DEATH GRATUITY AS A CAREER SERVICE BENEFIT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-01826R000900120014-9
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 16
• Document Creation Date: December 14, 2016
• Document Release Date: October 25, 2002
• Sequence Number: 14
• Publication Date: October 1, 1953
• Content Type: MEMO

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TO: Director of Central Intelligence
FROM: Legislative Task Force
SUBJECT: Death Gratuity as a Career Service Benefit
1, PROBLTIL,
OCT 1 1953
OGC HAS REVIEWED.
Because of the unique nature of this Agency and the conse-
quent peculiarities in the status of its personnel in relation
to personnel of other Government agencies, certain disadvant-
agee are incurred by survivors of Agency personnel in procuring
the monetary benefits to which they are entitled by reason of
the decedents eovernment employment. (See Annex A.)
MCT3 BEARING ON TH7 FROBTEM..
A. The ostensible employment of covert personnel in other govern-
mental and non-governmental positions necessitates extensive in-
ternal processing of records, and, in some cases, an unsubstantiated
claim, in applying for death benefits under existing programs avail-
able to government employees. In extraordinary cases, no death
beaefits however deserved may be forthcoming. (See Annex A.)
B. All existing measures for death benefits - as provided by the
Civil Service Retirencnt Act of May 22, 1920, as amended; by the
Federal Employees Compensation Act of September 7, 1916, as amended;
and by the lax egencies Employees Protective Association insurance
policies - are continent upon the occurrence of certain conditions
precedent. (See Annexes B, C, D, respectively.) Security factors
cause inordinate but unavoidable delays to arise in the acquisition,
processing, and review of data required to prove the presence of the
reeuired conditions.
C. The military services are authorized to pay a death gratuity to
the ap ropri.te survivor(s) of an amount equal to six months pay at
the rate received by the officer, enlisted man, or nurse at the
time of his or her death. (34 U. S. C. 943 Navy; 10 U. S. C. 903
Army). (See Annex E.)
D. Since World '?4ar IT a trend toward gratuitous insurance for
employees has appeared in the field of private industry. (See Annex.
F.)
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E. There is no general legislative precedent for a death gratuity
for survivors of civilian employees of the U. S. Government. However,
5 U. S. C. 118 (f) may represent a step in this direction since it
does allow a grant of money to survivors of indigenous civilians employed
abroad. (See Annex G.)
F. Since the emphasis in a career service program is on the select-
ion and development of younger personnel, it is believed that a low
mortality rate does and will 'prevail in this Agency and that the
cost of such a benefit would not be excessive. (See Annex H.)
3, DTSrPSSTON.
In the pant century strong new influences have come into the labor-
manieement relationship. These influences have been manifested in
public social security le-islation end private agreements between
labor and management. They have been stimulated by enlightening
studies in the field of employee motivations. The effect of these
influences is that wages are" no longer measured solely in terms of
remuneration for work performed, but also in terms of health and
welfare benefits provided by management. Every employer, public
and private, must reckon with the trend of employee benefits and
keep apace thereof lest his efforts to attract and retain personnel
be jeopardized.
4, CnYCLITSTONS.
A. In order to compensate for inordinate delays in receiving death
benefits and thereby piece personnel of this Agency on an eoual besis
with employees of other civilian services, and to equalize this
epency's competitive position with the militAry services and private
i-dustry in developing a career service, a death gratuity benefit
should be incorporated in the career service program.
IL The death gratuity should be awarded immediately upon official
notification of death.
C. The gratuity should be a lump sum of $1,000.
D. Since this eratuity will be contingent solely upon death while in
the Agency's employ, it should be in addition to, end not an alternetive
of 'my moneys to which the survivor(s) may be entitled by reasons of
contributions by the decedent during his lifetime or under workmen's
compensation provisions. It should not be subject to set off any
indebtedness of the decedent. (See Annex H.)
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E. This gratuity should be available only to survivors of regular
offieers and employees of the Agency, excluding consultants, persons
whose services are obtained by special contracts, and military per-
sonnel in active status assigned to duty with this Agency.
F. This gratuity should be awarded regardless of the cause of death,
however, intoxication, attempts to do harm to oneself or to another,
or any deliberate misconduct on the p_rt of the employee resulting
in his death should raise a presumption of ineligibility of the sur-
vivors, which presumption may be set aside at the discretion of the
Director.
5, ACTION RECOr!.ENDFD.
A. That CIA Career Service Board approve the
and secure DCI approval.
B. That the Office of the General Counsel be
appropriate legislation.
above conclusions
requested to prepare
C. That the Office of the Assistant Director (Personnel) be re-
quested to prepare appropriate justifications and supporting data<
D, That the Deputy Director (Administration) be requested to assume
over-all responsibility for action.
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ANNEY a
Disadvantages of Survivors of agency rersonnel.
The subject of financial assistance to his survivors in the period
of emergency after his death is d most important one in the mind of every
breadwinner. By offering a means of coping with the problems of this
subject, the emnloyer ircreasei efficiency by building better morals.nd
reducile turnover
Probably the three lereest employee prohps are: (1) those in privtte
industrs, (2) those in military service, and (3) civilian employees or the
Government, ill have some form of death bcrefies. Free insurance eroarams
exist and Are beine extended by the em' loyerm for the benerit of the first
erotp. The milit,ry services grant d death gratuity. Members of the
third group are subject to the more complicated administrative procedures
and limitations of the Civil Service Retirement ect and the Federal
Fmployees Compensntion .ct. (See Annexes B nnd C, respectively).
Survivors of Agency personnel may enjoy a slight advantage in th.t
once a claim has tett this Agency it nay receive confidential and more
expeditious handleng in the Civil Service Commission or the Bureau of Employee's
Coepensation. In order to preserve the efficacy of any special arrange-
ments, towever, they must only be used in cases which fully warrant them.
For retsons of seeurity, the egency prefers to have its claims processed
in a manner normai to other Government establishments.
Before a claem for any benefits which become due upon death may be
submitted to the Civil Service Com iseion, it is necessary that the
employee's leave record ani financial accounts be settled. This often
reeuiret the subm,ssion of data from the field. any funds which may he
due the eurvivors are subject to set off any indebtedness of the employee
to the epency. When extremely covert arrangements for purchases of articles
or pay hive been effected, as has happened and probably wil continue to
harpen, the settlement of accounts becomes complicated and drawn out.
Denth claims to the Bureau of Employee's Compensation must be
aeeompanied by a certificate of death and an Official Superior's Report of
injure, Form CA-2, The component of the agency of which the decedent was
s eembe) or his seperior in the field must submit the completed CA-2, to
vieh an opinion as to whether operational security might be jeopardized
by submission of the case to the Bureau. This statement is forwarded through
the inspsction and Security Office for review and the final decision on
secerite oucstione.
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If a claimant appeals directly to the Bureau, the claim is immadiately
passed to this Agency so that the internal procedures required for .the
maintenance of security will not be circumvented. The procedures of
claiming employee compensation awards are receiving great attention in
the insurance and Claims 9ranch of the Employee Service Division, and
considerable progress has been made. However, the number of organizational
components and the number of persons involved will still be a handicap
on efficient procedures. This problem is peculiar to a security aeency.
With respect to both Civil Service Retirement Claims arid Employee
Compensation Claims, it is conceivable that the case of a particularly
sensitive employee could not be submitted for death benefits, even to the
cleared Agency contacts This same employee might for security reasons
be berred from obtaining War Agencies Employee Insurance. There would be
no means of compensating his survivors. CIA Regulation sheds much
lieht on the proper use of Sect. 10 Public Law 110, 81st Congress, 1st
Seseien, and on the basis thereof it is considered doubtful that sueh com-
pensation could properly be made thereunder.
httaehed herewith are two tables comprising Annex l. Table I is a
chroeoloFcal listing of Agency employees who have died during the ascal
years 1952 - 1953. This table shows the time lapse between the date of
dcai%I) and the date the eeployee,s records were forwarded to the Civil Service
Covemlneion for the disbursement of refund or annuity moneys to the survivors.
The time consumed by internal Agency processing is shown in the column headed
'Lapse Months."
Table II shows the?schedule of lapsed time between the date of death and
the dates on which disbursements were made from the sources indicated in favor
of the survivors.
?he median average lapse of all cases shown in Table I is 3 months. The
five most recently settled cases were selected to constitute Table since
(1) they include both voechered and unvouchered employees and (2) the delay in
each of the selected cases approximates the median delay of 3 months.
For the purpose of Drocessin,, records all death cases are handled on the
basis of the decedent 's being a staff employee.
25X1A
The data shown in Tble 1 and the extension of information on some of those
ca see in Table II shows that a considerable portion of the total lapsed time
from the date of the employee's death to the first receipt of money is attribut-
able to the Agency's internal processing as required by security factors.
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ANNE); A 1
TABLE I
Officers and Employees who have died while in Agency Employ, Fiscal Years 192-1953
25X1A9A
NAME
VOUCHERED OR
UNVOUCH1:RED
DATE OF
DEATH
ACCOUNT
MTTLED AND
FORWARDED.
LAPSE
MOUTHS
1.
Unvouchered
8-14-51
3-21-52
7
2.
Unvouchered
1041-51
3-21-52
5
3.
Vouchered
12-31-51
2- 6-52
2
4.
Vouchered
2-29-52
5- 7-52
3
5,
Vouchered
3-21-52
5-28-52
2
6.
Unvouchered
4-20-52
1-26-53
q
7.
8.
Unvouchered
Unvouchered
4.-12-52
5- 9-52
11-17-52
8- 4-52
7
.7,
...0
9,
7
Vouchsred
5-17-52
2- 4-53
9
10,
Unvouchered
7-29-52
3-16-53
8
11,
Unvouchered
8-25-52
10,-23-52
2
12.
Unvouchered
9-16-52
3-13-53
6
13.
Unvouchered
9-26-52
3-30-53
6 .
14.
.
Unvouchered
11-11-52
12- 8.?.52
I
15.
?Unvouchered
12-17,52
2-25-53
?
16.
Vouchered
1-21-53
4-16-53
3
17.
Unvouchered
2-21-53
4- 1-53
2
18.
Unvouchered
2-22-53
3-17-53
1
19.
Vouchered -
3- 9-53
4-17-53
1
20.
Unvouchered
3-12-53
6-1653
3
21.
Unvouchered
3-30-53
6-24-53
3
22.
Vouchered
4-12-53
7- 7-53
3
23. a
Unvouchered
5- 6-53
7-20-53
2
24.
Vouchered
5- 8-53
- 6-23-53
1
25.
Vouchered-
6-29-53
9-15-53
.
25X1A9A
* Died outside U. 3.:
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TABLE II
PAYMEMDATES OF SELECTED CASE!,
25X1A9A
PAY DATE
NAME STATUS OF
DATE
AGENCY
ACCOUNT
SETTLED
FINAL PAY
DATES OF PAYMENT
W.A.E.P.A,?
BOLC
DEATH
UT
342.733
646-53
648-53
4-16-53
a-io-53
N.A.
3-30-63
6-A-53
648,53
7-10-53
4-12-5,
?- 7-33
7-10-53 '
Noit.
7-21-33
N.A.
UY
3- 6-33_
7.20-33 .
8-1153
N.A.
8-12-53
Pending
V
5- 8-5,
6-23-63
7- 8-33
N.A.
7-20-53
N.A.
UV
10-11-54
Filed
4.8-52
Rejected
10-9.52
1. The five most recently settled cases were selected as representIng
25X1A9A mediam cases.
2. Al Idled overseas. All others died in U. So
3 selected only to show elapsed time of B.L.C. case
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Nemo, oecurity Information
ANNEX B
Death Payments as Provided by the Civil Service rietirement Act of
May 22, 1920, as Amended.
The only lump sum amount payable to the survivor of an employee
is the unpaid compensation due the decedent. (See 5 U. S. C. 61 (f).
The lelislation embodied in 5 U. S. C. 61 (f) is designed "to facilitate
the seetlemene of accounts of certain deceased civilian officers and
employees of the Government." This legiel*tion is indicative of a
cognioance on the p.rt of the ,Congress of the burdensome procedures and
delays in mak2ng funds available to survivors. Hovever, this leeislation
does not affeet the annuity or refund amounts which are controlled by
separtee leeielation,
Tmmediete lump sum payments of annuity or refund moneys may be
male only (1) if the deceased employee has completed less than 5 years
civilian service, or (2) if he has completed 5 years service but leaves
no i,idow or children entitled to immediate or future annuity. If d
deeat'd emplo-ee leaves a widow or children entitled to an immed,ate
or future anreity, a delayed lump sum payment may be paid (1) whee the
anauit- of the last survivor has terminated or (2) if the deceased
emelovee is survived only tee a widow and her right to future annuity
is lose by her remarriage or her death before the age of 50. (Cues.
1/8-19), Page - 27-21, Pamphlet 11, U. S. C. S. C., M,y 1951).
The primery purpose of the Civil Service P_eUrement Act is tb ,t it
is aimed at providing a subsistence fund over a period of dears, And not
at al evietine the immediate financial bureens attendant upon the death
of u beeadwineer. A death gratuity is aimed at the latter.
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%100
C
Death Benefits Ur; Provided by the Federal Employees Compensation Act of
September 7, 1.16, as Amended.
2. In case of death resulting from injury or disease, the lau:
provides for peyment to the personol reeresentatives of the deceased
employee an ,mount not to exceed .11.00.00 for the payment of fenerel and
burial expensee,
The Fedora 7mployees Comeensation ect has its roots in the melon
lae mastereservent relationship and the eorkmen's compensation lawe wUch
have so eodified th-t relationship thet employer responsibility for job-
incurre: injuries by employees has been greatly extended. Th a only birs
to empleyee compensation for lob-ncurred injuries by Federel Emplcee.Ts
are willful misconduct, intoxication, and intent to bring about injury
to oneself or to nother employee. The common Law bars of essumption of
ris centri',utory nepliaence, or fellow-employee negligence, are of no
effect,
The only requirements for employee compensation benefit are wcyk
injuries or occupational diseases, Underlying these reouirenents t4ii.h re
so broae as to apparently make an insurer of the employer, is the basic
respons:hility of the employer to provide a work area free of hazards.
A statement of one of the sponsors of the bill which subsequently as
enacted as the :?ct of September 7, 1916, is germane:...aceidents do
happen even in occupations not usualiy denominated hazardoue. If tnder
such ci-cumstance an ,ccident does happen, it is certainly because at that
particular tine and under these particular circumstances there was some
hazard." (Congressi 'nal Record (House), July 12, 1916, Vol. 53, Pe
10g92).
Employee compensation is not a largesse of the Government, but is a
fulfillment of a moral obligation, hence its value as an _inducement to
career service is neutralized and the acquisWon of benefits is delayed
by procedural requirements.
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NIS
ArNEY D
Death Payments as Provided by the T.-!ar Agencies Employees Protective Association.
The isar Agencies Employees Protective Association was founded during
World 1:ar IT when unrestricted life insurance was unavailable to many
civilian U. S. Government employees who were to serve overseas. The
service of this Association has continued and offers unusual benefits and
low cost coverage. It is contemrlated that me'lbership in the Association
will no lonser be limited to persons actually preparing to embark, out
will be extended to those who indicate an intent to serve overseas,
Attached herewith as Annex Di is a table describing War Agencies
Employees Protective Association insurance cost and coverage.
The merits of this insurance program cannot be questioned; however,
the employee who chooses to avail himself of the program must undertake
a financial oblig,tion to do so. Therefore, the employee who already
carries insurance which covers him outside the continental limits of the
United States and/or already carries insurance which he desires to retain
without incurring additional obligntions may find the opportunity of
S:ar Agencies Employees Protective Association insurance beyond his reach.
The attraction of the insurance program as a career - inducing benefit
is limited to those who can and will avail themselves of it. A death
srstuety benefit would be available and attractive to all employees.
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-ity Informat4cn
A
X Di
BASIC A70UNT CURRENT DIVIDEND* ADDITInN5 COST
SALARY OF LIFE INSUR).VCE ACCIDEUTAL TOTAL
BASIC -rrOLICY D&iTH BENEFIT COVERAGE MONTH
to 40 incl.
Less than $3,200
5,000
$1,000
t 7,500
'13,5001
C 4.17
$3,200 6: over
10,000
2,000
15,000
27,000
8.33
41-50 incl.
Less than $3,200
3.200 e- over
5,000
:;1,000
4 7;500
$13,500
,; 5.21
10,000
2,000
15,000
27,000
10.42
51-65 incl.
Less than p3,200
.10200 & over
5,000
$1,000
$ 7,500
!13,500
$ 6.25
10,000
, ") COO
,
15,000
27,000
12.50
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ie NNE) E
Dseth Graturity in the Military Services,
The TIlitarie Services heve been authorieed since lOOR (35 Stat. 128)
to pay a death gratuity consisting of an amount equal to six months pay
at the rate received 1-7 the officer, enlisted man, or nurse at the time of
his or her death., the only requirement being that death is caused by
wounds or disease while on active duty. (34 U. S. C. 943, NaY), (10 U.
So O. 9031 AIM'
As can be round stated in Vol. 58 Congressional Record, F. 5693,
this death eretnity benefit is of a long st-nding and is designed to tide
over the emergency caused by the death of the head of a family. This
intone was reaffirmed in an amendment subsequent to the case of Spotswood
v. 1,0 S., 80 Ct, Cl, 836, 1935. The decision in the Spotswood case stated
tOyea A death gratuity became part of the decedents estate and was subject
to (distribution accordingly. The present wording of the U. S. Code reflects
the amendment that the gratuity be paid directly to designated persons for
the purpose of implementing the legislative intent.
The power to award death gratuities Is vested in the Secretaries of the
respective departments and it may be exercised "immediately upon official
notification of death."
Teem is no statement that such a gratuity is subject to set-off of any
indebeedness of the decedent Since it is designed as a eight of the sur-
vivor, it is not likely that such a set-off provision would be present. The
conditions of active duty and official notice of death are readily established
(except in those missing in action cases which are otherwise covered), there-
fore the delays of proving eligibility are avoided.
Tle
U. S. Court of Claims in Lemly v. U. S., 1948, 75 F. Sup. 2480
109 Ct. Cl, 760w stated that provisions for compensation of injuries and
diseeees contracted by military personnel "were enacted for motives of
pubAe policy and should _ot be narrowly construed," This statement is
brord enough to admit the implication that the public interest will be served
by the existence and liberal construction of benefit provesions, in that
career' military service will be fostered. The public interest would also
be erved by fostering the development of a career intelligence service.
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Seellit y Tre;21.o7-eatiola
AMU
Comee a ala P4vetS IRA2glirg
eeeee
Al bane. en insurenee prateram at the empleyeroe expeese differs
tree a 6re/ft/tj. tenant? they have() from the elewpoint-of tla emplcyee!).
the same effect, Conelderation has therefore been given to the extent
et free lasetrazpv pregrame in private Industrie
pager entitled Mess& in Bmpley ,Benefit0.0 coatented teethe.
..ittatfziAN'a 64 We Sile-3a7_24VorcrA:=L-JUI------elletiolOrein ;RIVA0171
AMOW 14, nacho of Associated In striae of Cleveland() repowtod.on
a freweee 104, loading- Cleveland cempanies,1 Ce pele 58 of the 04c:eve
nidonc4 mere it is stated:
%reap life insuranee - uxually between $l030 and $260V
is avalaaWel at eoppeey expense at almost all coepauiem employieg len
er mere eeeplen This is not a recent development. The trend in this
directiee has been noticeable ever sines World War 'flto ama it was
maceIeeeted after the Ford and Bit ehem pens/ n seetlemeets in 194,/'
A feether Indication of the exteet of free Ineurane* an a natioa-
wide eealeesey We foane Aa the Digest of Selected Health() 1neuraacee
Walihree aeglikalireeent Am =ler Coll tiee BeeseenincoevablishodIV
the &meal *leiter Statistics in Augusto 1.90.6 Of the 77 flrae
stitatic3 the base of the survey, 10 provided iesurance at cenpany expensee
Ameag thate ao listed were the American Woolen Co.() the Bigelow-Se ore
Carpet 04,,0 the Natter-Frazee Cop .? and thaFfinneapeiluellentyweal Regulatow
Ceei
Theis) statIstlee reflect (1) the Oace In the empIerseol eled of the
neeeseity fee fimemelal amsistanee to his eurvieere In the eeeat.of him
deatleeaad (2) the recognition on the part of management of the value of
such a bluetit as Increasing efficienoy by inducieg epee security amd
centinmeel aepleyeeat, The experienve f private indenter In thie reeard
Went well lee applied to Gewarneent serelose)
S
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DAJA-9.?
EXestinelimitedeyeath_Gratuitellgeepiellian Etploeeee
Although there is no direet precedent for a death gratuity as
proposed herein, it is believed that 3 U. S. C. 118 (f), whlch im quoted
below ie of significant bearing:
(Public , No, 181 - 76th Congress)
Chapter 286 - let Sesoion))
' (s 1523)
AN ACT
To authorize the payment of burial expentes and
expenses in connection with last illness and death
of native employees who die while terrine in offices
abroad of executive departments of the United States
Government,
Be it enacted by the Senate and Nouse of Representatives
.of the United. States of America in Congress assembled,
that the head of any executive department, which main
tains permanent staffs art employees in foreign countries
is here' authorised to pay vet of any appropriation avaiRe
able to the department concerned for niseellansous or
contingent expenses, burial expenses, and exponents in
connection with last illness and death, not in excess of
$100 in any one case, of the native employees of each
department In those countries with respect to which the
Secretary of, State shall determine it is customary for
epployers to pay such expenses; and the head of any
executive departmente.which maintains permanent staffs of
employees in foreign countries where such custom does not
exist, Is authorised, upon finding that the immediate
family of the deceased is deititute, to make ouch payment%
within the limitations prescribed Above to the family,
heirs-at-law, or persons responsible for the debts of the
deceased, as the officer in charge of the office abroad
in which the deceased mum emplOyed shall determine the
to be proper. .
*APProWed jnlY 150 1939"
This legislation is directly applicable only to indigenoae eeploy)es
of the IL S. Government in foreign lands, however, the latter portion thereef,
beginning after the semt-colon, contains an expression of recognitie fif a
nonecontributory award to civilian employees of the acwernment without the
qualification that injury or death occur in the performance cf &et,.
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ANNEX H
Cost to Agency of Death Gratuity Benefit.
During the past two years, approximately 30 Agency employees died.
The total cost to the Agency over this period would have been $301000.
Considering this sum in the light of the total number of Agency employees,
the cost per employee covered would be very small. The cost per employee
is the counterweight in determining the advantapes to the Agency.
The emphasis in a career service program must be on the selection and
development of Younger personnel. Over the years, the fewer positions in
the higher scale of the service will cause a natural selection out process
to be operative. This process will minimize the cyclical factor of groups
of young, personnel growing old at the same time.
A career service program is based on selectivity and reduced numbers of
personnel. If the sums provided for career benefits are conducive to that end,
those sums may well be counterbalanced by fewer salaries and reduced adminis-
trative costs resulting from a lower turnover percentage.
Since a straight gratuity would involve a minimum of administrative pro-
cedures, the cost of adninistrtion of such a benefit would not be a sienifi-
cant addition to the over-all cost structure.
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sLenET
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ZNE7, I
Geatuity Not a Bar or Set-Off to Other Moneys
The sole requirement for a death gratuity as herein proposed should
be math while in the epencyys employ. The administrative delays imposed
by security constderatione could thereby be avoided and the optimum value
as e career inducement could be derived..
As stated in other portions of this study, existing death provisions
are conditioned mon the presence of certein facto (as regards Civil Service
Retirement or Employee Compensation) or Iron consideration by the employee
agencies Fmployee insurance). They arise out of situetions which are
over and above the mere fact of employment, therefore a rieht to any moneys
which may accrue from such situetions should not be a ber to moneys due from
the naked relationship of employment.
Since the rieht to such a gratuity would be contineent upon employment
at the tile of death and no right would become vested until such hapeening,
the authority of the Director under Sect. 102 (c) of the National Security
eet of 1947 could be exercised without fear of a claim from a survivor or
survIvors of an employee .ho had been termineted.
S C i. T
Security Information
Approved For Release 2003/04/17 : CIA-RDP80-01826R000900120014-9