AGENDA FOR THE CIA CAREER COUNCIL 12TH MEETING, FRIDAY, 9 SEPTEMBER 1955, AT 3:00 P. M. DCI CONFERENCE ROOM, ADMINISTRATION BUILDING

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-01826R000700070003-9
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 53
• Document Creation Date: December 14, 2016
• Document Release Date: October 1, 2002
• Sequence Number: 3
• Publication Date: September 9, 1955
• Content Type: AG

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CAREER COUNCIL
12th Meeting, Friday ,-9 September 1955, t 3goo P,
DCI Conference Room,,Administration Building
\/ 1, Minutes of the 11th Meeting; (attached) for approlal.
',J. Revised concerning Selection of candidetes
,?to senior schools of the Department of Defense (attached)
Lor information,
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vollt-T
?i? Revised Staff Study, "Intelligence Decorations", dated
23 August 1955. (attached) for approval?,
. Proposed Legislative Program and its relation to the program
recommended by the Council and approved in principle by the
Director in 19541 (attached) for consideration?
Analysis of Retirement Dill Proposed by Civil Service Commis-
aiop, (Kaplell Bill), with special reference to CIA Retirement
Proposal; (attached) for,considaration?
6.4.4114e/Plivie?
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MINUTES
- OF THE
- CIA CARR COUNCIL
11th Meetings Wednesday, 13 July 1955, at 4:00 P. M.
DCI Conference Rooms Administration Building
Present: Harrison G. Reynolds, D/Pers, Chairman
Robert Amory Jr., DD/I0 Member
Matthew Baird, DTR. Member
nicna a helms U0?4A) A t DiP0 Member
wrence K.
Sh f
White DD/S, Member
S9 Guest
DC
cutive Secretary
Reporter
(Alote: Mr. White was able to attend only a portion of the meeting.)
1. The minutes of the 10th Meeting of the CIA Career Council were
2. The Chairman presented the second item on the agenda, "Selection
for Attendance at those External Training Facilities Requiring Alproval by
the DCI". The Chairman suggested that consideration be given to the apnoint-
ment of a committee to screen the candidates who apply, or are nominnt41 by
the three major components, to attend those service schools or colleges with
respect to which a fixed quota has been alloted to the Agency, It wasIdecided
to establish such a committee composed of a representative from the Office
of Training, Office of Personnel, Deputy Director (Plans), Deputy Director
(Intelligence), and Deputy Director (Suplort). Reeommendations of thia
committee would be presented to the Council for its consideration. The
Council would then forward the names of s to the Director for
his aoproval. It was decided that Notic would be revised to ;put
this orocedere into effect. .
approved as distributed.
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3, The Council considered item three on the agenda and aporoved the
aoolication of for attendance at the Armed ForceOtaff
l
College.
4, The fourth item on the agenda, the proposed revision of
"The Career Staff of the Central Intelligence Agency", was approved after
insertion of a slight chenge recommended by the Director Of Security. 1
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5. The Council concurred in the nominations of members and alternates
of the CIA Selection Board for Fiscal Year 1956 (item five on the agenda),
and agreed that the Director be asked to appoint them. They were as follows:
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Members
Harrison Go Reynolds, permanent member
Matthew Baird
Sherman Kent
Alternates
James A. uarrison
Edward R. Saunders;
6. The sixth item on the agenda, the decisions of the DDCI on the
two Honor Awards Staff Studies, was discussed in detail. It was agreed
25X1A9A that Mr. Reynolds, would seek an appointment
with General Cabell to apprise him of some of the complexities and seOurity
problems involved in these matters.
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the Office of Training. The proposed appointments were approved.
8. The revision of the Agencyos Fitness Report was discussed. It
was recommended that a Task Force consisting of the Executive Secretary,
25X1A9A 'representing the DD/F0 DD/I?
and DD/S2 be formed to confer with the Chief, Assessment and Evaluation Staff,
Office of Training. The Task Force will present its recommendations and those
25X1 to the Council at the next meeting.
9. The meeting adjourned at 445 P. M.
25X1A9A
Executive Secretary
CIA Career Council
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TRAINING
September 1955
TRAINING AT NON-CIA FACILITIES UNDER P. L, 110 (63 STAT. 208).
REQUIREMENT FOR FORWARDING APPLICATIONS FOR FIXED QUOTA SCH0C1.$
25X1A 'Rescissions CIA Notice
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9 March 1954
1. It is the policy of the Director of Central Intelligence that
the Central Intelligence Agency will send to the senior schools and Col.
loges of the Department of Defenses and to other educational institution*
which he may designate and for which the Agency quota is fixed, only
such Agency personnel whos on a competitive basis, have been deteradned
to be the most qaalified representatives of the Director and the Agency,'
2. The following schools are in this category:
110
National War College . Washington, Do Co
bo Industrial. College of the Armed Forces Wadhington Do Co
e. Naval War College - Newport, Rhode Island
d. Air War College - Maxwell Air Force Base, Alabama
e. Amy War College . Carlisle, Pennsylvania
f. Armed Forces Staff College - Norfolk, Virginia
go Advanced Management Course at the Harvard University Graduate
School of Business Administration . Cambridge, Massachusetts
3n Applications for enrollment in the colleges and schools listed
above will be made by the individual on Form No, 51.133 in accordance With
the provisions ofl Each application will be endorsed
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by the appropriate Deputy Director and forwarded to the Director of Train
lug. The appropriate Deputy Director will recommend approval or die
-
approval of the application in his endorsement.
40 The Director of Training will establish aid serve as chairmea of
a selection panel composed of the Director of Personnel and a designated
representative of the Deputy Director (Intelligence) and of the Dep0y
Director (Plans)? to be known as the Defense Colleges Selection Peael,
The Peace will screen all applications, interview applicants when feasible
and necessary, and nominate the principal and alternate candidates fr
each college to the CIA Career Council.
5. The CIA Oerser Council will review the nominations of the Defense
Colleges Selection Panel and will recommend action to the Director
Central Intelligence.
Final selection of candidates will be made by the
Director of Central Intelligence.
6. The Director of Training will accomplish all actionS required
in processing successful candidates into the colleges and schools for
which they have been selected.
FOR THE DIRECTOR OF CENTRAL INTELLIGENCE:
DISTRIBUTION: ALL EMPLOYEES
4v24r.
Lo K. WHITE
Deputy Director
(Support)
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S-13
POLICY ON JONOR AWARDS FOR INTLLLIGENCE ACTIVITIES
BRIEF
The CIA Career Council at its 8th meeting on 31 March
19550 recommended to the Director a policy developed by
the MA Honor Awards Boar& The Deputy Director requested
clarification of the policy and also requested that the
restatement of policy be considered by the Career Council.
The attached Staff Study by the CIA Honor Awards DoardD
dated 23 August, reflects the suggestions of the Deputy
Director, The double-columned "Proposed Revisions...."
shows the differences between the policy originally
recommended by the Council and that now presented for
review
DE3Y77
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COPY
TO: Director of Central Intelligence
SUBJECT: Staff Study on Intelligence Decorations
1. PROBLEM:
23 August 1953
To establish policy regarding award by CIA of intelligence
decorations to personnel of other U. S. Government Departments
and Agencies.
2. FACTS BEARING ON TUE PROBLEM:
a. The purpose of most awards programs is recognition of outstanding
performance. Such recognition usually includes public announcement
. and tangible evidence of the award()
b, Within CIA recognition. must Le adjusted to security regnirementso
To accompliah this the four CIA decorations were created to recognize
outstanding performance by CIA personnel in the intelligence fieldo
The National Security Medal and the Medal of Freedom may also be
awarded for such service in accordance with the governing ExeCutive
Orders.
CO Military and Foreign Service personnel may also warrant recognition
for service performed for CIA. For military parsonnel the practice
of CIA has been to recommend to the parent service the award Of a
military decoration on the assumption that such decorations ai.e of
greater value career-wiss for these personnel than are CIA deco.
rations. Further9 when such action is taken public recognition
presents a lesser security problem. A secure channel has been
established to allow for oral presentations by CIA representatives
to military awards boards.
d,
2S2ZX
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DISCUSSIONt
c. The intelligence connotation attached to the National Security Medal
would categorize it with CIA decorations in the situations outlined
above. No such connotation is attached to the Medal of Freedom4
*40
CONCLUSIONS:
a. That CIA Honor Awards are for outstanding service in the intel4genee
field and they are primarily intended, but not preclusively, for CIA
personnel.
bg, That the present method of usually recommending military deeora4 ons
for military personnel detailed to CIA is sound.
c. That, as required, CIA develop liaison similar to that existing4ith
the Department of Defense with other agencies for the purpose of
obtaining recognition for peroonnel cooperating with (or detaildd
to) CIA.
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5.
RECOMENDATIONS:
8-E C-P T
a. That it shall be the general policy of CIA to award CIA decorations
for outstanding service in the intelligence field.
b. That such service performed by personnel of other agencies in
cooperation with or in support of CIA shall normally be recognised
by a reconmendation to the parent agency for the award of an approa
priate decoration and that channels be established for suchention.
This does not preclude the granting of a CIA award to non.CIA
personnel when this is deemed desirable.
co That CIA will not recommend awards of the National Security 444odal
to personnel of other government departments and agencies iz those
cases where the intelligence connotation would be damaging? 1
Concur:
2$X1A9A
Vice Chairman?
CIA Honor Awards Beard
Approve:
Chairman, CIA Career Council Director of Central Intelligence
Date%
Date:
.19?09.111?1.104011110.1?4.11MMIOW
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b. That such service performed by
personnel of other agencies in
cooperation with or in support
of CIA shall be recognized by a
recommendation to the parent
agency for the award of an appro.
priate decoration and that
channels be established for such
action.
c. That When action as outlined in b0
is inadvisable1, it shall be the
policy to consider award of CIA
decorations for outstanding service
by personnel detailed to CIA (both
military and civilian)0
d.
eja
b. That such service performed by
personnel of other agencies in. ?
cooperation with or in sUpport
of CIA !hail normally beirecog.
nized by a recommendation to the
parent agency for the award of an
appropriate decoration and that
channels be established for such
action. This does not preclude
the granting of a CIA award to
non.IA- personnel When this is
deemed desirable.
Co
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BRIIT OINFIDENTIAL
1. The CIA Career 'Service Board recommended a Legislative Program and the.
DCI approved it in principle. (See Staff Study dated 13 January 1954
contained in the bound copies of nCareer Service Legislation".) (See
Memo from DDCI to DD/A9 dated 30 June 1954.)
2. An amplified Legislative Program has subsequently been prepared. (See
Memo frowLegislative Counsel to DD/S9 dated 31 August 19559 contained
in Item 4 of this Agenda.) ?
3. A comparison of the present and previous recommendations follows:
PRESENTLY PROPOSED AMENDMENTS
TO P.L. 110
(Item 4 of this Agenda)
Section 1
Extension of certain benefits
to overseas employees stationed
in U,S. territories and posses-
sions.
Section 2
Authority to pay travel allow-
ances for dependents to acquire
education,
(see also Section 9 below)
Section 3
PREVIOUSLY RECOMMENDED
LEGISLATION
("Career Service Legislation" dated
13 January 1954) !
(Not generally considered p but epeeif-
ically considered in connection with
medical and educational benefits for
dependents. See Tab A and Tab 0 of
"Career Service Legislation")
See Tab C of "Career Service
Legislation"
Authority to order persons to See Tab F of
the U.S. on home leave. Legislation"
Section 4
Extenaion of Foreign Service
Home Leave Benefits to CIA
overseas personnel.
Section 5
Authority to pay travel ex.,
penses of overseas employees
dependents to nearest medical
facility.
1
"Career Service 1
See Tab F of "Career Service
Legislation"
See Tab A of "Career Service
Legislation"
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PRESENTLY PROPOSED AMENDMENTS PREVIOUSLY RECOMMENDED
TO P.L. 210 LEGISLATION 1
(Item 4 of this Agenda) ("Career Service Legislation" dated
13 January 1954)
Section 6
Authority to pay costs of See Tab A of "Career Service !
medical treatment for overseas Legislation"
dependents when illness or
injury is related to duty or
station of the evloyee.
SectLon 7
Authority to Conduct physical (not considered)
examinations and inoculations
Of dependents.
Section 8
Authority to extend certain
overseas medical benefits to
TDY personnel.
Section 9
Permanent authority for
allowances in F.L. 110? as
amended rather than author-
ity by reference to other
legislation (Foreign Service
Acto Overseas Allowances Act,
etc).
Authority to pay allowances
to provide elementary and
secondary education for depend-
ants.
(see also Section 2 above)
Section 10
See Tab A of "Career Service
Legislation"
(not considered)
See Tab C of "Career Service
Legislation"
Authority to* pay Death Gratuity See Tab B or "Career Service
of 0,000. Legislation"
Section 11
Authority to employ more than (not considered) Aut. 41,44r-
the 15 retired military officers
now permitted by P.L. 53. ? P1,. 11.
Number yet to be determined.
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, PRESNNTLY PROPOSED ANTNIWOR3 PREVIOUSLY RECOVREA4D
. TO P.L. 110 1,4444TX04
(Item 4 of this Agenda) ("Career Serviee liwgialation" dated
:10 January 1954)
Szotiou 12 .
,.
'
Authority to make advance pay- (not considered) ,
,
nents, especially 'of the "Key .
money" type. ,
Section 13
Correction of typographical (eet considered)
error in P.L. 110.
Section 14
Authority for the DCI to (not considered)
appoint not more than 6 Deputy
Directors, one of whom shall be
the General Counsel, Who shall
be paid at rate prescribed by
law for Assistant Seoretaries.
LIBERALIZED RETIREMENT
See Item 4 of this Agenda. See Tab D of "Career Service
The proposed legislation would Legislation"
not be a part of P.L. 110, as
amended but would be contained
within new government-wide legis-
lation. (through additions to
the so-called "Kaplan Bill")
MISSING PERSONS LEGZSIATON
See paragraph 1 of Memo from
Legialative Counsel to DD/S,
dated 31 August 1955. (Item 4
of this Agenda). Legislation to
be obtained through bill spone
aored by the Department of
Defense
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CONFIDENTitil
See Tab G of "Career Service
Legislation"
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PMFORMANCE RATING
The required legislation has been
obtained, CA revised Fitness
Report will be reviewed by the
CIA Career Council at its nemt
meeting,)
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Legislation',
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. 31 August '11955
?1
Memorandum for: Deputy Director/Support
Subject: Proposed CIL Legislation
1. In 1954 the CIA Career Service Board made certain recome
mendations for the development of a career service in CIA. Of the,
recommendations made in this connection, that concerning job security
of career employees and that concerning a civilian reserve program
did not require legislation?; The recommendation that CIA be exempted
from the Performance Rating Act of 1950 has been accomplished by
securing an exemption for CIA under Section 601(a) of P. L. 763 of the
83rd Congr so. The recommendation that permanent Missing Persons
legislation be secured to meet the continuing needs of the Agency is
still in abeyance, The present Missing Persons Act has been extended
to 1 July 1956 by P. L. 122 of the 84th Congress, A draft of permanent
legislation in this field, prepared by the Department of Defense, 40
been pending for several years in the Bureau of the Budget and has,now
been cleared back to the Department of Defense with certain suggestions?
it is intended that this draft will cover the needs of CIA and it will be
available here in a few days for reVieWo
2. The CIA Career Service Board recommended that legislation
be secured liberalizing age and aervice credit requirements for Civil
Service retirement, The entire retirement question was considered by
the Preeidentles Committee on Retirement Policy for Federal Employee
which submitted a voluminous report in 1954. As a results a detailed
bill on Federal employees" retirement has now been drafted and has been
circulated to the various agencies of the Government for comment by the
Bureau of the Budget, This bill is presently under study inthe Offices
of the General Counsel, Personnel and the Comptroller to see whether
it adequately meets CIAts special needs, whether these needs can be
mot by suggested amendments to this draft, or whether it will be necese
eary to write special legislation into the CIA Act. The Career Council
will consider this problem at its next meeting?
3. The remaining recommendations of the CIA Career Service
Board dealt with United medical benefits for dependents, death gratui-
ties, educational allowances, and statutory home leave benefits. All
of these benefits would require is and a draft of such lagislae
tion is included herewith?
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4. On 21 June the DD/S held a meeting which included the Comp
-
teener, the Director of Personnel, and the Acting General Counsel to
consider an earlier draft of this proposed legislation. At that meeting
it WAS deteredned? subject to the approval of the Director, that OI4
should seek its own legislation on these matters, at least insofar as
submitting it to the Bureau of the Budget was concerned, even though
Gent-wide legislation on the SAMS point was in prospect or had
already been submitted to the Congress. Particular reference was I
made to a statutory home leave bill presently pending in Congress aUd
the proposed Overseas Allowances Act which has not yet been submitted.
5. In connection with legislation for educational allowances 1 and
for the transfer allowance secured by the Department of State in the
Foreign Service Act Amendments of 1955, the Office of General Connie'
felt that it would be preferable to write all of its allowance autherities-
into.. A revised Section 5(b) of the CIA Act of 1949 rather thin to cOntinue
to incorporate by reference certain-sections of the Foreign Servie0 Act?
This problem was highlighted by the Administrationis suggested repeal
of these particular sections of the Foreign Service Act in the proposed
Overseas Allowances Act. This proposed revision of Section 5(b) in
included in the attached legislation.
6. In addition to the recommendations of the CIA Career Service
Board, we have also included drafts to cover certain other matters;
which need legislative attention which have been suggested by varieue
components of the Agency. In addition, we have prepared detailed 1
legislation covering procurement authorities which haa been circulated
separately.
1
76 It is requested that comments on this proposed legislati4n be
returned to this office by close of business on 7 September.
Walter L. Pfortheimer
Legislative Counsel
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JUSTIFICATION
This proposed section will extend to CIA employees the
same authorities granted to members of the Foreign Service
of the United States by P.L. 22 of the 84th Congress. It
will permit payment Of one trip to the United States 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 Obvious, particu-
larly. for those employees with more than one child of
School age, The section will permit a. child of Agency
personnel to receive an American education on the one hand
and maintain his ties with his family on the other. The
cost of the education and the remaining travel will, of
course, be borne by the individual or his parents, over
and above the post educational allowance,
Section 3 Section 5(a)(3)(A) of such Act is amended to
read as follows:
'1(3)(A) Order to the United States or its
territories and possessions on leave of absence
an provided by law, every officer and employee
of the Agency who was a resident of the United
States or its territories and possessions at
time of employment, upon completion of two
years' continuous service abroad, or as soon
as possible thereafter."
memer mmayrosimmies.....nwassuagor.......onmuaresorva...--.=
JUSTIFICATION
This section is required to bring the present section
in line with current enactments and remove obsolete
references, This section is necessary as authority to
order Agency personnel to the United States on home leave
upon completion of two years' continuous service abroad.
The code citations in Section 5(a)(3)(A) as presently in
effect have been repealed by the Annual and Sick Leave
Act of 1951, which also made it impossible to comply with
the present proviso in Section 5(a)(3)(A) in regard to
leave accrual.
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Section 1j Section 5(a)(3) of such Act is amended by
Inserting at the end thereof a new subsection "(D)" which
shall read as follows:
"(D) The provisions of Section 203(f) of the
Act of October 30, 1951, (65 Stet, 679; 5 u.S.C.
2062(f), and as may hereafter be amended, shall
be aeplicable to officers and employees of the
Agency, and such officers and employees shall
be subject to the limitations as to the accumu-
lation of leave applicable to officers and
employees in the Foreign Service of the United
States under the Department of State as provided
in Section 203(d) of the Act of October 30, 1951
(65 Stat. 679; 5 Uosc. 2062(d))13, and as may
hereafter be amended."
JUSTIFICATION
? This section will extend the statutory home leave
provisions of the Annual and Sick Leave Act of 1951 to
CIA employees stationed oversees? The statutory home
leave provisions are applicable under present law to
members of the Foreign Service and provide home leave at
a rate equivalent to one week of home leave for each four
months of service outside the United States in addition
to the regular annual leave. Because of the grant of
statutory home leave to members of the Foreign Service,
the Annual and Sick Leave Act of 1951 provides a maximum
accumulation of sixty days of annual leave for members of
the Foreign Service, in lieu of the ninety days accumu-
lation authorized for other Government personnel stationed
overseas. It is felt that the limitation of accumulation
applicable to those granted statutory home leave should
also apply to CIA employees on foreign assignment.
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Section So Section 5(a)(5)(A) of such Act is amended to
read as follows:
25X1
"(5)(A) In the event of illness or injury,
incurred while on assignment outside the con-
tinental United States, requiring the
hospitalization of an officersaa
employee of the Agency or of a itember751-1111r-
fkrfflitty accompanying such officer or employee
on such assignment, not the result of vicious
habits, intemperance, or misconduct on the part
of such persons, in a locality where there does
not exist a suitable hospital or olinicp pay the
travel expenses of such officer or employee, Or--
meriber-cf-the-farrilys by whatever means are con-
sidered aopropriate and without regard to the
Standardized Government Travel Regulations and
Section 10 of the Act of March 3, 1933 (47 Stat.
1516; 5 MX. 736), to the nearest locality
where a suitable hospital or clinic exists and on
the recovery of such individual pay for the travel
expenses of return to the post of duty of such
officer or employee. If such officer or employee
or is too ill to travel
u tended, the Agency may also pay the travel
expenses of an attendant;".
JUSTIFICATION
The justification for this provision is contained in
Tab A-2 of the Memorandum for the Director of Central
Intelligence, Subject: Career Service Legislation, dated
13 January 1954.
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Section 6. Section 5(a)(5)(C) of such Act is amended to
read as follows:
"(5)(0) In the event of illness or injury
requiring the hospitalization, not the result of
vicious habits, intemperance, or Misconduct on the
part of suCh persona, pay for the Coat of treat-
ment of such illness or injury at a suitable
hospital or clinic, where such illness or injury
is incurred --
(i) in the line of duty by an officer or
full time employee of the Agency
while such person is assigned outside
the continental United Sta
(ii) by a . ,.. accompanying
such officer or employee on assignment
outside the continental United States,
\ where such illness or injury occurs
through circumstances directly related
to the duties or duty station of such
officer or employee."
---------
JUSTIFICATION
The justification for this provision is contained in
Tab A-2 of the Memorandum for the Director of Central
Intelligence, Subject: Career Service Legislation, dated
13 January 1954.
Section 7. Section 5(a)(5)(D) of such Act is amended by
inserting "and their dependents" after the word "Agency" and
again immediately before the period at the end of the Section.
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JUSTIFICATION
Section 5(a)(5)(D), as presently worded, grants sub-
ntantially the same authorities providing physical
examinations and inoculations to Agency employees as were
granted to employees of the Foreign Service under Section
5143 of the Foreign Service Act of 1946. Section 12 of the
Foreign Service Act Amendments of 1555 extends these
authorities to dependents of members of the Foreign Service,
and the proposed amendment to Section 5(a)(5)(D) similarly
extends CIA's authority in this connection to the dependents
of its personnelv This is done in recognition of the prac-
tical and important consideration that health problems of
the various members of an employees family can have upon
the employee's job performance and assignment. Pre-
employment and preaseignment examination of dependents could
prevent many of these problems by avoiding the assignment
of personnel with dependents who may become medical liabilities,
1
Section 8 Section 5(a) of such Act is amended by inserting
at the end thereof a new subsection "(8)" which shall read
as follows:
"(8) Subsections (5)(A), (5)(C)? (5)(D)? and (6)
of this Section are also applicable to officers
and employees of the Agency assigned to temporary cbn.le'
duty outside the continental United States."
JUSTIFICATION
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 on temporary duty status abroad,
as is presently provided for those who die while on permanent
duty overseas.
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?
(
Section 9. Section 5(h) of such Act is =ended by striking oUt
all of the words of the section after the word "Agency" and inserting
in lieu thereof the following:
n(1) allowances, wherever Government owned or rented
quarters are not aeailable? for living quarters, heat, light,
water, fuel, as, and electricity, including allowances for
the cost of lodgine at temporary quarters, incurred by an
officer or employee of the Agency and the members of his
family upon first arrival at a new post, for a period not in
excess of three months after such first arrival or until the
occupation of residence quarters, whichever period shall 1
be shorter, up to but not in excess of the aggregate amount
of the per diem that wouXd be allowable to such officer or
employee for himself and the members of his family for such
period if they were in travel status;
(2) costeofeniving allowances, whenever
(A) the cost of living at a post abroad is proportionately so
high that an allowance is necessary to enable an officer or
employee of the Agency at such oost to carry on his work
efficiently;
(13) extraordinary and necessary expenses, not:otherwise
compensated for, are incurred by an officer or employee of
the Agency incident to the establislasent of his residence at
am Host of assignment abroad or at a post ofassignment In
the continental United States between assignments to posts
abroad;
(C) an allowance is necessary to assist an officer or employee
of the Agency who is compelled by reason of dangerous, notably
unhealthful, or excessively adverse living conditions at his
post abroad or for the convenience of the Government to meet
the additional expense of maintaining his wife and minor
children elsewhere than in the country of his assignment;
(D) extraordinary and necessary expenses, not otherwise coma ,
pensated for, must be incurred by an officer or employee of
the agency, by reason of his servioe abroad, in providing fox'i
adequate elementary and secondary education for his dependents;
allowances under this subparagraph for any post shall not exceed
the cost of obtaining such educational services as are ordinal:0.1y
provided without charge by the public schools of the United
States plus, in those cases where adequate schools are not
available at the post, board and room, and periodic transportaa.
tion between the post and the nearest locality where adequate
schools are available; if any such officer or employee employsl
a less expensive method of providing such education, any
allowance paid to him shall be reduced accordingly; no allowance
shall be paid under this subparagraph for a dependent for whom
a travel allowance has been paid under subsection 5(a)(1)(G);";0
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JUSTIFICATION
OrLginally sections 901(1) and 901(2) of the Foreign Service Act
of 1946 were incorporated by refeeeres into Section 5(b) of the Central
Intellieence AgeLcy Act of 1949. Tn order for CIA to take permanent
advantage of the transfer and educational allowances granted to the
Foreign Service by the amendments tc Section 901(2) in the Foreign'
Service Act Amendments of 1955, it vas felt that we would probably'
have to amend section 5(b) of the CIA Act. In addition, there is 8
possibility that the proposed Overseas Allowances Act will repeal '
Section 901 of the Foreign Service Act. Therefore, it is suggested
that we write our own allowances authority into Section 5(b) of the
Central Intelligence Agency Act of 1949. In doing so, we have
generally followed the model of the Foreign Service Act rather that
the eroposed0 verseas Allowances Act. This section includes the
prooesed educational allowance suggested by the Career Council, as
well as the transfer allowanee noted above. It has been determined
not to recommend a representaticn allowance for CIA, but to continue
to handle this problem as heretofore.
Section 10. Section 5 of such Act is amended by inserting at
the and thereof a new subsection "(c)" which shall read as follows
"(c)(1) Under such regulations as the Director may prescribe,
the Agency shall pay the sum of $10000.00 as a death gratuity,
innediately upon official notification of the death of any
officer or employee of the Agency: Erovided? That such death
is not the result of vicious habits, intemperance, or miscondUct
of the deceased. The payment of the death gratuity authorized
by this subsection shall be in addition to such other benefits
as the dependents or the estate of the deceased may be entitled
wider any other provision of law.
(2) The death gratuity authorized by this subsection shal3
be paid to or for the living survivor or survivors of the
deceased officer or employee first listed below:
(a) Surviving spouse.
(B) Children (without regard to their age or
marital Antts) in equal shares.
(C) Any dependent ordependents of the deceased
in well shares.
(0) Parents or brothers or sisters (including
those of the half blood and those through
adoption), when designated by the deceased.
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(E) parents in eque.2. shares.
(F) Brothers and sisters (including those of the
half blood and those through adoption) in equal
shares.
(3) If a survivor dies before receiving the amount to wh4ch
entitled under this subsection, such amount shall be paid to the
then living survivor or survivors first listed under subsection
(c)(2).
(4) The payments made under the provisions of this sub' ?
section shall not be assignable, shall be exempt from taxation,
shall be exempt from the claims of creditors, including any
claim of the United States (except as provided in Section 3 of
the Act of August 12, 1935 (38 U.S.C., Sec. 454(a)), and shali
not be subject to attachment, levy, or seizure by or under any
legal or equitable process whatever either before or after
receipt by the payee.
(5) (A) No certifying or disbursing officer e!-,all be
liable -for any amounts erroneou4Y paid or oveepaid
unler this subsectien to a surviving spouse or children 1
in the absence of fraud, gross negligence, or criminality
on the part?of such officer.
(3) The ? Director may waive the recovery of any
such erroneous payments or overpayments when such
reoovery would be against equity and good conscience.
(C) The Director shell have the right to determine
cases of alleged misconduct or dependency for the
purposes of payments under this subsection, and his
determination of any matter pertaining to such payments
shall Tee final and conclusive upon the accounting officers
of the Government. ?
,0114........161.4411641.11,11021.2104.. .110.,411+ ??71111.S..114.0.11.11.
? 4USTIFICATION
This provision will authorize CIA to pay a death gratuity of
$1,000 to the survivor of an Agency employee, immediately upon
official notification of death. The gratuity will not be paid if
the death was due to the misconduct of the deceased. Because this
payment wIll be contingent solely upon death, it shoed be in ?
addition to, and not an alternative to, such other benefits as the
dependents or the estate of the decedent may be entitled under anyl
othw provisions of law.
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?-12
The need for such a payment arises from the unusual security
requirements imposed upon Agency personnel, which in turn cause ,
certain inequities to the survivors by causing delays in receiving'
the monetary benefits to which such survivors would normally be I
entitled.
Acquisition of existing death benefits, provided by the Civill
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 requiremente.
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 1
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 oases, the CIA emplOyment
is so sensitive, that it is impossible to substantiate the claims to
the Civil Service Commission or Bureau of Employee& Compensation
'without jeopardizing intelligence sources. As a result, the survivors
of CIA employees are often at a disadvantage, particularly during the
period immediately following the employees death, when ready cash is
urgently needed to tide over current and accrued obligations and meet
emergency needs.
A survey of CIA death cases in 1952-1953 indicates that the
settlement of decedent es accounts with the Agency has taken from
1 to 10 months, 'with the average running approximately 3-1/2 months.
These leave records and financial accounts must be settled before a
claim for benefits may be submitted* Delays have been particularly
apparent in connection with accounts which must be returned from
overseas.
Precedent for.. the payment of death gratuities exists in the 1
military services, Which have been authorized to pay a death gratuity
since 1908* This gratuity consists of an amount equal to six month&
pay at the rate received by the officer or enlisted man at time ofI
death.
During the past three years, approximately 18 employees have
died each year. This 'would represent an average yearly cost of '
818,000 to the Agency. The cost of administering this program
would be negligible, as death gratuity payments would involve a
minimum of administrative procedures.
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Attention is invited to H. R. 7089, a bill to provide benefits for
the survivors of servicemen and veterans, which passed the House
on 13 July 1955 and is now pending in the Senate. Title III of this
bill provides death gratuity benefits upon official notification (14
the death of a member of the uniformed service (including the Coast
Guard, officers of the Coast and Geodetic Survey and the Public Health
Service). The gratuity provided shall equal six months I basic pail
(plus special and incentive pays) at the rate received by the deceased
at death, but shall not be less than $800 nor more than $30000. '
H.R. 7089 provides that this payment will be paid in all deatti
eases of members of the uniformed service except where death was 1
the result of lawful punishment* The House Select Committee on I
Survivor Benefits studied those problems for almost two years* It
concluded in its Report (No. 993, Part 1) that .present limitations
and standards of "line of duty", "willful misconduct", orqiisease I
limitations" require a process of adjudication in each case, and that
these requirements tend to cause delay in the payment of the deathd
gratuity to survivors. In the interest of speeding up this emergency
payment, the Committee has eliminated this phase of the adjudication
process. It is recommended that CIA give consideration to following
these precedents as to the amount of the payment and the waiver ofI
requirements. 1
Section 110 Section 6(f)(1) of such Act is amended by striking
out "fifteen" and inserting in lieu thereof the following: " n
JUSTIFICATION
This amendment is designed to raise the number of retired 1
officer which, because of other statutory limitations, can be hired;
only through special statutory authorization from the present I
number of 15 to an as yet undetermined nuMboro This number Should I
be determined by the Office Of Personeel or appropriate coordination.
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Section 120 'Section 6 of such Act is amended by the insertion
of a semicolon in lieu of the period at the end of subsection ".(f)"
and by the addition of a new subsection "(g)" which shall read as 1
follows
"(g) Make payments without regard to section 3648 of the Ravished
Statutes (31 U.S.C. 529), when made
(1) in compliance with the laws of foreign countries or
their ministerial regulations, and
(2) for rent in such countries for such period as may be
necessary to accord with local custom.
.101M1.11140111601MIN.1.4111.?;10.1.111.9.00?.1.1. d.F.1.10.11C1.0.41
JUSTHICATION
Section 3648 of the Revised Statues provides that there shall be
no advance of public money unless authorized by the appropriation
concerned or by law, or by certain stated exceptions in Section 3648,
eilich provides, further that in contracts for the performance of services
or the delivery of articles of any description for the use of the
United States, payment shall not exceed the value of such service Or
article delivered previously to such payment. This provision work0 a
hardship in certain foreign countries, whose laws or customs require
advance payments, particularly of rent. Exceptions to this provision
of law are granted for payments made for the Bureau of Customs in 1
foreign countries (31 U.S.C. 529 b), for the enforcement of custom#
and narcotics laws (31 U. S. C. 529 f), the Office of Scientific
Research and Development (31 U.S.C. 529 h), for advance payments of
office rent in foreign countries by the Bureau of Foreign and Domestic
Commerce, and in other instances. The CIA Comptroller requests that
similar exemption be considered for the Agency.
Section 136 Section 10(a)(1) of such Act is amended by iusering
"Chapter 171 of" immediately before "28 U.S.C.".
JUSTIFICATION
1
This provision corrects a typographical error in Section 10 (4)(1)
of the Central Intelligence Agency Act of 1949. The authority whiCh
was intended to be granted by this clause was the authority to payl
claims under the Federal Tort Claims Act (Chapter 171), but the Chapter
was omitted from the final printed versions of the bill as passed01
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Section 14. Section 102(a) of the National Security Act of 1047e
as amended, is amended by renumbering said section as "Section 102',
and by the addition of a subsection "(2)" which shall read as follows:
(2)(A) The Director of Central Intelligence is authorized
to appoint not to exceed six Deputy Directors of the Central i
Intelligence Agency. Each such Deputy Director shall perforce
such functions as the Director of Central Intelligence may free
tine to time prescribe and each shall receive coepeneation at
the rate prescribed by law for Assistant Secretaries of
executive departments*
(B) One of the Deputy Directors of the Central Intelligence
Agency authorized to be appointed under subsection 2(A) of this
section shall serve aethe General Counsel of the Central Intelligence
Agency and shall be the chief legal officer of the Agency. '
(3) If a commissioned officer of the armed services is
appointed to a position authorized by subsection 2(A) of thisl
section, the provisions of Section 102(b) of the National Security
Act of 1947, as amended shall apply to such officer?
.01itivartvantaftifellea.00.....elobaprovomMlozem,....bsel
JUSTIFICATION
This prevision would create six statutory Deputy Directors of (
the Central Intelligence Agency, in addition to the Director and Deputy
Director of Central Intelligence. The latter positions are presently
established under Section 102(a) of the National Security Act of 1947
and the compensation for such positions are contained in the Executive
Pay Act Of 1949, as amended*
It is the opinion of the General Counsel that these six positions,
'with compensation at the level of Assistant Secretaries of the executive
departments, can be established without legislation under the Director's
present statutory authorities. However, fen policy reasons, it is
being included in the present program for possible consideration of
the Bureau of the Budget*
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ANALYSIS OF RETIREMENT BILL PROPOSED BY CIVIL SERVICE COMMISSION,
WITH SPECIAL REFERENCE TO CIA RETIREMENT PROPOSAL
to Rot ent LCt as Pro sed b B = .1
a. The Changes, embodied in the bill?.constitute-one'of the moot
comprehensive proposals for revision of the Retirement Act Since
the inception of the system. yet, the bill is significant fpr what
it does not contemplate changing as well as what it proposeir to
alter.
(1) The bill does not substantially change the rules concerning
the types of service which are creditable under the Retirement
Act; the formulas for computing the amount of annuity benefits
and the various ways in which an employee may retire.
(a) Thus, an employees annuity would still be computed as
follows: (1) 1% of average salary (5 highest years)
plus $25 times years of service, (when the employees
average salary is under $5000) or (2) li% of average
salary times years of service (when his average salary
is $5000 or more).
(b) The types of retirement with a right to an immediate
annuity remain largely unchaeceds i.e., age 62 and 5 or
more years service; age 60 and 30 years service; age 55
and 30 years service (with a reduction in annuity for
each year an employee is under 60); at any age with 25
years service if involuntarily separated (subject to a
reduction in annuity for each year retiree is ender age
'.60); disability (with 5 years service); and mandatery
retirement at age 70.
(2) In addition to the above principal elements of the retirement
system, certain other facets of the existing retirement system
would be preserved with relatively little-, if any, change.
These include (a) the guarantee that a retiree, or his benefi-
ciary, will get back all retirement deductions in the fOrm of
a lump-sum, if not exhausted by annuity payments; (b) the
Current procedures for making deposits and redeposits; Snd
(c) the arrangement for making voluntary contributions.
b. The principal changes proposed in the Retirement Act by the hill
are contained in Tab A. (The Tab does not include an analysis of
the changes applicable to Congressional members and employees or
changes which are of minor importance.) In summary, the major
proposals are as follows:
(1) All Federal employees mould be subject to the Social Seeerity
Adilei6o1Fikatala 260Y141410PRWRIESTIVINA8VRINONAELft0 Act,
CIA INTERNAL USE ONLY
(4)
(5)
1
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unless expressly excluded, after acquiring 3 years of contin-
uous service in the Government. Employees subject to the
Retirement Act on 31 December 1955 would retain such coverage
even though they had less than 3 years service, unless they
separated for a period of 30 days or more (new proposal). 1See
Sections 2, c)? and 310 Tab A.
Retirement deductions would consist of 3i% of the first
and 6% of the remainder (in lieu of the current rate of 6%
See Section 4, Tab A0 '
An employee would be mandatorily separated at age 70, irreepec-
tive of his years of creditable service. Currently, retirement
is compulsory When an employee reached age 70 if he has 151
years of service. The bill would liberalize, however, exieting
provisions concerning the reemployment of retirees, including
those at this age level. See Section 5, Tab A.
FBI agents and other criminal investigators, henceforth wol4d
not be permitted to retire at age 50 unless their retirement
is certified as being in the interest of the Government, rather
than being for the personal interest of the employee concerned.
See Section 6, Tab A.
One of the principal areae of proposed Change involves the,
survivor benefits available to Federal employees. In part
greater benefits would be extended to the spouse by the dual
coverage of employees under both Social Security and Civil
Service retirement and, in part, by an increased liberalization
of the survivor benefits provided under the Retirement Act