LETTER TO HONORABLE ALLEN W. DULLES FROM MAURY

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Document Number (FOIA) /ESDN (CREST): 
CIA-RDP80B01676R000800020031-0
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RIFPUB
Original Classification: 
K
Document Page Count: 
4
Document Creation Date: 
December 14, 2016
Document Release Date: 
May 1, 2003
Sequence Number: 
31
Case Number: 
Publication Date: 
January 1, 1960
Content Type: 
LETTER
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PDF icon CIA-RDP80B01676R000800020031-0.pdf236.97 KB
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Approved For Release 2003/05/23 : CIA-RDP80601676R000800020031-0 EXECUTIVE OFFICE OF THE PRESIDENT BUREAU OF THE BUDGET WASHINGTON 25. D. C. 1466 / Exec, - :7 e 4*, ..311/0C.I I have just learned the details of your plan to institute a system of separation benefits to facilitate the removal of certain surplus personnel currently on the Central Intelligence Agency payroll. The material supporting this proposal indicates the need for en, elective program, to rid the Agency of imbalances within its personnel structure. The problem itself is clear, but a solution which will be equitable and fair to surplus employees as well as reasonable to the Government is less evident. Whereas I would have preferred a more vigorous application of selection-out procedures to these surplus personnel, your proposed program also has merit. We do have certain reservations, however, which / vent to convey in thekope that they may lead to an improved program. If these suggestions can be incorporated in your program, the plan, would then, be acceptable to the Bureau. 1. A iestion of a single, uniform criterion of entitlement.. thing of only one reason to justifk payment of separation ti, it being that Agency service has made it abnormally t for the surplus employee to find gainful entployuent. s condition exists, all surplus employees in my opinion d be tremaadalike 'without regard for their location in the Agency; vben the condition is lacking, separation benefits should not be granted. Once the separatee has found appropriate employ- meat, moreover, the condition obviouely no longer exists. 2. Ponthlx installments of benefit payments. / believe that benefits up to one full year Agency service warrants, should be paid in monthly installments, subject to terminationwhemever the, separated employee (a) finds new employment ecemensurate with hi. previous Agency status or (b) is provided with in opportunity or such employment by 0/A. To continue benefits beyond the period of unemploynant would be in the nature of a gratuity and in my opinion, entirely unwarranted. 3. Reduction of proposed benefits by approximately 50 percent. The purpose of the system is to provide aid while the separated employee is transitioning to another occupation. It is not a reward for past services. The personnel involved will normally-be entitled to unemployment compensation. I feel that the separation benefit rates should bie high enough to prevent hardship but low enough to induce a search for new employment. To achieve the On file OMB rel se *roved For Release 2003/05/23 : CIA-RDP80601676R000800020031-0 instructions a p . giftrirr 7":r I Approved For Release 2003/05/23 :CIA-RDP80601676R000800020031-0 2 latter,the total of monthly separation benefits plus unemployment compensation should be less than the salary the employes would normally command. 4. An expediential rather than permanent program. It seems to me that the immediate problem can best be eorrected on a one*shot basis. If the Agency's aelection-out authority is used effectively I see no reason for a recurrence of this prdhlem and therefore no need for continuing authorisation. If separation benefits are permanently authorized, they might soon replace selectian-out as the normal method of reducing personnel. TO avoid this, even on a one-time basis, I suggest the inclusion of words in the regulation Which state that its provisions do not apply to employees who would normally be selected out for cause. 5. 'Permanent personnel reductions. Ibr the past two years you have bean striving to reduce the total number of CIA employees. Because those reductions have not been as large as we had hoped for, I should think that this program would be an excellent way of achieving desired results. I realise that some of the surplus personnel will perhaps need to be replaced, but would nevertheless propose that the replacements be held to one*third of the total number separated under the program. 6. Absorption of program costs. The exact cost of this program is unknown to me, but I do not believe it viii be of such a magnitude as to preclude absorption. What I an saying in effect is that I would oppose your requesting Alas from the contingency reserve to pay for this program. I hope you viii find the above suggestions helpful. Before closing I should like to raise one final matter for your consideration. Because the proposed separation benefits are in the nature of an adjuatment allowance payable while a man is seeking new employment, it seems hardly proper to pay benefits to employees eligible for retirement, albeit on a reduced annuity basis. TO retire to pay benefits, on the other hand, might emaet an inequity against separatees over 50 as compared to those belov that age. What is needed is a formula which will be fair to affected personnel and yet respect the basic purpose of the program. I hope you will be Ole to provide a remedy to this problems ire would be pleased to discuss it or any of the proposals above if you so desire. Sincerely yours, s/ Maury rable Allan W. Allies %, c or of Central Intelligence Intelligence Agency Washington 25, D. C. Approved For Release 2003/05/23 : CIA-RDP80601676R000800020031-0 PPRMOUPPAINIRSF6R93/4.51/a : CIA-RDP80B036BF9008000 bETOR...--- For information only. Attached are suggested replies by Bureau of the Budget to the questions raised by the Jackson Subcommittee Report No. 1026 which is also attached. Ralph Reid had seat this over as a matter of courtesy although it is still draft at this point. SIGNED JOHN S. WARNER Legislative Counsel 7 April 1960 Approved elease 2003/05/23 : CIA-R14; -6;676R00080 - FORM NO. 101 REPLACES FORM 10-101 I AUG 54 WHICH MAY BE USED. (471 0031-0 20031-0 Appriorstinsoffistimasie04):0 ipp./23AO-RDP801301 6/01100 The attached letter from Maury Stans gives his reaction to our plan to institute a system of separation benefits to facilitate the separation of surplus personnel. I cb not think that any reply is necessary at this juncture. Gordon Stewart, Ed Saunders, Larry Houston and I will continue to work with the Bureau in order to arrive at a mutually acceptable plan. After you have noted the letter I would appreciate It if you would return it to me for action. I L. K. Whfte 12 April 1960 ApprovpdFor Release 2003/05/23 : CIA-RDIA611g1)676R000800 cc: DDCI rT FORM NO. 101 REPLACES FORMTIO,rT0,1 , I AUG 54 WHICH MAY BE USED. (47) 031-0 20031-0