LETTER TO DAVID A. STOCKMAN FROM WILLIAM J. CASEY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86B00338R000400500008-7
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 12
• Document Creation Date: December 21, 2016
• Document Release Date: September 12, 2008
• Sequence Number: 8
• Publication Date: November 22, 1983
• Content Type: LETTER

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%-U ILIJI 11 11C11)ZF1 ILC /-%bFl ILY a /1-W - 44
OLL 83-2829
22 November 1983
Honorable David A. Stockman
Office of Management and Budget
Washingto,5, D.C. 20503
OLO-lt
This is in response to your request for views of the
Central Intelligence Agency on Enrolled Bill H.R. 2077, to
extend the Physicians Comparability Allowance Act of 1978, and
for other purposes. I recommend Presidential approval of the
legislation.
Title I of this bill extends the authority of agencies to
provide compensation for physicians engaged in federal service
comparable with their private sector counterparts. Title II
ameliorates the adverse impact of dual retirement coverage for
new federal employees hired after 1 January 1984. Both of
these provisions will facilitate the recruitment and hiring of
personnel in the Intelligence Community.
We appreciate very much the opportunity to comment on this
legislation.
Sincerely,
William-J. Casey
Director of Central Intelligence
DISTRIBUTION:
Original -
Addressee
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DCI
1 -
DDCI
1 -
Exec Dir
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~ - OLL Chrono
1 - LEG File:
Personnel General
1 - ROD Signer
ROD:csh (22 November 1983)
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EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF FtANAGEMENT AND BUDGET
Washington, D. C. 20503
11/17 83
ENROLLED BILL REQUEST
In accordance with OMB Circular No. A-19, your
written views and recommendation for Presidential
action are requested on the following enrolled
bill(s) (facsimile(s) attached):
Please consult section 10 of OMB Circular A-19, pages
12-14, for instructions, regarding the preparation of
enrolled bill letters and the procedures to be
followed on enrolled bills.
Within TWO DAYS (including holidays but excluding
Sundays after receipt of this request, your reply
(original and one copy) should be delivered VIA
SPECIAL MESSENGER to Mrs. Julia Yuille, Room 7701,
New Executive Office Building.
Your cooperation in meeting this deadline is needed
to provide maximum time for Presidential action on
the enrolled bill(s).
James M. Frey
Assistant-Director for
Legislative Reference
ATTENTION:
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. R. 2077
Bint-tftjhth Congress of the 'United 15tates of america
AT THE FIRST SESSION
Begun and held at the City of Washington on Rfonday, the third day of January,
one thousand nine hundred and eighty-three
51HZCt
To amend title 5, United States Code, to extend the Federal Physicians Comparability
Allowance Act of 1978, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
TITLE I-PHYSICIANS COMPARABILITY ALLOWANCE
SEC. 101. This title may be cited as the "Federal Physicians
Comparability Allowance Amendments of 1983".
SEC. 102. (a) The second sentence of section 5948(d) of title 5,
United States Code, is amended to read as follows: "No agreement
shall be entered into under this section later than September 30,
1987, nor shall any agreement cover a period of service extending
beyond September 30, 1989.".
(b) Section 3 of the Federal Physicians Comparability Allowance
Act of 1978 (5 U.S.C. 5948 note) is amended by striking out "Septem-
ber 30, 1985" and inserting in lieu thereof "September 30, 1989".
PAY OF CERTAIN FEDERAL PHYSICIANS FOR FISCAL YEAR 1982
SEC. 103. (a) Any individual whose aggregate pay for fiscal year
1982 exceeded the limitation set forth in section 5383(b) of title 5,
United States Code, is relieved of all liability to the United States
for any amounts paid to such individual in excess of such limitation
if, and to the extent that, such liability takes into account any
allowance paid under section 5948 of such title.
(bXl) The appropriate agency head shall pay, out of any appropri-
ation or fund available to pay allowances under section 5948 of title
5, United States Code, to any individual as to whom liability is
relieved under subsection (a), an amount equal to the aggregate of
any amounts paid by such individual, or withheld from sums other-
wise due such individual, with respect to any liability relieved under
such subsection.
(2) A payment under paragraph (1)-
(A) shall be made only if written application therefor is
submitted to the appropriate agency head, in accordance with
such regulations as the President or his designee may prescribe,
within two years after the date of enactment of this Act; and
(B) shall not be considered for purposes of applying the limita-
tion set forth in section 5383(b) of title 5, United States Code.
(c) For the purpose of this section-
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(1) the term "aggregate pay", as used with respect to an
individual, means the aggregate amount paid to such individual
under sections 4507, 5382, 5384, and 5948 of title 5, United
States Code;
(2) the term "appropriate agency head", as used with respect
to an individual, means the head of the agency employing such
individual when such individual was paid an allowance with
respect to which liability is relieved under this subsection; and
(3) the term "agency' has the meaning given such term by
section 5948(gX2) of such title.
TITLE II-FEDERAL EMPLOYEES RETIREMENT
ADJUSTMENT
SEC. 201. This title may be cited as the "Federal Employees'
Retirement Contribution Temporary Adjustment Act of 1983'.
SEC. 202. It is the policy of the Government-
(1) that the amount required to be contributed to certain
public retirement systems by employees and officers of the
Government who are also required to pay employment taxes
relating to benefits under title II of the Social Security Act for
service performed after December 31, 1983, be modified until
the date on which such employees and officers are covered by a
new Government retirement system (the design, structure, and
provisions of which have not been determined on the date of
enactment of this Act) or January 1, 1986, whichever is earlier;
(2) that the Treasury be required to pay into such retirement
systems the remainder of the amount such employees and
officers would have contributed during such period but for the
temporary modification;
(3) that the employing agencies make contributions to the
retirement systems with respect to such service in amounts
required by law in effect before January 1, 1984, without reduc-
tion in such amounts;
(4) that such employees and officers accrue credit for service
for the purposes of the public retirement systems in effect on
the date of enactment of this Act until a new Government
retirement system covering such employees and officers is
established;
(5) that, where appropriate, deposits to the credit of such a
retirement system be required with respect to service performed
by an employee or officer of the Government during the period
described in clause (1), and, where appropriate, annuities be
offset by the amount of certain social security benefits attribut-
able to such service; and
(6) that such employees and officers who are first employed in
civilian service by the Government or first take office in civilian
service in the Government on or after January 1, 1984, become
subject to such new Government retirement system as may be
established for employees and officers of the Government on or
after January 1, 1984, and before January 1, 1986, with credit
for service performed after December 31, 1983, by such em-
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ployees and officers transferred to such new Government retire-
ment system.
SEC. 203. (a) For the purposes of this title-
(1) the term "covered employee" means any individual whose
service is covered service;
(2) the term "covered retirement system" means-
(A) the Civil Service Retirement and Disability System
under subchapter III of chapter 83 of title 5, United States
Code;
(B) the Foreign Service Retirement and Disability System
under chapter 8 of the Foreign Service Act of 1980 (22
U.S.C. 4041 et seq.);
(C) the Central Intelligence Agency Retirement and Dis-
ability System under the Central Intelligence Agency Re-
tirement Act of 1964 for Certain Employees (50 U.S.C. 403
note); and
(D) any other retirement system (other than a new
Government retirement system) under which a covered
employee who is a participant in the system is required to
make contributions to the system in an amount equal to a
portion of the participant's basic pay for covered service, as
determined by the President;
(3) the term "covered service" means service which is employ-
ment for the purposes of title II of the Social Security Act and
chapter 21 of the Internal Revenue Code of 1954 by reason of
the amendments made by section 101 of the Social Security
Amendments of 1983 (97 Stat. 67); and
(4) the term "new Government retirement system" means any
retirement system which (A) is established for officers or em-
ployees of the Government by or pursuant to a law enacted
after December 31, 1983, and before January 1, 1986, and (B)
takes effect on or before January 1, 1986.
(b) The President shall publish the determinations made for the
purpose of subsection (aX2XD) in an Executive order.
SEC. 204. (a) In the case of a covered employee who is participating
in a covered retirement system, an employing agency shall deduct
and withhold only 1.3 percent of the basic pay of such employee
under-
(1) section 8334 of title 5, United States Code;
(2) section 805 of the Foreign Service Act of 1980 (22 U.S.C.
4045);
(3) section 211 of the Central Intelligence Agency Retirement
Act of 1964 for Certain Employees (50 U.S.C. 403 note); or
(4) any provision of any other covered retirement system
which requires a participant in the system to make contribu-
tions of a portion of the basic pay of the participant;
for covered service which is performed after December 31, 1983, and
before the earlier of the effective date of a new Government retire-
ment system or January 1, 1986. Deductions shall be made and
withheld as provided by such provisions in the case of covered
service which is performed on or after such effective date or Janu-
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ary 1, 1986, as the case may be, and is not subject to a new
Government retirement system.
(b) Employing agencies of the Government shall make contribu-
tions with respect to service to which subsection (a) of this section
applies under the second sentence of section 8334(aXl) of title 5,
United States Code, the second sentence of section 805(a) of the
Foreign Service Act of 1980 (22 U.S.C. 4045(a)), the second sentence
of section 211(a) of the Central Intelligence Agency Retirement Act
of 1964 for Certain Employees (50 U.S.C. 403 note), and any provi-
sion of any other covered retirement system requiring a contribu-
tion by the employing agency, as if subsection (a) of this section had
not been enacted.
SEC. 205. (a) For purposes of this section-
(1) the term "contribution deficiency", when used with re-
spect to a covered retirement system, means the excess of-
(A) the total amount which, but for section 204(a) of this
Act, would have been deducted and withheld under a provi-
sion referred to in such section from the pay of covered
employees participating in such retirement system for serv-
ice to which such section applies, over
(B) the total amount which was deducted and withheld
from the pay of covered employees for such service as
provided in section 204(a) of this Act; and
(2) the term "appropriate agency head" means-
(A) the Director of the Office of Personnel Management,
with respect to the Civil Service Retirement and Disability
System under subchapter III of chapter 83 of title 5, United
States Code;
(B) the Secretary of State, with respect to the Foreign
Service Retirement and Disability System under chapter 8
of the Foreign Service Retirement Act of 1980 (22 U.S.C. 404
et seq.);
(C) the Director of Central Intelligence, with respect to
the Central Intelligence Agency Retirement and Disability
System under the Central Intelligence Agency Retirement
Act of 1964 for Certain Employees (50 U.S.C. 403 note); and
(D) the officer designated by the President for that pur-
pose in the case of any retirement system described in
section 203(aX2XD) of this Act.
(b) At the end of each of fiscal years 1984, 1985, and 1986, the
appropriate agency head-
(1) shall determine the amount of the contribution deficiency
for such fiscal year in the case of each covered retirement
system, including the interest that those contributions would
have earned had they been credited to the fund established for
the payment of benefits under such retirement system in the
same manner and at the same time as deductions under the
applicable provision of law referred to in section 204(a) of this
Act; and
(2) shall notify the Secretary of the Treasury of the amount of
the contribution deficiency in each such case.
(c) Before closing the accounts for each of fiscal years 1984, 1985,
and 1986, the Secretary of the Treasury shall credit to the fund
established for the payment of benefits under each covered retire-
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H. R. 2077-5
ment system, as a Government contribution, out of any money in
the Treasury not otherwise appropriated, an amount equal to the
amount determined under subsection (b) with respect to that cov-
ered retirement system for the fiscal year involved.
(d) Amounts credited to a fund under subsection (c) shall be
accounted for separately than amounts credited to such fund under
any other provision of law.
SPECIAL DEPOSIT AND OFFSET RULES RELATING TO RETIREMENT
BENEFITS FOR INTERIM COVERED SERVICE
SEC. 206. (a) For the purposes of this section, the term "interim
covered service" means covered service to which section 204(a)
applies.
(bXl) Paragraphs (2) and (3) apply according to the provisions
thereof only with respect to a covered employee who is employed by
the Government on December 31, 1983.
(2XA) Notwithstanding any other provision of law, the interim
covered service of such covered employee shall be considered-
(i) in determining entitlement to and computing the amount
of an annuity (other than a disability or survivor annuity)
commencing under a covered retirement system during the
period beginning January 1, 1984, and ending on the earlier of
the date a new Government retirement system takes effect or
January 1, 1986, by reason of the retirement of such covered
employee during such period only if such covered employee
makes a deposit to the credit of such covered retirement system
for such covered service in an amount computed as provided in
subsection (f); and
(ii) in computing a disability or survivor annuity which com-
mences under a covered retirement system during such period
and is based in any part on such interim covered service.
(B) Notwithstanding any other provision of law, an annuity to
which subparagraph (A)(ii) applies shall be reduced by the portion of
the amount of any benefits which is payable under title II of the
Social Security Act and is attributable to the interim covered service
considered in computing the amount of such annuity, as determined
under subsection (g), unless, in the case of a survivor annuity, a
covered employee has made a deposit with respect to such covered
service for the purposes of subparagraph (A)(i) before the date on
which payment of such annuity commences.
(3) Notwithstanding any other provision of law, if a new Govern-
ment retirement system is not established or is inapplicable to such
a covered employee who retires or dies subject to a covered retire-
ment system after the date on which such new Government retire-
ment system takes effect, the interim covered service of such cov-
ered employee shall be considered in determining entitlement to
and computing the amount of an annuity under a covered retire-
ment system based on the service of such covered employee only if
such covered employee makes a deposit to the credit of such covered
retirement system for such covered service in an amount computed
as provided in subsection (f).
(cKl) Paragraphs (2) and (3) apply according to the provisions
thereof only with respect to a covered employee who was not
employed by the Government on December 31, 1983.
(2) Notwithstanding any other provision of law, any annuity
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H. R. 2077-6
period described in subsection (bX2XAXi) and is based, in any part,
on interim covered service shall be reduced by the portion of the
amount of any benefits which is payable under title II of the Social
Security Act to the annuitant and is attributable to such service, as
determined under subsection (g).
(3) Notwithstanding any other provision of law, if a new Govern-
ment retirement system is not established, the interim covered
service of such a covered employee who retires or dies after January
1, 1986, shall be considered in determining entitlement to and
computing the amount of an annuity under a covered retirement
system based on the service of such covered employee only if such
covered employee makes a deposit to the credit of such covered
retirement system for such covered service in an amount computed
as provided in subsection M.
(d) If a covered employee with respect to whom subsection (b)(3) or
(c)(3) applies dies without having made a deposit pursuant to such
subsection, any individual who is entitled to an annuity under a
covered retirement system based on the service of such covered
employee or who would be entitled to such an annuity if such
deposit had been made by the covered employee before death may
make such deposit after the date of death of such covered employee.
Service covered by a deposit made pursuant to the first sentence
shall be considered in determining, in the case of each individual to
whom the first sentence applies, the entitlement to and the amount
of an annuity under a covered retirement system based on the
service of such covered employee.
(e) A reduction in annuity under subsection (b)(2)(B) or (c)(2) shall
commence on the first day of the first month after the date on which
payment of benefits under title II of the Social Security Act com-
mence and shall be redetermined each. time an increase in such
benefits takes effect pursuant to section 215(i) of the Social Security
Act. In the case of an annuity of a participant or former participant
in a covered retirement system, of a surviving spouse or child
person
such participant or former participant, or of any other designated by such participant or former participant to receive an
annuity, under a covered retirement system (other than a former
spouse) the reduction in annuity under subsection (b)(2)(B) or (c)(2)
shall be calculated before any reduction in such annuity provided
under such system for the purpose of paying an annuity under such
system to any former spouse of such participant or former partici-
pant based on the service of such participant or former participant.
(f) For the purposes of subsection (b) or (c), the amount of a deposit
to the credit of the applicable covered retirement system shall be
equal to the excess of-
(1) the total amount which would have been deducted and
withheld from the basic pay of the covered employee for the
interim covered service under such covered retirement system
but for the application of section 204(a), over
(2) the amount which was deducted and withheld from such
basic pay for such interim covered service pursuant to section
204(a) and was not refunded to such covered employee.
(g) For the purpose of subsections (b)(2)(B) and (c)(2), the portion of
the amount of the benefits which is payable under title II of the
Social Security Act to an individual and is attributable to interim
covered service shall be determined by-
(1) computing the amount of such benefits including credit for
s,,rh Service:
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t2) computing the amount of such benefits, if any, without
including credit for such service; and
(3) subtracting the amount computed under clause (2) from
the amount computed under clause (1).
(h) The Secretary of Health and Human Services shall furnish to
the appropriate agency head (as defined in section 205(aX2)) such
information as such agency head considers necessary to carry out
this section.
SEC. 207. (a) Any covered employee who first becomes employed in
civilian service by the Government or first takes office in civilian
service in the Government on or after January 1, 1984, shall become
subject to such new Government retirement system as may be
established.
(b) In the case of any covered employee who is subject to a covered
retirement system on or after January 1, 1984, and thereafter
becomes subject to a new Government retirement system-
t1) credit for the service of such employee to which section
204(a) applies shall be transferred from such covered retirement
system to the new Government retirement system for the pur-
poses of the new Government retirement system; and
12) such service shall be considered not to be creditable service
for the purposes of such covered retirement system,
effective on the date on which such employee becomes subject to
such new Government retirement system.
SEC. 208. ta) Any individual performing service of a type referred
to in clause (i), (ii), (iii), or (iv) of section 210(aX5) of the Social
Security Act beginning on or before December 31, 1983, may-
' 11 if such individual is then currently a participant in a
covered retirement system, elect by written application submit-
ted before January 1, 1984-
(A) to terminate participation in such system, effective
after December 31, 1983; or
(B) to remain under such system, as if the preceding
sections of this Act and the amendments made by this Act
had not been enacted; or
(2) if such individual is then currently not a participant in a
covered retirement system, elect by written application-
(A) to become a participant under such system (if such
individual is otherwise eligible to participate in the system),
subject to the preceding sections of this Act and the amend-
ments made by this Act; or
(B) to become a participant under such system (if such
individual is otherwise eligible to participate in the system),
as if the preceding sections of this Act and the amendments
made by this Act had not been enacted.
(b) An application by an individual "under subsection ta) shall be
submitted to the official by whom such covered employee is paid.
(c) Any individual who elects to terminate participation in a
covered retirement system under subsection (aX1XA) is entitled to
have such individual's contributions to the retirement system
refunded, in accordance with applicable provisions of law, as if such
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H. R. 2077-8
individual had separated from service as of the effective date of
the election.
(d) Any individual who is eligible to make an election under
subparagraph (A) or (B) of subsection (aX1), but who does not make
an election under either such subparagraph, shall be subject to the
preceding sections of this Act and the amendments made by this
Act.
TITLE III-SENIOR EXECUTIVE SERVICE
SEC. 301. (a) The Office of Personnel Management shall study and,
within 12 months after the date of enactment of this Act, submit to
each House of the Congress a report on the effect which section
5383(b) of title 5, United States Code (relating to the maximum
aggregate amount payable to a member of the Senior Executive
Service in a fiscal year) has had with respect to recruitment, reten-
tion, and morale of career appointees in the Senior Executive
Service.
(b) Section 3135(aX7) of title 5, United States Code, is amended to
read as follows:
"(7) for the preceding fiscal year, by agency-
"(A) the number of performance awards, and the number
of ranks, conferred, as well as the respective aggregate
amounts paid for such awards and ranks;
"(13) the percentage of career appointees in such agency
who received any such award, and the percentage who
received any such rank; and
"(C) the name of each individual who received any such
award or rank, the award or rank received, and a brief
summary of the reasons why such individual was selected;".
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.
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0 S
ROUTING AND RECORD SHEET
SUBJECT: (Optional)
FROM:
Clair E
George
EXTENSION
NO.
.
D / OLL
DATE
22 November 1983
TO: (Officer designation, room number, and
building)
DATE
OFFICER'S
COMMENTS (Number each comment to show from whom
RECEIVED
FORWARDED
INITIALS
to whom. Draw a line across column after each comment.)
1.
DCI
For your signature.
2. D / OLL
3.
4.
5.
6.
7.
8.
9.
Note: Copies will be
forwarded to Executive
Director and DDCI.
10.
11.
12.
13.
14.
15.
FOR 9"' 610 USEDITIO OUS_ ^ 1 c
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,1/x' Ar,;
B2 ... R T"a,dny, Nnoenaber22, 1983 THE WASIII!NGTO!V POST
MIKE CAUSEY
ThE FJDERA,DIARY
OPM Gets Around Congress on Personnel Rules
If you call Office of Personnel
Management Director Donald J. De-
vine to talk about politics, public ad-
ministration or the state of the fed-
eral union, he will be happy to chat,
time permitting.
But, effective today, if you men-
tion his proposed federal pay and
layoff reform proposals, chances are
you will get a fast dial tone in the
ear! '
Nothing
stand.
personal, you under-
The problem is that Devine, and
for that matter all other OPM staff-
ers, just might go to jail for making
even the most innocent on-duty
mention of the agency's new pay and
reduction-in-force (RIF) rules. This
may not be easy because OPM is the
central federal personnel adviser,
and those rules go into effect at the
end of this week.
What has happened is that after
nearly a year of nonstop talking, lob-
bying and selling on the subject, the
pay and RIF reforms have become
to OPM-officials what the cross was
to Count Dracula.
Devine announced yesterday that
the new rules, which base within-
grade pay raises and job security on
performance, will go into effect on
schedule Friday-with one excep-
tion: OPM will not participate in the
program. When it is fully effective,
the program will cover most other
government employes in every other
agency.
Congress thought it drove a stake
in the heart of the OPM regulations
last week. That was when it passed a
stop-gap federal funding bill (called
the continuing 'resolution) that in-
cluded a prohibition against OPM
spending one red cent to put the
complicated procedures in effect.
The Senate and House adjourned
last weekend, not to return until
mid-January.
But OPM's lawyers took a look at
the congressional language and
found that, in their view, it had
more holes than a side of Swiss
cheese.
In a 16-page legal opinion, the at-
torneys outlined their view that the
Approv
OPM funds to put the regulations in
place. The ban didn't say OPM
couldn't act, just that it couldn't
spend money.
OPM decided that a way around
this legislating-via-the-appropriation
process was to cut itself out of the
deal. It won't, have anything to do
with the new regulations, won't talk
about them, won't put anything in
writing on them, and' hence can de-
clare-that it will spend no money.
Other federal agencies are expect-
ed to build on the regulations, which
were published in the Federal Reg-
ister last month, and put their own
personnel houses in order.
That means, that the seniority- '
based system government has used
in RIFs will,be abandoned in favor
of a system that weighs employes'
value based on points they accumu-
late through years of service and on
their last three performance ratings.
Workers get a point for each year of
service, plus 5 to 10 points based on
performance ratings. Employes with
the lowest point totals, in agencies
that are undergoing RIFs, will be
fired first-except at OPM, which
will stay under the current system.
It also means that federal employ-
es, who now get within-grade pay
raises of 3 percent based on time in
grade and a "satisfactory" job rating
(99 percent now get ratings that
high) will have to go under a new
five-level performance rating system.
Under it, OPM says, only 96 percent
get the raises-except at OPM,
which will stay under the current
system.
OPM's decision to stay outside
the new system it dreamed up came
as a surprise to lots of people. From
a short-term tactical standpoint it
may even be brilliant. Since Con-
gress is away, the rules will go into
effect, unless unions are successful in
winning a temporary restraining
order in court.
But if legislators take the view
that OPM has thumbed its nose at
Congress,, and wriggled out via a
technicality, the agency could have
real trouble next year when mem-
bers return and figure out what has
ban dealt with the expenditure of happened.