PAY RATES FOR AGENCY SENIOR EXECUTIVE PAY SCALE PERSONNEL

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-00498A000600010033-8
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 9
• Document Creation Date: December 9, 2016
• Document Release Date: March 26, 2001
• Sequence Number: 33
• Publication Date: October 27, 1976
• Content Type: MF

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OGC Has Reviewed 2 7 OCT 1976
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MEMORANDUM FOR: Director of Central Intelligence
FROM Thomas B. Yale
Director of Finance
THROUGH General Counsel
SUBJECT Pay Rates for Agency Senior Executive Pay
Scale Personnel
REFERENCES A. Memo for D/Pers fr OCC; STATINTL
dtd 6 October '76, s for
Senior Agency Personnel
B. Memo for D/Pers fr John A. McCone, DCI;
dtd 7 Aug '64; Subj: CIA Salary
Administration - Senior Executive
Pay Scale
C. Memo for Record fr OGC; STATINTL
dtd 20 Oct '76; Au.: App lca ion of
Comptroller Gen. Decision Concerning
Executive Level Pay Rates
1. This memorandum requests your consideration and
decision as to whether the Agency Senior Executive Pay
Scale personnel who have been compensated at rates
established for Levels IV and V of the Federal Executive
Salary Schedule should be paid at the revised rates set
for those levels by Executive Order 11941, dated 1 October
1976.
2. Mr. McCone in Reference B established a Senior
Executive Pay Scale for a limited number of Agency positions
for which compensation was fixed at the rates established
for Levels IV and V of the Federal Executive Salary
Schedule. He also directed that these rates should be
changed in the future in accordance with the provisions of
law-making changes in the Federal Executive Salary Schedule.
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3. Continuously since the time of Reference B the
incumbents of Agency Senior Executive Pay Scale positions
have been paid at the rates as revised from time to time
for Levels IV and V of the Federal Executive Salary
Schedule for statutory Executive Schedule positions.
4. The Federal Executive Salary Schedule rates were
again increased by Executive Order 11941, effective with
the first pay period beginning on or after 1 October 1976.
The Legislative Branch Appropriations-Act, 1977, however
provides: "No part of the funds appropriated in this Act
or any other Act shall be used to pay the salary of an
individual in a (statutory Executive Level position) ...
at a rate which exceeds the salary rate in effect on
September 30, 1976, for such position or office..."
5. The Comptroller General has ruled however that the
cited limitation on use of funds refers only to statutory
Executive Schedule positions and not to positions which
are to be compensated at rates equivalent to the rates set STATINTL
.for such statutory positions. On this basis, Mr.
Associate General Counsel, in Reference A. has rule that
Agency Senior Executive Pay Scale personnel are to be
compensated at the increased rates established by Executive
Order 11941 for Levels IV ($41,800) and V ($39,600) of the
Federal Executive Salary Schedule. That Level V rate, of
course, also establishes the limit for compensation of
Agency personnel paid at rates equivalent to General Schedule
positions elsewhere in government.
6. Application of the new Level IV and V rates to
Agency Senior Executive Pay Scale personnel will have the
effect for the first time of compensating these officers
at rates higher than their counterparts elsewhere in
government occupying statutory Federal Executive Schedule
positions. I believe such action has the potential for
being politically sensitive. Thus even though the General
Counsel agrees such application is legally proper, I
believe you personnaly should make the determination as to
.whether the new rates should be applied. Should they not
be applied, all Agency personnel GS-15, Step 5 and above
will be paid at rates higher than the $37,800 rate which
would be continued for the incumbents of Level V positions.
This of course is the situation now prevailing elsewhere
in government in relation to incumbents of statutory
Federal Executive Schedule positions.
STATINTL
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SUBJECT: Pay Rates for Agency Senior Executive Pay
Scale Personnel
CONCURRENCE:
Anthbny A. Lapham
General Counsel
Distribution:
Original - DCI (Return to D/OF via DDA)
1 - DDCI
I - ER
1 - General Counsel
M"n/f#
Date)
See our attached memorandum of today's date indicating the action
we believe available to the Director.
I. approve granting annual compensation for Level V
officers at $39,600 and Level IV officers at $41,800
effective 1 October 1976, or the first pay period
thereafter.
See DDA 76-5461; DCI memo to D/OF, dtd 11/3/76
George Bush
Director of Central Intelligence
Date)
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3 NOV 4976
MEMORANDUM FOR: Director of Finance
FROM George Bush
Director
SUBJECT Pay Rates for Agency Senior Executive
Pay Scale Personnel
I authorize and direct that "effective on the first day of the first
applicable pay period beginning on or after October 1, 197+6,"
Executive Pay positions IV and V be compensated at the rates of
$41,800.00 and $39,600.00, respectively.
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 MEMORANDUM FOR: I~ircctor of Personnel
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OGC 76-5544
6 October 1976
Associate General Counsel
: Pay Rates for Senior Agency Personnel
REFERENC
1. The recent Presidential and congressional actions concerning
compensation for senior level Government employees have posed questions
as to the appropriate pay rates for certain senior CIA personnel.
Specifically, it is necessary to determine rates of pay for the Agency
employees who are paid at Executive Level Schedule rates and those
Agency employees whose pay rates have been limited by the so-called
Asterisk Statute, that is 5 U .S . C . 5308, which provides that employees in
General Schedule positions may not be paid at a rate in excess of the rate
of basic pay for level V of the Executive Schedule."
2. The positions of Director and Deputy Director of Central Intelligence
are designated by statute (Federal Executive Salary Act of 1964, 5 U.S.C. 5313,
5314) as positions in levels II and III of the Executive Schedule. Certain other
Agency positions are designated as positions to be compensated "at the rates
established for Levels IV and V of the Federal Executive Salary Schedule";
nation was made in a 1964 memorandum by the Director,
The Agency s
eneral c e u e positions are n ed by the Classification
Act of 1949, which is the authority for such positions elsewhere in the Govern-
ment. Rather, the CIA General Schedule positions and pay rates are also set
by a memorandum by the Director, in 1962,
3. Prior to 1975 the rates of compensation for positions established by
the Federal Executive Salary Act - as to CIA, only the Director and Deputy
Director - were set under the procedures of the Federal Salary Act of 1967,
namely, salary recommendations by the President which would become the
rates of pay in the absence of veto by either House of Congress. Under the
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provisions of the Executive Salary Cost-of-Living Adjustment Act, in August 1975,
Executive Level positions are also to receive the cost of living salary adjustments
granted General Schedule positions in the future. It was pursuant to that Act
that Executive Levels II and III were increased to $44,600 and $42,000 in .
October 1975. Under the authority of that Act, the President also has set the
compensation rates for those positions at $46,800 and $44,000 (Executive
Order 11941, October 1, 1976), effective with the first pay period beginning
on or after October 1, 1976. However, the Legislative Branch Appropriation
Act, 1977, provides: "No part of the funds appropriated in this Act or any
other Act shall be used to pay the salary of an individual in a [Statutory
Executive Level position] ... at a rate which exceeds the salary rate in.
effect on September 30, 1976, for such position or office...." It follows that
compensation for the positions of Director and Deputy Director must remain
at the rates in effect on September 30, 1976, namely $44,600 and $42,000.
(In a letter opinion to the Chairman of the House Committee on Post Office
and Civil Service, September 21, 1976, concerning other questions arising
under the limitations in the Legislative Branch Appropriation Act, 1977,
the Comptroller General somewhat parenthetically reached. the same conclusion.
He noted the Chairman's statement that "he had no question as to the application
of the limitation to positions under the (statutory) Executive Schedule."'/
4. In the same letter, the Comptroller General also ruled that the
limitations in the 1977 Legislative Branch Appropriation Act are not applicable
also to "employees authorized to receive 'a rate equal to a rate for a particular
level of the Executive Schedule,'" since the limitation in the Legislative Branch
Appropriation Act refers to statutory Executive Schedule positions and not
to positions which are to be compensated at rates equivalent to the rates set
for such statutory positions. He noted also that the 1977 limitation is a
limitation on the use of funds and not a veto of rates proposed by the President.
Since the Executive Order of October 1, 1976, set pay rates for statutory
Executive Level positions higher than those prevailing before that date and
since the Director's 1964 memorandum sets the pay rates for the Executive
Level positions designated by that memorandum"at "the rages established
for Levels IV and V of the" statutory Executive Level Schedule, including
future adjustments to those rates, the non-statutory Executive Level positions
of the Agency, in levels IV and V, are to be compensated at the rates set
by Executive Order 11941, namely, $41,800 and $39,600.
5. For essentially the same reasons, the Agency's GS positions, including
those frozen by the Asterisk Statute, are to be compensated at the rates set
by Executive Order 11941. The Comptroller General so held with respect to
General Schedule positions established by or pursuant to the Classification
Act of 1949, an Act from which CIA is exempt. FOIAb5
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This action,
a Director memorandum of 1962, adopted those pay rates prospectively also, i.e.,
future adjustments to the compensation rates of GS positions under the
Classification Act would apply also to the Agency's GS positions. Thus the
1977 Act limitation on he use of funds is inapplicable to the Agency's GS
positions and those positions also are to be compensated at the rates set by
E.O. 11941. .
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MEMORANDUM FOR: Director of Personnel
7 Augnst 1964
SUBJECT : CIA Salary Administration - Senior Executive Pay Scale
REFERENCE : Memo fr DDCI to DD/S~ dtd 4 Nov 63 subject: CIA Senior
Executive Pay Scale
1. Referenced memorandum is hereby rescinded. Pursuant to the authority
vested in the Director of Central Intelligence tinder the provisions of Public Law
110, 81st Congress, 1st Session (1949), as amended, and other applicable laws,
effective as of the date of the enactment of the Government Employees Salary
Reform Act of 1964 the Agency Senior Executive Pay Scale shall consist of the
positions specified below. The compensation for these positions shall be fixed
__at th e rates established for Levels IV and V of the Federal Executive Salary
Schedule established by the- Federal Executive Salary Act of 1964:
Level
IV ($27, 000)
V ($26, 000)
REFERENCE
for initial adjustment of salaries to such revised schedules, and other changes in the'I
Federal Executive Salary Act will be given effect in the future by the Central Intelli-
gence Agency whenever the law is amended.. The effective date of such revisions 11
and changes will be in accordance with the provisions of law making such changes
2. You are authorized and directed to take all action necessary to put this
schedule into effect. -"Revision of the Federal Executive Salary Schedule, provisions
Position
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OGC 76-5802
20 October 1976
SUBJECT : Application of Comp. Gen. Decision Concerning
Executive Level Pay Rates
1. Following our meeting with Finance and Personnel repre-
sentatives several da s ago, I contacted the General Counsel's office
of GAO and checked with a staff member of the Henderson STATINTL
Committee. The purpose of our inquiries was to learn what agencies
or positions Chairman Henderson, and hence the Comptroller General,
had in mind in their exchange of correspondence of 17 and 21 September.
In particular, what agencies and positions were contemplated by the
question concerning "positions the rate of p'ay for which is linked to a
particular level of the Executive Schedules."
2. The Henderson staff man advised that no particular agency
was contemplated. He stated there are numerous positions around town
which would fall within that language and it was with this in mind
that the Chairman's letter was drafted. He mentioned that there are many
such positions in the Legislative Branch and he understood agencies
such as TVA, ERDA and NRC had positions of that nature. He agreed also
that CIA positions would be included.
3. The Comptroller General representatives had no knowledge as to
the agencies Chairman Henderson would have in mind. He understood
that there are positions in a number of agencies and he was aware that the
office of the Comptroller General itself has a few such positions and he
understood the Library of Congress has at least one.
cc: Director of Personnel
irector of Finance
21 October 1976
A news story on WMAL this morning reported that sixteen persons in
the D.C. court system now make more money than the judges for whom
they work. It was reported that this was ay increase
action.
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