NEW BENEFITS FOR CERTAIN CONTRACT EMPLOYEES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-00639A000100100007-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 4
• Document Creation Date: November 17, 2016
• Document Release Date: June 16, 2000
• Sequence Number: 7
• Publication Date: August 24, 1967
• Content Type: DISP

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CIA-RDp 9E.OO& 9A00010010
7-5 PROCESSING ACTION
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Chiefs of Station and Base
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MICROFILM _
SUBJECT
New Benefits for Certain Contract Employees
ACTION REQUIRED - REFERENCES
1, The Civil Service Commission has rendered a decision,
effective 1 July 1967, whereby certain benefits, to which they have
not heretofore been entitled, are now made available to certain con-
tract employees employed by the Government. The benefits are civil
service retirement, Federal health benefits, Federal Employees Group
Life Insurance, and unemployment compensation benefits. Eligible
are those contract employees (includes career agents) who are U.S.
citizens, and whose contracts are for a term of more than one year
and provide for performance of duties on a regular schedule, Inde-
pendent contractors (contract agents) are not contract employees.
2. Chiefs of Station (and, where they have been delegated
authority to execute contracts, Chiefs of Base) are requested to
take the following action with regard to contract employees currently
under field-executed contracts, except any who are under non-official
cover, or are performing operational duties, or are not witting of
Organization employment (for which see paragraph 3 below):
a. Step One: Review the file of each contract employee
to identify those who meet the following criteria:
U.S. citizenship, regularly scheduled employment
(full or part time), and a contemplated employment
relationship exceeding one year.
b. Step Two: Determine which of such contract employees
should be designated to participate in the new benefit
programs. It is expected that the determination will
be affirmative in most cases. However, two factors
which might argue against participation are:
(1) The imminent termination, resignation or retire-
ment of the individual.
(2) The fact that the individual has almost enough
quarters of coverage to permanently qualify him
for a retirement annuity under the Social Security
system.
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c. Step Three: Prepare new contracts for the designated
contract employees which include the new benefits,
(The contract employee may elect not to take the new
benefits.) The duration of these contracts must be in
excess of one year. A sample contract is attached.
This is for guidance only. The wording may be modified.
3. Before preparing a new contract for any contract employee
who is under nonofficial cover or who is performing operational duties,
and before preparing a new contract or discussing the new benefits
with a contract employee who is not witting of Organization employ-
ment, you should first obtain guidance from headquarters. This is
so that any cover or security problems which exist or are likely to
arise in connection with the benefits can be considered and resolved.
In any such case the request for guidance should be by cable so as to
minimize delay in granting the new benefits.
4. Following are a number of general observations which are
pertinent:
a. The date 1 July 1967 referred to in paragraph 1 has
no retroactive significance. For example, Civil
Service Retirement coverage would begin not on 1 July
but on the effective date of the new contract, which
will be the date of the employee's signature.
b. It should be noted that the new benefits constitute a
package. A person may not choose part of the new
package and part of the old. (See subparagraphs c.,
d., e., and f., below, however.)
c. As part of the package, Federal Employees Group Life
Insurance will automatically be effected unless
specifically waived in writing by the contract
employee. In the latter case, the waiver is to be
forwarded to headquarters for record purposes.
(Note: Career agents and contract employees who are
integrated and were required to waive FEGLI at the
time of integration are eligible for the coverage
through headquarters, not through cover,)
d. The contract life insurance plan is in no way affected
by this new package. A contract employee or career
agent who currently has contract life may continue or
discontinue this coverage as he wishes without regard
to the option he may exercise on his new FEGLI cover-
age. In addition application for this insurance may
still be submitted.
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f. A career agent who is a member of the organization
retirement system is eligible for the benefits
mentioned in paragraph 1.
g. Heretofore contract employees under Social Security
coverage were denied unemployment compensation by
Executive Order. This exclusion does not apply
to participants in the Civil Service Retirement
System. (Additional information with regard to
unemployment compensation is being prepared by
headquarters and will be forwarded to the field
when available.)
h. The organization will not reimburse a contract em-
ployee participating in the Civil Service Retirement
system for mandatory Social Security deductions
required by virtue of his cover employment.
i. Contract employee service performed since 1 January
1955 under the Social Security system is not credit-
able service for Civil Service Retirement purposes.
Service before the above date may or may not be
creditable; headquarters will make a determination
in each case upon request.
5. Chiefs of Station and Base are requested to inform head-
quarters by cable of the names (pseudonyms) of any contract
employees under headquarters-executed contracts and career agents
who are under their jurisdiction, including appropriate explan-
ation in any case in which extension of the new benefits is not
recommended. In the event an individual does iot wish the new
benefits, this should be stated. Headquarters will prepare new
contracts and forward them to the field for signature.
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6. Although the benefits listed in paragraph 1 are available
to eligible contract employees throughout the Government, we do not
know whether implementing instructions have been provided to their
overseas installations by other elements of the Government. Conse-
quently, unless you know that they have been and that the installation(s)
in your area has (have) begun implementation, please caution affected
contract employees and other members of your station not to discuss
these new benefits with members of such installation(s), and to
discuss them only with staff personnel of the station or base.
7. Attached for your information, to assist you in answering
questions which may arise, are copies of folders on Federal Employees
Group Life Insurance and Civil Service Retirement.
8. Should you have any questions on the subject of this dis-
patch, please forward them to headquarters through normal channels.
FORM
8-64 53a USE PREVIOUS EDITION.
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