the restrictions on the Government's
Employee Incentive Program are too tight
and need to be liberalized. The Senator said
that the program is a step in the right direc-
tion to encourage initiative and achievement
in Government, but that the number of
awards and their cash value should be greater..
He declared: "We ought to be more gen-
erous and more liberal with the relatively
small amounts involved, for it is clear that
a modest investment in the incentive. awards
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system has encouraged a measurably greater
efficiency and economy in Government. It's
a good investment."
Senator Humphrey also proposed using the
United States' "soft currency" and counter-
part funds in foreign countries we are aiding
to provide sabbatical leaves of six months
to a year in foreign lands for outstanding
Federal career employees.
He noted that these funds, which are cred-
ited to the United States but are seldom used
by us, can be put to great benefit by giving
outstanding Government careerists a chance
to expand their careers by going overseas.
Federal careerists, could study at univer-
sities of other countries, or study at first hand
operations in foreign countries comparable to
those that they are engaged in 'at home, or
consult with civil servants and officials of
other countries on common problems, Sena-
tor Humphrey declared. This program would
not involve any extra Federal expenditures,
it was emphasized.
As one of the top members of the Senate
Foreign Relations Committee, Senator Hum-
phrey is in a good position to start action on
.the soft currency and counterpart funds idea
for Federal employees:
CHANGES IN DIFFERENTIALS
The Organization frequently receives com-
munications from overseas personnel, some
erential rates. Communications have at
times contained statements that such reduc-
tions represent a "breach of faith" inasmuch
as the individual accepted employment at a
particular post for a definite amount of total
compensation.
In the course of preparation and processing,
personnel who accept foreign assignments are
advised of the nature of post differentials and
10
of all allowances and the basis for determin-
ing the amounts, and are further informed
of the important fact that differentials and
allowances are subject to periodic revision.
Failure to remember this may be the reason
for taking exception to later changes in al-
lowances. Accordingly, personnel are again
reminded that:
1. The differential is considered to be a
bonus in the form of additional compen-
sation for service at a less desirable post,
and as such it is subject to income tax.
2. Differentials are calculated upon criteria
prescribed by statutes and Executive
order, which provide that a differential
may be authorized when, and only-when,
living conditions at a post differ substan-
tially from living conditions in our coun-
try; - particularly when a post imposes
extraordinarily difficult living conditions,.
excessive physical hardships, or notably
unhealthful conditions.
3. All foreign assignments are expected to
involve some difference in living condi-
tions in comparison with those in our
country. Only when this difference de-
velops hardship to a predetermined mini-
mum is a 10 percent differential war-
ranted. Successively greater degrees of
difference result in differentials of 15 per-
cent, 20 percent, and 25 percent.
4. Differentials are a recruitment and re-
tention incentive to personnel who are
willing to accept assignments involving
unusual hardships. Nevertheless, reviews
must be undertaken periodically to de-
termine the need for continuance. By
order, a review is required at least an-
nually of the places designated, the rates
fixed, and the regulations prescribed, to
insure that the payment of additional
compensation continues only while con-
ditions justify this payment and that the
amounts do not in any instance exceed
what is justified.
5. Differential rates are accordingly revised
when periodic reviews disclose changes
in living conditions. Reviews may dis-
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close a gradual improvement at a post,
yet the current degree of improvement
may not be sufficient to warrant an im-
mediate decrease in the differential.
However, an accumulation of gradual
improvements noted by succeeding re-
views may be the basis for a decrease at
a later date. Such a decrease could be-
come effective while an individual is en
route to the post or shortly after arrival.
It is believed a better understanding of the
purpose and basis for determining foreign
post differentials will benefit all concerned.
TIMELY PERSONNEL INFORMATION
Remember the poem, "For want of a nail,
a shoe was lost; For want of a shoe, a horse
was lost; etc."? Well, for want of. a timely
-notification document in the hands of the
payroll. office, sometimes an individual's pay
gets "lost" and no salary is paid, an errone-
ous payment results, or a special payroll must
be processed. on his behalf.
Payroll offices can effect pay changes only
upon receipt of proper notifications, whether
official personnel notifications or notices af-
fecting only current allowances or allotments.
The correctness and timeliness of notifica-
tions.-from both field station and headquar-
ters administrative personnel are important.
Prompt notifications to headquarters by field
personnel are especially important regarding
separations in the field, changes in status af-
fecting allowances computed at headquarters,
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organizations in the pay status of
(promotions., periodic step-increases, and
LWOP), clearance papers on personnel de-
parting the field, etc.
At headquarters and in the field, personnel
officers and administrative officers respon-
sible for initiating requests for personnel ac-
tions should anticipate, whenever possible,
the effective dates required by such requests
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and allow time for their processing. Espe-
cially important at headquarters are person-
nel actions effecting reassignments between
funds. Individuals paid from vouchered funds
cannot begin PCS travel to an
overseas station without first being reassigned
to confidential funds. Resignation, extended
LWOP, and maternity leave also require as
much notice as possible to the payroll offices
in order to avoid erroneous payments requir-
ing adjustment. After receipt of a 'request
for a personnel action in the Office of Person-
nel, time is required to prepare, process, au-
thenticate, and distribute the personnel noti-
fication form to the payroll offices. affected;
hence. the need to anticipate the effective date.
The employee whose pay is affected will
especially appreciate the wholehearted assist-
ance of all administrative officials. Coopera-
tion will provide the "nails" and "shoes," to
.help prevent the individual's pay from getting
"lost."
CUSTOMS REQUIREMENTS FOR
IMPORTATION OF AUTOMOBILES
PURCHASED 'ABROAD
Under Public Law 126, Government em-
ployees or military personnel returning home,
under permanent-change-of-station orders,
may be allowed free entry of their autoirio-
biles, provided they have served overseas for
at least 140 days of continuous duty assign-
ment.
An automobile purchased abroad and sent
home before Government orders are issued or
a car purchased but not in the employee's
possession will not be entitled to free entry
under Public Law 126.
The word "possession," as used by Bureau
of Customs, means either physical possession
or a right to immediate possession at the
point of purchase. This would usually mean
the presence of the automobile in the show-
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room or warehouse of the seller within the
city where the purchase was made,. so that
the buyer could take possession if he so de-
sired, rather than having the dealer ship the
automobile.
Several Organization employees, ordering
automobiles from points in the Far East for
shipment from Europe, have been required to
pay import duty on the automobiles. This
duty was assessed because the employee did
riot have possession of the automobile nor the
right to immediate possession at ' the place
of purchase.
To prevent financial hardship, employees
who intend to purchase automobiles abroad
should acquaint themselves with customs re-
quirements before purchase and shipment.
Information on specific problems may be
obtained direct from the Bureau of Customs,
Washington, D. C., the nearest United States
Consular Office, or one of the offices listed
below:
The Treasury Attache, American Embassy,
don, England
stoms) at
n, Germany
SB-14
1. The commendation received from the
Federal Credit Union Examiners for -the
excellent management which largely con-
tributed to the high earnings despite the
low interest rates charged on loans to our
employees. Our rates are lower than the
prevailing rates of comparable Washington
area credit unions;
2. The excellent rate realized by the
NWFCU on loans made to other credit
unions and to the large portfolio of fed-
erally insured savings and loan associations
from coast to coast;
3. The extremely low delinquency rate
(2.06 percent), which is one of the very
lowest in this area, the norm being a 3.5
percent to 6 per cent delinquency;
4. Finally, a new and important mile-
stone in passing the $5,000,000 mark in as-
sets. This growth is history-making since
we have now become one of the 15, largest
out of 9,000 federally chartered credit
unions in the United States. In reaching
this goal, our Credit Union's assets have
quadrupled since 1 January 1953.
'American Consulate General, Frankfurt/
American Embassy, Paris, France
merican Consulate General, Milan, Italy
SALARY RETENTION INCIDENT. TO
REDUCTION IN GRADE
During 1958 the Congress enacted a new
Salary Retention Act under which personnel
who are reduced in grade may be permitted
to hold for two years their full salaries earned
just prior to demotion, unless the reductions
exceed three grades. When a demotion ex-
ceeds three grades the amount of the salary
to be retained is governed by a formula con-
tained in the law. These salary retention
provisions are not applicable when demotions
are
1. Due to personal cause,
2. At the employee's request, or
3. Effected as a result of force reduction
caused by lack of funds or curtailment
of work.
CREDIT UNION
The Officers and Directors of the North-
west Federal Credit Union recommended at
its annual meeting on 20 January 1959 the
payment of a 4.5 percent dividend for the year
1958, which was approved by the membership.
This is especially gratifying since this di-
vidend yield is one of the highest paid by any
.comparable Federal Credit Union in the en-
tire Washington area.
Highlighting the activities of the year were
the following :
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The Act further provides that. the new salary
retention benefits may be granted only to per-
sonnel who have served for two continuous
years immediately prior to demotion in the
same department or agency and in the same
or higher grades, and whose performance dur-
ing the period of two years was satisfactory
or better than satisfactory.
The provisions of the Salary Retention Act
are riot mandatory upon the Organization;
however, salary retention principles set forth
in the Act have been, adopted by the Organiza-
tion insofar as these principles are applicable
to its salary administration policies and pro-
cedures.
The new salary retention policy aims to
provide a financial cushion for employees who
are reduced in grade through no fault of
their own. In the Organization it is antici-
pated that this policy will generally be ap-
plicable to
1. The career reorientation of employees,
when grade demotion incident to such
reorientation is the appropriate step, and
2. The realignment of assignments as a re
sWt of changes in mission, function, or
organization.
NEW EMERGENCY TRAVEL COVERAGE
Due to- he large number of claims, the
re can-
celling the contract with GEHA for the
Emergency Travel Plan, effective 31 March
1959. Certificates in force will be continued
to expiration date of those certificates. No
renewals will be accepted beyond 31 March
1959.
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Beginning 1 April 1959
through the
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has agreed to underwrite a new
Emergency Travel Plan. Application forms
for the new plan, which is identical with the
present one except that it does not provide for
family-rate coverage, will be available in the
near future:
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Employees whose Emergency JTravel insur-
ance policies were effective prior to 1 April
1959 under the old plan will be required to
complete a new application and pay the new
rate when their next premium is due.
Thi plan will be a new policy and is 25X1 A
not to be considered as a renewal of coverage
under the former plan. We wish to caution
purchasers of the new plan that the four,
month waiting period and the warranty hav-
ing to do with the diagnosis of cancer will
apply as of the date of application of the new
plan.
The limitation on persons over seventy will
apply. Employees can apply under the new
plan for named persons age sixty-nine; but
coverage will not be accepted on persons who
-have already attained the age of seventy.
Coverage will be renewed beyond age seventy
for persons who are insured prior to their
seventieth' birthday. Regardless of the fact
that a named person was under seventy when
coverage was obtained under the old contract,
the "under seventy" limitation will apply,
when application is completed under the new
plan.
are lowe
an the
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plan, as shown below :
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Age of
Named Person
Premium
Each Additional
Named Pon '
0-49
$32.50
$13.00
50-64
40.00
21.00
65-69
50.00
31.00
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