CIVIL SERVICE REFORM ACT OF 1978

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP81M00980R000700080053-9
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 5
• Document Creation Date: December 19, 2016
• Document Release Date: August 2, 2006
• Sequence Number: 53
• Publication Date: November 2, 1978
• Content Type: MF

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MEMORANDUM FOR: Director of Central Intelligence
FROM: Legislative Counsel
SUBJECT: Civil Service Reform Act of 1978
1. Action Requested: None; for your information only.
2. Background: The Congress nas now passed overwhelmingly
and forwarded to President Carter for his signature the Civil Service
Reform Act of 1978. The following is a precis of the Act's various
provisions which is intended only to familiarize you with the scope
and nature of this important piece of legislation. My staff, in
coordination with the Office of General Counsel and the Office of
Personnel, will later forward to you and interested senior Agency
officials a detailed analysis of those provisions contained in this
legislation which will or may affect the Agency.
3. Discussion: The Civil Service Reform Act of 1978 (hereinafter
referred to as the Act) is a comprehensive piece of legislation designed
to make Presidential control over the several Executive Branch agencies
a more manageable proposition than it h.as'been. The Act also strives
td make those holding management positions within the Civil Service
more responsive to Administration programs and goals; and it establishes
certain protections for Federal employees.
4. The Act is divided into nine separate titles which will, once
they become law, serve to amend various sections of Title 5 of the
United States Code. The brief analysis which follows, therefore, is
broken down by title.
MORI/CDF
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-- Title I: Title I of the Act expresses the
intent and desire of Congress that all Executive
agencies of the Federal Government subscribe to
several delineated "Merit Principles" in areas
such as hiring, firing, retention and promotion of
employees. These principles, although desired
goals, are not mandatory and therefore have no
real or apparent affect on this Agency.
Title I also, and more importantly, mandates
that certain actions taken by Agency heads will be
deemed to be "Prohibited Personnel Practices."
CIA, DIA. and NSA, as well as other
Executive agencies or units thereof whose principal
function is the conduct of foreign intelligence or
counterintelligence activities, are exempted from
the provisions of this Title.
-- Title II: Title II of the Act establishes the
authorities and responsibilities of the Office of
Personnel Management (OPM), a Special Counsel
and a Merit System Protection Board (MSPB), which
are the successor agencies of the Civil Service
Commission created pursuant to Reorganization Plan
#2. Due to the CIA exemption described above, and
others to be discussed below, the OPM does not
reach and therefore has no affect upon the CIA. The
Special Counsel and the MSPB are extraordinarily
limited as to what actions they may take which
might affect the CIA.
For example, the broad power of the Special
Counsel to investigate employee allegations of
"Prohibited Personnel Practices" are in toto
inapplicable to CIA by virtue of the aforementioned
CIA exemption from those actions designated as
"Prohibited Personnel Practices."
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In cases involving employee complaints
regarding agency violations of law, mismanagement,
waste of funds, abuse of authority, and so forth --
i. e., "whistle-blowers" -- strict guidelines are
included in the text of the Act which prohibit
disclosures [by the Special Counsel] prohibited by
law or Executive order. This, in effect, underlines
your responsibility to protect both classified and
sources and methods information.
The Special Counsel may, however, under a
similar provision receive employee complaints
regarding the above stated matters from employees
of this Agency. The Congress included further
provision that, as to the receipt by the Special
Counsel of protected information, he may require
the relevant agency head to conduct an investigation
into the allegations. However, the Congress caveats
this by clearly stating that this does not authorize
the disclosure [by the Agency] of the several classes
and types of protected information. The Congress
added an additional provision to the Act which directs
the Special Counsel, when and if he receives informa-
tion involving foreign intelligence or counterintelligence
matters, to direct this information to the Senate Select
Committee on Intelligence and the House Permanent
Select Committee on Intelligence. In sum, therefore,
his power vis-a-vis CIA and related agencies appears
to be limited in such cases to his ability to receive
the complaint, insure that the SSCI and HPSCI are
aware of the complaint's existence and that they
receive all of the relevant material involved.
The Special Counsel may also investigate any
alleged violations of subchapter III of chapter 73 of
Title 5, U. S. C. (Hatch Act), as well as allegations
regarding the arbitrary or capricious withholding
of information requested under the FOIA. As to the
latter power, the Congress has specifically excluded
therefrom our various types of protected information.
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Title III: Staffing. No affect on CIA.
Title IV: Title IV creates the new Senior
Executive Service (SES). The SES is the management
corps which will, rather than receiving promotions
based largely on longevity, now be governed by how
well they perform their managerial functions. High
pay and bonuses will be available to those who perform
above and beyond the call of duty. Those who perform
in an unsatisfactory manner will, on the other hand, be
liable for their poor performance and may, under the
terms of the Act, be dismissed in a far simpler fashion
than is the case at present.
The CIA, NSA and certain other agencies are
totally exempt from the provisions of the SES. F-
-- Title V: Title V details the newly created
Merit Pay system for managers from GS-13 through
GS-15. CIA, being exempt from the General Schedule
established in Title 5 U. S. C., is thereby exempt
from.the Merit Pay scheme.
-- Title VI: Title VI grants the Office of
Personnel Management the prerogative to conduct
various types of Research and Demonstration
Projects from time to time. CIA, DIA, NSA and
other agencies or ubits thereof whose principal
function is the conduct of foreign intelligence or
counterintelligence activities are totally exempt
from the several provisions of this title.
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-- Title VII: This title creates a Federal
Labor Relations Authority and new grievance
procedures relative to labor-management
relations. GAO, FBI, CIA, NSA, and other
intelligence units are specifically exempted from
this title's provisions.
--- Title VIII: Title VIII deals with grade
and pay retention for those in positions that are
reclassified by various provisions of the Act.
CIA is, by being exempt from the General Schedule,
also exempt from this title.
--- Title IX: Title IX includes several mis-
cellaneous "Christmas Tree" provisions not easily
insertable elsewhere in the Act. None of these
several provisions affect this Agency in an unaccept-
able manner.
5. As stated earlier, this paper is not intended to be a definitive
analysis of the Act, but rather is the precursor of a more detailed
memorandum which will, after careful legal analysis by my staff
attorneys who worked on the bill over the last year and those of the
Office of General Counsel, be forwarded to all concerned Agency
officials.
SCGNED
Frederick P. Hitz
cc: DDCI
OGC
Op
DDA.
IG
Distribution:
Original - Addressee
1 - OLC Subj
1 - OLC Chrono
OLC/i77.b :baa (13 Oct 78)
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