LETTER TO DAVID A. STOCKMAN FROM WILLIAM J. CASEY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP89-00066R000900120012-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: December 22, 2016
• Document Release Date: April 12, 2011
• Sequence Number: 12
• Publication Date: March 18, 1985
• Content Type: LETTER

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.4cutive Ae lstty
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18 March 1985
The Honorable David A. Stockman
Director,' Office of Management ,and Budget
Executive Office Building
Washington, D.C. 20503
Dear:Dave:'
I;am pleased with your recognition that'the special overseas'
mission of CIA justifies continuation of eligibility for
retirement with full benefits at age 50 for employees in the CIA
Retirement and Disability System (CIARDs). flovever, the special
requirements and'mission of.CIA involve all of.our.employees:.in a-
number ' of ways unique in, the ;government. ' This. legislatively
mandated special 'status''for 'CIA and its impact on all our people
;.is the basis for a personnel system here different than any_ other
agency -- from recruitment to retirement. That system and the
missionof.the Agency also requires the continuation of age 55
eligibility for full retirement benefits for those employees not
qualified for CIARDs. This-concern pertains both to the
Administration's proposal for retirem reform and to possible
supplemental legislation this year.
There is ample legislative precedent for'differentiating CIA
from the Federal.Civil:Service. The Congress has provided the
Director of Central Intelligence with special authorities with
respect to personnel in order:to accomplish CIA's unique
mission. 'These authorities have no counterpart in the Federal
government. DCIs have elected over the years to'follov Civil
Service:practices when they meet CIA's needs floveves, chile a
five-year difference in retirement age (between those in CIARDs
and those not 'qualifying) is manageable, a '15-year difference
would be severely damaging to our ability to meet'our personnel
requirements and to fulfill our mission. Because of Congress's
recognition over the years of CIA's unique status and personnel
needs, and,for.tbe additional reasons cited below,.I believe our
exemption from the change in non-CIARDs retirement age is
justifiable and would not se y kind of precedent for other
government. organizations.
SECRET CL By Signer
DECL OADR
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Director, Office of Management 'and budget
The Sonorable David A. Stockaan
Of the President's retiresent proposals, there is. no problem
for'CIA in freezing the COLA, sick leave forfeiture or in
changing the formula' for: computing benefits' (from high-three, to'
high-five). . Bovever "I firmly believe that' deferring' retirement
age .to' 65 for non-CIAPDs. employees would be - destructive-.of the
organization. and the' capabilities we have: developed here. In
short;' while. CIA can and should participate in` those aspects o
r'etirement', reform 'tbat will.produce Immediate' financialbenefit
we ? seek; exemption from a ` change in the age : of eligibility --'?
wbich,vould n.ot: produce any, financial relief for sany,yeara but
would have- an immediate and ? destructive Impact: on 'CIA's . ab ilit
to' carry 'out' its' mission:
In'establi.shing'ClA, Congress recognised the-Agency's.
for, and established, a' CIA personnel system independent' of the ;.?
1949 CIA' "Act and. subsequent legislation acknovle-dged the need,,.,
would'bave to offer and' the demands it would have'to'sake. 'the
special peraonuel needs and the unique mature of. the careers'i
intrusive personal Investigation of applicant's;.
r
g
ta
unparalleled in government;
repeated security checks, including polygrapbing,
throu
hou
caree
;
.the need to foster 30 year commitment for career
management as well as security reasons;,..
severe' units ' outside activities and personal
lifestyle,-even after departure orretirement '.frow CIA;
compensation for the dangers of overseas travel and
service;
-- both voluntary and involuntary attrition to ensure `the
utmost responsiveness, vigor and skill of. the. work
force;
the assignment of any employee at any time to physically
demanding and stressful talks anywhere In-the world; and
recruitment of individuals
anticip second career
needs.'
with special skills who could
when burnt out for CIA
Presidents and Congresses repeatedly since 1949 have
reaffirmed the. differentiation of CIA's personnel system all Its' employees - froe the Tederal Civil - Service in
recognition.of the Agency's special mission. for example:
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Director, Off ice' of management and Budget
The Honorable David A. Stockman
Employment' af'.1978 25x1
requ resents for.Agency employmente
lUCffltIve award;, and to. fix minimum.
and maxieum..aae
special 'hiring and,': pay authority, authority to pay death
authorities, including special ter~inatioa authority
The Congress granted the Agency special personnel
established certain prohibited personnel practices and
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CIA was.
' . exempted from Civil Service Reform ?Act of 1978
r1.1-1.11-~--J ----tea-- -. f ~__ ?. _
Treatment.. Act of `1972, which forbade denial of
CIA was exempted from the Drug Abuse Office and
CIA was exempted from' Federal Advisory Committee Act
10,E
CIA was exempted from Federal Employees part-Time Career
are
made on all employees, st the clandestine service or those 25x1
who "qualify for, CIARDs.
t
the" Indivisibility of the Agency -- that special requirements
earlier eligibility'for'retirement, you need 'to know more abo
To understand fully why-all CIA employees should retain
Overseas Duty
Employment at CIA means. work overseas
CIARDs' or' not.
whether qualified
for
Only of CIA employees currently servin ever seas
'
.have qualified for'CIARDs; the rexaining are'covered
under-the Civil. Service Retirement System (CS RS).'
Unlike members of the Foreign Service, all of whom are
eligible for early retirement benefits from the moment
they begin their careers. CIA employees must earn their
way into CIARDs,by serving five years overseas. Given
our policy of rotating people in and out of the
Washington area. and- sensitive domestic assignments, it
takes time for employees to earn the' five year credit.
Obviously some never do, which explai , in this;
overseas oriented organisation, only ~s-wh-bf the staff
i- i
CIARDs
n
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The Rotatable David A. Stockman
Director, Officelof Kanagement and Budget
pearly --]of the officers in our clandestine
service. Presently have not qualified for'CIARDs and are
under the Civii Service Retirement System (CSRS).
CIAhss ove employees who have served abroad 'b
Administrative.mandates. in 1985, ^ort'tha
num ers in direct response to both Coutressi and
Intelligence analysts responsible for interprtting
foreign'developments are going overseas in;increasing
Agency scientists and engineers are also going overseas
in increasing numbers on important temporary duty. "We
have bad sore than_high tech specialists serve ins..,
highly sensitive'project under the most orfult
conditions, in a' remote corner They,
are 'separated from their families jor, proonged'
periods None have earned CIARD
those who served
u e or' ARDs.
In addition to the obvious employment stresses overseas
for which 'CIARDs was legislated, there are,many other
classes of Agency personnel whose duties in; the United
States are physically and emotionally demanding,'and.for
whom the Agency traditionally fostered an-early
retirement -- age 55.
Stress and Danger
Overseas service is becoming sore dangerous for all
Americana, but especially for employees of CIA., The mortality
figures,for our people are gria.
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The Honorable David A. Stockman
Director, Office. of ?Management and budget
Since the early) Il88 Agency employees have died
serving'abroad. Only ere CIARDs qualified..
We have 50 gold stars in our entry foyer honoring our
colleagues who' died from hostile action or while'
part in highly dangerous Agency . activities.'
Only were CIARDs qualified.
One of the two soot senior CIA officers slain in hostile
action overseas was the director of a headquarters
analytical office.
After age 50, nearly. 502 of all our employees are not
eligible for full service medical clearance.
In addition to the clinical health hazards of worldwide
service,' Agency personnel are confronted' with
psychological stresses which over'the long haul extract.
a health toll just as great.
Our employees traveling and working overseas suffer not
only frequent family disruption, but also civil
disorder, constant tension borne of awareness of the
terrorist threat,' and exceptionally high local crime
rates. .'This is all magnified by the requirement tha t
our.people -- case officers, technicians and analysts.--
frequent remote areas and endure primitive conditions in
th
u
r
e co
nt
yside.
Special Skills
The -risk of loss to the Agency of high tech,' engineering,
economic, computer and other scarce skills -- people who are
arti
ul
p
c
arly well qualified for jobs in private industry, 7
would b
e, particularly dangerous to our national interest.
These are the people:
-- vnose research in the D-2 program provided the medical
b
i
-- whose imagination and energy created the program which
brought the first photographic satellite back from
space;
as
s on which NASA later built its space survival
knowledge;
whose creativity in high performance aircraft design was
used by b eingwhen planning the SST;
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The Eonorable David A. Stockman
'Director, Office of Management and Budget
The Central Intelligence Agency works because we are able to
offer people. an. attractive career track which,. while t demands
such, allows then to leave early enough to pursue second careers
if,they'so choose. The Director of Central Intelligence to-
fulfill his obligations, needs a personnel system which allows
for a healthy flow-throug taff. Such a system now exists.. 25X1
It should not be changed
whose determination built and launched the largest
antenna in space;
who have built advanced computer ?ysteas.with
capabilities and applications unique in the world;
who have built the world's most sophisticated space-
b ased reconnaissance vehicles;
and who have 1 these tasks at or below budget and 25X1
on schedule.
Can we expect these people or their successors to accept a
career of 35 or 40 years?" They won't do it and we'll be
confronted with two unacceptable realities. The best in the aid
level.career.range'(age 35-40) will leave while they can still
start a second career rather than face an additional 10 years in
government duty. Never employees will join us with the intent?to
stay a short tine, get their tickets punched and then move back
Into, Industry. That represents a security nightmare.' In short
order,-large numbers of people who were privy to some of our' soot
sensitive information will be stread all around the country 25X1
beyond our security ethic.
A Single Agency
CIA is a single and indivisible Agency with a single culture
and ethic. Agency employees understand and accept a;tvo-tiered
retirement policy which provides some the privilege of retiring
five years earlier because they know the grueling hardships of a
prolgnged overseas career. 'None could, or indeed should,
understand a rationale which would call for a 15 year spread
between those in CIARDs and the majority performing similar work
outside CIARDs. Such a situation would shatter the existing
Agency culture and risk polarizing force which to b e
effective must work as a team.
The problems of a two-tiered work force with a dramatic
disparity between the two groups last arose in 1968. In response
to such a proposal, the DCI'at the time affirmed that:
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The Honorable David A. Stockman
Director, Off ice of Management and ludget
'Attempts to formulate criteria of differentiation would
generate new problems of morale and administration. The
creation of exempt categories of employees would foster
odious comparisons. It would thwart the implementation of
the general retirement policy indefinitely as groups and
individuals pleaded their individual cases.
'The sore fundamental reason for not exempting certain
categories of Agency employees is that the work of the
Agency suet be performed with utmost responsiveness. This
requires a general state of scud on the part of all
employees that timeliness is critical, accuracy is
imperative, and absorption with the task at band takes
.priority over personal distractions. Advancing years
inevitably bring about a lessening of work vigor and
enthusiasm. The larger the proportion of older employees
the.gre~ the debilitating effect on the tenor of the
Agency.
Cost
Because the underlying motive for changes in the retirement
system is to save moneyI would sake one further observation.
'Surveys of our employees and of scores of university placement
directors make clear that turnover in our work force would
increase dramatically with age 65 retirement inasmuch as the kind
of people we' must seek and hire would not remain here for a
career ending at' that age. While I have addressed the security
and performance implications of such turnover, you should know
that this would result in significant added costs -- probably-
three to five times present expenditures -- for recruitment and
security ~investigatioas. T savings of later..retirment, is would largely offset any
All CIA employees must make many sacrifices unique in either
the public or private sectors. They have no job security. TThey
must be available for duty wherever in the world I deem they can
be best used. In their overseas work, they face real and
increasing dangers. Their families are disrupted. They burn out
younger than their contemporaries elsewhere. Successive
Presidents and Congresses have recognized these special problems
by differentiating CIA from the Federal Civil Service from
recruitment to retires t.? The basic need and rationale for this
still prevail.
e
Vi'llias J. Cas
Director of Central Intelligence
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