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December 22, 2016
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April 12, 2011
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March 18, 1985
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Sanitized Copy Approved for Release 2011/04/12: CIA-RDP89-00066R000900120012-0 .4cutive Ae lstty 1102 wdrwWL D C 7C= 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 Sanitized Copy Approved for Release 2011/04/12: CIA-RDP89-00066R000900120012-0 Sanitized Copy Approved for Release 2011/04/12 : CIA-RDP89-00066R000900120012-0 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: 2 Sanitized Copy Approved for Release 2011/04/12 : CIA-RDP89-00066R000900120012-0 I'I I ! 1L l Sanitized Copy Approved for Release 2011/04/12 CIA-RDP89-00066R000900120012-0 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 .2 120 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 14 -~~ Sanitized Copy Approved for Release 2011/04/12 : CIA-RDP89-00066R000900120012-0- Sanitized Copy Approved for Release 2011/04/12 : CIA-RDP89-00066R000900120012-0 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. 4 Sanitized Copy Approved for Release 2011/04/12 CIA-RDP89-00066R000900120012-0 25X1 25X1 25X1 25X1 25X1 25X1 25X1 .1 u I . Sanitized Copy Approved for Release 2011/04/12 : CIA-RDP89-00066R000900120012-0 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; 5 Sanitized Copy Approved for Release 2011/04/12 : CIA-RDP89-00066R000900120012-0 L Sanitized Copy Approved for Release 2011/04/12 : CIA-RDP89-00066R000900120012-0 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: 6 ,-,f~ Sanitized Copy Approved for Release 2011/04/12 : CIA-RDP89-00066R000900120012-0 Sanitized Copy Approved for Release 2011/04/12 : CIA-RDP89-00066R000900120012-0 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 Sanitized Copy Approved for Release 2011/04/12 CIA-RDP89-00066R000900120012-0