PROPOSED LEGISLATION FOR CIA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-01370R000400030023-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 30
• Document Creation Date: December 19, 2016
• Document Release Date: December 6, 2006
• Sequence Number: 23
• Publication Date: May 2, 1955
• Content Type: MF

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a th sritLes 2raat*d to the State i))e artmeat .atd*r the k 01
% tad they halve en s a d to law { ' bl is L *w I- 2 : WI On
ed L t s s lat ; for CIA
,,hc . vreess has passed the Fore} fl ervige tCt Amendments
the
poets
,ha rFrtaaa of the :=:areer Service Board, its a zaps Or d rn
to the 3=+irect r of -entral lat~ellageace dated 11 .ute*ry W;4, forwarded
11
home leave :east #e provided tot Foreign Service personnel be excteaded
b,y fie ; station to employees of CAL.?-,.
rd's rccormesadatiO* that legislation be obtained granting euu-
nal ali.owaae*s for IA ependeats uuader cer
tht swat r ezazaa rand it was a1su recommended'
au
it is our ?;adeerstaaa.
Y ;ur attention is called to the
regarding statutory home leave tad
to be aaa-l mitt
to whether as,Ach bills w l.i tae pa-s
such a :the r ty .a the CIA g Lct itsel
l ahed, aaz viers of the fact that spe
teen rarsted to Foreign Service emp
rtaett t eedt cat' l allowances to
M airy ca n, -ucl d.1 n the Forei
thru 30
jaci authar>ty for payra*at 0t a xpefsts
easy edwcat ou of dee*4 t childree
certwaia other atsth;.- ties relattat to all"-
rector wish" to increase the
,ee employed C1. nde acethoraty
a, from the present statutory
t-wide provt5ioas
ces are
indication
helpful to have
ction
stat"Ciry horxee leave ha
oycees, rind atathaarity for the pay
eiga Service personswl has bow
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cogs :e. it to 'n iicur +e+ with Al
policy, and desirable from the star o.rit ul Agency
proceed at this ti we with s c ale fe :blatica to aecare tbesa
for ,"IA. we are forwarding bsrewith p=sears draft of .uch le i*
Cz trofle r
Annrov .d For RPIPasP 2nnni12mn L r.IA-RnPRn-ni i7nRnnndnnn nn9 -n
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CIA
5. Sisflarly, if the Agency desires to obtain adoption of the pro..
visions in Section 7 of the OU Me ants relating to educational allowances,
consideration should be given to the inclusion of a statement which would
permit the advaneasant of funds for educational allowances. The General
Accounting Of ice hs* advised that advance payments cannot be made under the
provisions of the Foreign Senrvicea Amendments of 1955. It is our understanding,
however, that the proposed Overssaa Allowances Act, sponsored by the Aftdn,
ietratione will contain a provision for advvnee payment of educational allow-
antes. Accordingl,v, if such legislation is enacted, it would resolve the
problem.
n G. Remolds
Director of Personnel
Distributions
t3&]. -- .Addressee
1 -- Legislative Counsel
2 --- D/Pers
1 -- SCAPS
1 -- E: f
4 - PAS
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to
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OGC:W12/bJc (3 Feb-55)
Orig. & 1 - Addressee
1 - Mr. Jams Hyde (Brit. of BmIget)
2 - Signer W/ba is
1 - DD/S
1 - `raining
1 - Cca ptrol l e r ; ._ .. ~~-
0
Deputy u-V~
r' s
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General -tinsel 1 December 1954
;;oruptroller
~I? Legislative 'rograni
There are listed below various items rich we recommend for
consideration in connection with the CIA legislative program:
a. souse Report Xo. 1703 entitled "Report of the President's
Adviser on Personnel &ana6oment on Pay and Personnel
ractices of Federal Fnployees Stationed Overseas", pro-
poses the consolidation or revision of existing statutes
relating to allowances and differentials in foreign areas
and territories, home leave, education facilities, etc.
The passage of legislation proposed in that Report would
be of considerable benefit to this Agency, since it would
provide a basis, which is not provided by present statutes,
for compensatin employees for extra costs and hardships
due to overseas assignments.
b. Consider the inclusion in '. _,. 110 of language which would
exempt CIA from the "merger of appropriations" restrictions
contained in the Budget and hccounting Act of 1950, 64
Stat. (See Comptroller General Decision B-76028, and our
memo to General Counsel dated 17 May 1952 on this subject).
c. e.L. 110, Sec. 7, charges the DCI with the responsibility
for ..........protecting intelligence sources and methods
....." and states that ".....the Agency shall be exempted
from the provisions of ......any......law which require
the publication or disclosure of the organization,
functions, names, official titles, salaries, or numbers of
personnel employed by the agency.....". As a matter of
fact the Agency has not found it possible or practical to
"exempt" itself from the various laws which require the
disc osure of the names of employees or former employees
in connection with the filing; of Income Tax Returns, and
the granting of ietirement Benefits, Social Security Bene-
fits (see 'i,. 761, effective 1 January 1955), Unemployment
Compensation benefits (see r.i.. 767, effective 1 January
1955), Disability Compensation benefits, etc. Instead of
seeking exemption from the statutes which require disclosure
of names, titles, salaries, etc., the Agency has followed
the practice, and apparently has adopted the policy, of
complying, with the aubstanti'vo provisions of law, and of
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establishing cooperative arrangements with the Departments
concerned to withhold disclosure of names or limit access
to names and CIA connections to the maximum extent practical,
'N .i1e the Departments concerned have been cooperative in the
past, this does not afford definite assurance that they will
be in the future. There is also the possibility that their
responsibilities may, by subsequent legislation, be so
strictly defined an to deprive them of the discretionary
authority which they now exercise in connection with the
cooperative arrarr.gernents established with this Agency to pre-
vent disclosure of Agency identities and connections. It
is, therefore, suggested that consideration be given to the
possibility of obtaining statutory recognition of this problem
by a supplement to P.L. 110, sec. 7, somewhat as follows:
"Provided that when the Director determines that compliance
with any particular lair which involves the disclosure of the
identity or connection of individuals is necessary and in the
public interest, he is authorized to make such arrangements
as may be necessary with the heads of the Departments or
:, stablishme-nts concerned with the administration or enforce-
went of such laws, for compliance with the spirit and sub-
stantive intent of such laws in. & meaner that will prevent
the disclosure of identities and connections which aright be
detrimental to the public interests."
d. P.L. 496, 83rd .ongress, portaining to the recovery, care,
disposition and burial of the remains of deceased govern-
ment employees, Grants powers and authorities to the Secre-
taries of the Lrmy, Air Forces, Favy, Treasury, Health,
Education and Welfare, and Comacerce which are much broader
than those ;;ranted the O( J in P.L. 110, Sec. 5(a)(6). Since
many of the cases involving trio disposition of the remains
of deceased employees of this agency are handled by the Army
on a reimbursable basis, and inasmuch as the broader authori-
ties granted in '.L. 495 are needed by this Agency in con-
nection with the proper disposal of the remains of employees
who die while on overseas duty, it is reaammended that con-
sideration be given to amending ^.L. 110 to enable the DCI
to exercise the authorities 7ranted to the "ecratariee of
other Departments by P.L. 495.
e. '.L. 110, "ec. 5(a)(7) - Consider desirability of amending
last sentence ooneerning "Violations" of employment afiree-
ments to conform more n:.arly to the provisions of 4'.L. 830.
This section is Tr.,?ure restrictive than provisions of I.L. 830
which authorize the return of an emnloyes to the 'j. .*1. for
the convenience of the Government. Security considerations
make it desirable that this a}genoy have such authority.
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f. P.I. 110, Sec. 5(a) (2) - Delete the phrase "involving a
change of permanent station". =4lete t !,e words "pertain-
in to the transfer" in line 5j delete the words "and
transfer" in line 6, and delete the words and transfer"
in line S. T'z:is amendment would not effect the amounts
paid to the traveler, but would enable the Agency to
charge all travel and transportation costs to the appropri-
ation for the fiscal year in wric the travel or trans-
portation began instead of prorating it between fiscal
years. At present this can be done in connection with
travel and transportation costs is cident to a transfer of
official station, but cannot be done in connection with
travel costs for temporary duty, home leave, reporting
to first post of duty, and return for separation. T..is
amendment would result in a savings to the Government by
permitting more effective and efficient budgeting, allo-
cation, and accounting for funds exuded for this pur-
poses
FPB/jh
Distributions
Orig. & 1 - Addressee
1 - Signed, #
1 - Chrono
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3 December 195+
COMMENTS RE MEMO TO GENERAL COUNSEL - SUBJECT: CIA LEGISLATIVE PROGRAM
a. No additional comments.
b. I do not think an amendment re merger of appropriations is
necessary. The restrictions contained in The Budget and
Accounting Act of 1950 refer to transferring functions or
activities such as the transfer of function of Government
and Relief in Occupied Areas from Department of Defense to
Department of State. Any reimbursement to other Government
agencies for services, procurement, etc., would be made in
accordance with Sec. 601 of the Economy Act of 30 June 1932.
c. Recommendation is made that any supplement to P.L. 110,
Section 7, regarding the disclosure of information include
specific reference to the terms "organization, functions,
names, official titles, salaries, or numbers of personnel
employed by this Agency," as now written.
The Agency's functions would be revealed to some extent
if Records Disposal Schedules are submitted to the Archivist
of the United States inasmuch as the bodies of records pro-
posed for disposal must be clearly itemized and identified.
f. Our present authority is broad. State Department has similar
authority but it is limited to travel of personnel outside
continental U. S., whereas our authority is limited to travel
and transportation involving a change of permanent station.
While the proposed change would result in a savings to the
Government, would the total amount to be saved warrant a STAT
change in legislation?
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SECTIONAL ANALYSIS OF A PROPOSED BILL TO
AMEND THE CENTRAL INTELLIGENCE AGENCY ACT
OF 1949, AS AMENDED, AND FOR OTHER PURPOSES
[C Has Reviewed
SECTION 1.
Under Section ~.(a) of the Central Intelligence A7enczi Act of 1949
the A;encyy is authorized to exercise certain procurement authorities
contained in. the Armed Services Procurement Act of 1947. The specific
sections of the A~'med Services Procurement Act; the authorities of Trhich
CIA T?ras authorized to exercise, Trere incorporated by reference in
Section 3(a) of the CIA Act of 1949. Since passage of the CIA Act,
additional functions have been assigned to the Agency. This, and added
experience, indicate the need to exercise other authorities contained in
med Services Procurement Act of 191+7.
Under Section 2(c) of the Procurement Act, the Armed Services may
negotiate purchases and contracts T.rithout advertising in seventeen listed
circumstances. The Agency is authorized by Section 3(a) of the CIA Act
to negotiate in ten of"these circumstances. The Logistics Office has
re^uested 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 k.'med Services, T?rould be accomplished by modifying
Section 3(a) of the CIA Act to authorize the A7ericy to exercise all the
authorities c ntained in. Section 2(c) of the Armed Services Procurement
Act
The A?encyy has substantial and vitally necessary pror;rams in fields
-,here research and development, standardization of equipment and
ORIG CLASS -.lL_ PAWS 1k ' v CLASS
JUST - NEXT REV % --' AUTHo Nil 10-2
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provision of new or stand-by production facilities,irf a necessity. The
negotiation authorities contained in Sections 2(c).(il),'(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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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.
CIA. operations are often carried on in conjunction with the Armed
Services or under their cover or in accordance with their procedures. To
a similar or greater extent, our personnel may be cut off from normal
civilian life and the normal sources of supply and need to depend for
subsistence and supplies on an organization or unit to which they are
attached. Supplies may need to be purchased for their use and the
negotiation authorities contained in Sections 2(c) (8) and (9) of the
Armed Services Procurement Act are requested for this purpose. 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 Sections3(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 Arnim d
Services Procurement Act and the CIA Act of 1949 only after a determina-
tion has been made by the "head of the Agency." The CIA Act of 1949
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)(1)(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 loss 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. L. 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 5.
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. 724), 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-Americanization 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 twb 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 section1/'.,;,i
.
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 proposed section will amend existing CIA statutory authority to
authorize the payment by CIA of the cost of treatment -here illness or
injury renuiring hospitalization 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 only
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 renuiring a causal
connection between the illness or injury and the place and nature of the
employee's assignment. A considerable number of CIA employees and their
families are located in areas of the TTorld T,rhere serious diseases such
as bolio, acute hepatitis and tuberculosis are endemic. Treatment of the
nature 'ierein proposed is available for the families )f military persnnnel
stationed abroad and failure to provide similar treatment for CIA person-
nel has been a handicap in recruiting 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 8.
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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 CL., as adequate medical facilities are often lacking, and
as the cost of travel for a dependent to adequate hospital facilities is
often quite expensive, it is felt that it would be appropriate for the
Agency to bear such costs.
SECTION 9.
This proposed section will amend existing CL's statutory authority to
authorize the payment by CIA of the cost of treatment where illness or
injury requiring hospitalization has been incurred by a member of the
family accompanying an officer or full-time employee of CL on assignment
outside the continental United States. However, payment will be made only
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 requiring a-causal
connection between the illness or injury and the place and nature of the
employee's assignment. A considerable number of CL employees and their
families are located in areas of the world where serious diseases are
prevalent. Examples are widespread polio in the Far East, acute hepatitis
in large sections of Asia, tuberculosis in Greece, etc. Treatment of the
nature herein proposed is available for the families of military personnel
stationed abroad, and failure to provide similar treatment for CL person-
nel has been a handicap in recruiting for and assigning of key personnel to
many critical areas of the world. These same considerations apply with
respect to the proposed amendment in Section 8.
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SECTION 10.
Section 5(a)(5)(D) of the CIA Act of 19+9, as presentl, 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 943 of the Foreign Lervice Act of 1946.
Section 12 of the Foreign Service Act Amendments of 1955 authorizes the
administration of physical examinations and inoculations to dependents
although in the past this has been done 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 whether they are in a temporary- or
permanent-duty status.
SECTION 12.
Sections 901(1) and 901(2) of the Foreign Service Act of 194T were
inccr orated by reference into Section 5(b) of the Central Intelligence
Agency Act of 1949. 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 Allowances Act. This proposed language brings CIA
authority regarding allowances in line with:j existing or proposed provisions
in other legislation. In addition to the provision of allowances there
has been included as a new subsection. 5(b)(3) basic authority for the
Agency to -gay post differentials. The Foreign Servrice Act, as amended,
has been used as the princL.val model.
SECTION 13.
The existing law now provides that Foreign Service personnel are
entitled to exclude from gross income for income tax purposes the various
allwances authorized them under the Foreign Service Act. It is desirable
that the Agency have similar authority in view of the fact that the pro-
visions of this -proposed bill -rill establish separate and basic authority
for the Agency to pay similar allowances. In the proposed Overseas
Allowances Act the la=..r relating to exclusion f oor tax purposes of allowances
received by other Government employees is proposed to be amended to provide
only that allowances received under the -provisions of that 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 treatmel2t as all other Government employees abr -ad.
SECTION 14
This proposed amendment authorizes CIA to 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
jeopardizing intelligence sources. As a result the survivors of
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0 0
its own authority in this field if its euaployees are to enjoy the same
tax treatment as all other Government employees abroad.
SECTION 14.
This proposed amendment authorizes CL. to 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-
:cents 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 .,ct of 1920, as aiuended, by the Federal Einployee6 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 often cause
inordinate but unavoidable delays to arise in the acquisition, processing,
and review of data required to prove the claims. In some cases the CL';
employment is so sensitive that it is impossible to substantiate the
claims to the Civil Service Commission or Bureau of Employees' Compensation
without jeopardizing intelligence sources. As a result the survivors of
 Approved For Release 2006/12/06: CIA-RDP80-0137OR000400030023-0
CI', 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.
~. survey of CIA 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