CONTROL OF GRADE ESCALATION

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00357R000700070003-9
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 5
• Document Creation Date: November 17, 2016
• Document Release Date: August 9, 2000
• Sequence Number: 3
• Publication Date: August 13, 1971
• Content Type: MF

,;Approved' For Re,te 2000/08/16.: GIA~RDP82-00351 000 '00070004-9' / ,. ~.
- MEMORANDUM r OR; Deputy Director for Intelligence
'? ` Deputy Director for plans
Deputy Director for Science and Technology
De
i
puty u
recto : fo
General Counsel
Inspector General
Legislative Counsel
Director of National Estimates'
Control of Grade Escalation
2. .Attached are Agency instructions for compliance (Tab
our, full cooperation in this matter is essential.
1. The President has directed a reduction in average grade in
employment under the General Schedule. Instructions are contained
in 0 B Bulletin No. 72..4 attached at Tab A.
cc: ` D/PPB w/Atts
Pers `w/Atts
8/i?,'`,lA?-ROP82-00357R000700070003-9
Richard Helms
Dixrector? of Central Intelligence
 ILLEGIB
For Reel ~.~4QP82-00357160070007000
iM PRESIDENT
ILLEGIB
o 'rIC or MANAGI- M NT AND DUD r
23UT,L,ETXN NO- 72-4
TO THE HEADS OF , +EC6TXVE DEPARTMENTS AND EST LXSHHMNTS
SMUBCT a Control of grade escalation i n the General
Schedule'
Purpose. T pis Bulletin establishes a
lan
p
or controlling
Schedule. gw;add~escala t. 0 a of emp1o.yment under the General
cher ul e. These istruc tions supplement those in O' CircuJ ar
No. 2\-G', ~tevis d,~'ldfiovi u on management Systems and Employ..
ment Ceilings," June 28, 1965.
2. Background. Over the en"s th
er of employees declined
by nearly 12, OO0, but the nLunber in grades GS-11, through
CS-r1.5 increased b IA +C00
'
r
P i~.aa -wc~e. This upward trend has persisted
in recent years so that the average grade,level for classi-
fied employees has risen from 7.4 in 1968 to 7.9 in 1970.
Between 1969 and 1970 the tot-11 -1,
eXe "a,
izac.re~ase in e average grade of employeesbunder.?othenGenera ,
Schedule Goverx
t
trends. V -y c~rceeded normal
There is con-; i de able evidence that many sec? ra1 agency es
have fa Lled to exercise adequate controls ~?z~ ,over' 7.`he?r s .:a gag
for fjhor lever 'Sltio~f 0. .A many
pr:? agencies the,
,
rela?r~i,uary estimates indicate
th7 the .197;,. data will also show a r igt~' fkicant .increase
over 1970 7n. the average grade.
At 1971 salary rates each one-tenth increase in the average
grade of the General Schedule adds $160 million to the basic
payroll. it also results in increased costs of Federal
Employees Group Life Insurance, as well as additional past
service liability in the Ci v,i.l Service Retirement ' System,
During the past.three decades there has been a gradual in-
crease in the proportion of professional, technical and
managerial employees in the Nation's labor force. The same
factors that produced this trend in the total labor force
also have affected the grade distribution of the Federal
workforce. It can be expected that technological change,
for example, will result in some grade escalation in the
Government; however, changes in the grade distribution of
the Gene _"al Schedule since 1962 have reat'
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ibex of eanployco.; in grades GS-7 and GS-9 has declined
view Of the ? ~p1.~ supply of now college graduates with
.bachelor and masters. degrees and the at that Federal
salary-rates axe now competitive with the private sector,
increases in the population of these. grades would have been
expected.
3. Coverage. This Bulletin applies to all executive
-
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,.i.a ",,..
G
to
^.1 Cchet~ ,7
`~~?c ` ~~~-.ev...,
~-1~
g
g
es p
e
er
e
er
1;,.' or whose salary rates are set administratively in accord
with the General, Schedule.
' Government-wido,, the average grade of_- the Conera7 -Schedule
4. Obj cc ve The o}.~ j ective of this plaid is to- reduce,
by at least ~-~- '
!'` / 1/10 by the and of FY 1972
0.4 or more between June.30, 1968, and June 30, 1971,'the
agency plan should provide or a reduction from`its June 30,
1-971 average of 0.15 in FY 1972 and an additional 0.15 in
FY 1973.
a plan to effect changes in the grade distribution of his
employees as follows:
a. 1f.the average grade of the agency has increased by
2/10 by the and of FY 1973.
5? Reduction plans. In order to achieve the overall'
oh j eI51LI've s 'ate ove, ? each agency head is asked to prepare
or decreased between June 30, 1968, tnd-June 30, 1971, the
agency plan should provide for a sta Zing pattern which' will
plan should provide for a reduction from its June 30,.1971
average of 0.1 in FY 1972 and an additional 0.1 in FY 1973.
c. If the average grade of: the agency has remained level
b. If the average grade of the agency has increased less
than 0.4 between June 30, 1968, and June 30, 1.971, the agency
the clc~voiopmaaat; o .he ht c;et f.or ?".;, ... ?13.? , !,
.not exceed its June 30, 1972 average grade during the next
two fiscal years.
ngency_p snsx for achieving the required reduction in average
iraae. will. be submitted to the Director of the Office of
l5 1911.,... a
Management and Budget on or before September
atuac~i~rer s ind 1 a a ~ w 11
the format shown in D. be
reviewed and either approved or revised in.connect .on with
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6. Guidance. It is in tended that e~ ch agency shall have
wide f lexibility in developing a plan which will achieve the
stated objective. Respoiisibility for development and imple-
mentation of the plan should be assigned to an appropriate
officer who will also serve as liaison with the Office of
Management and,k3udget.
I. Since the plan requires a specified reduction in avera
d
ge gra
e
by the end of the current fiscal year t; _ _ _rune 3n 1 nl-7'}, .
.? .:,V116G 4~ ~.c a.c;L:~~ns on tile. xz..l.L Lng of vacancies, especially
the
c
s
occurring ..A grades GS-11 through GS-15.
Specific measures which agencies may wi ih t-n onr,c7,7r,r
. % eWA4(J.4.C> I..11 L. W L. L.II ILJIQ provIs:Lons 0,44 chapter 51
of title 5 of
rv n P,- ~ .- ' -- - ,
a. Careful review of all programs to determine which
b. Review. of the organizational structure of c e'l-,
/I
C a u4A.:. 4"i
to determine if existing, s taf fing patterns are still
priate in view of program changes.
p
.
attention to the extent of "layering" and the need for
.deputies or assistants.
d. Evaluation 04, each position that becomes vacant V
o
determine whether it. could be eliminated or 'estructured at
?a lower grade.
C. Review of supervisory levels with
art-a
cuai
e. ? 1
Planning of the staffing of new programs-in amanner
that will tend to lower the average grade.
f. Exploration of feasibility of using techni
i
'
c
ans
W410 ra
professional staff is riot being utilized at 'their full lsk.ll
level.
~.e V~;:?., to
those necessary ao fill, vacancies in positions lleyman of greater
g. Consideration of the opportunity of eliminating.
certain positions through increases in productivity.
h. Limiting of promotions ah wi the
i. Reorganization of work
th
y.
sa
at . t can
lot Do accomplished
1C~.. i h1 ~F-]7"
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Strengthen.i,xig of position management system as
,,' prescribed by OMl3. Circul ar A-64.
7. Repazts. Agenici.es wall prepare semiR-annual report
showing the number of full-time employees in each grade of
the General Schedule and the grade average (computed to four
,decimal places) for the agency as of June 30 and December 31
of each year. Grade averages will be computed by (a) mulLi~
in the grade, (b) totaling the results so obtained, and (c)
dividing the total by the number of positions involved.'
::. Wage Distribution of Federal Civilian Employees.
Civil. Service Commission in the Annual Report of Salary and
Data reported ; hould be identical vith that reported to
The first report for, June 30, 1971, will be submitted to the
Director, Office of Management and Budget by Auguste _23, 7.971..
Subsequent reports will be submitted within 45 calendar day:
after the date of reference.
8. Budget Guidance. Later instructions will provide for the
ident'iflcata.on and use of Savings resulting from the x:educ-
:' tions in grade averages pursuant to this Bulletin in the
absorption of pay raise coots in V Y 1972.
.9. Effective date. These instructions are effective upon
isst~ nee a : t s 3u1l.etin.
;.~aanage ent d Budget, phone [phone] (Code 103 Ext. 4894)
10. Inquiries. Inquiries should be addressed to Office Of
Approve
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