LETTER TO MICHAEL J. O'NEIL (SANITIZED)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86B00338R000400540008-3
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 11
• Document Creation Date: December 21, 2016
• Document Release Date: October 23, 2008
• Sequence Number: 8
• Publication Date: October 2, 1984
• Content Type: LETTER

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STAT
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40 L=uai mcengnce Agency ?
OLL 84-3727
2 October 1984
Mr. Michael J. O'Neil
Chief Counsel
Permanent Select Committee on Intelligence
House of Representatives
Washington, D.C. 20515
I am writing to provide you with copies of the statutes and
regulations I mentioned in our recent telephone conversation
concerning danger pay.
The Agency's decision to pay retroactive danger pay
followed similar action by the Department of State (DOS). The
authority for both DOS and the Agency flows from 5 U.S.C.
? 5928. (Relevant portions of Title 5 are enclosed.) Under
5 U.S.C. ? 5922(c) the President is authorized to prescribe
regulations to pay this allowance. The President has delegated
this authority to the Secretary of State for all executive
agencies by E.O. 10903 (enclosed). As a result of this
delegation the Secretary of State promulgates the 'Standardized
Regulations' Chapter 650 of which addresses danger pay (a' copy
of Chapter 650 is enclosed).
As I stated in our telephone conversation there probably
was no need to notify the Committee of the action to pay danger
pay retroactively. However because these payments were
retroactive, and out of an excess of caution the Office of
General Counsel decided that these payments should be premised
not only on S 5928 but also on S 4(b)(1) of the CIA Act. As a
result we decided to notify you of these payments.
If I can be of further assistance on this matter please do
not hesitate to call.
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Sincerely,
0 rice o Legislative Liaison
STAT
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a 49
Subject: Letter to Michael J. O'Neil
re: Danger Pay
Distribution:
Original - Addressee
1 - F- -1 (OGC)
1 - D/OLL
1 - DD/OLL
1 - OLL Chrono
1 - LEG Subject(Personnel General)
1 Signer
OLL:LEG (2 October 1984)
STAT
STATE
STAT
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~~~~ (ta?0'~I>l'1.T1YIl1i' rIR~A S1IZM BcN
t cruitment and retention incentive for the filling of ptxlition8 at that past An
additional differential for any employee under this oubsertion-
(1) Tnay be paid for tech assignment to a post determined to have such
conditions;
(8) may be paid periodically or in a lump sum; and
(8) may not oatoeed 15 pamnt of the Pate of baair pay of that employee for
-the pm'iad Delved under that assignment.
(As amended Pub.L 16-45 .,TWe 11, ? 2809, Oct. 17, 1980, 94 Stet 2165.)
9S L Subeec. (a). Pub.L. 23vtor Pr wvt All actions made. rued.
4'-465. () 2309(1), (2), d'esianoted earning provi- ctttdettake, entered into,'or when under the au-
c ns a sec. (a), cod is o at:. (a) as co thorny d say Lhtr rrzgemled. modified or affected
(aignated, t~'sad Trader this sub action-' Fmced- by the Fenian Service Act of 1900. Pub.L.
bt3 " tasoy cot eaceed". 96-463. Oct. 17. 19M 94 Sub=. (b). Ptsb.L. 96-465, 0 2309(3). added in full force MW effect until l mt 20e1, to continue
or
w~. (b). : modified, revoked, or
IFFoetlve Date of DL O A~xes~?at. Amend- sulked by opproppime authority, oft section
4172 of.Title 22. Foreign Relations and Inter?
event by Pub.L. 9'b-468 effective Feb. 15, 1981;
Doane.
?aoept as arhtraist provided, we eeetiort 2403 of
Pub.L. 96-465, cat out as a mate under section 8.eglalatlve History. For legislmive history and
9901 of Title 22. Foreign Relations and Inter- purpose of Pub.L. 96-465, we 1980 U.S. Code
COME. Cong. and Adm. News. p. 4419.
d 5927. Advances of pay
Up to three months' pay may be paid in advance to an employee upon the
assignment of the employee to a post in a foreign area.
(Added Pub.L. 96-465, Title 11, 6 2310(a). Oct. 17, 1980, 94 Stat. 2166.1
Effective Date. Section effective Feb. 15, 1981. Library References
except as otherwise provided, see section 2403 of
Pub.L. 96-465, set out ac a note under section United States 4o34)(1).
3901 of Title 22. Foreign Relations and Inter- C.I.S. United States ?? 17. 44.
course.
8Alalative History. For legislative history and
purpose of Pub.L. 96-465, we 1980 U.S. Code
Cong. and Adm. News, p. 4419. ? K ..
9 5928. Danger pay allowance
An employee serving in a foreign area may be granted a danger pay allowance on
the basis of civil insurrection, civil war, terrorism, or wartime conditions which
threaten physical harm or imminent danger to the health or well-being of the
employee. A danger pay allowance may oot exceed 26 percent of the basic pay of
the employee, except that if an employee is granted an additional differential under
section 5925(b) of this title with respect to an assignment, the sum of that additional
differential and any danger pay allowance granted to the employee With respect to
that assignment may not exceed 25 percent of the basic pay of the employee. The
presence of nonessential personnel or dependents shall not preclude payment of an
allowance under this section. In each instance where an allowance under this
section is initiated or terminated, the Secretary of State shall inform the Speaker of
the House of Representatives and the Committee on Foreign Relations of the Senate
of the action taken and the circumstances justifying it.
(Added Pub.L. 96-465. Title 11. ? 2311(a), Oct. 17. 1980, 94 Stat. 2166, and amended Pub .L.
95-164. Title 1, ? 131. Nov. 22. 1983, 97 Stet. 1026.)
1983 Amendment. Pub.L. 98-164 added provi. Effective Date. Section effective Feh. 15. 1981.
sion that the presence of nonessential personnel or except as otherwise provided. we section 2403 of
dependents shall not preclude payment of an al- Pub.L. 96-465, set out as a note under section
lowance under this section. and that in each in-
stance where an allowance under this section is
initiated or terminated, the Secretary of State shall course.
inform the Speaker of the House of Representa- Legislative History. Lives and the Committee on Foreign Relations of purpose of Pub.L. 996-465, legislative 1980 v history and
the Senate of the action taken and the circum- Co Adm. Ns. p. 4419. we U.S. so. Code
stances justifying it. sts. and d Addm. News. p. 41 See, also. Pub.L.
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]Pan a
opect to the mattero affected by ehio or. modified, or Povoted puronamt to appro.
der, and in affect at the time of the loon- priole authority.
one of this order, Including any regula-
Uonx preocribed or approved by the Dec. 102. This order, and the reaulo.
President or his delegate with respect to tions prescribed or approved under the
ouch matters, oball, except an they are authority thereof, ohall be publiobed an
Inconsistent with the provlolons of this the P'15DRRAL R15QIsT1zR.
order, remain In effect until amended, LYNDON R. JOHHNOON
M baapy MG20 OMOOD
-- -`?'. C.J.B. United States 66 17, dd.
5962. (Melme PP? 10=
(a) Notwithstanding section 5536 of this title and except as nth.
erwise provided by this subchapter, the allowances and differentials
authorized by this subchapter may be granted to an employee offi-
cially stationed in a foreign area-
(1) who is a citizen of the United States; and
(2) whose rate of basic pay is fixed by statute or, without
taking into consideration the allowances and differentials pro-
vided by this subchapter, is fixed by administrative action pur-
suant to law or is fixed administratively in conformity with
rates paid by the Government for work of a comparable level of
difficulty and responsibility in the continental United States.
To the extent authorized by -A provision of statute other than this
subchapter, the allowances and differentials provided by this sub-
chapter may be paid to an employee officially stationed in a foreign
area who is not a citizen of the United States.
(b) Allowances granted under this subchapter may be paid in ad-
vance, or advance of funds may be made therefor, through the prop-
er disbursing official in such sums as are considered advisable in
consideration of the need and the period of time during which ex-
penditures must be made in advance by the employee. An advance
of funds not subsequently covered by allowances accrued to the em-
ployee under this subchapter is recoverable by the Government by-
(1) setoff against accrued pay, compensation, amount of re-
tirement credit, or other amount due the employee from the
Government; and
(2) such other method as is provided by law for the recovery
of amounts owing~to the Government.
The head of the agency concerned, under regulations of the Presi-
dent, may waive in whole or in part a right of 'recovery under this
subsection, if it is shown that the recovery would be against equity
and good conscience or against the public interest.
(c) The allowances and differentials authorized by this subchap-
ter shall be paid under regulations prescribed by the President gov-
erning-
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 Part a
ffled, or revoked pursuant to appro.
le authority.
v ss2. This order, and the regula.
Prescribed or approved under the
urity thereof, shall be published in
FEDERAL REGISTER.
LYNDON B. JOHNSON
eaeea
8. United States 11 17, 46.
this title and except as oth-
allowances and differentials
granted to an employee offi-
States ; and
fixed by statute or, without
ances and differentials pro-
y administrative action pur-
ratively in conformity with
'ork of a comparable level of
continental United States.
I of statute other than this
itials provided by this sub-
:ially stationed in a foreign
tes.
,)chapter may be paid in ad-
therefor, through the prop-
ire considered advisable in
1 of time during which ex-
the employee. An advance
*,wances accrued to the em-
le by the Government by-
:npensation, amount of re-
le the employee from the
ed by law for the recovery
regulations of the Presi-
:ht of recovery under this
y would be against equity
:terest.
thorized by this subchap-
bed by the President gov-
Ch. 69 ALLOWANCES 5 ? 5922
(1) payments of the allowances and differentials and the re-
spective rates at which the payments are made;
(2) the foreign areas, the groups of positions, and the catego-
ries of employees to which the rates apply; and
(8) other related matters.
Pub.L. 89-664, Sept. 6, 1966, 80 Stat. 610.
BLtorieal and Revision Notes
Derivation:
United States Cade
-
ta,m1._w a._._.-- -- - --
Sept. 6, 1980, Pub.L. 88-707.
1 20],
74
(b)
b U.S.C. 3034
Stat. 793.
Sept. 6, 1960, Pub.L. 88-707,
1202,
74
(c)
5 U.S.C. 31135
Stat. 793.
Sept. 6, 1960, Pub.L. 86-707,
f 203
74
Stat. 793.
,
In subsection (a), the word "only" is
omitted as surplusage.
In subsection (b), the words "disburs-
Ing offlciai': are substituted for "disburs-
tng officer" because of the definition of
"officer" in section 2104 which ex-
cludes a member of a uniformed service.
Standard changes are made to conform
with the definitions applicable and the
style of this title as outlined in the pref-
ace to the report.
Delegation of Functions. Secretary of
Stale empowered to prescribe regulations.
nee section 1(b) of Ex.Ord.No.10903, Jan,
]1, 1961, 26 F.R. 217, set out as a note
under section 5921 of this title.
Library References
C.J.B. United States if 17, 46.
Notes of Decisions
Administrative orders 1
Discretion of Administrator of Veterans.
Affairs 2
Naturalized citizens 8
1. Administrative orders
Order of the Administrator of Veterans'
Affairs, effective Nov. 8, 1946, establish.
ing a special foreign living allowance.
and seeking to bar natives of the Philip.
pine Islands was discriminatory as
against the plaintiff, who though a
native of the Philippines, was a nat-
uralized citizen of the United States,
residing in the United States, who
had left his permanent residence with
every intention of returning, in or.
der to accept employment abroad with Its
attendant inconvenience and additional
expense. Vallesteros Y. U. s., 1954, 125
Ct.Cl. 218.
_. Discretion of Administrator of Veter-
ans' Affair,
The Administrator of Veterans' Affairs
has the discretion to approve allowances
but his discretion must be exercised Im.
partially and must not be arbitrary or
capricious. Vallesteros v. L:. S., 1954, 125
Ct.Cl. 216.
8. Naturalized citizens
Where plaintiff, a native of the Philip-
pine Islands, who had served in the
United States Army in World War II,
and while so serving became a natural-
ized citizen, was afterwards employed by
the General Accounting Office in Wash-
ington and pursuant to his request and
effective Mar. 13, 1946, was appointed as
a war service indefinite employee by
transfer to a position in the Veterans'
Administration Regional Office in Manila,
he was entitled to a 25 percent salary
differential on his base pay and where
on July 14, 1946, the differential payment
was discontinued and he filed with the
Comptroller General a claim for the dif-
ferential from July 14. 1946 to Nov. 2,
1946, differential was granted. Vallester-
08 v. U. 8., 1954, 125 Ct.CI. 218.
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'(20VIERNA91EM ORG J IIZAI`rIIGN (i2
i xi2CU9'1viE ORDER NO. ICM
don. 11, 1851, 9B 172- 917, o ontanded by lEt.O d. No. 11228. June Rd, 1855. 80 FA.
7789; MR.". D30.21230, June 28, 1835, bD F.R. 0447; )Eu.Ord. No. 113=0, Nov.
8, 1967,32 P.R. 15627; IEx.Ord. No. 12107, Dec. 28, 1978, 44 P.R. 1055; Ex.Ord.
No. 12292, Feb. 22, 1981, 46 F.R. 18357
My virtae of tbt arthmity voted in at by
cactian 201 of title 3 of the United States Cade
[section 301 of Title 3. The President), and vari-
oas provisions of he cited in the body of this
order. and as President of the United States, it is
hereby ordered as fcibows:
U. 3 t ?Szuetary of State is hereby.
designated and empowered so perform the follow-
ing-described functions aithaat the approval. rati-
Section, or other echoes of the President: -
(a) The authority vested in the President by
section 4921(3) of Title 5, United States Code
[par. (3) of this eeetion). to prescribe regulations
defining the term `employee".
(b) The authority vested in the President by
subchapter III of Chapter 59 of title 5 of the
United States Cade [this subchapter). to prescribe
regulations. including the regulations referred to
in sections 5922(b), 5922(c). and 3924(4) (B) of
that title [sections 5922(b). 5922(c), and 5924(4)
(B) of this title] (governing, respectively. (1) cer-
tain waivers of recovery. (2) the payment of nllow-
ances and differentials authorized by said sub-
chapter and certain other matters, and (3) travel
expenses for dependents of certain employees).
(c) The authority vested in des President by,
section 3913 of title S of the United les C WC
[caetian 4913 of this thle. (1) to prescribe r guts.
trans governing the allotment to pasts in foreign
countries, for the purpose anted in that section, of
funds available to the departments for cdministro-
tive expenses, and (2) to designate cenior officials
of this Government in foreign countries.
(o) The authority vested in the President by
other provisions of low (including section 235(2)
of Title 38 of the United States Code [now section
235(2) of Title 33, Veterans' benefits]) to pre-
scribe regulations governing representation allow-
ances similar to those authorized by section 905 of
the Foreign Service Act of 1990 (22 U.S.C. 4085)
[section 4085 of Title 22. Foreign Relations and
Intercourse].
te) The authority vested in the President by
section 5912 of title 5 of the -United States Code
(section 5912 of this title] to approve regulations
prescribed by heads of agencies (under which
employees who ore citizens of the United States
permanently stationed in foreign countries may be
furnished. without cost to them, living quarters,
including heat, fuel, and light. in government.
owned or rented building%).
d 5923. Quarters allowances
When Government owned or rented quarters are not provided without charge for
an employee in a foreign area, one or more of the following quarters allowances may
be granted when applicable:
[See main volume for text of (1)]
(2) A living quarters allowance for rent, heat, light, fuel, gas, electricity, and
water, without regard to section 3324(a) and (b) of title 31.
[See main volume for tent of (8)]
(As amended Pub.L 97-258. ? 3(a) (15), Sept. 13, 1982, 96 Stat. 1063.)
1982 Ameedineat. Par. (2). Pub.L. 97-258. Legislative History. For legislative history and
4 3(a)(15). substituted "3324(a) and (b)" for purpose of Pub.L. 97-258. we 1992 U.S. Code
"529". Cong. and Adm. News. p. 1895.
? 5924. Cost-of-living allowances
The following cost-of-living allowances may be granted, when applicable, to an
employee in a foreign area:
(See main volume for text of (])and (?)J
(3) A separate maintenance allowance to assist an employee who is compelled
or authorized, because of dangerous, notably unhealthful, or excessively adverse
diving conditions at the employee's post of assignment in a foreign area, or for
the convenience of the Government, or who requests such an allowance because
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a. 'Danner Pay Allowance" means the additional compensation of up to 25 percent over basic
compensation granted to employees (Sections 031 and 0401) for service at designated danger
pay posts, pursuant to Section 5928, Title 5, United States Code (Section 2311, foreign
Service Act of 1980) and the provisions of this chapter.
1. a place listed individually in Section 920 which has been so designated by the
Secretary of State;
2. a place which is not listed individually in Section 920 but which is located in.a
country or area which has been so designated by the Secretary of State.
c. 'Detail" means detail as defined in Section 040p for a minimum of 24 consecutive hours,
commencing at time of arrival, at a place designated a danger pay post, other than the
employee's post (Section 040h), including all periods of leave while present at such place
of detail but excluding any days of absence away from the designated post or country/area.
Employees transiting a post who are inadvertently detained thereat for more than one day
shall be considered on detail.
d. "W" means each midnight, including the midnight of the 24-hour minimum period required by
Section 651c, occurring while the employee is on detail at a designated danger pay post or
country/area.
a. The danger pay allowance is designed to provide additional compensation above basic
compensation to all U.S. Government civilian employees, including Chiefs of Mission, for
service at places in foreign areas where there exist conditions of civil insurrection,
civil war, terrorism or wartime conditions which threaten physical harm or imminent danger
to the health or well-being of an employee. These conditions do not include acts
characterized chiefly as economic crime.
b. The danger pay allowance may be granted separately from any grant of post differential in
Chapter 500 and may be granted at foreign posts or country/areas which have no post
differential.
c. The danger pay allowance, if prescribed, is in lieu of any special incentive differential
authorized a post under the provisions of Chapter 570, which may have been in effect at the
post at the time of designation as a danger pay post to the extent that the combined
payments may not exceed 25 percent of basic compensation.
d. The danger pay allowance is in lieu of that part of the hardship post differential rate
(Chapter 500) at a post which is attributable to political violence. Consequently, the
rate of post differential may be reduced while danger pay allowance is in effect to avoid
dual crediting for political violence. However, combined danger pay and post differential
for each employee will be at least five percent of basic compensation above the previous
combined post differential and special incentive differential, if any, in effect at the
post.
e. Unless otherwise specified, the amount of the danger pay allowance shall be at the maximum
rate of 25 percent of basic compensation.
STANDARDIZED REGULATIONS
(Government Civilians, Foreign Areas)
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A danger pay allowance is established by the Secretary of State when, and only when,
civil insurrection, civil war, terrorism or wartime conditions threaten physical harm
or imminent danger to the health or well being of a majority of employees officially
stationed or detailed at a post or country/area in a foreign area. To determine
whether the situation meets the danger pay criteria, a post usually must submit the
portion of the post differential questionnaire which addresses political violence
along with pertinent supporting information to the Department of State (Allowances
Staff) for review. The Director of the Allowances Staff will chair a working group
which will make a recommendation to the Assistant Secretary of State for
Administration concerning a danger pay designation.
In general, the conditions described under Sections 652a and 653.1 must be such that
there must exist a continuing threat of physical harm or imminent danger to health %r
well being of employees at the post.
Conditions at danger pay allowance posts are reviewed periodically at appropriate
intervals by the working group to ensure that the danger pay allowance continues only
during the existence of conditions justifying such payment. As a result of periodic
reviews the danger pay allowance may be modified or removed at any time.
Danger pay allowance commences on the date of designation by the Secretary of State
for employees present at the post on%assignment or detail, and on the date of arrival
at post for subsequently assigned or detailed employees or for employees returning to
post after temporary absence.
The danger pay allowance terminates as of the close of business on the day the
designation is removed by the Secretary of State, or the day the employee departs the
post for any reason for a post or country/area not designated for the danger pay
allowances.
Employees on detail at a danger pay post may be granted the danger pay allowance at the
prescribed rate for all days of detail at such post except for days of absence from the post in
a post or area not designated for the danger pay allowance.
The danger pay allowance for full-time employees and employees appointed for
temporary periods (Sections 013.3 and 031.4) shall be at the percentage of basic
compensation established for the post. For part-time regularly-scheduled employees
and intermittent employees the danger pay allowance shall be computed at the
prescribed percentage of basic compensation earned during the applicable pay period.
656.2 No Ceiling on Payments
The danger pay allowance is not subject to any ceiling which would provide a payment
less than the full percentage rate prescribed for the post.
Payment of the danger pay allowance shall not be construed as part of basic compensation for
computing within-grade, step, merit pay increases and Senior Executive Service or Senior
Foreign Service bonuses.
. STANDARDIZED REGULATIONS
(Goverment Civilians, Foreign Areas)
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SOWAND P. SOLAND. MASS- CHANIMAN
AOMAHO L MAE= KY.
NOMMAN Y. MINETA. CALIF.
WYCHE FOWL VL JR. GA.
LIEF H. HAMILTON. IND.
ALJERT GORE. JR. TENN.
LOUIS STOKES. OHIO
DAVE MCCWIDY. OKLA.
ANTHONY C. BV EN$ON. CALIF.
J. KENNETH ROBINSON, VA.
0. WILL AM WHTTEHWIST, VA.
C. W. SILL YOUNG. FLA.
SOS {TUMP. AML
WILLIAM F. DOODLING. PA.
THOMAS K. LATIMER STAFF DIIIECTON
MICHAEL J. O71EIL CHIEF COUNSEL
STEVEN K. SER71Y. ASSOCIATE COUNSEL
9 ?
U.S. HOUSE OF REPRESENTATIVES
PERMANENT SELECT COMMITTEE
ON INTELLIGENCE
September 19, 1984
Honorable William J. Casey
Director of Central Intelligence
Washington, D. C. 20505
Dear Mr. Casey:
A recent case involving a former Agency employee, has STAT
raised the question of how he Director of Central
Intelligence under Section b 2(c) of the National Security Act of 1947 is
used. In particular, I wish to know what policies you and your predecessors
have followed in employing that authority to separate employees from the
Agency for reasons unrelated to security concerns.
I would appreciate your providing the Committee with whatever policy
documentation, legal memos or guidance to personnel authorities or any other
material which relates to the use of this authority.
With every good wish, I am
002122& 4121
Executive Registry
84 -
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