LETTER TO MR. JAMES M. FREY ASSISTANT DIRECTOR FOR LEGISLATIVE REFERENCE OFFICE OF MANAGEMENT AND BUDGET FROM FREDERICK P. BITZ

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP89-01114R000300090050-0
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 3
• Document Creation Date: December 14, 2016
• Document Release Date: September 26, 2002
• Sequence Number: 50
• Publication Date: April 25, 1979
• Content Type: LETTER

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Legislative Counsel
OLC 79-0114/d
25 AP' i,:71713
Mr. James M. Frey
Assistant Director for
Legislative Reference
Office of Management and Budget
Washington, D.C. 20503
Dear Mr. Frey:
We have received a draft of the most recent changes to
Section 5949 and the new Chapter 50 of the Administration's
proposed "Classification and Compensation Act of 1979."
While we are pleased to note that cognizance has been
taken of our position that the Central Intelligence Agency
must be exempted from Section 5949, serious problems remain
with regard to the scope and coverage of Chapter 50. On its
face, elimination of the Compensation Agent from Chapter 50
would seem to rest the powers described in that Chapter in
the President. If this were actually the case we would, of
course, take no issue with the proposal. In practice,
however, the President undoubtedly will designate an agent to
recommend what premium pay and allowance provisions should be
established, modified or abolished. It is also clear that
this agent will in all likelihood be embodied within the
Office of Personnel Management (OPM).
While employment in foreign areas is not covered in
Chapter 50, many of CIA's premium pay and allowance provisions
would be subject to the Chapter. Thus, the OPM in investigating
such pay systems and allowances would, as we have noted
previously, gain heretofore unauthorized access to sensitive
CIA information and files.
Rather than repeat our previous comments on this subject,
I would call to your attention paragraphs three through seven
of my letter of 22.March 1979 (copy enclosed). The arguments
contained therein, although directed toward the then-proposed
Compensation Agent, are of equal applicability to the OPM.
Our position on this matter is in conformity with President
Carter's expressed desire to limit, indeed to reduce, the
proliferation of access to sensitive intelligence information
within the government.
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The vesting of any authority over Central Intelligence
Agency personnel matters in the OPM would create conflict of
law problems.
ere to re-j
we again recommend that the draft bill, e amen a as follows:
Amend Subsection 5001(a) by inserting after the
phrase "United States Postal Service": "or an employee
of the Central Intelligence Agency".
I would appreciate your advising us as to the intentions
of your office regarding this proposed amendatory language.
Sincerely,
Frederick P. Hitz
Legislative Counsel
Enclosure
As stated
Distribution
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OLC:MDC:RJW:GMC:sf (23 April 1979)
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.r -j l i t X79
MEMORANDUM FOR: Executive Committee Members
STATINTL FROM
Secretary, Executive committee
SUBJECT Agenda for Executive Committee Meeting,
13 June 1979
The Executive Committee will meet on Wednesday, 13 June, at 2:30
in the DCI's Conference Room:
Eriefirig on Title V of the Civil Service Reform
Act, Merit Pay. This provision links the pay increases
of managers and supervisors in grades GS-13 through
GS-15 to their performance, rather than to their
length of service. The merit pay system should be
considered within the context of the executive devel-
opment program recommended. by NAPA, and in relation
to any Senior Executive Service equivalent that is
developed.
STATINTL
cc:ector General
G DJPersonnel
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