LETTER TO HONORABLE ALLEN W. DULLES FROM MAURY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80B01676R000800020031-0
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 14, 2016
• Document Release Date: May 1, 2003
• Sequence Number: 31
• Publication Date: January 1, 1960
• Content Type: LETTER

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
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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.
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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
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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
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