(UNTITLED)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP81-00314R000600200003-6
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 15
• Document Creation Date: December 14, 2016
• Document Release Date: October 23, 2002
• Sequence Number: 3
• Content Type: REPORT

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From the inception of the Agency in 19,W benefits have been available
to o,pr employees, but these benefits were administered in various components
of the Agency. For example, as a residue from OSS days, claims processed
under the Federal Employees' Compensation Act were handled by the Office of
General Counsel; Employees Relations Branch in the Personnel Office assisted
employees with counseling, illness, accident and death cases and processed
separating employees; while hospitalization and insurance programs were
administered from the Office of Finance.
In 1951 a Personnel Relations Branch was established in each of the two
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Personnel Divisions wit as Chief of the Branch in Personnel
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Division (Overt) and
Chief of the Branch in Personnel
Division (Covert). These branches handled illness, accident, death cases,
exit processing of separating employees and in the case of the covert Branch,
missing in action cases.
Public Law ll0 had provided in Section 5(a) 5(c) for payment of hospital-
ization expenses for employees who incurred an illness or injury while overseas
on permanent assignment. The program, similar to that provided for members of
the Foreign Service of the State Department, was explored by
in Research and Plans Staff of the Office of Personnel.
It was finally activated when payment was recommended and approved by Deputy
Director (Administration) in May 1953 for a claim submitted for
Owho was evacuated from
in November 1952. When this case was
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processed, the procedure for payment, approving authority and scope of expenses
to be covered. were not clear. Some of the money came from Medical Office funds,
and private funds, temporarily provided by the benefits officer assisting the
employee's wife.
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It became apparent that in order to provide an effective means of reaching
and serving Agency employees, there must be a focal point to coordinate the
benefit programs available to all government employees and those provided
because of the particularly sensitive nature of the Agency mission. In
response to this need, the Employee Services Division was formed in 1953 and
included three branches, Insurance and Claims Branch, Counseling Branch and
Services Branch.
1953 - 1955
Insurance and Claims Branch
Counseling Branch
Services Branch
These three branches provided the following benefits and services:
hospitalization and life insurance programs, discussed in the history of the
Insurance Branch; benefits provided by the following statutes - Federal
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Employees' Compensation Act, Central Intelligence Act of 1949 which provided
for the Overseas Hospitalization Program, Missing Persons Act; Casualty Program
covering illness, accident and death cases; Counseling Program for employee
problems on and off the job; advance sick leave; pre-exit and exit interviews
of separating employees, incentive awards, and entrance-on-duty orientation;
services such as recreation, charity drives, blood donor, bulletin boards, and
Welfare Fund.
The first two years were a period of growing pains to develop policy and
procedures for all of the programs, but two required particular attention, the
Overseas Hospitalization Program and the Missing in Action Program. These were
the major responsibility of
, Deputy Chief, Insurance and Claims
Branch ands
The Claims Group which included a representative
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from the Offices of General Counsel, Security and Medical Services was formed
to review each overseas claim in order to lay a firm foundation for this new
program. As a result of the decisions of this group, policies and standards
were developed so that rgulations and handbooks for Headquarters/ 25X1
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total of 3)+ claims were processed under this authority.
The discussions of the missing in action cases which occurred in 1952,
the declarations of death in 1953 which were followed in 1954 by an announcement
that the two staff employees were alive and other MIA cases will
During Fiscal Year 1.953 a
be a separate part of the history.
In August 1954 low-cost group life insurance was provided for most
government employees and the Insurance and Claims Branch was given the
responsibility for administeringthe Federal Employees' Group Life. Insurance.
Because the program became effective with very little warning and because of
25X1 the many foreign field
stations, all the resources of the Branch
had to be devoted to advising employees concerning the coverage and cost of this
insurance and determining whether any one wished to waive the insurance.
1-955 - 1957
In the reorganization that took place in July 1955,1 was 25X1A
named Chief, Casualty Affairs Branch in the Insurance and Casualty Division.
This provided one branch to which employees and their dependents could. turn at
the time of greatest need - illness, injury or death - and obtain help and
guidance in processing benefits both within as well as outside the Agency. The
main functions of the Branch were processing of hospitalization claims under
Public Law 110, claims incurred. in performance of duty and processed under the
Federal Employees' Compensation Act, retirement counseling and processing of
forms under the Civil Service Retirement Act, employee emergencies as described
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duty cases.
While these matters were being finalized with the Bureau of Employees'
Compensation, similar meetings were being held with the Bureau of Retirement
and Insurance of the Civil Service Commission to formulate a secure method of
processing our retirement and death cases for covert employees.
As the result of a plane crash when five employees were killed, all. the
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obvious that in order to have flexibility to handle such situations, more
Branch personnel must be familiar with the settlement of death cases and
emergencies.
As the number of employees and dependents stationed overseas increased,
the hardships caused by serious illnesses of dependents became a major financial
and morale problem. On 21 September 1956, the Acting Director of Central
Intelligence adopted the provisions of the overseas dependent medical care
program of the Department of State. The authority for the Department's program
is contained in Public Law 828, 84th Congress (2nd Session). The program
provides for the payment of medical expenses of a dependent"of a U. S. citizen
employee stationed abroad arising out--of an illness and injury incurred while
located abroad which requires hospitalization. The program covers the cost of
treatment which exceeds $35.00 up to a maximum limitation of 120 days of
treatment. The dependent program like the employee covers cost of travel to
the nearest suitable facility and provides for an extort if 'required.
Originally all overseas claims were first reviewed under the Mutual of
Omaha hospitalization contract, but at the request of the underwriter the clause
in the contract requiring that claims first be considered under the statutory
program was enforced. As a result of this, the claims activity in Casualty
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missing in action cases and administering the Federal Employees'
Group Life Insurance.
Because of the unique position of the Agency as far as security and cover
are concerned, it became increasingly important to continually develop new
procedures for handling our claims with the Bureau of Employees' Compensation.
Conferences were held with Cover, Security, Office of General Counsel and
Medical Office as required, to determine method of referral of employees injured
in performance of duty to the Public Health Dispensary or to cleared private
doctors in covert cases. Key officials at BEC were understanding of the need
to protect classified information and agreed to eliminate need for notarization
of certain documents, requiring only witnessing by an Agency employee. In
particularly sensitive death cases, regular GAO review could be done by the
cleared GAO auditor assigned to the Agency. Permission was granted for the
Branch to retain BEC papers such as CA-1 for record purposes normally filed
in the official personnel folder.
Of particular concern during this period were psychiatric cases which
seemed to be a continuing problem and about which there was a lack of under-
standing. As a result of a meeting with key representatives of BEC and high
level Agency officials, it was agreed that when it was felt that an employee's
mental condition was caused or aggravated by performance of duty, treatment'
could be obtained through the Bureau at Public Health facilities. At this time,
however, BEC although sympathetic did not generally regard mental illness as
attributable to working conditions. Of the 18 psychiatric cases submitted to
the Bureau during this period, three were eventually approved after a lengthy
period of adjudication
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As a result of an opinion of the General Counsel, it was determined that the
Agency may authorize payment of expenses under Public Law 110 for performance of
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Affairs Branch increased considerably.
1-957 - 1963
25X1A In the fall of 1957, became Chief, Casualty Affairs
Branch. Because he had been. the Deputy Branch Chief since 1953 and prior to
that date had been involved in the development of the statutory programs, there
was no period of adjustment that often occurs in change of leadership.
With the continued growth of the Agency and the increased complexity of
cover arrangements, a concerted campaign was started to make as many agency
components as possible aware of the services of the Branch. Briefings were
given throughout the Office of Security, Communications as well as area
25X1A Divisions. Trips were made to
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acquaint students as well as staff with the emergency program and assistance
available to dependents in the event of serious illness or death.
hour
The twenty-four/duty concept for those on temporary duty at
as reaffirmed as a result of the accidental-drowning of
I After thorough investigation, the Bureau of
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Employees' Compensation accepted his widow's claim as being in performance of
duty even though the-death occurred in the early evening while Subject was
fishing.
Arrangements for direct liaison between representatives of the Branch and
ad been initiated for mployees as a 25X1 C
result of the death o ho was killed by
An understanding was reached with
representatives that all ,
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notifications and processing of benefits would be handled by the Agency. This
close working relationship stood the Branch in good stead through many critical
situations and particularly in the case of the Saigon bombing in 1965 to be
discussed latter.
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%we
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Another noteworthy item in 1958 was the publication of the regulatory
issuances and the distribution of the handbooks,
covering
the statutory hospitalization programs previously discussed.
The Branch was given the additional responsibility as the central. control
for employees with unexplained absences. All resources of the Agency were
available but by having one focal point there was more assurance that unexplained
absences would be investigated and proper notifications made.
In 1959 another reorganization within the Office of Personnel transferred
the functions of the Employee Relations Branch of the Personnel Operations
Division to the Benefits and Services Division and included these functions in
the Casualty Affairs Branch which became the Benefits and Counseling Branch.
The following functions were added: (These were almost identical to the functions
performed by the Counseling Branch and Services Branch in 1953 - 1955) The
Pre-Exit and Exit Processing Program for separating staff employees, Employee
Counseling including debt cases and counseling and interviewing for Public
Service Aid Society, advance sick leave, Blood Donor Program, Charity Drives,
Bulletin Boards, Recreation and Welfare Assistance Board, Entrance-on-Duty
Orientation for clerical and professional employees, and notary public service.
Needless to say, there was a period* of adjustment to accommodate the additional.
personnel and provide an orientation program for all Branch personnel.
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When Gary Powers was shot down 1 May 1960, much time of the Branch Chief
was devoted to various aspects of this case which will be reported along with
case and the
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It was apparent that for special projects, particularly those with a
feature
potential high risk fix that more careful casualty planning must be done
when projects were initiated. Casualty planning for other existing projects
was developed. A policy decision was made that a casualty annex would be
prepared for each new project in an effort to avoid some of the confusion and
uncertainties of the past. In addition the Casualty Group with representatives
of the Office of Personnel (BCB Chief), Security, CI Staff and Office of General
Counsel as advisor was established.
As a result of the enactment of Public Law 86-707, Overseas Differentials
and Allowances Act., the Overseas Hospitalization Programs were extended to
25X1 A cover
employees for expenses incurred under the program while on temporary duty. At
about the same time by a decision of the Deputy General Counsel, medical travel
was extended to include travel expenses to the nearest suitable facility whether
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Trust territories and possessions and to reimburse
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or not the medical care was at Government expense.
For more than a year considerable time had been devoted to resolving
the death and disability claims of the
A final decision was made in 1961 that benefits would be
received from the Bureau of Employees' Compensation
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With the move of the Agency to the Headquarters Building in Langley, a
Branch member was given the responsibility of preparing the Relocation
Bulletin issued periodically to advise all employees concerning transportation,
services, eating facilities and general information concerning the move.
For the first time a full time recreation officer was appointed to
develop a sports program and club activities at the new location and a new
employee recreation association was proposed. Because of the continuing
transportation problem in reaching the new Headquarters Building the recreation
officer assisted employees in finding car pools and arranged for the installation
of a Car Pool Locator System. In addition,-the recreation officer arranged
for religious services to be held during the Lenten Season of 1963. This was
the beginning of the program which was established to cover Christmas services.
Branch activity in 1962 and first half of 1963 continued to increase because
of employees retiring on discontinued service annuities as a result of the
separation of excess personnel and the time devoted by Branch personnel to the
study of the proposed CIA retirement program. In addition, amendments to the
Foreign Service Retirement Act created special problems for the processing of
retirement activitie
1963 -
1968
In June 1963,
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was appointed Branch Chief. In November of
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1963, a new handbook on exit processing was published which
established a new procedure for processing separating employees. A revision
of the procedure was made shortly afterwards and plans were made for an Exit
Processing Center to simplify the processing of separating employees.
There was a marked increase in the number of overseas hospitalization
claims as well as a dramatic increase in cost. This-was accounted for by the
increase from $5 to $39 a day in military hospitals during the last six months
of Fiscal Year 1964. Because of the low rate many dependent claims were for
$35 or less and therefore referred to the Insurance Branch for payment. The
cost of the program increased fron~ for Fiscal Year 1963 to
0
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for Fiscal 1964. A decision by the Office of General Counsel extended benefits
of the overseas program to otherwise eligible employees after reporting PCS to
duty. This rectified a situation which caused confusion and financial hardship
for employees who, through no fault of their own returned to duty prior to
determination that they required hospitalization for a condition incurred while
25X1A located abroad. A revision of the
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prepared and put in to coordination.
As a result of the Saigon bombing in March 1965 and the injury to many
Agency employees and one death, the Branch Chief and Branch technicians were
involved not only in the notification of the next of kin but also in almost
daily contact with the families. In addition to the processing of claims
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The retirement activity in the Branch continued to increase as far as
actual retirement, requests for counseling were concerned. The senior
retirement technician was reassigned to devote full time to the CIA Retirement
Staff in May 1965. The Civil Service Retirement function and three employees
were transferred to form the nucleus of the newly formed Retirement Branch
of Benefits and Services Division in November 1965.
For several years prior to the Saigon bombing discussions had been held
with key officials in the Bureau of Employees' Compensation concerning the
maximum of $525 monthly compensation paid under the act. This maximum,
established in 199, worked a hardship on the higher grade employees injured
ILLEGIB
in performance of duty. The Saigon bombing dramatically illustrated the
inequity. Through the efforts of
amendments to the Federal Employees' Compensation Act were enacted in July
1966 and among other liberalized benefits raised the maximum dollar compensation
to the top step of a GS-l5 rather than a fixed dollar amount.
There was a reorganization. in the Office of Personnel in March 1968 at
which time the name of the Branch became Personal Affairs Branch.
In March 1969, the annual Savings Bond Campaign was transferred to the 25X1A
Office of the Fund Drive Coordinator. The documentation on the
cases was finally completed and. transferred to the Bureau of Employees'
Compensation. The Agency was reimbursed for payments already made.
At long last the Welfare Assistance Board was dissolved, the functions
were transferred to the Public Service Aid Society and the assets given to
the Educational Aid Fund. The financial counseling and the work-up of
information for presentation to the PSAS was retained in the Branch.
In January 1971 the Pre-exit function for separating employees was
transferred. to the Staff Personnel Division. At the same time the Branch
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assumed the function of processing the separation of some contract: employees.
As of. January 1971, Personal Affairs Branch had the responsibility for
the following programs:
Statutory Programs
1. Federal Employees' Compensation Act
2. Overseas Hospitalization Program for Employees and
Dependents
3. Federal Employees' Group Life Insurance
Service Programs
Casualty Assistance
Employee Emergencies
Exit Processing
Personal Affairs Counseling
Assistance on Problems of Former
Employees
Red Cross Blood Donor Program
PSAS Support
Bulletin Boards
Car Pool Locator
Income Tax Assistance
Vital Papers Repository
Religious Services
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 ^ . UNCLASSIFIE?Pprove ,% 2003/01/27 :CIA-R6ib1 ?iM+ R?Wd 200003-6^ SECRET
ROUTING AND RECORD SHEET
SUBJECT: (optional)
Persaaal Affairs Branch History Project
FROM:
EXTENSION
NO.
OP Hia o ical Of
ficer
1 A
25X1A
DATE
24 Juse I 9V
TO.. (Officer designation, room number, and
buildin
)
DATE
OFFICER'S
COMMENTS (Number each comment to show from whom
ment
)
h
o
ft
l
g
INITIALS
.
c
m
er eac
umn a
to whom. Draw a line across co
RECEIVED
FORWARDED
C /BM)
B 61 s
conversation.
h
l
one
ep
Per our te
2.
this morning - baying reed the
PAZ History package, I'm convinced
and
fl
ibl
'
y
y
t poss
that it can
3.
2
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there's no point in sending it
1
to in its present
ther
ith
o
form. Compared w
4.
projects (Bletirement i for example)
it gives far too little attention
a of OP
t
ifi
are
can
to a very sign
5.
activities which have produced
creditable results over the years.
6.
Also as we discussed, this
area is far too important to
ote to
t
f
oo
n
be treated as a
7.
overview.
ive it
and
thi
g
s
Please rework
e.
the stature it deserves among
other portions of the OP History.
ble to
ld b
e a
shou
9.
add a great deal of valuable
material through his direct
s
ha
P
p
er
personal experience.
10.
you could have someone elicit
the information by recording an
interview with him.
11.
25X1
12.
13.
14.
15.
L! A
FORM 61 O USE EDITIO S
3-62 ^ SECRET ^ CONFIDENTIAL ^ USE ONLY ^ UNCLASSIFIED
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