HEARINGS BEFORE THE SUBCOMMITTEE ON STATE DEPARTMENT ORGANIZATION AND FOREIGN OPERATIONS OF THE COMMITTEE ON FOREIGN AFFAIRS HOUSE OF REPRESENTATIVES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-03721A000400020005-9
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 257
• Document Creation Date: November 11, 2016
• Document Release Date: March 26, 1999
• Sequence Number: 5
• Publication Date: June 2, 1960
• Content Type: REPORT

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TAB
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AMENDMENTS TO THE FOREIGN SERVICE ACT
*woo
HEARINGS
BEFORE THE
RETURN TO
Office of the
Director of Personnel
SUBCOMMITTEE ON STATE DEPARTMENT
ORGANIZATION AND FOREIGN OPERATIONS
OF THE
COMMITTEE ON FOREIGN AFFAIRS
HOUSE OF REPRESENTATIVES
EIGHTY-SIXTH CONGRESS
SECOND SESSION
ON
S. 2633 and H. R. 12547
A BILL TO AMEND THE FOREIGN SERVICE ACT OF 1946, AS
AMENDED, AND FOR OTHER PURPOSES
64
FEBRUARY 1, 2, 9, 16, AND JUNE 2, 1960
Printed for the use of the Committee on Foreign Affairs
UNITED STATES
GOVERNMENT PRINTING OFFIC1
WASHINGTON : 1960
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COMMITTEE ON FOREIGN AFFAIRS
THOMAS E. MORGAN, Pennsylvania, Chairman
A. S. J. CARNAHAN, Missouri
CLEMENT J. ZABLOCKI, Wisconsin
OMAR BURLESON, Texas
EDNA F. KELLY, New York
WAYNE L. HAYS, Ohio
ARMISTEAD I. SELDEN, JR., Alabama
T. L. FILCHER, Georgia
BARRATT O'HARA, Illinois
L. H. FOUNTAIN, North Carolina
DANTE B. FASCELL, Florida
FRANK M. COFFIN, Maine
LEONARD FARBSTEIN, New York
D. S. SAUND, California
CHARLES C. DIGGS, JR., Michigan
LINDLEY BECKWORTIL Texas
HARRIS B. McDOWELL, Ia., Delaware
WILLIAM T. MURPHY, Illinois
WILLIAM H. MEYER, Vermont
CORNELIUS E. GALLAGHER, New Jersey
CHESTER BOWLES, Connecticut
BOYD CRAWFORD, Staff Administrator
ROY J. BULLOCK, Senior Staff Consultant
ALBERT C. F. WESTPHAL, Staff Consultant
FRANKLIN J. &HUPP, Staff Consultant
JUNE NIGH, Senior Staff Assistant
WINIFRED G_ OSBORNE, Staff Assistant
HELEN C. MATTAS, Staff Assistant
MYRTIE MELVIN, Staff Assistant
HELEN L. HASHAGEN, Staff Assistant
MARY LOUISE O'BRIEN, Staff Assistant
ROBERT J. BOWEN, Clerical Assistant
ROBERT B. CHIPERFIELD, Illinois
FRANCES P. BOLTON, Ohio
CHESTER E. MERROW, New Hampshire
WALTER H. JUDD, Minnesota
JAMES G. FULTON, Pennsylvania
DONALD L. JACKSON, California
MARGUERITE STITT CHURCH, Illinois
E. ROSS ADAIR, Indiana
ALVIN M. BENTLEY, Michigan
LAUREN CE CURTIS, Massachusetts
STUYVESANT WAINWRIGHT, New York
SUBCOMMITTEE ON STATE DEPARTMENT ORGANIZATION AND FOREIGN OPERATION&
WAYNE L. HAYS, Ohio, Chairman
EDNA F. KELLY, New York
CLEMENT J. ZABLOCKI, Wisconsin
LEONARD FARBSTEIN, New York
D. S. SAUND, California
CHESTER BOWLES, Connecticut
ALBERT C. F. WESTPHAL, Stall Consultant
WINIFRED G. OSBORNE, Staff Assistant
II
ALVIN M. BENTLEY, Michigan
DONALD L. JACKSON, California
FRANCES P. BOLTON, Ohio
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CONTENTS
Page
List of witnesses In
Statements and memorandums submitted for the record In
Charts and tables
Index 255
LIST OF WITNESSES
February 1, 1960:
Henderson, Hon. Loy W., Deputy Under Secretary of State for Ad-
ministration 84
February 2, 1960:
Brown, Aaron, Deputy Assistant Secretary of State for Personnel 98
IIenderson, Hon. Loy W., Deputy Under Secretary of State for Ad-
ministration 95
Woodyear, William E., Deputy Chief, Personnel Projects Staff, De-
partment of State 97
February 9, 1960:
Brown, Aaron, Deputy Assistant Secretary of State for Personnel 189
Henderson, Hon. Loy W., Deputy Under Secretary of State for Ad-
ministration 177
Lyerly, J. Edward, Deputy Assistant Legal Adviser for Administra-
tion and Foreign Service, Department of State_ 183
Woodyear, William E., Deputy Chief, Personnel Projects Staff, De-
partment of State 179
February 16, 1960:
Brown, Aaron, Deputy Assistant Secretary of State for Personnel 200
Dwinell, Hon. Lane, Assistant Secretary of State for Administration 201
Henderson, Hon. Loy W., Deputy Under Secretary of State for Ad-
ministration 197
Lyerly, J. Edward, Deputy Assistant Legal Adviser for Administra-
tion and Foreign Service, Department of State 207
-Woodyear, William E., Deputy Chief, Personnel Projects Staff, De-
partment of State 200
June 2, 1960:
Henderson, Hon. Loy W., Deputy Under Secretary of State for Ad-
ministration 247
STATEMENTS AND MEMORANDUMS SUBMITTED
FOR THE RECORD
Text of S. 2633 2
Provisions of the Foreign Service Act, amendments made by S. 2633, and
additional amendments proposed by ?the Department of State, with
explanations thereto 18
Foreign Service officer positions in the Department as of August 31, 1959,
and Summary of Action under the Integration Program 86
Letter to Hon. Loy W. Henderson, Deputy Under Secretary of State for
Administration, from Abbott Washburn, Deputy Director, USIA 92
The U.S. Department of State Foreign Service Staff 99
Foreign Service Circular No. 277 105
I"
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CONTENTS
Analysis of proposed amendments to the Foreign Service Act based upon
questions submitted by the Subcommittee on State Department Organi-
zation and Foreign Operations and answers supplied by the Department Page
of State 119-175
Historical grounds for a separate retirement system 190
Balance sheet?Foreign Service retirement system, valuation at 4 per-
cent, as of December 31, 1958 194
Department of State?Summary of employment, December 31, 1950_ _ 200
Foreign Service officer positions in the Department of State, December
1959 210
Statement on section 16(c) 237
Statement on sections 33 and 51 238
Letter from Hon. Wayne L. Hays to Hon. Joseph Campbell, Comptroller
General of the United States 238
Letter to Hon. Wayne L. Hays from Hon. Joseph Campbell, commenting
on sections of S. 2633 238
State Department comment on letter of Comptroller General concerning
S. 2633 240
Correspondence between Hon. Wayne L. Hays and Hon. Loy W. Hender-
son concerning group of former staff officers 241
CHARTS AND TABLES
Grade, salary and position titles of civil service employees assigned to the
E (economic) area 124
Average cost of hosing incurred by Foreign Service personnel assigned to
the United States?owners and renters 131
Foreign Service Staff promotions, 1959 139
Application of language gradation scale to specific languages 145-146
Comparison of major proposed changes in the Foreign Service Retirement
and Disability System with pertinent provisions of the civil service retire-
ment system 149 153
Examples of the advantages to participants of the proposed formula for
computing joint and survivorship annuities 157-158
Maximum weight allowances effective August 17, 1953 165
Normal shipment allowed when quarters are completely furnished, effective
April 21, 1954 165
Automobiles shipped at Government expense during fiscal years 1957,
1958, and 1959 167
Estimated cost of proposed bill, S. 2633, Department of State 174
Balance sheet?Foreign Service retirement system, valuation at 4 per-
cent, as of December 31, 1958 194
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An
AMENDMENTS TO THE FOREIGN SERVICE ACT
MONDAY, FEBRUARY 1, 1960
HOUSE OF REPRESENTATIVES,
COMMITTEE ON FOREIGN AFFAIRS,
SUBCOMMITTEE ON STATE DEPARTMENT
ORGANIZATION AND FOREIGN OPERATIONS,
Washington, D.C.
The subcommittee met at 10:40 a.m., in room G-3, U.S. Capitol,
Hon, Wayne L. Hays (chairman of the subcommittee) presiding.
1 MT. HAYS. We will come to order;
In 1946 Congress passed the Foreign Service Act?a comprehensive
measure that retained the meritorious features of the patchwork of
laws upon which the Service rested and that added new provisions.
The principles embodied in that act attempted to? make the Service
a professional service, disciplined and mobile, serving without political
influence, and adequately compensated. It gave the Foreign Service
the stature it deserved and made it a more attractive career for young _
Americans.
In 1955, as a result of the accelerated lateral entry program recom-
mended bY the Wriston committee, this committee examined in some
detail the operations of the Service and supported legislation to
facilitate the integration program. Again in 1956 this committee _
was instrumental in revising the Foreign Service officer schedule. In
both of those years the committee and the Congress authorized
"fringe benefits" in the form of educational allowances, the operation
of commissaries' increased medical benefits, and recreation facilities.
The bill that we now have before the subcommittee is another
measure designed to improve the overall administration of the Foreign
Service. This is a long bill. . But as I look over the sections, it
would appear that - the principal changes the Department is recom-
mending concern the Foreign Service staff, personnel administration,
and the retirement-system provisions.
I_ Neither the subcommittee nor the full committee can be expected
to support these changes without full justification. We will have to
have detailed information so that, when we go to the floor, we can
explain the measure fully and answer the many questions that will
be directed to us.
I hope the Department will give us an explanation, section by sec-
tion, of what it is proposing and why it believes the changes are
necessary. I appreciate, Mr. Henderson, that some of the statistical
information we may ask for may not be immediately available but
I hope that you and your associates will supply it to us as soon as
possible.
I think it would be desirable at this time to make the bill a part
of the record, and I shall ask that it be printed at this point in the
hearings. If the Department has an analysis of the proposed changes,
that can also be printed at this point.
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(The text of S. 2633, as passed by the Senate, is as follows:)
[S. 21133, 86th Cong., 1st seas.]
AN ACT To amend the Foreign Service Act of 1946, as amended, and for other purposes ,
Be it enacted by the Senate and House of Representatives of the United States of
America in Congress assembled, That this Act may be cited as the "Foreign Service
Act Amendments of 1959". , .
SEC. 2. Section 415 of the Foreign Service Act of 1946, as amended, is amended
to read as follows:
"Sac. 415. (a) There shall be ten classes of Foreign Service staff officers and
employees, referred to hereafter as staff officers and employees. The per annum
salaries of staff officers and employees within each class shall be as follows:
"Class 1
$11, 660
$11, 990
$12, 320
$12, 650
$12, 980
$13, 310
$13, 640
"Class 2
9. 900
10, 175
10,450
10, 725
11,000
11,275
11, 550
"Class 3
8, 140
8,415
8,690
8, 965
9,240
9.815
9, 790
"Class 4
7, 000
7,228
7,450
7, 675
7, 900
8, 125
8, 350
"Class 5
6, 150
6, 350
6,580
6, 750
6, 950
7, 150
7,350
"Class 6
5,300
5, 500
5, 700
5, 900
6, 100
6, 300
6, 500
"Class 7
4,650
4,800
4, 950
5, 100
5,250
5, 400
5,550
"Class 8
4,200
4,350
4. 600
4,650
4,809
4,950
5,100
"Class 9
3, 750
3,900
4, 050
4,200
4,350
4, 500
4. 650
"Class 10
3,500
3,600
3,700
3,800
3,900
4,000
4,100
"(b) Notwithstanding the provisions of paragraph (a) of this section, the Secre-
tary may, under such regulations as he may prescribe, fix the salary at lesser rates
than those prescribed by this section for the applicable class of staff officers or
employees who are recruited abroad and who are not available or are not qualified
for transfer to another post."
SEC. 3. Section 416 of such Act is amended to read as follows:
"SEC. 416. (a) A person appointed as a staff officer or employee shall receive
basic salary at one of the rates of the class to which he is appointed which the
Secretary shall, taking into account his qualifications and experience and the
needs of the Service, determine to be appropriate for him to receive.
"(b) Whenever the Secretary determines that the needs of the Service warrant
the appointment of staff officers or employees in a particular occupational group
uniformly at a rate above the minimum rate of the applicable class, he may adjust
the basic salary of any staff officer or employee in the same class and occupational
group who is receiving less than such established rate."
SEC. 4. Section 417 of such Act is amended by striking out "(b)" in the first
sentence.
SEC. 5. Section 431 of such Act is amended by striking out in the first sentence
of paragraph (a) the phrase "the termination of time spent on authorized leave,
whichever shall be later," and inserting in lieu thereof the phrase "upon termina-
tion of his service in accordance with the provisions of paragraph (b) of this
section,"; and by amending paragraph (b) of this section to read as follows:
"(b) The official services of a chief of mission shall not be deemed terminated
by the appointment of a successor but shall continue until he has relinquished
charge of the mission and for such additional period as may be determined by
the Secretary, but in no case shall such additional period exceed fifty days, includ-
ing time spent in transit. During such period the Secretary may require him to
render such services as he may deem necessary in the interests of the Government."
SEC. 6. Section 441 of such Act and the heading to such section are amended to
read as follows:
"CLASSIFICATION OF POSITIONS IN THE FOREIGN SERVICE AND IN
THE DEPARTMENT
"Sac. 441. (a) Under such regulations as he may prescribe, and in order to
facilitate effective management, the Secretary shall classify all positions in the
Service at posts abroad, excluding positions to be occupied by chiefs of mission,
and in the case of those occupied by Foreign Service officers, Reserve officers,
and staff officers and employees, he shall establish such positions in relation to the
classes established by sections 412, 414, and 415, respectively. Positions occupied
by alien employees and consular agents, respectively, shall be allocated to such
classes as the Secretary may establish by regulation.
"(b) Under such regulations as he may prescribe, the Secretary may, notwith-
standing the provisions of the Classification Act of 1949, as amended (5 U.S.C.
1071 and the following), classify positions in or under the Department which he.
designates as Foreign Service Officer positions to be occupied by officers and ern-
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ployees of the Service, and establish such positions in relation to the classes estab-
lished by sections 412, 414, and 415."
'gape SEc. 7. Section 444 of such Act and the heading to such section are amended to
read as follows:
"COMPENSATION PLANS FOR ALIEN EMPLOYEES
"SEc. 444. (a) The Secretary shall, in accordance with such regulations as he
may prescribe, establish compensation plans for alien employees of the Service
Provided, That such compensation plans shall be based upon prevailing wage rates
and compensation practices for corresponding types of positions in the locality, to
the extent consistent with the public interest.
"(b) For the purpose of performing functions abroad, other Government
agencies are authorized to administer alien employee programs in accordance with
the applicable provisions of this Act."
SEC. 8. Section 446 of such Act and the heading to such section are amended to
read as follows:
"ADMINISTRATIVE ESTABLISHMENT OF HAZARDOUS DUTY PAY FOR CERTAIN
CATEGORIES OF OFFICERS AND EMPLOYEES
"SEc. 446. The Secretary may, under such regulations as he may prescribe,
establish rates of salary differential, not exceeding 15 per centum of basic salary,
for officers or employees of the Service while they are assigned for duty as couriers."
SEC. 9. Title V of such Act is amended by adding at the beginning thereof the
following new section:
"POLICY
"SEc. 500. It is the policy of the Congress that chiefs of mission and Foreign
Service officers appointed or assigned to serve the United States in foreign coun-
tries shall have, to the maximum practicable extent, among their qualifications,
a useful knowledge of the principal language or dialect of the country in which
they are to serve, and knowledge and understanding of the history, the culture,
the economic, and political institutions, and the interests of such country and its
people."
SEc. 10. (a) The heading to section 516 of such Act is amended to read as
follows: "ADMISSION TO CLASS 7 OR 8".
(b) Section 516 of such Act is amended by striking out "SEc. 516" and insert-
ing in lieu thereof "SEc. 516. (a)" and by adding at the end thereof a new para-
graph (b) which shall read as follows:
"(b) The Secretary may furnish the President with the names of those persons
who have passed such examinations and are eligible for appointment as Foreign
Service officers of class 8, whom he recommends for appointment directly to class
7 when in his opinion, their age, experience, or other qualifications make such an
appointment appropriate."
SEC. ii. (a) Section 517 of such Act is amended by striking out the words "A
person who has not served in class 8" which appear at the beginning of the first
sentence, and inserting in place thereof the following: "A person who has not
been appointed as a Foreign Service officer in accordance with section 516 of this
Act".
(b) Section 517 of such Act is further amended by striking out the second and
third sentences of such section.
SEC. 12. (a) The heading to section 520 of such Act is amended by striking
out the phrase "REINSTATEMENT AND RECALL" and substituting in lieu thereof
the phrase "REAPPOINTMENT, RECALL, OR REEMPLOYMENT".
(b) The first sentence of paragraph (a) of section 520 of such Act is amended
by inserting a period after the word 'Service" where it appears for the third
time, and by striking out the remainder of that sentence.
(c) Paragraph (b) of. section 520 of such Act is amended to read as follows:
"(b) The Secretary may recall any retired Foreign Service officer temporarily
to duty in the Service whenever he Aran determine such recall is in the public
interest."
(d) Section 520 of such Act is further amended by adding at the end thereof
a new paragraph (c) which shall read as follows:
"(c) Notwithstanding the provisions of title 5, United States Code, section 62,
and title 5, United States Code, section 715a, a Foreign Service officer heretofore
or hereafter retired under provisions of section 631 or 632 or a Foreign Service
Staff officer or employee hereafter retired under the provisions of section 803
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shall not, by reason of his retired status, be barred from employment in Federal
Government service in any appointive position for which he is qualified. An
annuitant so reemployed shall serve at the will of the appointing officer."
SEC. 13. Section 528 of such Act is amended by striking out in the second sen-
tence of such section the phrase "subsection (d), section 7, of the Classification
Act of 1923" and substituting in lieu thereof the phrase "the Classification Act of
1949".
SEC. 14. Section 531 of such Act is amended to read as follows:
"Sac. 531. The Secretary may, under such regulations as he may prescribe,
appoint staff officers and employees on the basis of qualifications and experience.
The Secretary may make provisions for temporary, limited, and such other types
of appointment as he may deem necessary. He is authorized to establish ap-
propriate probationary periods during which newly appointed staff officers or
employees, other than those appointed for temporary or limitcd services shall
be required to serve. The Secretary may terminate at any time, without regard
to the provisions of section 637, or the provisions of any other law, staff officers or
employees appointed for temporary or limited service and staff officers or em-
ployees who have not completed probationary periods, except that if such separa-
tion is by reason of misconduct the provisions of section 637 shall be applicable."
SEC. 15. Section 532 of such Act is amended to read as follows:
"SEC. 532. Under such regulations as he may prescribe, the Secretary may
assign a staff officer or employee to any post ix he may assign him to serve in any
position in which he is eligible to serve under the terms of this or any other Act.
A staff officer or employee may be transferred from one post to another by order
of the Secretary as the interests of the Service may require."
SEC. 16. (a) Section 571 of such Act is amended by striking out paragraphs
(a), (b), (c), and (d), and the heading to such section, and inserting in lieu thereof
the following:
"ASSIGNMENTS TO ANY GOVERNMENT AGENCY OR
INTE.RNATIONAL ORGANIZATION
"SEC. 571. (a) Any officer or employee of the Service may, in the discretion of
the Secretary, be assigned or detailed for duty in any Government agency, or in
any international organization, international commission, or international body,
such an assignment or combination of assignments to be for a period of not more
than four years, except that under special circumstances the Secretary may extend
this four-year period for not more than four additional years.
"(3) If a Foreign Service officer shall be appointed by the President, by and
with the advice and consent of the Senate, or by the President alone to a position
in any Government agency, any United States delegation or mission to any inter-
national organization, in any international commission, or in any international
body, the period of his service in such capacity shall be construed as constituting
an assignment within the meaning of paragraph (a) of this section and such person
shall not, by virtue of the acceptance of such an assignment, lose his status as a
Foreign Service officer. Service in such a position shall not, however, be subject
to the limitations concerning the duration of an assignment contained in that
paragraph.
"(c) If the basic minimum salary of the position to which an officer or employee
of the Service is assigned pursuant to the terms of this section is higher than the
salary such officer or employee is entitled to receive as an officer or employee of
the Service, such officer or employee shall, during the period such difference in
salary exists, receive the salary and allowances of the position in which he is serv-
ing in lieu of his salary and allowances as an officer or employee of the Service.
Any salary paid under the provisions of this section shall be the salary on the basis
of which computations and payments shall be made in accordance with the provi-
sions of title VIII. No officer or employee of the Service who, subsequent to the
effective date of the Foreign Service Act Amendments of 1959, is assigned to, or
who, after June 30, 1960, occupies a position in the Department that is designated
as a Foreign Service Officer position, shall be entitled to receive a salary differential
under the provisions of this paragraph."
(b) Paragraph (e) of section 571 of such Act is amended by striking the phrase
"with heads of Government agencies" where it appears in the second sentence and
by redesignating the paragraph as
(c) Section 571 of such Act is amended by adding at the end of such section a
new paragraph (e) which shall read as follows:
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AMENDMENTS TO THE FOREIGN SERVICE ACT 5
"(e) Any Foreign Service officer or employee assigned to duty in the continental
United States between assignments abroad, and any Foreign Service officer of
class 7 or 8 assigned to duty in the continental United States prior to assignment
abroad shall receive, during the course of such period of assignment, a differential
applied to basic salary of 8 per centum if without dependents, 11 per centum if
with one to three dependents, and 13 per centum if with more than three depend-
ents to assiscin defraying the cost of quarters."
SEC. 17. Section 575 of such Act is amended by striking out all after the word
"accordance" and inserting in lieu thereof the phrase 'with the appropriate
provisions of titles III and IX of Public Law 402, Eightieth Congress (62 Stat. 7
and 13; 22 U.S.C. 1451-1453, 1478 and 1479)."
SEC. 18. Title V of such Act is further amended by adding at the end thereof
the following new section:
"FOREIGN LANGUAGE KNOWLEDGE PREREQUISITE TO ASSIGNMENT
"Sac. 578. The Secretary shall designate every Foreign Service Officer position
in a foreign country whose incumbent should have a useful knowledge of a language
or dialect common to such country. After December 31, 1963, each position so
designated shall be filled only by an incumbent having such knowledge: Provided,
That the Secretary or Deputy Under Secretary for Administration may make
exceptions to this requirement for individuals or when special or emergency
conditions exist. The Secretary shall establish foreign language standards for
assignment abroad of officers and employees of the Service and shall arrange for
appropriate language training of such officers and employees at the Foreign
Service Institute or elsewhere."
Sac. 19. Section 625 of such Act and the heading of such section are amended
to read as follows:
"WITHIN-CLASS SALARY INCREASES OF FOREIGN SERVICE OFFICERS AND RESERVE
OFFICERS
"Sac. 625. Any Foreign Service officer or any Reserve officer, whose services
meet the standards required for the efficient conduct of the work of the Service
and who shall have been in a given class for a continuous period of nine months or
more, shall, on the first day of each fiscal year, receive an increase in salary to the
next higher rate for the class in which he is serving. Without regard to any other
law, the Secretary is authorized to grant to any such officer additional increases in
salary, within the salary range established for the class in which he is serving,
based upon especially meritorious service."
Sac. 20. Title VI of such Act is amended by inserting after section 625 the
following new section and the heading thereto:
"RELATIONSHIP BETWEEN PROMOTIONS AND FUNCTIONAL AND GEOGRAPHIC AREA
SPECIALIZATION
"Sac. 626. The achievement of the objectives of this Act requires increasing
numbers of Foreign Service officers to acquire functional and geographic area
specializations and to pursue such specializations for a substantial part of their
careers. Such specialization shall not in any way inhibit or prejudice the orderly
advancement through class 1 of any such officer in the Foreign Service."
SEC. 21. The heading "PART D?SEPARATION OF FOREIGN SERVICE OFFICERS
FROM THE SERVICE" under title VI of such Act is amended to read as follows:
"PART D?SEPARATION OF OFFICERS AND EMPLOYEES FROM THE SERVICE'",
Sac. 22. Section 631 of such Act and the heading to such section are amended
to read as follows:
"FOREIGN saavica OFFICERS WHO ARE CAREER AMBASSADORS OR CAREER
MINISTERS
"Sac. 631. Any Foreign Service officer who is a career ambassador or a career
minister, other than one occupying a position as chief of mission or any other
position to which he has been appointed by the President, by and with the
advice and consent of the Senate, shall upon reaching the age of sixty-five, be
retired from the Service and receive retirement benefits in accordance with the
provisions of section 821, but whenever the Secretary shall determine it to be in
the ,,public interest, he may extend such an officer's service for a period not to
exceed five years."
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6 AMENDMENTS TO THE FOREIGN SERVICE ACT
Sc 23. Section 632 of such Act and the heading to such section are amended
to read as follows:
"FOREIGN SERVICE OFFICERS WHO ARE NOT CAREER AMBASSADORS OR CAREER
MINISTERS
"Sc. 632. Any Foreign Service officer, other than one occupying a position as
chief of mission or any other position to which he has been appointed by the
President, by and with the advice and consent of the Senate, who as not a career
ambassador or a career minister hall, upon reaching the age of sixty, be retired
from the Service and receive retirement benefits in accordance with the provisions
of section. 821, but whenever the Secretary shall determine it to be in the public
interest, he may extend such an Officer's service for a period not to exceed five
years."
SEC. 24., Subparagraphs (1) and ,(2) of paragraph (b) of section 634 of such Act
are amended to read as follows:
"(1) one-twelfth of a year's salary at his then current salary rate for each
year of service and proportionately for a fraction of a year, but not exceeding
a total of one year's salary at his then current salary rate, payable without
? interest, from the Foreign Service Retirement and Disability Fund, in three
equal installments on the 1st day of January following the officer's retirement
and on the two anniversaries of this date immediately following: Provided,
That in special cases, the Secretary may in his discretion accelerate or com-
bine the installments; and
"(2) a refund of the contributions made to the Foreign Service Retirement
and Disability Fund, with interest as provided in section 841(a), except that
in lieu of such refund such officer, if he h s i. least five years of service credit
toward retirement under the Foreign Service Retirement and Disability
System, excluding military or naval service that is credited in accordance
with the provisions of section 851 or 852(a), may elect to receive retirement
benefits on reaching the age of sixty in accordance with the provisions of
section 821. In the event that an officer who was sepaiated from class 4 or
5 and who has elected to receive retirement benefits dies before reaching the
age of sixty, his death shall be considered a death in service within the
meaning of section 832. In the event that an officer who was separated from
class 6 or 7 and who has elected to receive retirement benefits dies before
reaching the age of sixty, the total amount of his contributions made to the
Foreign Service Retirement and Disability Fund, with interest as provided
in section 841(a), shall be paid in accordance with the provisions of section
841(b)."
Sc. 25. Section 635 of such Act and the heading to such section are amended
to read as follows:
"FOREIGN SERS ICE OFFICERS RETIRED PROM CLASS 7 OR
"SEc. 635. Any Foreign Service_ officer in class 7 who is appointed under the
provisions of section 516(b) and any Foreign Service officer in class 8 shall occupy
probationary status. The Secretary may terminate his service at any time."
SEC. 26. Section 636 of such Act is amended by striking out the phrase "Any
Foreign Service officer" and inserting in lieu thereof the phrase "Any participant
in the Foreign Service Retirement and Disability System".
SEC. 27. (a) Paragraphs (a), (b), (c), and (d) of section 637 of such Act and
the heading to such section are amended to read as follows:
"SEPARATION FOR CAUSE
"SEc. 637. (a) The Secretary may, under such regulations as he may prescriber
Separate from the Service any Foreign Service officer, Reserve officer, or staff
officer or employee, on account of the unsatisfactory performance of his duties,
or for such other cause as will promote the efficiency of the Service, with reasons
given in writing, but no such officer or employee shall be so separated until he
shall have been granted a hearing by the Board of the Foreign Service axid the
unsatisfactory performance of his duties, or other cause for separation, shall have
been established at such hearing, unless he shall have waived in writing his right
to a hearing. The provisions of this section shall not apply to Foreign Service
officers of class 8 or any other officer or employee of the Service who is in a pro-
bationary status or whose appointment is limited or temporary, except when
separation is by reason of misconduct.
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"(b) Any participant in the Foreign Service Retirement and Disability System
Separated under the provisions of paragraph (a) of this section shall receive a
refund of the contributions made to the Foreign Service Retirement and Disability
Fund, with interest, as provided in section 841(a) except that in lieu of such refund
such officer may (except in cases where the Secretary determines that separation
was based in whole or in part on the ground of disloyalty to the United States)
If he has at least five years of service credit toward retirement under this System,
excluding military or naval service that is credited in accordance with the provi-
sions of section 851 or 852(a), elect to leave his contributions in the Fund and re-
ceive an annuity, computed as prescribed in section 821 commencing at the age
of sixty years. In the event that an officer who has elected under the provisions
of this section to receive a deferred annuity dies before reaching the age of sixty,
his contributions to the Fund, with interest, shall be paid in accordance with the
provisions of sections 841 and 881.
"(c) Any officer or employee of the Service separated under the provisions of
paragraph (a) of this section who is not a participant in the Foreign Service Re-
tirement and Disability System shall be entitled only to such benefits as shall
accrue to him under the retirement system in which he is a participant.
"(d) Any payments made in accordance with the provisions of paragraph (b) of
this section shall be made out of the Foreign Service Retirement and Disability
Fund."
Sue. 28. Section 638 of such Act and the heading to such section are amended
to read as follows:
marl
"TERMINATION OF LIMITED APPOINTMENTS OF FOREION SERVICE RESERVE OFFICERS
AND STAFF OFFICERS AND EMPLOYEES
"Sue. 638. Notwithstanding the provisions of this or any other law, the Secre-
tary may, under such regulations as he may prescribe, terminate at any time the
services of any Reserve officer or staff officer or employee serving under limited
appointment, except that, if the termination is because of misconduct, the provi-
sions of section 637 shall be applicable. This section shall not modify the condi-
tions of employment of, and shall not be applicable to, staff officers who accepted
Reserve officer appointments during the period from September 1, 1958, through
December 31, 1958."
SEC. 29. Section 641 of such Act is amended to read as follows:
"Suc. 641. All promotions of staff officers and employees to a higher class shall
be made at a higher salary on the basis of performance and merit in accordance
with such regulations as the Secretary may prescribe."
SEC. 30. Section 642 of such Act and the heading thereto are amended to read
as follows:
"WITHIN CLASS AND LONGEVITY SALARY INCREASES
? "SEC. 642. (a) Under such regulations as the Secretary may prescribe, any staff
officer or employee whose services meet the standards required for the efficient
conduct of the work of the Service shall receive an increase in salary at periodic
,intervals to the next higher salary rate for the class in which he is serving. With-
out regard to any other law the Secretary is authorized to grant any such officer or
employee additional increases in salary within the salary range established for
the class in which he is serving, based upon specially meritorious service.
? "(b) Under such regulations as the Secretary may prescribe, any staff officer
or employee who has attained the maximum salary rate prescribed by section
415 for the class in which he is serving may be granted from time to time an
additional salary increase beyond the maximum salary rate for his class in recog-
nition of longevity and proficiency in the Service. Each such salary increase
shall be equal to the maximum salary rate increase of the applicable class and
no person shall receive more than four such salary increases while serving in the
same class."
SEC. 31. Section 701 of such Act is amended by adding at the end thereof the
following: "The Secretary may also provide to the extent that space is available
therefor appropriate orientation and language training to spouses of officers and
employees of the Government in anticipation of the assignment abroad of such
officers and employees. Other agencies of the Government shall wherever prac-
ticable avoid duplicating the facilities of the Institute and the training provided
by the Secretary at the Institute or elsewhere."
Sue. 32. (a) Paragraph (a) of section 704 of such Act is amended by striking
out "1923" in the two places where it appears and inserting in lieu thereof "1949".
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(b) Section 704 of such Act is amended by adding at the end of such section
new paragraphs (e) and (f) which shall read as follows:
"(e) 1 he Secretary may, under such regulations as he may prescribe, in the
absence of suitably qualified United States citizens, employ persons who are not
citizens of the United States by appointment to the staff of the Institute either
on a full- or part-time basis or by contract for services in the United States or
abroad at rates not in excess of those provied by the Classification Act of 1949,
as amended (5 U.S.C. 1071).
"(f) The Secretary may, under such regulations as he may prescribe, provide
special monetary or other incentives not inconsistent with this Act to encourage
Foreign Service personnel to acquire or retain proficiency in esoteric foreign
languages or special abilities needed in the Service."
SEC. 33. (a) Section 803(b) (2) of such Act is amended to read as follows?
"(2) have paid into the Fund a special contribution for each year of such
service in accordance with the provisions of section 852(b)."
(b) Section 803 is further amended by adding at the end thereof a new para-
graph (c) which shall read as follows:
"(c)(1) In accordance with such regulations as the President may prescribe,
any Foreign Service staff officer or employee appointed by the Secretary of State
who has completed a least ten years of continuous service in the Department's
Foreign Service, exclusive of military service, shall become a participant in the
System and shall make a special contribution to the Fund in accordance with the
provisions of section 852.
"(2) Any such officer or employee who, under the provisions of paragraph
(c) (1) of this section, becomes a participant in the System, shall be mandatorily
retired for age during the first year after the effective date of this section if he
attains age sixty-four or if he is over age sixty-four; during the second year at
age sixty-three; during the third year at age sixty-two; during the fourth year at
age sixty-one, and thereafter at age sixty.
"(3) Any officer or employee who becomes a participant under the provisions of
paragraph (c) (1) of this section, who ig age 61 or over on the effective date of this
section, and who is retired mandatorily under the provisions of paragraph (c) (2)
of this section, shall receive, in addition to retirement benefits under section 821,
one-twelfth of a year's salary at his then current rate for each year of service and
proportionately for a fraction of a year, but not exceeding a total of one year's
salary at his then current salary rate, payable without interest, from the Fund, at
the time of his retirement."
SEC. 34. Section 804 of such Act is amended to read as follows:
"SEc. 804. (a) Annuitants shall be persons who are receiving annuities from
the Fund on the effective date of this Act and all persons, including surviving
wives and husbands, widows, dependent widowers, children, and beneficiaries of
participants or annuitants who shall become entitled to receive annuities in ac-
cordance with the provisions of this Act, as amended, or in accordance with the
provisions of section 5 of the Act of May 1, 1956 (70 Stat. 125),
"(b) When used in this title the term?
.
"(1) 'Widow' means the surviving wife of a participant who was married to
such participant for at least two years immediately preceding Ids death or is the
mother of issue by such marriage.
"(2) 'Dependent widower' means the surviving husband of a participant who
was married to such participant for at least two years immediately preceding her
death or is the father of issue by such marriage, and who is incapable of self-
support by reason of mental or physical disability, and who received more than
one-half of his support from such participant.
"(3) 'Child' means an unmarried child, under the age of eighteen years or such
unmarried child regardless of age who because of physical or mental disability
incurred before age eighteen is incapable of self-support. In addition to the
offspring of the participant and his or her spouse the term includes (a) an adopted
,child, and (b) a step-child or recognized natural child who received more than
one-half of his support from the participant."
SEC. 35. Section 811 of such Act is amended to read as follows:
"SEc. 811. (a) Six and one-half per centum of the basic salary received by
each participant shall be contributed to the Fund for the payment of annuities,
cash benefits, refunds, and allowances. An equal sum shall also be contributed
from the respective appropriation or fund which is used for payment of his salary.
The amounts deducted and withheld from basic salary together with the amounts
so contributed from the appropriation or fund, shall be deposited by the Depart-
ment of State in the Treasury of the United States to the credit of the Fund.
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AMENDMENTS TO THE FOREIGN SERVICE ACT 9
"(b) Each participant shall be deemed to consent and agree to such deductions
from basic salary, and payment less such deductions shall be a full and complete
discharge and acquittance of all claims and demands whatsoever for all regular
services during the period covered by such payment, except the right to the bene-
fits to which he shall be entitled under this Act, notwithstanding any law, rule,
or regulation affecting the individual's salary."
SEC. 36. (a) Paragraphs (a), (b), and (c) of section 821 of such Act are amended
to read as follows:
"SEc. 821. (a) The annuity of a participant shall be equal to 2 per centum of
his average basic salary for the highest five consecutive years of service, for which
full contributions have been made to the Fund, multiplied by the number of years,
not exceeding thirty-five, of service credit obtained in accordance with the pro-
visions of sections 851, 852, and 853. However, the highest five years of service
for which full contributions have been made to the Fund shall be used in com-
puting the annuity of any participant who serves as chief of mission and whose
continuity of service as such is interrupted prior to retirement by appointment
or assignment to any other position determined by the Secretary to be of com-
parable importance. In determining the aggregate period of serviee upon which
?the annuity is to be based, the fractional part of a month, if any, shall not be
counted.
"(b) At the time of retirement, any married participant may elect to receive
a reduced annuity and to provide for an annuity payable to his wife or her hus-
band, commencing on the date following such participant's death and terminating
upon the death of such surviving wife or husband. The annuity payable to the
surviving wife or husband after such participant's death shall be 50 per centum
of the amount of the participant's annuity computed as prescribed in paragraph
(a) of this section, up to the full amount of such annuity specified by him as the
base for the survivor benefits. The annuity of the participant making such
election shall be reduced by 2,q per centum of any amount up to $2,400 he specifies
as the base for the survivor benefit plus 10 per centum of any amount over $2,400
so specified.
" (c)(1) If an annuitant dies and is survived by a wife or husband and by a
child or children, in addition to the annuity payable to the surviving wife or?
husband, there shall be paid to or on behalf of each child an annuity equal to the
smallest of: (i) 40 per centum of the annuitant's average salary divided by the
number of children; (ii) $600; or (iii) $1,800 divided by the number of children.
"(2) If an annuitant dies and is not survived by a wife or husband but by a
child Or children, each surviving child shall be paid an annuity equal to the smallest
of: (i) 50 per centum of the annuitant's average salary divided by the number
of children; (ii) $720; or (iii) $2,160 divided by the number of children."
(b) Section 821 of such Act is further amended by adding new paragraphs (d),
.(e), and, (f) which shall read as follows:
"(d) If a surviving wife or husband dies or the annuity of a child is terminated,
the annuities of any remaining children shall be recomputed and paid as though
such wife, husband, or child had not survived the participant.
"(e) The annuity payable to a child under paragraph (c) or (d) of this section
shall begin on the first day of the next month after the participant dies and such
annuity or any right thereto shall be terminated upon death, marriage, or attain-
ment of the age of eighteen years, except that, if a child is incapable of self-support
by reasons of mental or physical disability, 'the annuity shall be terminated only
when such child dies, marries, or recovers from such disability.
, "(f) At the time of retirement an unmarried participant may elect to receive a
reduced annuity and to provide for an annuity equal to 50 per centum of the
reduced annuity payable after his or her death to a beneficiary whose name shall
be designated in writing to the Secretary. The annuity payable to a participant
making such election shall be reduced by 10 per centum of an annuity computed
as provided in paragraph (a) of this section and by 5 per centum of an 'annuity
so computed for each full five years the person designated is younger than the
retiring participant, but such total reduction shall not exceed 40 per centum.
No such election of a reduced annuity payable to a beneficiary shall be valid until
the participant shall have satisfactorily passed a physical examination as pre-
scribed by the Secretary. The annuity payable to a beneficiary under the provi-
sions of this paragraph shall begin on the first, day, of the next 'month after the
participant dies. Upon the death of the surviving beneficiary all payments shall
cease and no further annuity payments authorized under this paragraph shall
be due or payable."
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10 AMENDMENTS TO THE FOREIGN SERVICE ACT
SEC. 37. (a) Paragraphs (a), (b), and (c) of section 831 of such Act are amended
to read as follows:
"(a) Any participant who has five years of service credit toward retirement
under the System, excluding military or naval service that is credited in accordance
with provisions of section 851 or 852(a) (2), and who becomes totally disabled or
incapacitated for useful and efficient service by reason of disease, illness, or injury
not due to vicious habits, intemperance, or willful misconduct on his part, shall,
upon his own application or upon order of the Secretary, be retired on an annuity
computed as prescribed in section 821. If the disabled or incapacitated participant
has less than twenty years of service credit toward his retirement under the
System at the time he is retired, his annuity shall be computed on the assumption
that he has had twenty years of service, but the additional service credit that may
accrue to a participant under this provision shall in no case exceed the difference
between his age at the time of retirement and the mandatory retirement age
applicable to his class in the Service,
"(b) In each case, the participant shall be given a physical examination by one
or more duly qualified physicians or surgeons designated by the Secretary to con-
duct examinations, and disability shall be determined by the Secretary on the basis
?of the advice of such physicians or surgeons. -Unless the disability is permanent,
like examinations shall be made annually until the annuitant has reached the
.statutory mandatory retirement age for his class in the Service. If the Secretary
determines, on the basis of the advice of one or more duly qualified physicians or
surgeons conducting such examinations that an annuitant has recovered to the
extent that he can return to duty, the annuitant may apply for reinstatement or
reappointment in the Service within one year from the date his recovery is de-
termined. Upon application the Secretary shall reinstate any such recovered
disability annuitant in the class in which he was serving at time of retirement, or
the Secretary may, taking into consideration the age, qualifications, and experience
of such annuitant, and the present class of his contemporaries in the Service, ap-
point him or, in the case of an annuitant who is a former Foreign Service Officer,
recommend that the President appoint him, by and with the advice and consent
of the Senate, to a class higher than the one in which he was serving prior to retire-
ment. Payment of the annuity shall continue until a date six months after the
date of the examination showing recovery or until the date of reinstatement or
reappointment in the Service, whichever is earlier. Fees for examinations under-
this provision, together with reasonable traveling and other expenses incurred in
order to submit to examination, shall be paid out of the Fund. If the annuitant
fails to submit to examination as required under this section, payment of the
annuity shall be suspended until continuance of the disability is satisfactorily
established.
"(c) If a recovered disability annuitant whose annuity is discontinued is for
any reason not reinstated or reappointed in the Service, he shall be considered to
have been separated within the meaning of section 834 as of the date he was
retired for disability and he shall, after the discontinuance of the disability
annuity, be entitled to the benefits of that section or of section 841(a) except that
he may elect voluntary retirement in accordance with the provisions of section
636 if he can qualify under its provisions."
(b) Section 831 of such Act is further amended by adding new paragraphs
(d) and (e) which shall read as follows: ' '
`(d) No participant shall be entitled to receive an annuity under this Act
and compensation for injury or disability to himself under the Federal Employees'
Compensation Act of September 7, 1916, as amended, covering the same period of
time. This provision shall not bar the right of any claimant to the greater benefit
conferred by either Act for any part of the same period of time. Neither this
provision nor any provision of the Act of September 7, 1916, as amended, shall be
so construed as to deny the right of any person to receive an annuity under this
Act by reason of his own services and to receive concurrently any payment
under such Act of September 7, 1916, as amended, by reason of the death of any
other Person.
"(e) Notwithstanding any provision of law to the contrary, the right of any
person entitled to an annuity under this Act shall not be affected because such
person has received an award of compensation in a lump sum under section 14
of the Act of September 7, 1'916, as amended, except that where such annuity is
payable on account of the same disability for which compensation under such
section has been paid, so much of such compensation as has been paid for any
period extended beyond the date such annuity becomes effective, as determined
by the Secretary of Labor, shall be refunded to the Department of Labor, to be
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paid into the Federal Employees' Compensation Fund. Before such person shall
receive such annuity he shall (1) refund to the Department of Labor the amount
representing such computed payments for such extended period, or (2) authorize
the deduction of such amount from the annuity payable to him under this Act,
which amount shall be transmitted to such Department for reimbursement to such
Fund. Deductions from such annuity may be made from accrued and accruing
payments, or may be prorated against and paid from accruing payments in such
manner as the Secretary of Labor shall determine, whenever he finds that the
financial circumstances of the annuitant are such as to warrant such deferred
refunding."
SEC, 38. Section 832 of such Act is amended to read as follows:
"Sac. 832. (a) In case a participant dies and no claim for annuity is payable
under the provisions of this Act, his contributions to the Fund, with interest at
the rates prescribed in sections 841(a) and 881(a), shall be paid ifl the order of
precedence shown in section 841 (b) .
"(b) If a participant who has at least five years of service credit toward retire-
ment under the System, excluding military or naval service that is credited in
accordance with the provisions of section 851 or 852(a) (2), dies before separation
or retirement from the Service and is survived by a widow or a dependent widower,
as defined in section 804, such widow or dependent widower shall be entitled to
an annuity equal to 50 per centum of the annuity computed in accordance with the
provisions of paragraph (e) of this section and of section 821(a). The annuity of
such widow or dependent widower shall commence on the date following death of
the participant and shall terminate upon death of the widow or dependent wid-
ower, or upon the dependent widower's becoming capable of self-support.
"(e) If a participant who has at least five years of service credit toward retire-
ment under the System, excluding military or naval service that is credited in
accordance with the provisions of section 851 or 852(a) (2), dies before separation
or retirement from the Service and is survived by a wife or a husband and a child
or children, each surviving child shall be entitled to an annuity computed in
accordance with the provisions of section 821(c) (1) . The child's annuity shall
begin and be terminated in accordance with the provisions of section 821(e).
Upon the death of the surviving wife or husband or termination of the annuity of
a child, the annuities of any remaining children shall be recomputed and paid as
though.such wife or husband or child had not survived the participant.
"(d) If a participant who has at least five years of service credit toward retire-
ment under the System, excluding military or naVal service that is credited in
accordance with the provisions of section 851 or 852(a) (2), dies before separation
or retirement from the Service and is not survived by a vtrife or husband, but by
a child or children, each surviving child shall be entitled to an annuity computed
in accordance with the provisions of section 821(c) (2). The child's annuity shall
begin and ,terminate in accordance With the provisions of section 821(0). Upon
termination of the annuity of a child, the annuities of any remaining children
shall he recomputed and paid as though that child had never been entitled to the
benefit.
"(e) If, at the time of his or her, death, the participant had less than twenty
years of service credit toward retirement under the System, the annuities payable
in accordance with paragraph (b) of this section shall be computed in accordance
with the provisions of section 821 on the assumption he or she has had twenty
years of service, but the additional service credit that may accrue to a deceased
participant under this provision shall in no case exceed the difference between his
or her age on the date of death and the mandatory retirement age applicable to
his of her class in the Service. In 41.11 cases arising under paragraphs (b), (c),
(d), or (e) of this section, it shall be assumed that the deceased participant was
qualified for retirement on the date of his death."
SEC. 39. A new section 834 is hereby added to such Act as follows:
"DISCONTINUED SERVICE RETIREMENT
"SEC. 834. (a) Any participant who voluntarily separates from the Service
after obtaining at least five years of service credit toward retirement under the
System, excluding military or naval service that is credited in accordance with the
provisions of section 851 or 852(a)(2), may, upon separation from the Service or
at any time prior to becoming eligible for an annuity, elect to have his contribu-
tions to the Fund returned to him in accordance with the provisions of section 841,
or to leave his contributions in the Fund and receive an annuity, computed as
prescribed in section 821, commencing at the age of sixty years.
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"(b) If a participant who has qualified in accordance with the provisions of
paragraph (a) of this section to receive a deferred annuity commencing at the age 001*
of sixty dies before reaching the age of sixty his contributions to the Fund, with
interest, shall be paid in accordance with the provisions of sections 841 and 881."
SEc. 40. Section 841 of such Act is amended to read as follows:
SEc. 841. (a) Whenever a participant becomes separated from the Service
without becoming eligible for an annuity or a deferred annuity in accordance
with the provisions of this Act, the total amount of contributions from his salary
with interest thereon at 4 per centum per annum, compounded annually at the end
of each fiscal year through June 30, 1959; semiannually as of December 31, 1959;
annually thereafter as of December 31, and proportionately for the period served
during the year of separation including all contributions made during or for such
period, except as provided in section 881, shall be returned to him.
"(b) In the event that the total contributions of a retired participant, other
than voluntary contributions made in accordance with the provisions of section
881, with interest at 4 per centum per annum compounded annually as is pro-
vided in paragraph (a) of this section added thereto, exceed the total amount
returned to such participant or to an annuitant claiming through him, in the form
of annuities, accumulated at the same rate of interest up to the date the annuity
payments cease under the terms of the annuity, the excess of the accumulated
contributions over the accumulated annuity payments shall be paid in the follow-
ing order of precedence, upon the establishment of a valid claim therefor, and
such payment shall be a ban to recovery by any other person:
"(1) To the beneficiary or beneficiaries designated by the retired participant
In writing to the Secretary;
"(2) If there be no such beneficiary, to the surviving wife or husband of such
participant;
"(3) If none of the above, to the child or children of such participant and
descendants of deceased children by representation;
"(4) If none of the above, to the parents of such participant or the survivor
of them;
"(5) If none of the above, to the duly appointed executor or administrator of
the estate of such participant;
"(6) If none of the above, to other next of kin of such participant as may be
determined by the Secretary in his judgment to be legally entitled thereto.
"(c) No payment shall he made pursuant to paragraph (b) (6) of this section
until after the expiration of thirty days from the death of the retired participant
or his surviving annuitant."
SEC. 41. Section 851 of such Act is amended to read as follows:
"SEc. 851. For the purposes of this title, the period of service of a participant
shall be computed from the effective date of appointment as a Foreign Service
officer, or, if appointed prior to July 1, 1924, as an officer or employee of the Diplo-
matic or Consular Service of the United States, or from the date he becomes a
participant under the provisions of this Act, as amended, but all periods of sepa-
ration from the Service and so much of any leaves of absence without pay as may
exceed six months in the aggregate in any calendar year shall be excluded, except
leaves of absence while receiving benefits under the Federal Employees' Compen-
sation Act of September 7, 1916, as amended, and leaves of absence granted
participants while performing active and honorable military or naval service in
the Army, Navy, Air Force, Marine Corps, or Coast Guard of the United States."
SEC. 42. (a) Paragraphs (a), (b), and (c) of section 852 of such Act are amended
to read as follows:
"(a) A participant may, subject to the provisions of this section, include in his
period of service?
"(1) civilian service in the executive, judicial, and legislative branches of
the Federal Government and in the District of Columbia government, prior
to becoming a participant; and
"(2) active and honorable military or naval service in the Army, Navy,
Marine Corps, Air Force, or Coast Guard of the United States.
"(b) A person may obtain prior civilian service credit in accordance with the
provisions of paragraph (a) (1) of this section by making a special contribution to
the Fund equal to 5 per centum of his basic annual salary for each year of service
for which credit is sought subsequent to July 1, 1924, and prior to the effective
date of the Foreign Service Act Amendments of 1959, and at 61/2 per centum
thereafter with interest compounded annually at 4 per centum per annum to the,
date of payment. Any such person may, under such conditions as may be deter-
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AMENDMENTS TO THE FOREIGN SERVICE ACT 13
mined in each instance by the Secretary, pay such special contributions in
installments.
"(c) (1) If an officer or employee under some other Government retirement sys-
tem, becomes a participant in the System by direct transfer, such officer or em-
ployee's total contributions and deposits, including interest accrued thereon,
except voluntary contributions, shall be transferred to the Fund effective as of
the date such officer or employee becomes a participant in the System. Each
such officer or employee shall be deemed to consdnt to the transfer of such funds
and such transfer shall be a complete discharge and acquittance of all claims and
demands against the other Government retirement fund on account of service
rendered prior to becoming a participant in the System.
"(2) No officer or employee, whose contributions are transferred to the Fund
in accordance with the provisions of paragraph (c) (1) of this section, shall be
required to make contributions in addition to those transferred, for periods of
service for which full contributions were made to the other Government retire-
ment fund, nor shall any refund be made to any such officer or employee on
account of contributions made during any period to the other Government retire-
ment fund, at a higher rate than that fixed by section 811 of this Act for contribu-
tions to the Fund:
"(3) No officer or employee, whose contributions are transferred to the Fund in
accordance with the provisions of paragraph (c) (1) of this section, shall receive
credit for periods of service subsequent to July 1, 1924, for which a refund of
contributions has been made, or for which no contributions were made to the
other Government retirement fund. A participant may, however, obtain credit
for such prior service by making a special contribution to the Fund in accordance
with the provisions of paragraph (b) of this section."
(b) Section 852 of such Act is further amended by adding at the end thereof
new paragraphs (d) and (e) which shall read as follows:
"(c1) No participant may obtain prior civilian service credit toward retirement
under the System for any period of civilian service on the basis of which he is
receiving or will in the future be entitled to receive any annuity under another
retirement system covering civilian personnel of the Government.
? "(e) A participant may obtain prior military or naval service credit in accord-
ance with the provisions of paragraph (a) (2) of this section by applying for it to
the Secretary prior to retirement or separation from the Service. However, in
the cage of a participant who is eligible for and receives retired pay on account
of military or naval service, the period of service upon which such retired pay
is based shall not be included, except that in the case of a participant who is-
eligible for and receives retired pay on account of a service-connected disability
incurred in combat with an enemy of the United States or caused by an instru-
mentality of war and incurred in line of duty during an enlistment or employment
as provided in Veterans Regulation Numbered 1(a), part I, paragraph I, or is,
awarded under chapter 67 of title 10 of the United States Code, the period of
such military or? naval service shall be included. No contributions to the Fund
shall be required in connection with military or naval service credited to a partici-
pant in accordance with the provisions a paragraph (a) (2) of this section.'
Sue. 43. Such Act is amended by adding after section 854 a new section, as
follows:
"RECOMPTJTATION OF ANNUITIES OF CERTAIN FORMER PARTICIPANTS
"SEC. 855. The annuity of each former participant under the System, who,
retired prior to July 28, 1956, and who at the time of his retirement had creditable
service in excess of thirty years, shall be recomputed on the basis of actual years.
of creditable service not in excess of thirty-five years. Service which was not
creditable under the System on the date a former participant retired, shall not
be included as creditable service for the purpose of this recoinputation. The
annuities payable to such persons shall, when recomputed, be paid at the rates
so determined, but no such recomputation or any other action taken pursuant
to this section shall operate to reduce the rate of the annuity any such person is
entitled to receive under the System."
SEC. 44. The heading "PART H?OFFICERS REINSTATED IN THE SERVICE".
under title VIII of such Act is amended to read as follows: "PART II-ANNUITANTS.
RECALLED, REINSTATED OR REAPPOINTED IN THE SERVICE OR REEMPLOYED IN
THE GOVERNMENT".
SEC. 45. Section 871 of such Act is amended and a heading is added thereto as
follows:
50864-60 2
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14 AMENDMENTS TO THE FOREIGN SERVICE ACT
"RECALL
"SEC. 871. Any annuitant recalled to duty in the Service in accordance with
the provisions of section 520(b) or reinstated or reappointed in accordance with
the provisions of section 831(b) shall, while so serving, be entitled in lieu of his
annuity to the full salary of the class in which he is serving. During such service,
he shall make contributions to the Fund in accordance with the provisions of
section 811. The amount of his annuity when he reverts to his retired status
shall be recomputed in accordance with the provisions of section 821."
SEC. 46. A new section 872 is hereby added to such Act as follows:
"REEMPLOYMENT
"Sc. 872. (a) Notwithstanding any other provision of law, any officer or
employee of the Service, who has retired under this Act, as amended, and is
receiving an annuity pursuant thereto, and who is reemployed in the Federal
Government service in any appointive position either on a part-time or full-time
basis, shall be entitled to receive the salary of the position in which he is serving
plus so much of his annuity payable under this Act, as amended, which when
combined with such salary does not exceed during any calendar year the highest
basic salary such officer or employee was entitled to receive under sections 412
or 415 of the Act, as amended, on the date of his retirement from the Service.
Any such reemployed officer or employee who receives salary during any calendar
year in excess of the maximum amount which he may be entitled to receive under
this paragraph shall be entitled to such salary in lieu of benefi ts hereunder.
"(b) When any such retired officer or employee of the Service is reemployed,
the employer shall send a notice to the Department of State of such reemployment
together with all pertinent information relating thereto and shall cause to be
paid, by transfer or otherwise, to the Department of State funds necessary to
c over gross salary, employer contributions, and gross lump sum leave payment
relating to the employment of the reemployed officer or employee. The Depart-
ment of State shall make to and on behalf of the reemployed officer or employee
payments to which he is entitled under the provisions of paragraph (a) of this
section, and shall make those withholdings and deductions authorized and
required by law.
"(c) In the event of any overpayment under this section the Secretary of State
is authorized to withhold the amount of such overpayment from the salary payable
to such reemployed officer or employee or from his annuity."
SEC. 47. (a) So much of paragraph (a) of section 881 of such Act as precedes
subparagraph (1) thereof is amended to read as follows:
"(a) Any participant may, at his option and under such regulations as may be
prescribed by the President, deposit additional sums in multiples of 1 per centum
of his basic salary, but not in excess of 10 per centum of such salary, which amounts
together with interest at 3 per centum per annum, compounded annually at the
end of each fiscal year through June 30, 1959; semiannually as of December 31,
1959; annually thereafter as of December 31, and proportionately for the period
served during the year of his retirement, including all contributions made during
or for such period, shall, at the date of his retirement and at his election, be--"
(b) Paragraph (c) of section 881 of such Act is amended by deleting the word
"annually" and inserting in lieu thereof the phrase "as is provided in paragraph
(a) of this section", and by changing the words "withdrawal from active service"
at the end of such paragraph to "separation from. the Service".
Sc. 48. Section 912 of such Act is amended by changing the heading thereto
to read "LOAN OF HOUSEHOLD FURNISHINGS AND EQUIPMENT" and by inserting
between the words "with household" theY word "basic" and by inserting between
the words "household equipment" the phrase "furnishings and".
SEC. 49, Section 913 of such Act and the heading thereto is amended to read
as fellows:
"TaANsroarATiori OF MOTOR VEHICLES
"SEC. 913. The Secretary may, notwithstanding the provisions of any other
law, transport for or on behalf of an officer or employee of the Service, a privately'
owned motor vehicle or replacement thereof in any case where he shall determine
that water, rail, or air transportation of the motor vehicle or replacement thereof
is necessary or expedient for any part or of all the distance between points of
origin and destination."
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SEC. 50. (a) Section 1021 of such Act is amended by inserting the phrase "the
Department including" immediately prior to the phrase "the Service" wherever
it appears in this section.
(b) Section 1021(a) is further amended by striking out the phrase "if recom-
mended by the Director General" and inserting in lieu thereof the phrase "at the
discretion of the Secretary".
SEC. 51. Foreign Service Staff officers and employees receiving basic salary
immediately prior to the effective date of this Act at one of the rates provided by.
section 415 of the Foreign Service Act of 1946, as amended, shall be transferred
to the new classes established by section 415 of such Act, as amended, and shall
receive basic salary on and after the effective date of this Act, as follows:
New'
Present class and salary rate of sec. 415 of the
Foreign Service Act of 1946, as amended (1958)
Corresponding new class and salary rate of
sec. 415 of the Foreign Service Act of 1946,
as amended by this act
Amount of
adjust-
ments
Class
Step
Rate
Class
Step
Rate
FSS-1
5
$13, 160
FSS-1
6
$13, 310
$150
4
12,830
6
12,980
150
3
12,480
4
12,650
170
2
12,120
3
12,320
200
11,770
2
11,990
220
FSS-2
5
12,120
FSS-1
3
12,320
200
4
11,770
2
-
11,990
220
3
11, 485
FSS-2
7
11, 650
65
2
11,205
6
11,275
70
1
10,920
5
11,000
80
FSS-3
5
11, 165
FSS-2
6
11,276
110
4
10,885
5
11,000
115
3
10, 600
4
10,725
125
2
10,320
3
10,450
130
1
10,030
2
10,175
146
F55-4
5
10,230
F55-2
3
10,460
220
4
9,945
2
10,175
230
3
9,665
P55-3
7
9,790
125
2
9,380
6
9,115
135
1
9,095
5
9,240
145
FSS-5
6
9, 600
FSS-3
7
9790
190
5
-93l5
' -
6
9,515
200
4
9,039
5
9,240
210
3
8, 81$
4
8,955
150
2
8,810
3
8,690
80
1
, 8,395
2
8,415
20
F95-6
6
8,755
FSS-3
4
8, 965
210
5
8,540
3
8,690
150
4
8, 325
P55-4
7
8, 350
25
3
8,120'
6
8,125
5
2
7005
6
8, 125
220
1
7,690
5
7,900
210
FSS-76
8,050
FSS-4
6
8125
75
5
7, 840
5
7, 900
60
4
7,630
4
7,675
45
3
7,415
3
7,450
35
2
7,200
2
7, 225
25
1
6,990
1
7,020
10
F50-8.-
6
7, 350
FS S-5
7
7, 350
5
7, 140
6
7, 150
10
4
6,025
5
6,950
25
3
6,710
4
6,750
40
2
, 8495
3
0,650
55
1
6285
2
6350
65
F08-9
6
6, 650
FSS-5
4
6,750100
5
? 6,435
FSS-6..
7
6, 500
65
4
? 6,220
? ?
6
8,300
80
3
9, 005 .
,
5
6,100
95
2
5,795
45,900
105
1
5. 585
a
5. 700
115
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Present class and salary rate of sec. 415 of the
Foreign Service Act of 1946, as amended (1958)
Corresponding new class and salary rate of
see. 415 of the Foreign Service Act of 1946,
as amended by this act
Amount of
adjust-
ments
Class
Step
Rate
Class
Step
Rate
FSS-10
7
$6175
FSS-6
- _co.-1 ?t .Cn-.1 ao,c
$6,300
$125
6
5,970
6,100
130
5
5,755
5,900
145
4
5,540
F88-7
5,550
10
3
5,400
5,400
2
5,260
5,400
140
1
5,115
5,250
135
F88-11
7
S,500
FSS-7
5,550
50
6
5,355
5,400
45
5
5,215
5,250
35
4
5,070
5,100
30
3
4,930
4,950
20
2
4,790
4,800
10
1
4,650
4,614)
F88-12
7
5,025
F56-8
5,100
75
6
4,890
4,950
60
5
4,745
4,800
55
4
4,605
4,650
45
3
4,460
4,500
40
2
4,320
4,350
30
1
4,180
4,200
20
F88-13
7
4,580
FSS-9
4,650
70
6
4,440
4,500
60
5
4,295
4,350
55
4
4,155
4,200
45
3
4,010
4,050
40
2
3,870
3,000
30
1
3,730
3,750
20
F80-14
7
4,155
F88-9
4,260
45
6
4,010
F88-10
7
4,100
90
5
3,870
5
3,900
30
4
3,730
4
3,800
70
3
3,585
2
3,600
15
2
3,445
1
3,500
55
1
3,300
1
3,500
200
FSS-1,5
All step
rates
F88-10
1
3,500
5
and below.
SEC. 52. Section 11 of Public Law 885, Eighty-fourth Congress (70 Stat. 890),
is hereby amended by inserting after the phrase "Government-owned vehicles"
the phrase "or taxicabs" and by inserting after the phrase "public transportation
facilities" the phrase "other than taxicabs".
SEC. 53. (a) Paragraph (4) of section 104(a) of the Internal Revenue Code of
1954 (26 U.S.C. 104(a) (4) (relating to the exclusion from gross income of com-
pensation for injuries and sickness) is hereby amended to read as follows:
"(4) amounts received as a pension, annuity, or similar allowance for
per sonal injuries or sickness resulting from active service in the armed
forces of any country or in the Coast and Geodetic Survey or the Public
Health Service, or as a disability annuity payable under the provisions of
section 831 of the Foreign Service Act of 1946, as amended (22 U.S.C. 1081;
60 Stat. 1021)."
(b) (1) Section 402(a) of the Internal Revenue Code of 1954 (relating to the
taxability of a beneficiary of an employee's trust) is hereby amended as follows:
(a) By striking out in the first sentence of paragraph (1) thereof "paragraph (2)"
and inserting in lieu thereof "paragraphs (2) and (3)", and
(b) By redesignating paragraph (3) thereof as paragraph (4) and by inserting
after paragraph (2) thereof the following new paragraph:
"(3) The amount includible under this subsection as the gross income of a
nonresident alien i-dividual with respect to a distribution made by the
United States in respect of services performed by an employee of the United
States shall not exceed an amount which bears the same ratio to the amount
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includible in gross income without regard to this paragraph as the aggregate
.compensation paid by the United States to such employee for such services
?and includible in gross income under this subtitle or prior income tax laws
bears to the aggregate compensation paid by the United States to such
individual whether or not includible in gioSs income."
(2) Subsection (d) of section 871 of the Internal Revenue Code of 1954 (relating
to the tax imposed on nonresident alien individuals) is hereby amended to read as
follows:
"(d) CROSS REFERENCE.?
"(1) For doubling of tax on citizens of certain foreign countries, see section 891.
"(2) For taxability of amounts paid by the United States to certain nonresident alien employees
or their beneficiaries, see section 402(a) (3)."
SEC. 54. (a) Section 12 of the Act of June 26, 1884 (23 Stat. 56; 22 U.S.C. 1186),
is hereby repealed.
(b) The second proviso of section 1 of chapter 223 of the Act of June 4, 1920, as
amended (41 Stat. 750; 22 U.S.C. 214), is further amended by striking out the
phrase "or to seamen,".
SEC. 55. Section 4 of the Foreign Service Buildings Act, 1926, as amended
'(22 U.S.C. 295), is amended by adding at the end thereof the following new sub-
section:
"(c) For the purpose of carrying into effect the provisions of this Act there is
hereby authorized to be appropriated, in addition to amounts previously authorized,
an amount not to exceed $100,000,000, of which $50,000,000 shall be available
exclusively for payments representing the value in whole or in part, of property
or credits in accordance with the provisions of the Act of July 25, 1946 (60 Stat.
663). Sums appropriated pursuant to this authorization shall remain available
until expended."
SEC. 56. The following headings and sections in the Foreign Service Act of
1946, as amended, are hereby repealed:
(1) Section 442 of such Act and the heading thereto.
(2) Section 525 of such Act and the heading thereto.
(3) Section 576 of such Act and the heading thereto.
(4) Section 577 of such Act and the heading thereto.
(5) Sections 651 and 652 of such Act and the headings thereto, including PART
F?SEPARATION OF STAFF OFFICERS AND EMPLOYEES.
SEC. 57. Notwithstanding the provisions of this Act, existing rules and regula-
tions of or applicable to the Foreign Service of the United States shall remain in
,effect until 'evoked or rescinded or until modified or superseded by regulations
made in accordance with the provisions of the Foreign Service Act of 1946, as
amended by this Act, unless clearly inconsistent with the provisions of this Act or
the provisions so amended.
SEC. 58. (a) The provisions of this Act shall become effective as of the first day
of the first pay period which begins one month after the enactment of this Act,
,except as provided in paragraphs (b), (c), and (d) of this section.
(b) The provisions of paragraphs (c) (1) and (c) (2) of section 803 of the Foreign
Service Act of 1946, as amended by section 33(b) of this Act, shall become effective
on the first day of the first month which begins one year after the date of enact-
ment of this Act, except that any Foreign Service staff officer or employee, who
at the time this Act becomes effective meets the requirements for participation
in the Foreign Service Retirement and Disability System, may elect to become a
participant in the System before the mandatory provisions become effective.
Such Foreign Service staff officers and employees shall become participants effec-
tive on the first day of the second month following the date of their application
for earlier participation.
(c) The amendments made by section 53 of this Act shall be effective with
respect to taxable years ending after the date of enactment of this Act.
(d) The amendment made by section 43 of this Act shall take effect on the
first day of the first month which begins more than thirty days after the date of
enactment of this Act.
Passed the Senate September 9 (legislative day, September 5), 1959.
Attest: FELTON M. JOHNSTON, Secretary.
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Approvod For Release/I ,t:91:081327FPMFANKW/76-04721A000400020005-9
PROVISIONS OF THE FOREIGN SERVICE ACT, AMENDMENTS MADE
BY S. 2633, AND ADDITIONAL AMENDMENTS PROPOSED BY THE
DEPARTMENT OF STATE, WITH EXPLANATIONS THERETO
SECTION 2 (Sec. 415)
(See also p. 119)
TITLE IV. CATEGORIES AND SALARIES OF PERSONNEL
FOREIGN SERVICE STAFF OFFICERS AND EMPLOYEES
Existing legislation
SEC. 415. There shall be [twenty-
-two] classes of Foreign Service staff
officers and employees, referred to here-
after as staff officers and employees.
The per annum [rates of salary] of
staff officers and employees within each
class shall be as follows:
? [Class 1, $11,770, $12,120, $12,480,
$12,830, $13,160
? [Class 2, $10,920, $11,205, $11,485,
$11,770, $12,120
[Class 3, $10,030, $10,320, $10,600,
$10,885, $11,165
[Class 4, $9,095, $9,380, $9,665,
$9,945, $10,230
[Class 5, $8,395, $8,610, $8,815,
$9,030, $9,315, $9,600
[Class 6, $7,690, $7,905, $8,120,
$825, $8,540, $8,755
[Class 7, $6,990, $7,200, $7,415,
$730, $7,840, $8,050
E Class 8, $6,285, $6,495, $6,710,
$6,925, $7,140, $7,350
[Class 9, $5,585, $5,795, $6,005,
$6,220, $6,435, $6,650
[Class 10, $5,115, $5,260, $5,400,
$5,540, $5,755, $5,970, $6,175
[Class 11, $4,650, $4,790, $4,930,
$5,070, 55,215, $5,355, $5,500
[Class 12, $4480, $4,320, $4,460,
$4,605, $4,745, $4,890, $5,025
[Class 13, $3,730, $3,870, $4,010,
$4,155, $4,295, $4,440, $4,580
[Class 14, $3,300, $3,445, $3,585,
$3,730, $3,870, $4,010, $4,155
[Class 15, $3,090, $3,165, $3,230,
$3,300, 53,445, $3,585, $3,730
[Class 16, $2,875, $2,950, $3,020,
$3,090, $3,165, $3,230, $3,300
[Class 17, $2,660, $2,735, $2,805,
$2,875, $2,950, $3,020, $3,090
[Class 18, $2,455, $2,520, $2,590,
$2,660, $2,735, $2,805, $2,875
[Class 19, $2,240, $2,310, $2,380,
$2,455, $2,520, $2,590, $2,660
[Class 20, $2,025, $2,095, $2,165,
$2,240, $2,310, $2,380, $2,455
[Class 21, $1,810, $1,880, $1,955,
$2,025, $2,095, $2,165, $2,240
[Class 22, $1,600, $1,670, $1,745,
$1,810, $1,880, $1,955, $2,025]
Proposed legislation
SEc. 415. (a) There shall be ten classes
of Foreign Service staff officers and em-
ployees, referred to hereafter as staff
officers and employees. The per annunt
salaries of staff officers and employees
within each class shall be as follows:
Class 1-$11,660, $11,990, $12,320,
$12,650, $12,980, $13,310, $13,640
Class 2-$9,900, $10,175, $10,450,
$10,725, $11,000, $11,275, $11,550
Class 3-$8,140, $8,415, $8,690,
$8,965, $9,240, $9,515, $9,790
Class 4-$7,000, $7,225, $7,450,
$7,675, $7,900, $8,125, $8,350
Class 5-$6,150, $6,350, $6,550,
$6,750, $6,950, $7,150, $7,350
Class 6-45,300, $5,500, $5,700,
$5,900, $6,100, $6,300, $6,500
Class 7-$4,650, $4,800,
$5,100, $5,250, $5,400, $5,550
Class 8-$4,200, $4,350,
$4,650, $4,800, $4,950, $5,100
Class 9-$3,750, $5,900,
$4,200, $4,350, $4,500, $4,650
Class 10-$3,500, $3,600,
$3,800, $3,900, $4,000, $4,100
$4,950,
$4,500,
$4,050,
$3,700,
Alb
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AMENDMENTS TO THE FOREIGN SERVICE ACT 19
?Existing legislation Proposed legislation
No existing legislation. (b) Notwithstanding the provisions of
paragraph (a) of this section, the Secre-
tary may, under such regulations as he
? may prescribe, fix the salary at lesser rates
than those prescribed by this section for
? the applicable class of staff officers or em-
? ployees who are recruited abroad and who
are not available or are not qualified for
transfer to another post.
The principal purpose of this proposal is to improve the Foreign Service Staff
salary schedule. The structure of the Foreign Service officer salary schedule
was modified in 1956 to provide basic improvements in accordance with the
needs of the Service. At that time, the Personnel Integration Program was under-
way and it was not possible to determine clearly the future needs of the Foreign
Service Staff. Since that time, a careful study has been made and perhaps
the most important need for improvement in the administrative machinery affect-
ing the Foreign Service Staff is in connection with a revision of the present 22-
c1ass salary schedule. One of the purposes of the proposed revision is to elimi-
nate the unnecessary and unused classes in the present schedule. Classes 15
through 22 have not been used for some time. Inasmuch as alien employees are
used extensively for the performance of routine duties at Foreign Service posts,
there are few cases where U.S. citizen employees are required for the level of
duties represented by class 14, there being only two Foreign Service resident
employees in this class at the present time. Consequently, a 10-class schedule
is proposed, which provides a reasonable number of levels in relation to the duties
and responsibilities which are carried out by Staff personnel.
This proposed schedule is specifically designed to provide a more adequate
promotion ladder for these employees, including equitable and appropriate salary
adjustment when promotions to the next higher class are made. As a con-
? sequence, a staff employee will usually receive more titan, and in any case not
less than, the esniivalent of a within-class salary increase at the time of a class
? promotion. This proposed 10-c1ass schedule has several other features:
(a) The rates of the top three Foreign Service Staff classes are the same
as the rates contained in classes 3, 4, and 5, respectively, of the Foreign
? Service officer salary schedule. This provides equitable salary treatment for
personnel serving at these officer levels and will facilitate the conversion of
Staff personnel at these levels who may qualify in the future for lateral entry
into the Foreign Service officer category.
(b) It consolidates overlapping classes, eliminates overlapping at the top
levels, and improves the within-class salary increase plan.
(c) It provides reasonable rates at the entrance level of new class FSS-10
(present class FSS-14), which will make this lowest class usable for some
recruitment purposes in the future.
(d) Consolidation and readjustment of class and step-rate relationships
will result in conversion to the 10-c1ass schedule on as equitable and uniform
basis as is possible.
As a consequence of the integration program and the resulting expansion of
the Foreign Service officer category, the Staff category will become increasingly
a specialist-technical-clerical group. Its importance to the effective functioning
of the Foreign Service, nevertheless, is not to be underestimated. Reasonably
rewarding career opportunities must be provided to attract and retain competent
personnel. For some years to come the Department must continue to retain,
make effective use of, and provide reasonable incentives for those Staff officers
who, because of age or other equally valid reasons, are unable to qualify for
lateral appointment as Foreign Service officers. This group of experienced and
dedicated officers will decrease gradually as a result of normal attrition and it
can be anticipated that a correspondingly lesser proportion of the Staff category
will be required in future years in the upper salary brackets of the proposed
Staff salary schedule. On the other hand, it becomes increasingly important
that an appropriate career plan be provided for the necessary staff officers
and employees who serve as highly skilled specialists and technicians essential to
the operations of the Service to encourage them to continue in the Foreign Service
as a career.
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20 AMENDMENTS TO TIIE FOREIGN SERVICE ACT
New paragraph (b) of section 415 would authorize the Secretary, by adminis-
trative action, to prescribe lesser rates of salary than those stipulated in the FSS
statutory salary schedule in the case of U.S. citizen employees who are employed
locally in foreign areas for service at a particular post and who are not available
or who are not qualified for transfer to other posts of duty.
From time to time it is in the Department's interest to employ in lieu of an
alien, for a local employee position, an American citizen at a Foreign Service
post who has resided in the locality for many years, who may be married to
an alien and frequently possesses dual citizenship, or who is otherwise not qualified
for a regular appointment to the Staff. The purpose of this provision, therefore,
is to enable the Secretary to equate more nearly the salaries paid to such staff
personnel to rates' prevailing in the locality.
SECTION 3 (Sec. 416)
(See also p. 12.1)
SALARIES AT WHICH FOREIGN SERVICE STAFF OFFICERS AND EMPLOYEES MAY BE
APPOINTED
Existing legislation
SEC. 416. A person appointed as a
staff officer or employee shall receive
[salary at the minimum rate provided
for the class to which appointed except
as otherwise provided in accordance
with the provisions of part E of this
title.]
[ADMINISTRATIVE ESTABLISHMENT OF
NEW GROUPS OF POSITIONS FOR FOR-
EIGN SERVICE STAFF OFFICERS AND
EMPLOYEES
[SEC. 442. The Secretary may, when-
ever he deems such action to be in the
interests of good administration and
warranted by the nature of the duties
and responsibilities of any group of
positions occupied or to be occupied by
staff officers and employees in compari-
son with other positions in the same
class, established by regulation for any
such group of positions a minimum
salary computed at any one of the rates
of salary above the minimum for a given
class but not in excess of the middle rate
provided for that class in section 415.
Such groups of positions shall, for the
purposes of this Act, be known as
subclasses.]
Proposed legislation
SEC. 416. (a) A person appointed as
a staff offiCer or employee shall receive
basic salary at one of the rates of the class
to which he is appointed which the Secre-
tary shall, taking into account his quali-
fications and experience and the needs of
the Service, determine to be appropriate
for him to receive.
(b) Whenever the Secretary determines
that the needs of the Service warrant the
appointment of staff officers or employees
in a particular occupational group uni-
formly at a rate above the minimum rate
of the applicable class, he may adjust the
basic salary of any staff officer or em-
ployee in the same class and occupational
group who is receiving less than such
established rale.
Under the existing provisions of section 416, Staff officers and employees must
be appointed at the minimum salary of the class to which appointment is made
(except when subclasses are established by regulations). Many Staff personnel
enter the Foreign Service by transfer from another Government agency, having
already attained within-grade salary increases in Government service. The
Department has found it necessary to appoint such persons at the minimum
salary rate of the applicable class and then adjust salary rates in accordance with
the Secretary's authority under section 642 to grant within-class increases to
Staff officers and employees. It is considered desirable, perhaps necessary, to
provide a direct grant of legislative authority for this purpose.
Aside from the desirability of appointing Staff personnel who transfer to the
Service from other Government agencies at an appropriate salary rate above
the minimum, the proposed new section 416(a) would enable the Secretary to take
into account the qualifications and experience of prospective candidates from other
recruitment sources in fixing an appropriate entering salary. Thus, a highly
experienced secretary who has worked in private employment could be offered a
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AMENDMENTS TO THE FOREIGN SERVICE ACT 21
higher starting salary than an inexperienced business school graduate, neither of
whom has had previous Government experience.
The proposed new paragraph (b) would enable the Secretary to take into
account the needs of the Service in fixing appointment salaries. Thus, in an
exceedingly tight labor market, the Secretary could prescribe a salary rate above
the minimum for the class as the minimum rate for a particular type of skill
in short supply which required special training, such as security engineers (elec-
tronics engineers). In the event the Secretary should make such a determination,
however, serious morale problems would arise were no adjustments made in the
salaries of employees in the same class and occupational group whose salaries are
less than the rate prescribed for new appointees. New paragraph (b), therefore,
would also authorize the Secretary to make an adjustment of this type in such
circumstances. As this new provision would supersede the provisions of section
442, that section should be repealed. "
It may be noted that authority already exists to appoint Foreign Service
officers (sec. 413) and Foreign Service Reserve officers (sec. 414) at salary rates
above the minimum rate of the class to which appointment is made. Hence, the
proposed revision would bring the Staff category into line with these related
provisions of the act.
SECTION 4 (Sec. 417)
(See also p. 121).
SALARIES OF ALIEN CLERKS AND EMPLOYEES
Existing legislation
SEC. 417. The salary or Compensa-
tien of an alien clerk or employee shall
be fixed by the Secretary ili accordance
with such regulations as he shall pre-
scribe, and, as soon as practicable, in
accordance with the provisions of sec-
tion. 444. [(b)] The salary or com-
pensation of an alien clerk or employee
flied on a per annum basis may, not-
withstanding the provisions of any other
law, be payable on a weekly or biweekly
basis. When a one- or two-week pay
period of such a clerk or employee begins
in one fiscal year and ends in another,
the gross amount of the earnings for such
pay periods may be regarded as a charge
against the appropriation or allotment
current at the end of such pay period.
Proposed legislation
SEC. 417. The salary or compensa-
tion of an alien clerk or employee shall
be fixed by the Secretary in accordance
with. such regulations as he shall pre-
scribe, and, as soon as practicable, in
accordance with the provisions of sec-
tion 444. The salary or Compensation ?
of an alien clerk or employee fixed on a
per annum basis may, notwithstanding
the provisions of any other laW, be pay-
able on a weekly or biweekly basis.
When a one- or two-week pay period
of such a clerk or employee begins in
one fiscal year and ends in another, the
gross amount of the earnings for such
pay periods may be regarded as a charge
against the appropriations or allotment
current at the. end of such pay period.
The amendment to section 417 is a technical one. Reference to section 444
has been changed to conform with a change in that Section. -
SECTION 5 (Sec. 431)
(See also p. 121)
PART ll? TIME OF
CIIIEFS
Existing legislation
431. (a) Under such regulations
as the Secretary may prescribe, a chief
of mission may be entitled to receive
salary from the effective date of his
appointment to the date marking his
return to his place of residence at the
conclusion of the period of his official
service as chief of mission or [the
termination of time spent on authorized
leave, whichever shall be latera but no
RECEIVING SALARY
OF MISSION
Proposed legislation
SEC. 431. (a) Under such regulations
as the Secretary may prescribe, a chief
of,. mission may be entitled to receive
salary from the effective date of his
appointment to the date marking his
return to his place of residence at the
conclusion of the period of his official
service as chief of mission or upon
termination of his service in accordance
with the provisions of paragraph (b) of
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22 AMENDMENTS TO THE FOREIGN SERVICE ACT
Existing legislation
,chief of mission shall be entitled to re-
ceive salary while absent from his post
whenever the Secretary shall find that
such absence was without authorization
,or justification. ? If a chief of mission in
one position is appointed as chief of
mission in another position, he shall be
entitled to receive the salary pertaining
to the new position commencing on the
,effective date of the new appointment.
(b) The official services of a chief of
mission shall not be deemed terminated
by the appointment of a successor but
shall continue until he has relinquished
charge of the mission [and has rendered
such additional services to the Depart-
ment as the Secretary may require him
to render in the interests of the Govern-
ment for a period not in excess of thirty
,days, exclusive of time spent in transit.]
Proposed legislation
this section, but no chief of mission shad
be entitled to receive salary while
absent from his post whenever the
Secretary shall find that such absence
was without authorization or justifica-
tion. If a chief of mission in one posi-
tion is appointed as chief of mission in
another position, he shall be entitled to
receive the salary pertaining to the new
position commencing on the effective
date of the new appointment.
(b) The official services of a chief of
mission shall not be deemed terminated
by the appointment of a successor but
shall continue until he has relinquished
charge of the mission and for such
additional periods as may be determined
by the Secretary, but in no case shall such
additional period exceed fifty days,
including time spent in transit. During
such period the Secretary may require
him to render such services as he may
deem necessary in the interests of the
Government.
Section 431 has been revised to clarify the provision governing the termination
,of the services of chiefs of mission. In its present form, this section has been
subject to a number of different interpretations and has been difficult to admin-
ister equitably. As revised the section clearly establishes that the services of a
chief of mission shall be terminated upon the date he returns to his place of resi-
,dence or in no case later than 50 days after relinquishing his duties as chief of
mission including time spent in transit. The period of time that a chief of mission
may remain on the rolls after relinquishing his duties, up to but not exceeding
-50 days, is to be determined by the Secretary. During this period he may be
required to render such services as the Secretary may deem necessary in the
interests of the Government.
SECTION 6 (Sec. 441)
(See also p. 121)
PART E?CLASSIF1C AMON
Existing legislation Proposed legislation
-CLASSIFICATION OF POSITIONS
FOREIGN SERVICE
IN THE CLASSIFICATION OF POSITIONS IN THE
FOREIGN SERVICE AND IN THE DE-
PARTMENT
SEC. 441. [Under such regulations as
The may prescribe, the Secretary shall
classify all positions in the Service,
including those positions at foreign
posts which may be held by career
ministers, and shall allocate a11 positions
occupied or to be occupied by staff
officers or employees to classes and sub-
classes established by sections 415 and
442, respectively, and by alien em-
ployees and consular agents to such
classes as may be established by regu-
lation.]
SEC. 441. (a) Under such regulations
as he may prescribe, and in order to
facilitate effective management, the Sec-
retary shall classify all positions in the
Service at posts abroad, excluding posi-
tions to be occupied by chiefs of mission.,
and- in the case of those occupied by
Foreign Service officers, Reserve officers,
and staff officers and employees, he shall
'establish such positions in relation to the ?
classes established by sections 412, 414,
and 415, respectively. Positions occu-
pied by alien employees and consular
agents, respectively, shall be allocated to
such classes as the Secretary may estab-
lish by regulation.
(b) Under such regulations as he may
prescribe, the Secretary may, notunth-
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Existing legislation, Proposed legislation
standing the provisions of the Classifica-
tion Act of 1949, as amended (5 U.S.C.
1071 and the following), classtfy posi-
tions in or under the Department which
he designates as Foreign Service Officer
positions to be occupied by officers and
employees of the Sotice, and establish
such positions in relation to the classes
established by sections 412, 414, and 415.
Section 441 of the act relating to the classification of positiors has been modi-
fied in several respects. In a worldwide service it is essential that, with relatively
few exceptions, American citizen personnel, including FSS personnel, be assigned
according to the needs of the Service, with due regard to die current availability
of personnel, health problems, and many other considerations. It is desirable
to provide a uniform basis for classifying positions regardless of the category of
American personnel used in staffing positions. The present language of section
441 draws a distinction in this respect between the FSO?FSR categories on the
one hand and the FSS category on the other, which has not proved to be meaning-
ful in practice.
The second basic change is to authorize the Secretary to classify positions in
the Department in accordance with Foreign Service classification standards,
title and class designation, without regard to the Classification Act of 1949, as
amended, in those instances where he determines such positions are of such a
character as to justify their designation as Foreign Service officer positions. Some
1,500 positions in the Department have been designated as Foreign Service posi-
tions under the Secretary's integration program. When a position, subject to the
Classification Act of 1949, as amended, is filled by a person other than an officer or
,employee of the 'Foreign Service, it would continue to be classified in accordance
with the provisions of the Classification Act of 1949, as amended, and the classifica-
tion of the position under the provisions of this section would be inoperative until
such position was filled by a Foreign Service officer or employee. Based on ex-
perience it might be later determined that some of these positions should no longer
be designated as Foreign Service positions. It is also likely that certain addi-
tional positions, including a number of new positions, may be designated as For-
eign Service positions.
SECTION 7 (Sec. 444)
(See also p. 125)
Existing legislation Proposed legislation
'CLASSIFICATION OF POSITIONS OF ALIEN
CLERKS AND EMPLOYEES
- SEC. 444. [(a) Upon the basis of the
classification provided for in section 441,
the Secretary shall, with the advice of
the Board of the Foreign Service, from
-time to time prepare schedules of sal-.
aries for classes of positions of alien
clerks and employees of the Service,
which classes shall be established by
? regulation, and shall allocate all such
positions to the appropriate classes.
[(b) All alien employees in an area
of comparatively uniform wage scales
and standards of living, occupying
positions of equal responsibility, shall
receive equal pay except as there may
be increases provided for length of
service in accordance with uniform
procedures.]
COMPENSATION PLANS FOR ALIEN
EMPLOYERS
SEC. 444. (a) The Secretary shall, in
accordance with such regulations as he
may prescribe, establish compensation
plans for alien employees of the Service:
Provided, That such compensation plans
shall be based upon prevailing wage rates
and compensation practices for corre-
sponding types of positions in the locality,
to the extent consistent with the public
interest.
(b) For the purpose of performing
functions abroad, other Government agen-
cies are authorized to administer alien
employee programs in accordance with the
applicable provisions of this Act.
Section 444 is amended to clarify and simplify the provisions for the establish-
ment of compensation plans for alien clerks and employees of the Service. Exist-
ing paragraphs (a) and (b) have been incorporated and clarified in new paragraph
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(a). Wage and salary schedules must be based upon local prevailing pay practices
for corresponding types of positions in the locality. They are subject to frequent
changes owing to fluctuating economic and labor market conditions. Clearance
on such matters is unnecessary and impractical.
New paragraph (b) of this section provides other Government agencies which
employ alien personnel in the performance of functions abroad with authority to
utilize provisions of this act relating to alien personnel as deemed appropriate by
such agencies. Thus the various Federal agencies employing alien personnel
abroad are enabled to operate as a single employer by providing uniform employ-
ment conditions for all alien employees of the U.S. Government in a given foreign
labor market area who are working under similar conditions and circumstances.
SECTION 8 (Sec. 446)
(See also p. 125)
Existing legislation
[EXEMPTION FROM THE APPLICATION OF
THE CLASSIFICATION ACT
[SEC. 446. Title II of the Act of No-
vember 26, 1940, entitled "An Act ex-
tending the classified executive Civil
Service of the United States" (54 Stat.
1212; 5 U.S.C. 681), is hereby further
amended by deleting paragraph (vii) of
section 3(d) and by substituting in lieu
of the present language of paragraph
(vi) of section 3(d) the following lan-
guage: "Officers or positions of officers
and employees of the Fo .eign Service".]
Proposed legislation
ADMINISTRATIVE ESTABLISHMENT OF
HAZARDOUS DUTY PAY FOR CERTAIN
CATEGORIES OF OFFICERS AND EM-
PLOYEES
SEC. 446. The Secretary may, under
such regulations as he may prescribe, es-
tablish rates of salary differential, not
exceeding 15 per centum of basic salary
for officers or employees of the Service
while they are assigned for duty as
couriers.
Existing section 446 is repealed because the proposed amendment to section 441
authorizes the Secretary to classify positions in the Department in accordance
with Foreign Service- standards, without regard to the Classification Act of 1949,
as amended, when such positions are designated as Foreign Service officer posi-
tions. Consequently, the provisions of section 446 relating to the Classification
Act of 1949, as amended, are no longer needed. The section number is reused.
New section 446 of the Foreign Service Act would authorize the Secretary to
grant employees, while assigned to perform duties of a courier, a salary differential
not to exceed 15 percent of the employee's basic salary.
The principle of hazardous duty pay is recognized both in military and civilian
pay systems. Couriers perform not only an arduous task, but a dangerous one.
They must travel constantly regardless of flight conditions, by means of a great
variety of transportation facilities, many of which do not maintain the same level
of safety requirements generally found in U.S. commercial airlines. Couriers
are on duty a minimum of 170 hours a month and are in the air Most of the time.
This should be compared with the policy Of our commercial airlines which limits
flight time for flying personnel to a maximum of 85 hours during any 1 month,
with an average somewhat below that figure. Members of the Department's
courier service have sustained serious injury in the line of duty and over the past
few years several have given their lives in the service of their country. A number
have been injured severely in flight accidents and at least one was injured as a
result of a revolution in one of the countries through which he was traveling.
The proposed maximum differential of 15 percent of basic salary is regarded as
an appropriate amount after due consideration of the hazards and hardship factors
that are inherent in courier duty. It is the Department's plan to pay the differen-
tial to couriers whose assignments involve significant hardship conditions or
hazards. Criteria for determining the amount of differential, up to 15 percent
of basic salary, applicable to the various courier assignments, will be developed
by the Department.
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TITLE V?APPOINTMENTS AND ASSIGNMENTS
SECTION 9 (Sec. 500)
(See also p. 126)
Existing legislation Proposed legislation
POLICY
No existing legislation. SEC. 500. It is the policy of the Con-
gress that chiefs of mission and Foreign
Service officers appointed or assigned to
serve the United States in foreign countries
shall have, to the maximum practicable
extent, among their qualifications, a useful
knowledge of the principal language or
dialect of the country in which they are to
serve and knowledge and understanding
of the history, the culture, the economic,
and political institutions, and the interests
of such country and its people.
New section 500 is an amendment to the act which states the policy that chiefs
of mission and Foreign Service officers shall have to the maximum practical extent
a knowledge of the language, culture, history, and institutions of the countries in
which they are to serve. This policy statement was made a part of the bill by the
Senate Foreign Relations Committee in an effort to emphasize the need for strict
adherence to such a policy in the assignment of chiefs of mission and in assigning
Foreign Service officers to overseas duty.
SECTION 10 (Sec. 516)
(See also p. 126)
PART B?POREIGN
E2isting legislation
ADMISSION TO CLASS 8
SEC. 516. No person shall be eligible
for appointment as a Foreign Service
Officer of class 8 unless he has passed
such written, oral, physical, and other
examinations as the Board of Examiners
for the Foreign Service may prescribe to
determine his fitness and aptitude for
the work of the Service and has demon-
strated his loyalty to the Government
of the United States and his attachment
to the principles of the Constitution.
The Secretary shall furnish the President
with the names of those persons who
have passed such examinations and are
eligible for appointment as Foreign
Service officers of class 8.
-*Me'
SERVICE OFFICERS
Proposed legislation
ADMISSION TO CLASS 7 OR 8
SEC. 516. (a) No person shall be
eligiL-le for appointment as a Foreign
Service officer of class 8 unless he has
passed such written, oral, physical, and
other examinations as the Board of
Examiners for the Foreign Service may
prescribe to determine his fitness and
aptitude for the work of the Service
and has demonstrated his loyalty to the
Government of the United States and
his attachment to the principles of the
Constitution. The Secretary shall fur-
nish the President with the names of
those persons who have passed such
examinations and are eligible for ap-
pointment as Foreign Service officers of
class 8.
(b) The Secretary may furnish the
President with the names of those persons
who have passed such examinations and
are eligible for appointment as Foreign
Service officers of class 8, whom he recom-
mends for appointment directly ?to class 7
when in his opinion, their age, experience,
or other qualifications make such an
appointment appropriate.
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The proposed amendment to section 516 would perinit the appointment directly
to class FSO-7 of a limited number of persons who have qualified for FSO-8
appointment under the provisions of this section. While it is anticipated that this
authority would rarely be used, there are occasions when direct appointment to
class 7 would be desirable and fully justified in the interest of the Service and of
the individual appointee. The Department intends, if this amendment is enacted,
to issue regulations limiting such appointments to the most mature and experi-
enced candidates who: (1) are at least 28 years old; (2) have a record of graduate
training or employment in Government or industry which clearly demonstrates
ability or special skills; and (3) have a modern foreign language competence.
Under existing legislation, it has been necessary for some older more experienced
men to take substantial salary reductions to accept appointment at the same
level as younger men just out of college. While these men have accepted appoint-
ment willingly, it is only natural that they have been concerned about their losses
in income. In this respect the proposed provision would improve morale among
the younger officers by giving recognition to age and experience.
SECTION 11 (Sec. 517)
(See also p. 126)
PART B--FOREIC1N SERVICE OFFICERS
ADMISSION TO CLASSES 1 TO 7, INCLUSIVE
Existing legislation
SEc. 517. [A person who has not
served in class 8] shall not be eligible
for appointment as a Foreign Service
officer of classes 1 to 7, inclusive, unless
he has passed comprehensive mental
and physical examinations prescribed by
the Board of Examiners for the Foreign
Service to determine his fitness and apti-
tude for the work of the Service; dem-
onstrated his loyalty to the Government
of the United States and his attachment
to the principles of the Constitution;
and rendered at least four years of
actual service prior to appointment in
a position of responsibility in the serv-
ice of a Government agency, or agen-
cies, except that, if he has reached the
age of thirty-one years, the requirement
as to service may be reduced to three
years. [After the date of enactment of
the Foreign Service Act amendments of
1955 and until otherwise provided by
Act of Congress, not more than one
thousand two hundred and fifty persons
who have not served in class 8 may be
appointed to classes 1 to 7, inclusive;
of such persons, not more than one
hundred and seventy-five may be ap-
pointed who were not employed on
March 1, 1955, in the Department,
including its Foreign Service Reserve
and Foreign Service Staff personnel,
and who have not also served in a posi-
tion of responsibility in the Department,
or the Service, or both, for the required
period prior to appointment as a For-
eign Service officer. Notwithstanding
the above provisions of this section, ,the
limitation on the maximum number of
appointments authorized herein shall
not be applicable in the case of any
Proposed legislation
SEC. 517. A person who has not been
appointed as a Foreign Service officer in
accordance with section 516 of this Act
shall not be eligible for appointment as
a Foreign Service officer of classes 1 to
7, inclusive, unless he has passed com-
prehensive mental and physical exami-
nations prescribed by the Board of
Examiners for the Foreign Service to
determine his fitness and aptitude for
the work of the Service; demonstrated
his loyalty to the Government of the
United States and his attachment to
the principles of the Constitudon; and
rendered at least four years of actual
service prior to appointment in a posi-
tion of responsibility in the service of
a Government agency, or agencies,
except that, if he has reached the age
of thirty-one years, the requirements as
to service may be reduced to three
years. The Secretary shall furnish the
President with the names of those per-
sons who shall have passed such exami-
nations and ace eligible for appointment
as Foreign Service officers of classes 1
to 7, inclusive. The Secretary shall,
taking into consideration the age,
qualifications, and experience of each
candidate for appointment, recommend
the class to which he shall be appointed
in accordance with the provisions of this
section.
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Existing legislation Proposed legislation
person appointed or assigned by the
Secretary of State as a Foreign Service
Reserve officer and who thereafter has
served in a position of responsibility in
such capacity for the required period
prior to appointment as a Foreign Serv-
ice officer.] The Secretary shall fur-
nish the President with the names of
those persons who shall have passed
such examinations and are eligible for
appointment as Foreign Service officers
of classes 1 to 7, inclusive. The Secre-
tary shall, taking into consideration the
age, qualifications, and experience of
each candidate for appointment, recom-
mend the class to which he shall be
appointed in accordance with the pro-
visions of this section.
The proposed changes in section 517 accomplish the following: (1) They permit
the appointment to class 7 (without the requirement that they must previously
have served in class 8) of certain persons qualified by examination for appoint-
ment as is proposed under the revised provision of section 516(b); and (2) they
eliminate the temporary provision incorporated in Public Law 22, 84th Congress,
and further amended by Public Law 828, 84th Congress, which established,
presumably for the duration of the integration program a limitation on the num-
ber of persons who can be integrated as Foreign Service officers under the pro-
visions of this section. The integration program has now been completed and
a permanent provision for the lateral entry of officers to classes 1 to 7, inclusive,
should be restored. Any future use of this lateral entry provision to meet the
needs of the Service would be seriously handicapped by the fact that only officers
who had been on the rolls of the Department as of March 1, 1955, or who have
served 3 years after appointment by the Secretary of State to the Foreign Service
Reserve, would be eligible for appointment. /t is hoped the good judgment
and common sense of those responsible for advising the Secretary on continuing
lateral entry policies can be relied upon to carry out such policies on a sound basis.
SECTION 12 (Sec. 520)
(See also p. 127)
Existing legislation Proposed legislation
vine'
[REINSTATEMENT AND RECALL] OF
FOREIGN SERVICE OFFICERS
SEC. 520. (a) The President may, by
and with the advice and consent of the
Senate, reappoint to the Service a
former Foreign Service officer who has
been separated from the Service [by
reason of appointment to some other
position in the Government service and
who has served continuously in the
Government up to the time of reinstate-
ment]. The Secretary shall, taking into
consideration the qualifications and
experience of each candidate for reap-
pointment and the rank of his con-
temporaries in the Service, recommend
the class to which he shall be reap-
pointed in accordance with the pro-
visions of this section.
(b) [Whenever the Secretary shall
determine an emergency to exist, the
Secretary may recall any retired Foreign
Service officer temporarily to active
service.]
REAPPOINTMENT, RECALL, OR REEMPLOY-
MENT OF FOREIGN SERVICE OFFICERS
SEC. 520. (a) The President may, by
and with the advice and consent of the
Senate, reappoint to the Service a
former Foreign Service officer who has
been separated from the Service. The
Secretary shall, taking into consider-
ation the qualifications and experience
of each candidate for reappointment and
the rank of his contemporaries in the
Service, recommend the class to which
he shall be reappointed in accordance
with the provisions of this section.
(b) The Secretary may recall any,
retired Foreign Service officer temporarily
to duty in the Service whenever he shall
determine such recall is in .thel public
interest.
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Emisting legislation
No existing legislation.
Proposed legislation
(c) Notwithstanding the provisions of
title 5, United States Code, section 62,
and title 5, United States Code, section
715a, a Foreign Service officer heretofore
or hereafter retired under the provisions of
section 681 and 632 or a Foreign Service
staff officer or employee hereafter retired
under the provisions of section 808 shall
not, by reason of his retired status, be
barred from employment in Federal
Government service in any appointive
position for which he is qualified. An
annuitant so reemployed shall serve at
the will of the appointing officer.
Section 520(a) is amended by removing the present requirement that Foreign
Service officers who resign and later seek reinstatement must have served con-
tinuously in the Government between the time of leaving the Foreign Service and
the time of reappointment to the Service. It sometimes happens that an officer
is obliged to resign from the Service through no fault of his own; family health
problems, for example. If the situation changes and he again becomes able to
serve it is believed that the President should have authority to use his discretion
in considering his reappointment. The requirement for previous Government
service relating to the lateral appointment of officers to classes 1 through 7 should
not be applicable to such persons who have already been Foreign Service officers
and have fulfilled all the requirements for such appointment.
Section 520(b) has been changed to liberalize the conditions under which the
Secretary may recall a retired Foreign Service officer for assignment to temporary
duty. It is frequently of benefit to the Department to make such assignments
to special study groups, Selection Boards, the Foreign Service Institute, or to
work on specific problems in which the retired officer has expert knowledge, yet
it cannot be ordinarily maintained that an emergency exists. The proposed
change would make such assignments possible without having to determine that
they are required by emergency conditions. Normally, the tour of duty of an
officer recalled under the provisions of this subsection would be of a limited nature.
The salary paid the officer recalled would be set at the discretion of the Secretary.
It would normally be that of the class in which the officer was serving at the time
of his retirement.
New section 520(c) provides that a participant in the Foreign ServiceRetire-
ment and Disability System retired mandatorily for age shall not be barred from
reemployment in any Government agency. New section 872 provides that an
officer will receive the salary of the position in which he is reemployed plus such
part of his annuity as when added to his salary will equal the basic salary he was
receiving at time of retirement. Most Foreign Service officers are mandatorily
retired at age 60. Some of these possess the experience, ability, and vigor which
would make them useful to other agencies of the Government. This proposed
. provision would make it possible for these officers to be reemployed when their
services are needed.
? SECTION 13 (Sec. 528)
(See also p. 128)
REINSTATEMENT OF RESERVE OFFICERS
Existing legislation
SEC. 528. Upon the termination of the
assignment of a Reserve officer assigned
from any Government agency, such
person shall be entitled to reinstatement
in the Government agency by which he
is regularly employed in the same posi-
tion he occupied at the time of assign-
ment, or in a corresponding or higher
position. Upon reinstatement he shall
receive the within-grade salary advance-
Proposed legislation
SEC. 528. Upon the termination of
the assignment of a Reserve officer
assigned from any Government agency,
such person shall be entitled to rein-
statement in the Government agency
by which he is regularly employed in
the same position he occupied at the
time of assignment, or in a corre-
sponding or higher position. Lpon
reinstatement he shall receive the
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Existing legislation
ments he would have been entitled to
receive had he remained in the position
in which he is regularly employed under
[subsection (d), section 7, of the Classi-
fication Act of 1923], as amended, or
any corresponding provision of law
applicable to the position in which he
is serving. A certificate of the Secre-
tary that such person has met the
standards required for the efficient
conduct of the work of the Foreign
Service shall satisfy any requirements
as to the holding of minimum ratings
as prerequisite to the receipt of such
salary advancemenls.
This is a technical change to reflect the current reference to the Classification
Act.
Proposed legislation
within-grade salary advancements he
would have been entitled to receive
had he remained in the position in
which he is regularly employed under
the Classification Act of 1949, as
amended, or any corresponding provi-
sion of law applicable to the position
in which he is serving. A certificate
of the Secretary that such person has
met the standards required for the
efficient conduct of the work of the
Foreign Service shall satisfy any re-
quirements as to the holding of mini-
mum ratings as prerequisite to the
receipt of such salary advancements.
SECTION 14 (Sec. 531)
(See also p. 128)
PART D?FOREIGN SERVICE STAFF OFFICERS AND EMPLOYEES
APPOINTMENTS
Existing legislation Proposed legislation (as passed Senate)
SEC. 531. The Secretary [shall ap-
point staff officers and employees under
such regulations as he may prescribe
and, as soon as practicable, in accord-
ance with the provisions of sections 441,
442, and 443.]
SEC. 531. The Secretary may, under
such regulations as he may prescribe,
appoint staff officers and employees on
the basis of qualifications and experience.
The Secretary may make provisions for
temporary, limited, and such other types
of appointment as he may deem necessary.
He is authorized to establish appropriate
probationary periods during which newly
appointed staff officers or employees, other
than those appointed for temporary or
limited services shall be required to serve.
The Secretary may terminate at any time,
without regard to the provisions of section
637, or the provisions of any other law,
staff officers or employees appointed for
temporary or limited service and staff
officers or employees who have not com-
pleted probationary periods, except that
if such separation is by reason of mis-
conduct the provisions of section 637 shall
be applicable.
JUSTIFICATION FOR THE DEPARTMENT'S PROPOSED CHANGE
Section 14 of the bill provides, by reference to the applicability of the provisions
of section 637, that there shall be a hearing before the Board of the Foreign Service
in all cases involving the separation for misconduct of limited or probationary
staff employees. In proposing those amendments to the Foreign Service Act,
the Department sought to clarify the authority of the Secretary of State to make
temporary or limited appointments and to terminate the services of employees
serving under such appointments when there was reason for so doing. The
broad authority which the Department needs is not provided if a hearing pro-
cedure is required for probationers and those serving under limited appointments
when misconduct is involved. Further, since the term "misconduct" does not
lend itself to a precise definition, the provision would be exceedingly troublesome.
It is not believed desirable to go through the processes of preferring charges and
conducting hearings when probationers and employees serving limited terms are
50864-60- --3
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to be terminated. Therefore the Department requests a change in this section
in accordance with the redraft that follows;
PART D?FOREIGN SERVICE STAFF OFFICERS AND EMPLOYEES
APPOINTMENTS
Existing legislation
SEC. 531. [The Secretary shall ap-
point staff officers and employees under
such regulations as he may prescribe
and, as soon as practicable, in accord-
ance with the provisions of sections 441,
442, and 443.]
Changes proposed by Department
SEC. 531. The Secretary may, under
such regulations as he may prescribe,
appoint staff officers and employees on the
basis of qualifications and experience.
The Secretary may make provisions for
temporary, limited, and such other type
appointments as he may deem necessary.
He is authorized to establish appropriate
probationary periods during which newly
appointed staff officers or employees, other
than those appointed for temporary or
limited service shall be required to serve.
The Secretary may terminate at any time,
without regard to the provisions of section
637, or the provisions of any other law,
staff officers or employees appointed for
temporary or limited service and other
staff officers or employees who occupy
probationary status.
Revised section 531 is designed to emphasize the principle that staff officers and
employees shall be appointed on the basis of qualifications and experience.
The reference in the present language to sections 441, 442, and 443 has been
eliminated. It is proposed that section 442 be repealed since it is superseded by
the proposed amendment to section 416. Reference to sections 441 and 443 is
unnecessary, and, in fact, is misleading in the sense that the reference could be
interpreted to require appointment to a particular position rather than to a class.
The other purpose of the revised section is to make it clear that in prescribing
regulations concerning the appointment of staff personnel the Secretary may
provide for appropriate types of appointments in terms of tenure, i.e., temporary-,
limited-, and permanent-type appointments and, in addition, to make clear that
the Secretary may establish a probationary period of appropriate length and
separate a newly appointed staff officer or employee who fails to meet probationary
requirements without regard to the normal separation for cause procedures estab-
lished by the proposed new section 637. In view of the importance of the particu-
lar personnel policies based on this section the language of the section is being
clarified and made more specific.
SECTION 15 (Sec. 532)
(See also p. 128)
ASSIGNMENTS AND TRANSFERS
Existing legislation
SEC. 532. [The Secretary may, in
accordance with uniform procedures
established in such regulations as he
may prescribe, assign a staff officer or
employee to a position at any post and
transfer such a person from a position
in one class to a vacant position within
the same class, and from one post to
another. Upon demonstration of ability
to assume duties of greater responsi-
bility, such person may, as provided in
section 641, be promoted to a vacant
position in a higher class at the same or
at a higher rate of salary and he may be
transferred from one post to another in
connection with such promotion.]
Proposed legislation
SEC. 532. Under such regulations as
he may prescribe, the Secretary may
assign a staff officer or employee to any
post or he may assign him to serve in any
position in which he is eligible to serve
under the terms of this or any other Act.
A staff officer or employee may be trans-
ferred from one post to another by order
of the Secretary as the interests of the
Service may require.
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The revision of section 532 has been made for the? purpose of simplifying the
language of the section to correspond more closely to the comparable provisions
for Foreign Service officers and to reflect more clearly the intent of the revised
section 441 relating to the classification of positions. The language of section 532
relating to promotion has been deleted, inasmuch as section 641 covers the pro-
motion of staff officers and employees to a higher class.
SECTION 16 (Sec. 571)
(See also p. 129)
PART H-ASSIGNMENT OF FOREIGN SERVICE PERSONNEL
Existing legislation Proposed legislation (as passed Senate)
ASSIGNMENTS TO ANY GOVERNMENT ASSIGNMENTS TO ANY GOVERNMENT
AGENCY AGENCY OR INTERNATIONAL ORCIANI-
ATION
SEC. 571. (a) Any officer or employee
of the Service may, in the discretion of
the Secretary, be assigned or detailed
for duty in any Goverament agency,
such an assignment or combination of
assignments to be for a period of not
more than four years, except that under
special circumstances the Secretary may
extend this four-year period for not
more than four additional years.
[(b) A Foreign Service officer may
be appointed as Director General, not-
withstanding the provisions of the last
sentence of paragraph (a) of this section,
but any such officer may not serve longer
than four years in such position or
positions and upon the completion of
such service may not again be assigned
to a position in the Department until
the expiration of a period of time equal
to his tour of duty as Director General
or until the expiration of two years,
whichever is shorter.]
[(c)] If a Foreign Service officer
shall be appointed by the President, by
and with the advice and consent of the
Senate, [to a position,3 the period of
his service in such capacity shall be
construed as constituting an assignment
[for duty] within the meaning of para-
graph (a) of this section and such
person shall not, by virtue of the
acceptance of such an assignment, lose
his status as a Foreign Service officer.
Service in such a position shall not,
however, be subject to the limitations
concerning the duration of an assign-
ment [or concerning reassignment]
contained in that paragraph. [Any
Foreign Service officer who resigned
from the Service, or retired in accord-
ance with section 636 of this Act on or
after November 14, 1957, but prior to
the enactment of this sentence, for the
purpose of accepting an immediate
appointment to such a position, shall
be considered as having been assigned
Sec. 571. (a) Any officer or employee.
of the Service may, in the discretion of
the Secretary, be assigned or detailed'
for duty in any Government agency, or
in any international organization, inter-
national commission, or any international
body, such an assignment or combina-
tion of assignments to be for a period
of not more than four years, except
that under special circumstances the
Secretary may extend this four-year
period for not more than four additional
years.
(b) If a Foreign Service officer shall
be appointed by the President, by and
with the advice and consent of the
Senate, or by the President alone to a
position in any Government agency, any
United States delegation or mission to
any international organization, in any
international commission, or in any
international body, the period of his
service in such capacity shall be con-
strued as constituting an assignment
within the meaning of paragraph (a) of
this section and such person shall not, by
virtue of the acceptance of such an
assignment, lose his status as a Foreign
Service officer. Service in such a posi-
tion shall not, however, be subject to
the limitations concerning the duration
of an assignment contained in that
paragraph.
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Existing legislation
to such other position under authority
of this section as amended. Appro-
priate adjustment at the election of the
officer may be made with respect to
special contributions deposited imme-
diately prior to resignation or retire-
ment by any such officer under title
VIII of this Act on salaries in excess of
$13,5001
[(d)] If the basic minimum salary
of the position to which an officer or
employee of the Service is assigned pur-
suant to the terms of this section is
higher than the salary such officer or
employee is entitled to receive as an
officer or employee of the Service, such
officer or employee shall, during the
period such difference in salary exists,
receive the salary of the position in
which he is serving in lieu of his salary
as an officer or employee of the Service.
Any salary paid under the provisions of
this section shall be [paid from appro-
priations made available for the pay-
ment of salaries of officers and employees
?of the Service and shall be] the salary
on the basis of which computations and
payments shall be made in accordance
with the provisions of title VIII.
[(e)] The salary of an officer or em-
ployee assigned pursuant to the terms
of this section shall be paid from appro-
priations made available for the pay-
ment of salaries of officers and employ-
ees of the Service. Such appropriations
may be reimbursed, however, when the
Secretary enters into reimbursement
agreements [with heads of Government
agencies] for all or any part of the
salaries of officers or employees assigned
to such agencies and payment is re-
ceived pursuant thereto, or when an
officer or employee of the Service is
assigned to a position the salary of
which is payable from other funds avail-
able to the Department.
Proposed legislation, (as passed Senate)
(c) If the basic minimum salary of
the position to which an officer or em-
ployee of the Service is assigned pur-
suant to the terms of this section is
higher than the salary such officer or
employee is entitled to receive as an
officer or employee of the Service, such
officer or employee shall, during the
period such difference in salary exists,
receive the salary and allowances of the
position in which he is serving in lieu
of his salary and allowances as an officer
or employee of the Service. Any salary
paid under the provisions of this section
shall be the salary on the basis of which
computations and payments shall be
made in accordance with the provisions
of title VIII. No officer or employee of
the Service who, subsequent to the effec-
tive date of the Foreign Service Act
Amendments of 1959, is assigned to, or
who, after June 30, 1960, occupies a
position in the Department that is desig-
nated as a Foreign Service Officer position,
shall be entitled to receive a salary differ-
ential under the provisions of this para-
graph.
(d) The salary of an officer or em-
ployee assigned pursuant to the terms
of this section shall be paid from appro-
priations made available for the pay-
ment of salaries of officers and employees
of the Service. Such appropriations
may be reimbursed, however, when the
Secretary enters into reimbursement
agreements for all or any part of the
salaries of officers or employees assigned
to such agencies and payment is re-
ceived pursuant thereto, or when an
officer or employee of the Service is
assigned to a position the salary of
which is payable from other funds
available to the Department.
(e) Any Foreign Service officer or em-
ployee assigned to duty in the continental
United States between assignments abroad,
and any Foreign Service officer of class 7
or 8 assigned to duty in the continental
United States prior to assignment abroad
shall receive, during the course of such
period of assignment, a differential ap-
plied to basic salary of 8 per centum if
without dependents, 11 per centum if
with one to three dependents, and 13 per
centum if with more than three dependents
to assist in defraying the cost of quarters.
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Egoisting legislation Proposed legislation (as passed Senate)
[ASSIGNMENTS TO INTER-
NATIONAL ORGANIZATIONS
[Sac. 576. The Secretary may, in
his discretion, assign or detail an officer
or employee of the Service for tempo-
rary service to or in cooperation with an
international organization in which the
United States participates under the
some conditions as those governing the
assignment or detail of officers or em-
ployees of the Service to the govern-
ment of another country in accordance
with the provisions of the Act of May 25,
1938, as amended (52 Stat. 442; 53
Stat 652; 5 U.S.C. 118e).]
Section 571(a) has been revised to establish clearly authority for the Secretary
to assign or detail, in his discretion, officers or employees of the Service to any
international organization, international commission, or international body as
well as to any Government agency.
Paragraph (b) which originally related to authority to appoint a Foreign Service
officer as Director General without regard to the limitations of paragraph (a) relat-
ing to period of assignment to duty in the Department is no longer needed as
amendments to section 571(a), Public Law 22, 84th Congress, provide authority
for the Secretary to extend, under special circumstances, a 4-year period of duty
for a period of an additional 4 years. Paragraph (b) is, therefore, being deleted
as no longer needed.
Paragraph (c) has been redesignated as paragraph (b) and has been changed to
provide authority for the appointment by the President, by and with the advice
and consent of the Senate, or by the President alone (e.g., International Boundary
Commissions), of a Foreign Service offi:cer to a position in any Government agency
including any U.S. delegation or mission to international organizations, interna-
tional commissions, or other international bodies with the provision that the
appointee shall not lose his status as a Foreign Service officer. Existing section
571(c) provides authority for appointment by the President, by and with the
advice and consent of the Senate, of a Foreign Service officer to a position. By
inserting "in any Government agency" this paragraph is being brought into
conformity with paragraph (a) as amended by Public Law 22, 84th Congress. The
reference to "or concerning assignment" has been eliminated as no longer neces-
sary. The last two sentences are eliminated as no longer necessary since they
applied to only one individual and have been executed with respect to him..
Paragraph (c1) has been designated as paragraph "(e)". This section of the act
provides that in the event an officer or employee of the Service is assigned or
detailed to duty with any Government agency (including the Department of
State), he shall receive the difference, if any, between his salary as an officer or
employee of the Service and the basic minimum salary of the position to which he
is assigned. This provision was included in the Foreign Service Act of 1946 to
offset in part the loss of allowances that result when the officer or employee is
assigned from a post abroad to a position with a Government agency in the United
States. It was designed to recognize the principle of equal pay for equal work
from the standpoint that an officer or employee of the Foreign Service when
assigned to a position in a Government agency in the United States to work in
conjunction with civil-service officers, would receive at least the minimum rate
for the position to which he is assigned as determined by the grade of the position
under Classification Act procedures.
Subsequent to the enactment of the Foreign Service Act of 1946, provision has
been made for a home service transfer allowance for Foreign Service personnel
incident to an assignment to the United States between foreign-post assignments.
Moreover, as a consequence of the Secretary's integration program, the Foreign
Service will be used increasingly to staff departmental positions. A "Washing-
ton" assignment at periodic intervals is, in effect, and increasingly will become, a
normal assignment. This change in assignment practices when taken in context
with the proposed revision of section 441 permitting the Secretary to classify de-
partmental positions that are occupied by Foreign Service officers under Foreign
Service rather than Classification Act standards, suggests that there is no longer
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justification for this so-called Washington salary differential for officers of the
Service assigned to positions in the Department. Section 571(c) will therefore
exclude Foreign Service officers so assigned from "Washington" differential
provisions. The provisions of this section will not, however, prevent officers or
employees of the Service assigned to other Government agencies or to official dele-
gations or missions to international organizations, international commissions, or
other international bodies, from receiving a salary differential if the basic salary
rate of the position to which they are assigned exceeds their salary rates.
Paragraph (e) of this section has been redesignated as paragraph (d). The
phrase "with heads of Government agencies" has been deleted because reimburse-
ment agreements may be made with officials other than heads of agencies when
'officers or employees are assigned to international organizations, international
'commissions or international bodies.
The change in section 571(e) proposed by the Department, below, would
authorize the Secretary to grant a housing allowance to Foreign Service per-
sonnel who are assigned to duty in the United States between assignments, and
to Foreign Service officers of classes 7 and 8 assigned to duty prior to duty abroad.
It is becoming increasingly difficult for Foreign Service officers, particularly
junior officers with families to live on their salaries in Washington. They are in
quite a different position from Government employees who can plan to live in
Washington indefinitely. Most Foreign Service personnel while on aSsignment
of 2 to 4 years in the United States are compelled to spend much more than the
salary which they receive during such assignments. Consequently, most Such
personnel, although realizing how important it is that they serve from time to
time in the Department, are reluctant to take a Washington assignment because
of the financial sacrifices involved. For this group of personnel it is proposed to
provide an amount which would defray approximately one-half of their housing
costs while on duty in the United States.
Since the provisions of section 576 have been Superseded by revised section
571, it is proposed that section 576 be deleted.
JUSTIFICATION FOR DEPARTMENT'S PROPOSED CHANGE
At the time the amendments to the Foreign Service Act of 1946, which are
,contained in S. 2633, were proposed by the Department in 1958, it was anticipated
that there would be a sUfficient interval between the possible enactment and
effective date of the provision proposed to enable officers to make necessary
adjustments with respect to the elimination of the "Washington differential" and
for the Department to make the necessary budgetary adjustments to cover the
proposed "Washington quarters allowance." Consequently, section 16 of the
of the bill proposes that the salary differential applicable to certain officers
assigned to the United States shall not be applicable subsequent to June 30, 1961.
Also, the provisions relating to the proposed Washington quarters allowance
would, as it is now drafted, become effective at the same time other provisions
of the bill are made effective. The Department proposes the two following
changes in section 16:
1. Where it appears in proposed section 571(c), change the date "June 30,
1960" to read "June 30, 1961."
2. Add at the end of proposed section 571(e) a new sentence which shall
read as follows: "The provisions of this paragraph shall become effective
July 1, 1961."
SECTION 17 (See. 575)
(See also p. 131)
ASSIGNMENTS TO FOREIGN
Existing legislation
SEC. 575. The Secretary may, in his
discretion, assign or detail an officer
or employee of the Service for temporary
service to or in cooperation with the
government of another country in ac-
cordance [with the provisions of the
Act of May 25, 1938, as amended (52
Stat. 442; 53 Stat. 652; 5 U.S.C. 118e).]
GOVERNMENTS
Proposed legislation
SEC. 575. The Secretary may, in his
discretion, assign or detail an officer
or employee of the Service for tempo-
rary service to or in cooperation with
the government of another country in
accordance with the appropriate provi-
sions of titles III and IX of Public
Law 402, 80th Congress (62 Stat. 7 and
13; 22 U.S.C. 1451-1453, 1478 and
1479).
This is merely a technical change to bring up to date the statutory references.
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AMENDMENTS TO THE FOREIGN SERVICE ACT 35
Armor'
SECTION 18 (Sec. 578)
(See also p. 132)
FOREIGN LANGUAGE KNOWLEDGE PREREQUISITE TO ASSIGNMENT
Existing legislation Proposed legislation (as passed Senate)
No existing legislation.
SEC. 578. The Secretary shall desig-
nate every Foreign Service Officer position
in a foreign country whose incumbent
should have a useful knowledge of a
language or dialect common to such
coun,try. After December 31, 1963, each
position so designated shall be filled
only by an incumbent having such knowl-
edge: Provided, That the Secretary or
Deputy Under Secretary for Administra-
tion may make exceptions to this require-
ment for individuals or when special or
emergency conditions exist. The Secre-
tary shall establish foreign language stand-
ards for assignment abroad of officers and
employees of the Service, and shall arrange
for appropriate language training of such
officers and employees at the Foreign
Service Institute or elsewhere.
DEPARTMENT'S JUSTIFICATION FOR ORANGE
This proposal would require the Secretary to designate every Foreign Service
officer position in a foreign country whose incumbent should have a useful knowl-
edge of the language or dialect common to that country and to fill such positions
only by assigning to them officers having the required language facilities. The
Department would encounter serious administrative problems in carrying out this
section as it is now drafted. In view of the need for flexibility in meeting the
language pi oblems of the Foreign Service, it is believed that this section should
be redrafted to provide that the Secretary, lather than designate actual positions,
should determine the number of officei positions in a country which must be filled
by language officeis. Chiefs of mission would then be able to use the language
competence of the staffs where it is most needed at any given time. It is sug-
gested that this section be changed in accordance with the redraft that follows.
Although the Department would have no objection to this section if rewritten
as suggested it is not believed that such legislation is necessary. The Depart-
ment's firm objective is to staff all appropriate positions at field posts with person-
nel having the necessaiy language facility. Further, the iigid requirements of
this section, even if rewritten as suggested, are likely to reduce the administrative
flexibility that is essential to effective staffing of missions overseas.
FOREIGN LANGUAGE KNOWLEDGE PREREQUISUTE TO ASSIGNMENT
Existing legislation Changes proposed by Department
No existing legislation.
SEC. 578. The Secretary shall deter-
mine annually the number of Foreign
Service officer positions in a foreign
country which shall be occupied only by an
incumbent who has a useful knowledge of
a language or dialect commonly used in
such country. After December 81, 1968,
the prescribed quota of language officers
shall be maintained for each country:
Provided, That the Secretary may make
exceptions to this policy when special
or emergency conditions exist. The Secre-
tary shall establish foreign language
standards for assignment abroad of
officers and employees of the Service, and
shall arrange for appropriate lan gauge
training of such officers and employees
at the Foreign Service Institute or else-
where.
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36 AMENDMENTS TO THE FOREIGN SERVICE ACT
New section 578, as proposed by the Department, would require the Secretary
to determine annually the number of Foreign Service officer positions in a foreign
country which shall be occupied only by incumbents who have a useful knowledge
of a language or dialect commonly used in such countries. After December 31,
1963, the Secretary would be required to maintain the prescribed quota of language
officers for each country. This section further provides that the Secretary shall
establish foreign language standards for assignment abroad of Foreign Service
personnel and that he shall arrange language training for such personnel. These
provisions would enable the Secretary, and in turn each chief of mission, to make
the most effective possible utilization of language officers where their services are
most needed.
TITLE VI?PERSONNEL ADMINISTRATION
SECTION 19 (Sec. 625)
(See also p. 133)
Existing legislation
[IN-CLASS PROMOTIONS OF FOREIGN SERV-
ICE OFFICERS AND RESERVE OFFI-
CERS]
SEC. 625. Any Foreign Service officer
or any Reserve officer, whose services
meet the standards required for the
efficient conduct of the work of the
[Foreign] Service and who shall have
been in a given class for a continuous
period of nine months or more, shall,
on the first day of each fiscal year, re-
ceive an increase in salary to the next
higher rate for the class in which he is
serving. [The] Secretary is authorized
to grant to [a Foreign Service officer
or a Reserve officer, in any class,] addi-
tional increases in salary within the
salary range established for the class in
which he is serving, based upon espe-
cially meritorious service.
Proposed legislation
WITHIN-CLASS SALARY INCREASES OF
FOREIGN SERVICE OFFICERS AND RE-
SERVE OFFICERS
Suc. 625. Any Foreign Service officer
or any Reserve officer, whose services
meet the standards required for the
efficient conduct of the work of the
Service and who shall have been in a
given class for a continuous period of
nine months or more, shall, on the first
day of each fiscal year, receive an in-
crease in salary to the next higher rate
for the class in which he is serving.
Without regard to any other law, the
Secretary is authorized to grant to any
such officer additional increases in salary
within the salary range established for
the class in which he is serving, based
upon especially meritorious service.
Section 625 has been revised in order to reinstate the Secretary's authority to
grant additional within-class salary increases in recognition of exceptionally meri-
torious service. While cash awards provided for by the Government Employees'
Incentive Awards Act (title III of Public Law 763, 83d Cong.) may in general
serve well in providing rewards for exceptionally meritorious or superior service,
they are not as appropriate as within-class salary increase awards for officers of
the Foreign Service. Frequently the needs of the Service require an officer to
serve for protracted ppriods of time in positions classified several levels above
their personal rank. In many such cases officers have distinguished themselves
in the performance of their duties and it is considered that within-class salary
increases are more desirable and acceptable under these circumstances than a cash
award would be. Further, there are a number of unusual and difficult foreign
languages which owing to their uniqueness are not offered on a formal training
basis; however, officers frequently upon their own initiative undertake the study
of and become proficient in such languages. It is considered that the award of a
meritorious within-class increase for such an accomplishment better serves the
interests of the Government because it provides a continuing and more desirable
incentive for the undertaking of such voluntary and specialized study by members
of the Foreign Service.
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SECTION 20 (Sec. 626)
(See also p. 134)
RELATIONSHIP BETWEEN PROMOTIONS AND FUNCTIONAL AND GEOGRAPHIC AREA
SPECIALIZATION
Existing legislation Proposed legislation
No existing legislation.
SEC. 626. The achievement of the
objectives of this Act requires increasing
numbers of Foreign Service officers to ac-
quire functional and geographic area
specializations and to pursue such special-
izations for a substantial part of their
careers. Such specialization shall not
in any way inhibit or prejudice the orderly
advancement through class 1 of any such
officer in the Foreign Service.
This amendment would add a new section to 626 expressing the policy that
more functional and geographic area specialization is needed in the Foreign Service
and prohibiting such specialization from prejudicing promotions of officers up
through class 1 in the Service.
SECTION 21
(See also p. 134)
PART D?SEPARATION OF [FOREIGN SERVICE] OFFICERS AND EMPLOYEES
FROM THE SERVICE
SECTION 22 (Sec. 631)
(See also p. 134)
Existing legislation Proposed legislation
FOREIGN SERVICE OFFICERS WHO ARE
CAREER MINISTERS
SEC. 631. Any Foreign Service officer
who is a career ambassador or a career
minister, other than one occupying a
position as chief of mission, shall upon
reaching the age of sixty-five, be retired
from the Service and receive retirement
benefits in accordance with the provi-
sions of section 821, but whenever the
Secretary shall determine (an emergency
to exist, he may,] in the public interest,
extend such an officer's service for a
period not to exceed five years.
FOREIGN SERVICE OFFICERS WHO ARE
CAREER AMBASSADORS OR CAREER
MINISTERS
SEC. 631. Any Foreign Service officer
who is a career ambassador or a career
minister, other than one occupying a
position as chief of mission or any other
position to which he has been appointed
by the President, by and with the advice
and consent of the Senate, shall, upon
reaching the age of sixty-five, be retired
from the Service and receive retirement
benefits in accordance with the provi-
sions of section 821, but whenever the
Secretary shall determine it to be in the
public interest, he may extend such an
officer's service for a period not to ex-
ceed five years.
Section 631 changes the conditions under which the Secretary may extend the
services of career ambassadors or career ministers beyond mandatory retirement
age. It is further changed to provide that a career ambassador or career minister
serving in any other position to which he has been appointed by the President, by
and with the advice and consent of the Senate, e.g., Deputy Under Secretary,
Nero,
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Assistant Secretary, etc., shall continue to retain his status as a career ambas-
sador or career minister until the termination of his appointment. It is not
contemplated that a career ambassador or career minister who is a Presidential
appointee serving in a capacity other than chief of mission will have his Foreign
Service appointment extended beyond the time he occupies the specific position
in which he is serving when he reaches mandatory retirement age. Normally
the officer would be mandatorily retired at the end of such appointment.
Occasionally because of the specialized nature of the assignments of career
ambassadors or career ministers who are not serving as chiefs of mission or under
Presidential appointments and because of their unique knowledge or experience,
it is in the interest of the Service to have them continue on duty for a limited
period after they reach mandatory retirement age. Under present provisions, in
order to make such an extension of an officer's service the Secretary must deter-
mine "an emergency to exist." This phrase has been found to be subject to differ-
ent interpretations making it difficult for the Department to carry out the intent
of this provision when the public interest can best be served by a brief delay
in the retirement of certain officers. This provision will be used only in excep-
tional circumstances when it is clear that the continuation of the services of the
officer will be in the public interest.
SECTION 23 (Sec. 632)
(See also p. 134)
Existing legislation Proposed legislation
FOREIGN SERVICE OFFICERS WHO ARE
NOT CAREER MINISTERS
SEC. 632. Any Foreign Service officer
who is not a career ambassador or a
career minister shall, upon reaching the
age of sixty, be retired from the Service
and receive retirement benefits in ac-
cordance with the provisions of section
821 but [when] the Secretary shall
determine [an emergency to exist, he
mayl in the public interest, extend
such an officer's service for a period not
to exceed five years.
FOREIGN SERVICE OFFICERS WHO ARE
NOT CAREER AMBASSADORS OR CAREER
MINISTERS
SEC. 632. Any Foreign Service officer,
other than one occupying a positron as
chief of mission or any other position to
which he has been appointed by the
President, by and with the advice and
consent of the Senate, who is not a career
ambassador or a career minister shall,
upon reaching the age of sixty, be
rethed from the Service and receive
retirement benefits in accordance with
the provisions of section 821, but
whenever the Secretary shall determine
it to be in the public interest, he may
extend such an officer's service for a,
period not to exceed five years.
Section 632 is changed for the same reasons given under section 631. Pro-
vision is made for extending briefly beyond mandatory retirement the services
of a very limited number of Foreign Service officers below rank of career
minister when it is clear that the continuation of the services of an officer would
be in the public interest. Under present provisions, in order to make such an
extension of an officer's service the Secretary must determine "an emergency to
exist." This phrase has been found to be subject to different interpretations
making it difficult for the Department to carry out the intent of this provision
when the public interest can best be served by a brief delay in the retirement
of certain officers. This provision will be used only in exceptional circumstances
when it is clear that the continuation of the services of the officer will be in the
public interest.
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AMENDMENTS TO THE FOREIGN SERVICE ACT 39"
SECTION 24 (Sec. 634)
(See also p. 134)
SELECTION-OUT BENEFITS
Existing legislation
SEC. 634. (b) Any Foreign Service
officer in classes 4, 5, 6 or 7 who is
retired from the Service in accordance
with the provisions of section 633 shall
receive?
(1) one-twelfth of a year's salary
at his then current salary rate for
each year of service and proportion-
ately for a fraction of a year, but not
exceeding a total of one year's salary
at his then current salary rate,
payable without interest, in three
equal installments on the 1st day of
January following the officer's retire-
ment and on the two anniversaries of
this date immediately following; and
(2) a refund of the contributions made
to the Foreign Service Retirement and
Disability Fund, with interest [thereon
at 4 per centum, compounded annually],
except that in lieu of such refund such
officer may elect to receive retirement
benefits on reaching the age of [sixty-
two], in accordance with the provisions
of section 821. In the event that an
officer who was separated from [classes]
4 or 5 and who has elected to receive
retirement benefits dies before reaching
the age of [sixty-two], his death shall
be considered a death in service within
the meaning of section 832. In the
event that an officer who was separated
from [classes 6 and 7] and who has
elected to receive retirement benefits dies
before reaching the age of [sixty-two],
the total amount of his contributions
made to the Foreign Service Retirement
and Disability Fund, with interest
[thereon at 4 per centum, compounded
annually shall be paid in accordance
with the provisions of section 811.]
Proposed legislation
SEC. 634. (b) Any Foreign Service
officer in classes 4, 5, 6 or 7 who is
retired from the Service in accordance
with the provisions of section 633 shall
receive?
(1) one-twelfth of a year salary
at his then current salary rate for
each year of service and proportion-
ately for a fraction of a year, but not
exceeding a total of one year's salary
at his then current salary rate,
payable without interest, from the
Foreign Service Retirement and Dis-
ability Fund, in three equal install-
ments on the 1st day of January
following the officer's retirement and
on the two anniversaries of this date
immediately following; Provided, That
in special cases, the Secretary may in
his discretion accelerate or combine the
installments; and
(2) a refund of the contributions made
to the Foreign Service Retirement and
Disability Fund, with interest as pro-
vided in section 841(a), except that in
lieu of such refund such officer, if he has
at least 6 years of service credit toward
retirement under the Foreign Service Re-
tirement and Disability System, excluding
military or naval service that is credited in
accordance with the provisions of section
851 or 852(a), may elect to receive re-
tirement benefits on reaching the age of
sixty, in accordance with the provisiona.
of section 821. In the event that air
officer who has separated from class 4 or
5 and who has elected to receive retire-
ment benefits dies before reaching the
age of sixty, his death shall be considered
a death in service within the meaning
of section 832. In the event that an
officer who was separated from class 6 or
7 and who has elected to receive retire-
ment benefits dies before reaching the
age of sixty, the total amount of his
contributions made to the Foreign
Service Retirement and Disability Fund,
with interest as provided in section 841
(a), shall be paid in accordance with the
provisions of section 841(b).
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40
AMENDMENTS TO THE FOREIGN SERVICE ACT
Paragraph (b) (1) of section 634 is amended to authorize the Secretary in special
instances to accelerate or combine the "installments" of the "severance" payment
of up to but not exceeding 1 year's salary, without interest, which is authorized
by this section. While the provision for paying this sum in three equal install-
ments on the 1st day of January following the officer's retirement and on the two
anniversaries of this date immediately following usually is satisfactory, there are
circumstances when it is desirable to aecelerate or combine the payments in ac-
cordance with the needs of individual officers. The authority herein provided will
make it possible for the Secretary to exercise his discretion in adjusting payments
on an individual case basis.
Although the present provisions do not specifically state that the payments
made under authority of this section shall be paid from the Foreign Service Retire-
ment and Disability Fund, a decision by the Comptroller General made shortly
after enactment of the Foreign Service Act of 1946 has resulted in the payments
being made from that fund. This section as amended clearly authorizes the use of
the Foreign Service Retirement and Disability Fund for this purpose.
Paragraph (b) (2) of section 634 is amended to conform with changes made in
sections 841 and 881 which establish the computing of interest and the keeping
of records /elating to the retirement fund on a calendar year basis instead of a
fiscal year basis as is now required by existing language. Further, this paragraph
has been revised to clalify requirements relating to prior service credit governing
an officer's entitlement to deferred annuity benefits.
References to age "sixty-two" throughout paragraph (b) have been changed to
"sixty" to conform with other sections of this act.
SECTION 25 (Sec. 635)
(See also p. 135)
Existing legislation Proposed legislation
FOREIGN SERVICE OFFICERS RETIRED FOREIGN SERVICE OFFICERS RETIRED
FROM CLASS 8 FROM CLASS 7 OR 8
SEC. 635. Any Foreign Service officer SEC. 635. Any Foreign Service officer
in class 8 shall occupy probationary in class 7 who is appointed under the pro-
status. The Secretary may terminate visions of section 516(b) and any Foreign
his service at any time. Service officer in class 8 shall occupy pro-
bationary status. The Secretary may
terminate his service at any time.
The provisions of this section have been amended to provide for the probation-
ary status of any Foreign Service officer of class 7 who is appointed under the pro-
visions of section 516(b) as well as any Foreign Service officer in class 8.
SECTION 26 (Sec. 636)
(See also p. 135)
VOLUNTARY RETIREMENT
Existing legislation
SEC. 636. [Any Foreign Service offi-
cer] who is at least fifty years of age
and has rendered twenty years of serv-
ice, including service within the mean-
ing of section 853, may on his own
application and with the consent of the
Secretary be retired from the Service
and receive benefits in accordance with
the provisions of section 821.
Proposed legislation
SEC. 636. Any participant in the For-
eign Service Retirement and Disability
System who is at least fifty years of age
and has rendered twenty years of serv-
ice, including service within the meaning
of section 853, may on his own applica-
tion and with consent of the Secretary
be retired from the Service and receive
benefits in accordance with the provi-
sions of section 821.
This is a technical change that conforms with other changes in the act to make
uniform the use of the word "participant."
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SECTION 27 (Sec. 637)
(See also p. 135)
Proposed legislation (as passed Senate)
SEPARATION FOR CAUSE
Existing legislation
SEPARATION FOR [UNSATISFACTORY
PERFORMANCE OF DUTY]
SEC. 637. (a) The Secretary may,
under such regulations as he may pre-
scribe, separate from the Service any
Foreign Service officer [above class 8]
on account of the unsatisfactory per-
formance of his duties(;] but no such
officer shall be so separated [from the
Service] until he shall have been granted
a hearing by the Board of the Foreign
Service and the unsatisfactory perform-
ance of his duties shall have been
established at such hearing[.]
[PART F?SEPARATION OF STAFF
OFFICERS AND EMPLOYEES
[FOR UNSATISFACTORY PERFORMANCE
OF DUTY
[SEC. 651. The Secretary may, under
such regulations as he may prescribe,
separate from the Service any staff
officer or employee on account of the
unsatisfactory performance of his duties,
but no such officer or employee shall be
so separated from the Service until he
shall have been granted a hearing by
the Board of the Foreign Service and
the unsatisfactory performance of his
duties shall have been established at
such hearing.]
[SEPARATION FOR MISCONDUCT OR
MALFEASANCE
[SEc. 638. The Secretary shall sepa-
rate from the Service any Foreign Serv-
ice officer or Reserve officer who shall
be guilty of misconduct or malfeasance
in office, but no such officer shall be so
separated from the Service until he shall
have been granted a hearing by the
Board of the Foreign Service and his
misconduct or malfeasance shall have
been established at such hearing. Any
officer separated from the Service in
SEC. 637. (a) The Secretary may,
under such regulations as he may pre-
scribe, separate from the Service any
Foreign Service officer, Reserve officer,
or staff officer or employee, on account
of the unsatisfactory performance of
his duties, or for such other cause as
will promote the efficiency of the Service,
with reasons given in writing, but no
such officer or employee shall be so
separated until he shall have been
granted a hearing by the Board of the
Foreign Service and the unsatisfactory
performance of his duties, or other cause
for separation, shall have been estab-
lished at such hearing, unless he shall
have waived in writing his right to a.,
hearing. The provisions of this section
shall not apply to Foreign Service officers
of class 8 or any other officer or employee
of the Service who is in a probationary
status or whose appointment is limited or
temporary, except when separation is by
reason of misconduct.
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42 AMENDMENTS TO THE FOREIGN SERVICE ACT
Besting legislation
accordance with the provisions of this
section shall not be eligible to receive
the benefits provided by title VIII of
this Act, but his contributions to the
Foreign Service Retirement and Dis-
ability Fund shall be returned to him
in accordance with the provisions of
section 841(a).]
'[FOR MISCONDUCT OR MALFEASANCE
[SEC. 652. The Secretary shall sepa-
rate from the Service any staff officer or
.employee who shall be guilty of mis-
conduct or malfeasance in office, but no
such officer or employee shall be so sepa-
rated from the Service until he shall
have been granted a hearing by the
Board of the Foreign Service and his
misconduct or malfeasance shall have
been established at such hearing.]
SEC. 637. (b) (Any Foreign Service
officer over forty-five years of age,
separated from the Service in accord-
ance with the provisions of paragraph
(a) of this section, shall be retired upon
an annuity computed in accordance with
the provisions of section 821 but not in
excess of 25 per centum of his perannum
salary at the time of his separation.3
((c) Any foo eign Service officer
under forty-five years of age separated
from the Service in accordance with the
provisions of paragraph (a) of this sec-
tion, shall at the time of separation
receive a payment equal to one year's
salary or the refund of the contributions
made by him to the Foreign Service
Retirement and Disability Fund, which-
ever shall be greater.]
(d) Any payments made in accord-
ance with the provisions of this section
shall be made out of the Foreign Service
Retirement and Disability Fund.
Proposed legislation. (a,s passed Senate)
SEC. 637. (b) Any participant in the
Foreign Service Retirement and Disability
System separated under the provisions of
paragraph (a) of this section shall receive
a refund of the contributions made to the
Foreign Service Retirement and Disability
Fund, with interest, as provided in sec-
tion 841(a) except that in lieu of such
refund such officer may (except in cases
where the Secretary determines that sepa-
ration was based in whole or in part on
the ground of disloyality to the United
States) if he has at least 5 years of service
credit toward retirement under this System,,
excluding military or naval service that is
credited in accordance with the provisions
of section 851 or 852 (a), elect to leave his
contributions in the Fund and receive an
annuity, computed as prescribed in sec-
tion 821 commencing at the age of sixty
years. In the event that an officer who
has elected under the provisions of this
section to receive a deferred annuity dies
before reaching the age of sixty, his contri-
butions to the Fund, with interest, shall be
paid in accordance with the provisions of
sections 841 and 881.
(c) Any officer or employee of the
Service separated under the provisions of
paragraph (a) of this section who is not a
participant in the Foreign Service Retire-
ment and Disability System shall be
entitled only to such benefits as shall accrue
to him under the retirement system in
which he is a participant.
(d) Any payments made in accord-
ance with the provisions of paragraph (b)
of this section shall be made out of the
Foreign Service Retirement and Dis-
ability Fund.
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JUSTIFICATION FOR THE DEPARTMENT'S PROPOSED CHANGE
As will be seen in the proposed amended section 637, which follows, it was the
Department's intention to combine in one section the provisions formerly con-
tained in four sections of the Foreign Service Act (i.e., secs. 07, 651, 638, 652),
provisions relating to the separation for cause of all categories of permanent-type
personnel in the Foreign Service. Because of the number of separate provisions
relating to separation for cause, the specific authority of the Secretary was some-
what obscured and there was not provision for equity in the treatment of the
various categories of Foreign Service personnel.
Important among the improvements the Department was seeking was the
elimination of the requirement for hearings in certain instances involving the
separation of officers and employees serving on temporary or limited appoint-
ments or serving probationary periods. The Department was also seeking to
eliminate any "penalty" clauses relating to retirement benefits when employees
are separated for cause.
Amended section 637 as it appears in S. 2633 requires a hearing in cases where
separation for cause involves misconduct." It also provides that annuity bene-
fits shall be denied when an officer or employee is separated for cause if "the
Secretary determines that separation was based in whole or part on the ground
of disloyalty to the United States." The requirement for a hearing where a
limited, temporary, or probationary employee is separated for misconduct restricts
unnecessarily the authority of the Secretary. Denial of annuity benefits when a
determination is made that "disloyalty to the United States" is involved is con-
sidered unduly severe. Such a provision would seem to go further than the Hiss
Act which denies annuities to persons who commit offenses involving the security
of the United States if such persons are convicted. The Department and the
executive branch have taken the position that denial of earned annuity benefits
cannot equitably be a part of punitive action in separation-for-cause cases.
Because of these objections to section 637 as it appears in S. 2633, the Department
proposes the revised amendment to this section as follows:
Existing legislation Changes proposed by Department
SEPARATION FOR [UNSATISFACTORY SEPARATION FOR CAUSE
PERFORMANCE OF DUTY]
SEC. 637. (a) The Secretary may,
under such regulations as he may pre-
scribe, separate from the Service any
Foreign Service officer [above class 8]
on account of the unsatisfactory per-
formance of his duties [;] but no such
officer shall be so separated [from the
Service] until he shall have been
granted a hearing by the Board of the
Foreign Service and the unsatisfactory
performance of his duties shall have
been established at such hearing[.]
SEC. 637. (a) The Secretary may,
under such regulations as he may pre-
scribe, separate from the Service any
Foreign Service officer, or staff officer
or employee, on account of the un-
satisfactory performance of his duties,
or for such other cause as will pro-
mote the efficiency of the Service, and
for reasons given in writing, but no such
officer or employee shall be so separated
until he shall have been granted a hear-
ing by the Board of the Foreign Service
and the unsatisfactory performance of
his duties, or other cause for separation,
shall have been established at such
hearing, unless he shall have waived in
writing his right to a hearing. The pro-
visions of this section shall not apply to
Foreign Service officers of class 8, Foreign
Service Reserve officers, or any other officer
or employee of the Service who is in a
probationary status or whose appointment
is limited or temporary.
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Existing legislation
APART F?SEPARATION OF STAFF
OFFICERS AND EMPLOYEES
[FOR UNSATISFACTORY PERFORMANCE
OF DUTY
[SEc. 651. The Secretary may, under
such regulations as he may prescribe,
separate from the Service any staff
officer or employee on account of the
unsatisfactory performance of his duties,
but no such officer or employee shall
be so separated from the Service until
he shall have been granted a hearing
by the Board of the foreign Service
? and the unsatisfactory performance of
his duties shall have been established
at such hearing.]
[SEPARATION FOR MISCONDUCT OR
MALFEASANCE
[SEc. 638. The Secretary shall sep-
arate from the Service any Foreign
Service officer or Reserve officer who
shall be guilty of misconduct or mal-
feasance in office, but no such officer
shall be so separated from the Service
until he shall have been granted a
hearing by the Board of the Foreign
Service and his misconduct or malfea-
sance shall have been established at
such hearing. Any officer separated
from the Service in accordance with
the provisions of this section shall not
be eligible to receive the benefits pro-
vided by title VIII of this Act, but
his contributions to the Foreign Service
Retirement and Disability Fund shall
be returned to him in accordance with
the provisions of section 841(a).3
[FOR MISCONDUCT OR MALFEASANCE
[SEC. 652. The Secretary shall sep-
arate from the Service any staff officer
or employee who shall be guilty of
misconduct or malfeasance in office,
but no such officer or employee shall
be so separated from the Service until
he shall have been granted a hearing
by the Board of the Foreign Service
and his misconduct or malfeasance shall
have been established at such hearing.)
SEC. 637. (b) [Any Foreign Service
officer over forty-five years of age, sep-
arated from the Service in accordance
with the provisions of paragraph (a)
of this section, shall be retired upon
an annuity computed in accordance
with the provisions of section 821 but
not in excess of 25 per centum of his
per annum salary at the time of his
separation.]
Changes proposed by Department
SEC. 637 (b) Any participant in the
Foreign Service Retirement and Disability
System separated under the provisions of
paragraph (a) of this section shall receive
a refund of the contributions made to the
Foreign Service Retirement and Disa-
bility Fund, with interest, as provided in
section 841 (a) except that in lieu of such
refund such officer may if he has at least
5 years of service credit toward retirement
under this system, excluding military or
naval service that is credited in accord-
ance with the provisions of section 851
or 852(a), elect to leave his contributions
in the Fund and receive an annuity, com-
puted as prescribed in section 821 com-
mencing at the age of sixty years. In
the event that an officer who has elected
under the provisions of this section to
receive a deferred annuity dies before
reaching the age of sixty, his contributions
to the Fund, with interest, shall be paid
in accordance with the provisions of sec-
tions 841 and 881.
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Nowir
Emisting legislation
[(c) Any Foreign Service officer
under forty-five years of age, separated
from the Service in accordance with the
provisions of paragraph (a) of this sec-
tion, shall at the time of separation
receive a payment equal to one year's
salary or the refund of the contributions
made by him to the Foreign Service
Retirement and Disability Fund, which-
ever shall be greater.]
(d) Any payments made in accord-
ance with the provisions of this section
shall be made out of the Foreign Service
Retirement and Disability Fund.
Changes proposed by Department
- (c) Any officer or employee of the
Service separated under the provisions of
paragraph (a) of this section who is not
a participant in the Foreign Service Re-
tirement and Disability System shall be
entitled only to such benefits as shall
accrue to him under the retirement system
in which he is a participant.
(d) Any payments made in accord-
ance with the provisions of paragraph
(b) of this section shall be made out of
the Foreign Service Retirement and
Disability Fund.
New section 637(a) combines into one section the provisions of sections 637
and 651 relative to separation for unsatisfactory performance of duty as well as
the provisions of sections 638 and 652 relative to separation for misconduct and
malfeasance. In so doing the following substantive changes have been made:
(1) The Secretary is given the discretion to determine whether an officer
or employee should be separated for cause. At present he does not have
complete discretion in this matter. Under present provisions it is frequently
difficult if not impossible to distinguish between unsatisfactory performance
and misconduct.
(2) The requirement of a hearing does not apply if the officer or employee
waives his right to a hearing.
(3) It may be noted that the revised section applies equally to all Foreign
Service officers, and Foreign Service Staff officers and employees.
Foreign Service officers who are in probationary status, Foreign Service Reserve
officers, and any other officers and employees of the Service whose appointments
are temporary or limited (e.g., Staff personnel appointed for a special program)
are not subject to the provisions of this section as their services may be terminated
at any time at the discretion of the Secretary. Foreign Service Reserve officers
are not included since their appointments from the beginning have a statutory
expiration date.
Paragraph (b) has been revised to provide that a participant separated from
the Service for cause may receive a refund of contributions to the Foreign Service
Retirement and Disability Fund, with interest, or may elect in lieu of a refund
of such contributions to receive a deferred annuity payable when he reaches age
60. This brings into line with the retirement provisions of this section the
retirement provisions covering other types of separation from the Foreign Service.
Under present provisions relating to separation for cause, officers 45 years of
age or over who are separated for unsatisfactory performance of duty are entitled
to an immediate annuity based upon their years of service, computed in accord-
ance with the provisions of section 821, but such annuity may not exceed 25
percent of their basic per annum salary at the time of separation. Officers under
45 years of age who are separated from the Service for unsatisfactory performance
are entitled to a payment of 1 year's salary or the refund of contributions made to
the Foreign Service Retirement and Disability Fund, "whichever shall be greater."
Under present provisions officers separated for misconduct or malfeasance are
denied annuity benefits and are entitled only to a refund of contributions made by
them to the Foreign Service Retirement and Disability Fund.
It is the Department's view that there should be no "penalty" clause relating
to retirement benefits when there is separation for cause. Further' it is the
Department's view that an officer who has contributed to the retirement Fund and
has served for a sufficient number of years (i.e., at least 5 years of civilian service)
to qualify for a deferred annuity should not be denied the benefits he has earned
regardless of the reason for his separa0on, and that he therefore should have the
choice of a refund of retirement contributions or a deferred annuity.
New paragraph (c) has been added to make clear that retirement benefits under
the Foreign Service Retirement and Disability System relating to separation for
cause apply only to participants in that System. Other officers or employees of
the Service separated under the provisions of this section are entitled only to such
benefits as shall accuie to them under any other retirement system in which they
are participants.
Paragraph (d) has been changed only with respect to a eross reference.
50864 60 4
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SECTION 28 (Sec. 638)
(See also p. 138)
TERMINATION OF LIMITED APPOINTMENTS OF FOREIGN SERVICE RESERVE OFFICERS
AND STAFF OFFICERS AND EMPLOYEES
Existing legislation Proposed legislation (as passed Senate)
No existing legislation.
SEC. 638. Notwithstanding the provi-
sions of this or any other law, the Secretary
may, under such regulations as he may
prescribe, terminate at any time the
services of any Reserve officer or staff officer
or employee serving under limited appoint-
ment, except that, if the termination is
because of misconduct, the provisions of
section 637 shall be applicable. This sec-
tion shall not modify the conditions of
employment of, and shall not be applicable
to, staff officers who accepted Reserve officer
appointments during the period from
September 1, 1958, through December 81,
1958.
JUSTIFICATION FOR THE DEPARTMENT'S PROPOSED CHANGE
As was the case in the Department's proposed amendment which resulted in a
new section 637 that combines all provisions relating to separation for cause and
makes uniform separation for cause procedures, as they affect all categories of
personnel in the Foreign Service, it was the Department's intention when it pro-
posed an amendment to section 638 to provide clear-cut authority for the Secre-
tary to terminate Staff officers and employees serving under temporary or limited
appointments and Foreign Service Reserve officers. Section 28 of S. 2633 follows
the Department's original proposed amendment to section 638 but adds a require-
ment that where separation is for misconduct the employee being separated must
be given a hearing. The Department does not believe that there is justification
for a hearing procedure where temporary or limited employees are being termi-
nated; consequently, the Department proposes the revised amendment to this
section, as follows:
TERMINATION OF APPOINTMENT OF FOREIGN SERVICE RESERVE OFFICERS AND STAFF
OFFICERS AND EMPLOYEES UNDER LIMITED APPOINTMENT
Existing legislation Changes proposed by Department
No existing legislation. SEC. 638. Notwithstanding the provi-
sions of this or any other law, the Secretary
may, under such regulations as he may
prescribe, terminate the services of any
staff officer or employee serving under lim-
ited appointment or any Foreign Service
Reserve officer at any time. This section
shall not modify the conditions of employ-
ment of, and shall not be applicable to,
staff officers who accepted Reserve officer
appointments during the period from Sep-
tember 1, 1958, through December 81,
1958.
The Foreign Service Act of 1946, as amended, does not specifically provide the
Secretary with clear-cut authority for the separation, when their services are no
longer needed, of Foreign Service Reserve officers. Further, the Foreign Service
Act of 1946, as amended, does not provide clear-cut authority for the Secretary
to terminate Staff officers or employees who are serving under limited appoint-
ments. This amendment is designed to provide statutory authority for the
termination of such employees at the end of the specified period of employment,
upon expiration of the special program for which the employee was appointed,
or when the need no longer exists for the employee's services.
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AMENDMENTS TO THE FOREIGN SERVICE ACT 47
This flexibility is needed in order to staff new programs with personnel who are
willing to accept such assignments and in order to be able to terminate their
services with the minimum of disruption.
? The second sentence of amended section 638 makes a special provision for a
group of approximately 45 Staff officers who during the period September 1,
1958?December 31, 1958, accepted Foreign Service Reserve appointments of
specified duration. Although the Department has no intention of changing the
agreed upon duration of appointment for this group of officers the Senate made
this provision to insure thal these officers would not be terminated before the end
of their specified period of employment.
PART E?PROMOTION FOREION SERVICE STAFF OFFICERS AND EMPLOYEES
SECTION 29 (Sec. 641)
(See also p. 139)
CLASS PROMOTION OF STAFF PERSONNEL
Existing legislation
SEC. 641. [Any staff officer or em-
ployee may, in accordance with uniform
procedures established in regulations
prescribed by the Secretary, upon dem-
onstration of ability to assume duties of
,greater responsibility, be promoted to a
vacant position in a higher class at the
same or at a higher rate of salary.]
Proposed legislation
SEC, 641. All promotions of staff
officers and employees to a higher class
shall be made at a higher salary on the
basis of performance and merit in accord-
ance with such regulations as the Secretary
may prescribe.
Section 641 is amended to emphasize the principle that all promotions of Staff
.officers and employees to a higher class shall be on a competitive basis in relation
to performance and merit, rather than on the basis of a vacant position in a
higher class. This puts Staff personnel on the same basis as Foreign Service
officers with respect to promotions. As indicated in the explanation of the pro-
posed Foreign Service salary schedule under section 415 (see p. 18), Staff personnel
upon promotion to a higher class would receive an increase in salary.
SECTION 30 (Sec. 642)
(See also p. 140)
Proposed legislation (as passed Senate)
Existing legislation
[IN-CLASS PROMOTIONS OF STAFF
OFFICERS AND EMPLOYEES]
SEC. 642. [In-class promotions of
staff officers and employees shall be
granted in accordance with regulations
prescribed by the Secretary.]
No existing legislation.
WITHIN CLASS AND LONGEVITY SALARY
INCREASES
SEC. 642. (a) Under such regulations
as the Secretary may prescribe, any staff
officer or employee whose services meet the
standards required for the efficient conduct
of the work of the Service shall receive an
increase in salary at periodic intervals to
the next higher salary rate for the class in
which he is serving. Without regard to
any other law the Secretary is authorized
to grant any such officer or employee addi-
tional increases in salary within the
salary range established for the class in
which he is serving, based upon especially
meritorious service.
(b) Under such regulations as the
Secretary may prescribe, any staff officer
or employee who has attained the maxi-
mum salary rate prescribed by section 415
for the class in which he is serving may
be granted from time to time an additional
salary increase beyond the maximum
salary rate for his class in recognition of
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AMENDMENTS TO THE FOREIGN SERVICE ACT
Existing legislation Proposed legislation (as passed Senate)
longevity and proficiency in the Service.
Each such salary increase shall be equal
to the maximum salary rate increase of
the applicable class and no person shall
receive more than four such salary in-
creases while serving in the same class.
JUSTIFICATION FOR THE DEPARTMENT'S PROPOSED CHANGE
Section 30 of S. 2633 amends section 642 of the Foreign Service Act in accord-
ance with the Department's proposals except in one respect. The amendment
to paragraph 642(b) which authorizes the Secretary to grant increases to Foreign
Service Staff personnel beyond the maximum salary rates prescribed by section
415 states that such increases may be granted "in recognition of longevity and
proficiency in the Service." It is the Department's intention to use the authority
of this section to grant not only longevity increases but also, in certain instances,
to provide for increases beyond the maximum salary rate of the classes as a reward
for proficiency, in lieu of promotion to a higher class. Further, the Department
needs to use the authority contained in this section in the initial conversion of
Staff personnel from existing classes and salary levels to those contained in the
new 10-class salary structure in order to provide for an orderly and equitable
conversion of all Staff personnel. Accordingly, the Department wishes to have
the language of this section altered by changing the word "and" to "or." The
change indicated in the following redraft of section 642 is proposed.
Existing legislation
[IN-CLASS PROMOTIONS OF STAFF
OFFICERS AND EMPLOYEES]
SEC. 642. [In-class promotions of
staff officers and employees shall be
granted in accordance with regulations
prescribed by the Secretary.]
No existing legislation.
Changes proposed by Department
WITHIN CLASS AND LONGEVITY
SALARY INCREASES
SEC. 642. (a) Under such regulations as
the Secretary may prescribe, any staff
officer or employee whose services meet the
$landards required for the efficient conduct
of the work of the Service shall receive an
increase in salary at periodic intervals to
the next higher salary rate for the class in
which he is serving. Without regard to
any other law the Secretary is authorized
to grant any such officer or employee addi-
tional increases in salary within the salary
range established for the class in which he
is serving, based upon especially meri-
torious service.
(b) Under such regulations as the Secre-
tary may prescibe, any staff officer or em-
ployee who has attained the maximum
salary rate prescribed by section 415 for
the class in which he is serving may be
granted from time to time an additional
salary increase beyond the maximum
salary rate for his class in recognition of
longevity or proficiency in the Service.
Each such salary increase shall be equal
to the maximum salary rate increase of the
applicable class and no person shall re-
ceive more than four such salary increases
while serving in the same class.
Paragraph (a) of section 642 has been revised to provide the Secretary with
the same authority to grant Staff personnel additional within-class increases as a
reward for meritorious service al,. that contained in section 625 for granting
meritorious salary increases within-class to Foreign Service officers and Foreign
Service Reserve officers.
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AMENDMENTS TO THE FOREIGN SERVICE ACT 49
The principal purpose of new section 642(b) is to authorize the Secretary to
establish a system of longevity increases for Staff personnel. The principle and
the practice of longevity pay is well established in Government and in industry.
Although the work performed by Staff personnel is highly essential and important
to the effective functioning of the Service, in the majority of the cases the nature
of the duties and the qualifications required therefor impose automatic limita-
tions on promotional opportunities. In addition, as a consequence of the Secre-
tary's integration program, promotional opportunities in the Staff are limited;
however, most Staff personnel performing in Foreign Service officer positions who
qualified for lateral entry were integrated into the Foreign Service officer category.
Longevity pay is not pertinent in the case of Reserve officers, whose tenure is
usually limited to a period of 5 years, and it is not consistent with the promotion
and selection-out provisions applicable to Foreign Service officers. In the case
of Foreign Service Staff personnel a longevity pay system will meet a definite
need in providing an incentive for qualified and experienced employees to con-
tinue in the Service throughout their working careers, thus providing highly
essential skills for the Service with a minimum of turnover and cost.
The proposed revision would authorize the Secretary to grant a longevity
salary increase from time to time on the basis of significant longevity landmarks
in terms of the total years of U.S. Government service rendered by an employee,
provided his record of performance warrants the award of such increase. In
other words, it is not intended that longevity increases would be awarded auto-
matically on the basis of satisfactory service, as in the case of the periodic increases,
but rather the purpose of the plan is to recognize longevity in combination with
proficiency in order to provide a stimulus for long-service employees who remain
in the same class to continue to excel in the performance of their duties as well as
to continue in the Service.
It is contemplated that the Secretary will establish by regulation the eligibility
periods for longevity increases under this plan.
TITLE VII?THE FOREIGN SERVICE INSTITUTE
SECTION 31 (Sec. 701)
(See also p. 141)
ESTABLISHMENT OF THE INSTITUTE
Existing legislation
SEC. 701. The Secretary shall, in or-
der to furnish training and instruction
to officers and employees of the Service
and of the Department and to other
officers and employees of the Govern-
ment for whom training and instruction
in the field of foreign relations is neces-
sary, and in order to promote and foster
programs of study incidental to such
training, establish a Foreign Service
Institute, hereinafter called the Institute.
Proposed legislation
SEC. 701. The Secretary shall, in order
to furnish training and instruction to
officers and employees of the Service
and of the Department and to other
officers and employees of the Govern-
ment for whom training and instruction
in the field of foreign relations is neces-
sary, and in order to promote and foster
programs of study incidental to such
training, establish a Foreign Service
Institute, hereinafter called the Insti-
tute. The Secretary may also provide
to the extent that space is available therefor
appropriate orientation and language
training to spouses of officers and em-
ployees of the Government in anticipation
of the assignment abroad of such officers
and employees. Other agencies of the
Government shall wherever practicable
avoid duplicating the facilities of the
Institute and the training provided by
the Secretary at the Institute or elsewhere.
? The proposed addition to section 701 will give the Secretary specific authority
to? provide orientation and language training to the spouses of officers and em-
ployees of the Government who are to serve in foreign relations activities abroad.
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50 AMENDMENTS TO Tilt FOREIGN SERVICE ACT
SECTION 32 (Sec. 704)
(See also p. 141)
APPOINTMENT, ASSIGNMENT, AND DETAIL TO THE INSTITUTE
Existing legislation
SEC. 704. (a) The Secretary may
appoint to the faculty or staff of the
Institute on a full- or part-time basis
such personnel as he may deem neces-
sary to carry out the provisions of this
title in accordance with the provisions
of the civil-service laws and regulations
and the Classification Act of (19231 as
amended, except that, when deemed
necessary by the Secretary for the effec-
tive administration of this title, per-
sonnel may be appointed without regard
to such laws and regulations, but any
person so appointed shall receive a
salary at one of the rates provided by
the Classification Act of [1923], as
amended. All appointments to the
faculty or staff of the Institute shall be
made without regard to political affilia-
tons and shall be made solely on the
basis of demonstrated interest in, and
capacity to promote, the purposes of the
Institute.
No existing legislation.
No existing legislation.
Proposed legislation
SEC. 704. (a) The Secretary may
appoint to the faculty or staff of the
Institute on a full- or part-time basis
such personnel as he may deem neces-
sary to carry out the provisions of this
title in accordance with the provisions
of the civil-service laws and regulations
and the Classification Act of 1949, as
amended, except that, when deemed
necessary by the Secretary for the effec-
tive administration of this title, per-
sonnel may be appointed without regard
to such laws and regulations, but any
person so appointed shall receive a
salary at one of the rates provided by
the Classification Act of 1949, as
amended. All appointments to the
faculty or staff of the Institute shall be
made without regard to political affilia-
tions and shall be made solely on the
basis of demonstrated interest in, and
capacity to promote, the purposes of the
Institute.
(e) The Secretary may, under such
regulations as he may prescribe, in the
absence of suitably qualified United
States citizens, employ persons who are
not citizens of the United States by
appointment to the staff of the Institute
either on a full- or part-time basis or
by contract for services in the United
States or abroad at rates not in excess of
those provided by the Classification Act
of 1949, as amended (5 U.S.C. 1071).
(f) The Secretary may, under such
regulations as he may prescribe, provide
special monetary or other incentives not
inconsistent with this Act to encourage
Foreign Service personnel to acquire or
retain proficiency in esoteric foreign lan-
guages or special abilities needed in the
Service.
In paragraph (a), references to the Classification Act of 1923 have been brought
up to date by changing "1923" to "1949".
A new paragraph (e) has been added to section 704. This will provide the
Secretary with authority either to employ on the staff of the Institute or to con-
tract for the services of aliens for use in language and area training programs.
The primary goal of the language and area programs is to have the student achieve
a comprehensive speaking and reading proficiency of a language as well as an area.
knowledge of a country. Frequently the persons best qualified to provide such
instruction are recent emigres who have not had an opportunity to acquire Amer-
ican citizenship. Such persons may teach in universities to which Foreign Service
personnel might be assigned, but their employment on the staff of the Institute
has not heretofore been authorized. This authority will enable the Department
to strengthen its language and area training programs in the Foreign Service
Institute.
Both full-time and part-time language and area instructors and tutors will
normally be appointed to the staff of the Institute when they are to be used on,
continuing programs. Authority to employ by contract is considered essential,
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however, since in many cases persons used in these programs are available in the.
United States for only short periods of time. In many instances because of the
varying requirements of the Institute short-term instructors can adequately fill
the needs for specialized language and area training. To avoid excessive turnover-
in the staff of the Institute, and to meet unforeseen changes or modifications in
programs, the flexibility provided by a contract provision will bring about economy
in the operation of the Institute's programs.
New paragraph (f) of section 704 would give the Secretary the authority to,
provide special monetary and other incentives that would encourage officers and
employees of the Service to acquire, use, and maintain skills in "difficult" lan-
guages. While it is expected that officers and employees of the Service will
acquire and maintain proficiency in at least one of the world languages, the acqui-
sition and maintenance of skills in the esoteric languages is a time-consuming and
frequently extra curricular requirement which imposes heavily upon an officer or
employee's time. Moreover, an officer who becomes such a language and area
specialist will in most instances be called upon to spend a disproportionate part of
his career in the Service at posts where living conditions are difficult. The need
for officers trained in esoteric languages is becoming increasingly so important in
the conduct of foreign affairs activities that it is believed highly important for the
Secretary to have authority to offer such incentives.
It is expected that only a relatively small number of officers would be eligible
to receive the benefits of this provision. However, its importance to the Service,
is great.
TITLE VIII?THE FOREIGN SERVICE RETIREMENT
AND DISABILITY SYSTEM
SECTION 33 (Sec. 803)
(See also pp. 146-153, 154)
PART A?ESTABLISHMENT OF SYSTEM
PARTICIPANTS
Existing legislation
SEC. 803. (b)
(2) have paid into the Fund a spe-
cial contribution [equal to 5 per
centum of his basic salary for each
year of such service with interest
thereon to date of payment, com-
pounded annually at 4 per centuml
No existing legislation.
No existing legislaiion.
Proposed legislation (as passed Senate)'
SEC. 803. (b)
(2) have paid into the Fund a spe-
cial contribution for each year of such
service in accordance with the provisions
of section 852(b).
(c)(1) In accordance with such regula-
tions as the President may prescribe, any
Foreign Service staff officer or employee
appointed by the Secretary of State who
has completed at least 10 years of con-
tinuous service in the Department's For-
eign Service, exclusive of military service,
shall become a participant in the System
and shall make a special contribution to
the Fund in accordance with the provisionx
of section 852.
(2) Any such . officer or employee who,
under the provisions of paragraph (c)(1)
of this section, becomes a participant in
the System, shall be mandatorily retired
for age during the first year after the effec-
tive date of this section if he attains age
sixty-four or if he is over age sixty-four;
during the second year at age sixty-three;
during the third year at age sixty-two;
during the fourth year at age sixty-one,
and thereafter at age sixty.
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Emisting legislation Proposed legislation (as, passed Senate)
No existing legislation.
(8) Any officer or employee who be-
comes a participant under the provisions
of paragraph (c)(1) of this section, who
is age 61 or over on the effective date of this
section, and who is retired mandatorily
under the provisions of paragraph (c) (2)
of this section, shall receive, in addition
to retirement benefits under section 821,
one-twelfth of a year's salary at his then
current rale for each year of service and
proportionately for a fraction of a year,
but not exceeding a total of one year's
salary at his then current salary rate,
payable without interest, from the Fund,
at the time of his retirement.
JUSTIFICATION FOR THE DEPARTMENT'S PROPOSED CHANGE
The new subsection 803(c) (3) is the outgrowth of Senate committee hearings
and relates by reference to the applicability of subsection 803(c) (1) which provides
for the mandatory transfer to the Foreign Service Retirement System of all Staff
personnel on completion of 10 years of continuous service, and subsection 803(c) (2)
which provides for the retirement on a gradual scheduled basis over a 5-year
period of Staff personnel who will be retired above the normal Foreign Service
retirement age. These new earlier retirement provisions will become effective
1 year after enactment of this bill.
The latter provision will bring about the earlier mandatory retirement of 93
Staff officers and 64 clerical employees (by periods varying from a few months to
10 years) than would be required were they continued as participants in the Civil
Service System. The Staff officers were unable to qualify for lateral appointment
as Foreign Service officers because of age or other factors. The clerical employees
have reached the limit of their potential. Most of these employees are age 60 or
older and all are more or less marking time pending retirement.
Since the accelerated retirement of older Staff personnel is considered to be in
the best interests of the Service and the Government, subsection 803(c) (3) was
intended to give these older Staff employees some kind of financial aid, in addi-
tion to the annuities to which they are entitled, in recognition of possible hard-
ship which would be imposed upon them by earlier mandatory retirement. Also,
it was intended to provide other older personnel a financial incentive for earlier
voluntary retirement. Without benefit of opportunity for detailed study of its
possible disadvantages and/or inequities, a financial aid plan similar to that pro-
vided Foreign Service officers who are selected out appeared to be the most feasi-
ble and equitable.
This provision, as written into the bill, will provide a lump-sum payment of
one-twelfth of the current yearly salary for each year of service not exceeding a
total of 1 year's salary to older staff employees who (a) are age 61 or older when
they become participants in the Foreign Service Retirement System, and (b) are
retired mandatorily as prescribed in the gradual retirement schedule.
Projection studies made subsequent to the passage of S. 2633 by the Senate of
the benefits accruing to individual employees under this provision reveal that
failure to relate the proposed financial aid to: age when retired; the number of
years earlier that retirement takes place; and losses sustained in terms of salary
and additional retirement benefits by the employee, will result in serious inequities.
Specifically, one-third of the older Staff employees, although equally deserving,
would be ineligible for financial aid. All eligible employees would receive a full
year's salary. A Staff officer mandatorily retired at age 691/2 years would receive
the same financial aid as the Staff officer who would be retired at age 61. Further,
in the first instance, the Staff officer would in effect receive his full salary until age
70q years, and maximum retirement benefits, whereas in the case of the employee
age 61, with say an annual salary of $6,000, would lose 8 years' salary and 9 years
of accrued retirement benefits equating to $1,080 per year. Additionally, restrict-
ing this financial aid to mandatory retirement would encourage Staff personnel to
remain on the rolls who otherwise might be planning voluntary retirement at an
earlier age.
These inequities were found to be of sufficient number and importance to war-
rant consideration of alternative financial aid plans. After further study, a
modification of this section which fully carries out its original intent is indicated.
talk
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This modification would extend financial aid eligibility to the 157 Staff employees
who will be (a) age 57 or older when the provisions of this section become effec-
tive, and (b) over age 60 when mandatorily retired. The formula provides financial
aid based upon the number of years that earlier retirement takes place. The
Department, therefore, requests a change in this subsection in accordance with
the redraft that follows.
PART A?ESTABLISHMENT OF SYSTEM
PARTICIPANTS
Existing legislation
SEC. 803. (b)
(2) have paid into the Fund a
special contribution (equal to 5 per
centum of his basic salary for each
year of such service with interest
thereon to date of payment, com-
pounded annually at 4 per centum.3
No existing legislation.
No existing legislation.
No existing legislation.
Changes proposed by Department
SEC. 803. (b)
(2) have paid into the Fund a
special contribution for each year of
such service in accordance with the
provisions of section 852(b).
(c)(1) In accordance with such regula-
tions as the President may prescribe, any
Foreign Service staff officer or employee
appointed by the Secretary of State who
has completed at least 10 years of con-
tinuous service in the Department's
Foreign Service, exclusive of military
service shall become a participant in
the System and shall make a special
contribution to the Fund in accordance
with the provisions of section 852.
(2) Any such officer or employee who,
under the provisions of paragraph (c)(1)
of this section, becomes a participant in
the System, shall be mandatorily retired
for age during the first year after the
effective date of this section if he attains
age sixty-four or if he is over age sixty-
four; during the second year at age sixty-
three; during the third year at age sixty-
two; during the fourth year at age sixty-
one, and thereafter at age sixty. _
(3) Any officer or employee who be-
comes a participant under the provisions
of paragraph (c)(1) of this section, who
is age 57 or over on the effective date of
this section, and who is retired manda-
torily, or elects to retire voluntarily at
an earlier age, under the provisions of
paragraph (c)(2) of this section, shall
receive, in addition to retirement benefits
under section 821, a lump sum payment,
without interest, from the Fund, at the
time of his retirement in accordance with
the following schedule:
Age 69 3421hs of annual basic salary
68 3i glis of annual basic salary
67 Yloths of annual basic salary
66 94zlits of annual basic salary
66 Moths of annual basic salary
64 7/12ths of annual basic salary
63 Wioths of annual basic salary
62 Vioths of annual basic salary
61 ,94atits of annual basic salary
60 11/42ths of annual basic salary
57-59 13iollis of annual basic salary
Section 803(b) (2) has been revised to conform with revisions made in sections
811 and 852 which increase the rate of compulsory contribution to the Foreign
Service Retirement Fund from 5 to 6% percent.
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.54 AMENDMENTS TO THE FOREIGN SERVICE ACT
New paragraph 803(c) provides for the mandatory participation in the Foreign
Service Retirement and Disability System of certain Staff officers and employees.
At the present time Staff officers and employees are covered by the Civil Service
Retirement Act. The 1956 amendments to the Civil Service Retirement Act
have substantially enhanced the attractiveness of this System. The Foreign
Service Retirement System is designed to give recognition to the need for earlier
retirement age for career Foreign Service personnel who spend the majority of
their working years outside the United States, withstanding the rigors of moving
and adjusting themselves and their families to new working and living situations
every few years. At the same time, it is apparent that Staff officers and employees
who serve for an appreciable period are subject in large measure to the same
conditions of service as Foreign Service officers who are participants under the
Foreign Service Retirement and Disability System. Under the Secretary's
Integration program approximately 400 Staff officers have been unable to qualify
for lateral appointment as Foreign Service officers due principally to their inability
to meet prescribed age requirements. A recent study of Staff personnel in classes
FSS-1 through FSS-11, inclusive, indicates that there are about 475 Staff officers
and employees in those classes who have served 10 or more years in the Foreign
Service.
In certain instances Staff officers and employees with relatively long periods of
service in the Foreign Service may desire to retire voluntarily at the earlier age
permitted under the Foreign Service Retirement System. In some cases it would
be in the interest of the Service and of individual officers and employees if the
Foreign Service mandatory retirement provision for retirement at age 60 were
made applicable to Staff personnel. The need for encouraging somewhat earlier
retirement, which is recognized in the case of Foreign Service officers, is also
significant in the case of certain Foreign Service Staff officers and employees.
The proposed provision would also increase promotional opportunities for younger
Staff personnel.
The purpose of new paragraph 803(c) (1), therefore, is to provide that Foreign
Service Staff officers and employees who have completed and who will hereafter
complete 10 years of continuous service in the Foreign Service shall become
participants in the Foreign Service Retirement and Disability System. These
officers and employees will be required to make the necessary contributions to the
Foreign Service Retirement and Disability Fund.
Paragraph 803(c) (2) provides for the retirement on a gradual basis of officers
and employees who are above mandatory retirement age at the time they become
participants in the System.
Paragraph 803(e) (3) provides financial aid, in addition to the annuities to which
they will be entitled, to older Staff employees upon whom will be imposed earlier
mandatory retirement. This plan for financial aid gives recognition to the pos-
sible hardship caused by such earlier retirement. It is also proposed that the
financial aid plan for older employees who retire voluntarily shall serve as an
incentive for earlier retirement. The formula relating to the financial aid is a
variable one depending upon the number of years between actual age at retire-
ment and the age these employees would have been required to retire had they
remained participants in the Civil Service Retirement System. Thus an em-
ployee mandatorily retired at age 69 would receive two-twelfths of his annual
'basic salary. An officer mandatorily retired at age 64 would receive seven
'twelfths of his annual basic salary and an officer voluntarily retiring at age 60
would receive eleven-twelfths of his annual basic salary.
SECTION 34 (Sec. 804)
(See also pp. 146-453, 156)
ANNUITANTS
_Existing legislation
SEc. 804. Annuitants shall be per-
sons who are receiving annuities from
the Fund on the effective date of this
Act Ei persons [who shall become en-
titled to receive annuities in accordance
with the provisions of sections 519, 631,
632, 634, 636, 637, 831, 832, and 833,
.and all widows] and beneficiaries ot
Proposed legislation
SEC. 804. (a) Annuitants shall be per-
sons who are receiving annuities from
the Fund on the effective date of this
Act and all persons, including surviving
wives and husbands, widows, dependent
widowers, children, and beneficiaries of
participants or annuitants who shall
become entitled to receive annuities in
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Existing legislation
participants [who are] entitled to re-
Nome ,ceive annuities in accordance with the
{terms of this title.]
No existing legislation.
DF162037121A00a00020005-9
Proposed legislation
accordance with the provisions of this
Act, as amended, or in accordance with
the provisions of section 5 of the Act of
May 1, 1,956 (70 Stat. 125).
(5) When used in this title the term?
(1) "Widow" means the surviving
wife of a participant who was married
to such participant for at least two years
immediately preceding his death or is
the mother of issue by such marriage.
(2) "Dependent widower" means
the surviving husband of a participant
who was married to such participant
for at least two years immediately pre-
ceding her death or is the father of issue
by such marriage, and who is incapable
of self-support by reason of mental or
physical disability, and who received
more than one-half of his support from
such participant.
(3) "Child" means an unmarried
child, under the age of eighteen years,
or such unmarried child regardless of
age who because of physical or mental
disability incurred before age eighteen
is incapable of self-support. In addi-
tion to the off spring of the participant
and his or her spouse the term includes
(a) an adopted child, and (b) a step-
child or recognized natural child who
received more than one-half of his
support from the participant.
Section 804 has been redesignated as section 804(a) and changed for purposes
of simplification and to provide specifically that surviving wives and husbands,
widows and dependent widowers, and children may be included as survivor
annuitants.
New ,paragraph 804(b) defines the terms "widow," "dependent widower," and
"child."
SECTION 35 (Sec. 811)
(See also pp. 146-153, 156)
PART B?COMPULSORY CONTRIBUTIONS
Existing legislation
SEC. 811. [Five per centum of the
basic salary received by each participant
shall be contributed to the Fund, and
the Secretary of the Treasury is directed
to cause such deductions to be made
and the sums transferred on the books
of the Treasury Department to the
credit of the Fund for the payment of
annuities, cash benefits, refunds, and
allowances.]
Proposed legislation
SEC. 811. (a) Six and one-half per
centum of the basic salary received by
each participant shall be contributed to the
Fund for the payment of annuities, cash
benefits, refunds, and allowances. An
equal sum shall also be contributed from
the respective appropriation or fund
which is used for payment of his salary.
The amounts deducted and withheld from
basic salary together with the amounts
of contributed from the appropriation or
sand, shall be deposited by the Depart-
ment of State in the Treasury of the
United States to the credit of the Fund.
(b) Each participant shall be deemed to
consent and agree to such deductions from
basic salary, and payment less such
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Existing legislation Proposed legislation
deductions shall be a full and complete dis-
charge and acquittance of all claims and
demands whatsoever for all regular serv-
ices during the period covered by such
payment, except the right to the benefits
to which he shall be entitled under this
Act, notwithstanding any law, rule, or
regulation affecting the individual's sal-
ary.
The proposed changes in this section would increase the rate of contribution
to the Foreign Service Retirement and Disability Fund from 5 percent to 6%
percent of basic salary. This is a necessary amendment in view of the increased
benefits provided by the proposed revisions in title VIII. It is also proposed to
require a sum equal to the employee retirement deduction to be contributed
from the appropriation used for salary payment to be deposited along with the
employee contribution to the credit of the Foreign Service Retirement and Dis-
ability Fund. By contributing currently in this manner, the true cost of the
Foreign Service Retirement and Disability System would be more accurately
reflected in budget figures.
SECTION 36 (Sec. 821)
(See also pp. 146-153, 157)
PART C?COMPUTATION OF ANNUITIES
Existing legislation
SEC. 821. (a) The annuity of a
participant shall be equal to 2 per
centum of his average basic salary for
the highest five consecutive years of
service, for which full contributions
have been made to the Fund, multi-
plied by the number of years of
service], not exceeding thirty-five
[years.] However, the highest five
years of service for which full contribu-
tions have been made to the Fund shall
be used in computing the annuity of
any [Foreign Service officer] who serves
as chief of mission and whose continuity
of service as such is interrupted prior
to retirement by appointment or assign-
ment to any other position determined
by the Secretary to be of comparable
importance. In determining the aggre-
gate period of service upon which the
annuity is to be based, the fractional
part of a month, if any, shall not be
counted.
(b) [At the time of his retirement, a
participant, if the husband of a wife to
whom he has been married for at least
three years or who is the mother of issue
by such marriage, may elect to rec-ive
a reduced annuity for himself and to
provide for an annuity payable to his
widow, commencing on the date follow-
ing his death and continuing as long as
she may live. The annuity payable to
his widow shall in no case exceed 25 per
centum of his average basic salary as
computed in accordance with subsection
Proposed legislation
SEC. 821. (a) The annuity of a par-
ticipant shall be equal to 2 per centum
of his average basic salary for the
highest five consecutive years of service,
for which full contributions have been
made to the Fund, multiplied by the
number of years, not exceeding thirty-
five, of service credit obtained in accord-
ance with the provisions of sections 851,
852, and 858. However, the highest
five years of service for which full
contributions have been made to the
Fund shall be used in computing the
annuity of any participant who serves
as chief of mission and whose continuity
of service as such is interrupted prior
to retirement by appointment or assign-
ment to any other position determined
by the Secretary to be of comparable
importance. In determining the aggre-
gate period of service upon which the
annuity is to be based, the fractional
part of a month, if any, shall not be
counted.
(b) At the time of retirement, any mar-
ried participant may elect to receive a
reduced annuity and to provide for an
annuity payable to his wife or her hus-
band, commencing on the date following
such participant's death and terminating
upon the death of such surviving wife or
husband. The annuity payable to the
surviving wife or husband after such
participant's death shall be 50 per centum
of the amount of the participant's an-
nuity computed as prescribed in para-
graph (a) of this section, up to the full
Al
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Existing legislation,
(a) of this section, or 66% per centum of
his reduced annuity. If the age of the
participant is less than the age of the
wife or exceeds her age by not more
than eight years, the annuity of the
participant will be reduced by an
amount equal to one-half of the annuity
which he elects to have paid to his
widow. If the age of the participant
exceeds the age of the wife by more
than eight years, the annuity of the
participant will be reduced by an
amount equal to one-half the annuity
which he elects to have paid to his
widow plus an additional reduction
equal to 2 per centum of such widow's
annuity for each year, or fraction there-
of, that the difference in age exceeds
eight. The participant may at his
option also elect to have his annuity
reduced by an additional 5 per centum
of the amount which he elects to have
paid to his widow, with a provision that,
from and after the death of his wife, if
the participant shall survive her, the
annuity payable to the participant shall
be that amount which would have been
payable if no option had been elected.]
No existing legislation.
No existing legislation.
No existing legislation.
Propos ed Zegislatiosv
amount of such annuity specified by him
as the base for the survivor benefits. The
annuity of the participant making such
election shall be reduced by 2% per centum
of any amount up to $2,400 he specifies
as the base for the survivor benefit plus
10 per centum of any amount over $2,400
so specified.
(c) (1) If an annuitant dies and is sur-
vived by a wife or husband and by a child
or children, in addition to the annuity
payable to the surviving wife or husband,
there shall be paid to or on behalf of each
child an annuity equal to the smallest of:
(i) 40 per centum of the annuitant's
average salary divided by the number of
children; (ii) $600; or (iii) $1,800 divided
by the number of children.
(2) If an annuitant dies and is not
survived by a wife or husband but by a
child or children, each surviving child
shall be paid an annuity equal to the
smallest of: (i) 50 per centum of the
annuitant's average salary divided by the
number of children; (ii) $720; or (iii)
$2,160 divided by the number of children.
(d) If a surviving wife or husband dies
or the annuity of a child is terminated,
the annuities of any remaining children
shall be recomputed and paid as though
such wife, husband, or child had not
survived the participant.
(e) The annuity payable to a child
under paragraph (c) or (d) of this sec-
tion shall begin on the first day of the
next month after the participant dies and
such annuity or any right thereto shall
be terminated upon death, marriage, or
attainment of the age of eighteen years,
except that, if a child is incapable of self-
support by reasons of mental or physical
disability, the annuity shall be terminated
only when such child dies, marries, or
recovers from such disability.
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Existing legislation
[(c) A participant who is not married
at the time of his retirement or who is
married to a wife who is not entitled to
an annuity in accordance with the pro-
visions of paragraph (b) of this section
may elect to receive a reduced annuity
for himself and to provide for an addi-
tional annuity payy,ble after his death
to a beneficiary whose name shall be
notified in writing to the Secretary at
the time of his retirement and who is
acceptable to the Secretary. The an-
nuity payments payable to such bene-
ficiary shall be either equal to the de-
ceased participant's reduced annuity
payments or equal to 50 per centum
of such reduced annuity payments and
upon the death of the surviving bene-
ficiary all payments shall cease and no
further annuity payments shall be due
or payable. The combined actuarial
value of the two annuities on the date
of retirement as determined by the
Secretary of the Treasury shall be the
same as the actuarial value of the
annuity provided by paragraph (a) of
this section. No such election of a
reduced annuity payable to a benefici-
ary other than a child of the partici-
pant shall be valid until the participant
shall have satisfactorily passed a physi-
cal examination as prescribed by the
Secretary. Annuity payments payable
in accordance with the provisions of
this section to a beneficiary who is a
child of a participant shall cease when
the beneficiary reaches the age of
twenty-one years.]
Proposed legislation
(f) At the time of retirement an un-
married participant may elect to receive
a reduced annuity and to provide for an
annuity equal to 50 per centum of the
reduced annuity payable after his or her.
death to a beneficiary whose name shall
be designated in writing to the Secretary.
The annuity payable to a participant
making such election shall be reduced by
10 per centum of an annuity computed
as provided in paragraph (a) of this sec-
tion and by 5 per centum of an annuity'
so computed for each full five years the
person designated is younger than the
retiring participant, but such total reduc-
tion shall not exceed 40 per centum. No.
such election of a reduced annuity pay--
able to a beneficiary shall be valid until
the participant shall have satisfactorily,
passed a physical examination as pre-
scribed by the Secretary. The annuity,
payable to a beneficiary under the pro-
visions of this paragraph shall begin on
the first day of the next month after the
participant dies. Upon the death of the
surviving beneficiary all payments shall
cease and no further annuity payments
authorized under this paragraph shall be
due or payable.
Section 821 has been amended to extend to participants in the Foreign Service
Retirement and Disability System many of the survivorship benefits provided at
present by other Federal retirement systems.
Paragraph (a) is amended to reflect the sections under which service credit is
obtained: section 851 for ordinary service after becoming a participant; section
852 for prior service credit; and section 853 for extra service at unhealthful posts.
Paragraph (b) prescribes the formula for computing an annuity under which
the retiring officer elects to receive a reduced annuity and thus provide upon death
an annuity for the widow or widower. In this proposal a formula similar to that
provided in the Civil Service Retirement Act has been adopted. The proposed
legislation eliminates the provision of the existing legislation permitting the-
participant to accept a further reduction of 5 percent of the widow's annuity in
order to provide for restoration of the full annuity if the spouse predeceases the
participant. Actuaries regard this as a "gambling provision" unrelated to sound
actuarial principles. It can well be eliminated if the new formula is adopted, for
the retiring participant will not in that event suffer so great a loss in annuity by
reason of making provision for his or her spouse.
Paragraph (c) (1) covers the case of an annuitant who is survived by a wife or
husband and by a child or children. In such a case each child would receive an
annuity equal to the smallest of: (1) 40 percent of the annuitant's average salary
divided by the number of children; (2) $600; or (3) $1,800 divided by the number
of children.
Paragraph (e)(2) provides that if the annuitant dies and is not survived by a
wife or husband, but is survived by a child or children, such child or children will
receive a higher annuity than they would receive if there were a surviving parent.
Paragraph (d) provides for the recomputation of the children's annuities if the
surviving wife or husband dies, or another child's annuity terminates.
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Paragraph (e) provides that annuities to children shall terminate upon death,
marriage, or attainment of 18 years, except when a child is incapable of self-
support by reason of mental or physical disability, in which case the annuity shall
continue until death, marriage, or recovery from such mental or physical disability.
Paragraph (f) provides for the designation of a beneficiary by a participant
who is not married.
SECTION 37 (Sec. 831)
(See also pp. 146-153, 159)
PART D?BENEFITS ACCRUING TO CERTAIN PARTICIPANTS
RETIREMENT FOR DISABILITY OR INCAPACITY?PHYSICAL EXAMINATION?RECOVERY
Existing legislation
SEC. 831. (a) Any participant who f,
after serving for a total period
of not less than five years,] becomes
totally disabled or incapacitated for
useful and efficient service by reason
of disease or injury [incurred in the
line of duty but] not due to vicious
habits, intemperance, or willful mis-
conduct on his part, shall, upon his
own application or upon order of the
Secretary, be retired on an annuity
computed as prescribed in section 821.
If the disabled or incapacitated parti-
cipant has [had] less than twenty
years of service at the time he is re-
tired, his annuity shall be computed
on the assumption that he [had] had
twenty years of service [.]
(b) [In each case such disability
shall be determined by the report of a
duly qualified physician or surgeon,
designated by the Secretary to conduct
the examination. Unless the disability
is permanent, a like examination shall
be made annually until the annuitant
has reached the retirement age as de-
fined in sections 631 and 632, and the
payment of the annuity shall cease from
the date of a medical examination show-
ing recovery. Fees for examinations
under this provision, together with
reasonable traveling and other expenses
incurred in order to submit to examina-
tion, shall be paid out of the Fund.]
Proposed legislation
SEC. 831. (a) Any participant who
has five years of service credit toward
retirement under the System, excluding
military or naval service that is credited
in accordance with the provisions of
section 851 or 852(a)(2), and who
becomes totally disabled or incapa-
citated for useful and efficient service
by reason of disease, illness, or injury
not due to vicious habits, intemperance
or willful misconduct on his part,
shall, upon his own application or
upon order of the Secretary, be re-
tired on an annuity computed as
prescribed in section 821. If the dis-
abled or incapacitated participant has
less than twenty years of service credit
toward his retirement under the System
at the time he is retired, his annuity
shall be computed on the assumption
that he has had twenty years of service,
but the additional service credit that
may accrue to a participant under this
provision shall in no case exceed the
difference between his age at the time
of retirement and the mandatory retire-
ment age applicable to his class in the
Service.
(b) In, each case, the participant shall
be given a physical examination by one or
more duly qualified physicians or surgeons
designated by the Secretary to conduct ex-
amination, and disability shall be deter-
mined by the Secretary on the basis of the
advice of such physicians or surgeons.
Unless the disability is permanent, like
examinations shall be made annually until
the annuitant has reached the statutory
mandatory retirement age for his class in
the Service. If the Secretary determines,
on the basis of the advice of one or more
duly qualified physicians or surgeons con-
ducting such examinations that an annui-
tant has recovered to the extent that he can
return to duty, the annuitant may apply
for reinstatement or reappointment in the
Service within one year from the date his
recovery is determined. Upon applica-
tion the Secretary shall reinstate any such
recovered disability annuitant in the class
in which he was serving at time of retire-
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Existing legislation
(c) [When the annuity is discon-
tinued under this provision before the
annuitant has received a sum equal to
the total amount of his contributions,
with accrued interest, the difference
shall be paid to him or his legal repre-
sentatives in the order of precedence
prescribed in section 8411
No existing legislation.
No existing legislation.
94403-PIRM-A7AZIA000400020005-9
Proposed legislation
meat, or the Secretary may, taking into
consideration the age, qualifications, and
experience of such annuitant, and the
present class of his contemporaries in the
Service, appoint him or, in the case of an
annuitant who is a former Foreign Service
officer, recommend that the President ap-
point him, by and with the advice and con-
sent of the Senate, to a class higher than
the one in which he was serving prior to
retirement. Payment of the annuity shall
continue until a date of six months after
the date of the examination showing recov-
ery or until the date of reinstatement or
reappointment in the Service, whichever is
earlier. Fees for examinations under this
provision, together with reasonable travel-
ing and other expenses incurred in order
to submit to examination, shall be paid out
of the Fund. If the annuitant fails to
submit to examination as required under
this section, payment of the annuity shall
be suspended until continuance of the dis-
ability is satisfactorily established.
(c) If a recovered disability annuitant
whose annuity is discontinued is for any
reason not reinstated or reappointed in
the Service, he shall be considered to have
been separated within the meaning of
section 834 as of the date he was retired for
disability and he shall, after the discon-
tinuance of the disability annuity, be
entitled to the benefits of that section or of
section 841 (a) except that he may elect
voluntary retirement in accordance with
the provisions of section 636 if he can
qualify under its provisions.
(d) No participant shall be entitled to
receive an annuity under this Act and
compensation for injury or disability to
himself under the Federal Employees'
Compensation Act of September 7, 1916,
as amended, covering the same period of
time. This provision shall not bar the
right of any claimant to the greater benefit
conferred by either Act for any part of the
same period of time. Neither this provi-
sion nor any provision of the Act of Sep-
tember 7, 1916, as amended, shall be so
construed as to deny the right of any person
to receive an annuity under this Act by
reason of his own services and to receive
concurrently any payment under such Act
of September 7, 1916, as amended, by
reason of the death of any other person.
(e) Notwithstanding any provision of
law to the contrary, the right of any person
entitled to an annuity under this Act
shall not be be affected because such person
has received an award of compensation in
a slump sum under section 14 of the Act of
September 7, 1916, as amended, except
that where such annuity is payable on
account of the same disability for which
compensation under such section has been
paid, so much of such compensation as
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Emisting legislation Proposed legislation
has been paid for any period extended
beyond the date such annuity becomes effec-
tive, as determined by the Secretary of
Labor, shall be refunded to the Depart-
ment of Labor, to be paid into the Federal
Employees' Compensation Fund. Be-
fore such person shall receive such annuity
he shall (1) refund to the Department of
Labor the amount representing such com-
puted payments for such extended period,
or (2) authorize the deduction of such
amount from the annuity payable to him
under this Act, which amount shall be
transmitted to such Department for reim-
bursement to such Fund. Deductions
from such annuity may be made from
accrued and accruing payments, or may
be prorated against and paid from accru-
ing payments in such manner as the Secre-
tary of Labor shall determine, whenever
he finds that the financial circumstances
of the annuitant are such as to warrant
such deferred refunding.
Amendments to section 831 are proposed in order to remedy certain defects in
existing law. A new provision is also made for reinstatement or reappointment of
a disability annuitant who recovers to such an extent that he may return to duty.
Under existing provisions there is no clear authorization for the reinstatement or
reappointment of a recovered disability annuitant. Section 831(b) provides that
the Secretary shall upon their application reinstate retired Foreign Service
officers or other annuitants to the class held upon retirement or he may appoint
an annuitant who is not a former Foreign Service officer to a higher class and may
recommend to the President that a former Foreign Service officer be reappointed
to a higher class.
The provisions relating to physicians and surgeons who make the examinations
upon which disability retirement is determined and upon which reappointment or
reinstatement may be based have been changed to provide for the designation by
the Secretary of one or more physicians or surgeons. Further, the provisions have
been changed to authorize the Secretary to make the determination, based on
reports of the physicians and surgeons designated by him, that annuitants shall
be retired on disability or reinstated, reappointed, or recommended for reappoint-
ment in the Service. It is contemplated that this will result in the establishment
by regulation of a medical board designated by the Secretary to advise him with
respect to disability retirement. A new provision has also been added to permit
the withholding of annuity payments in order to assure that disability annuitants
will submit promptly to annual examinations as required.
The present law provides that any participant who has 5 years of service credit
is eligible for disability retirement. The proposed amendment would exclude
from those 5 years free service credit granted for military service for which no
contributions have been made to the fund.
The existing law provides that a disability annuitant is automatically given a
minimum of 20 years of service credit. This provision is amended to limit the
amount of extra service credit that can be credited to a disability annuitant to
the difference between his age at the time of retirement and the mandatory
retirement age applicable to his class in the Service. To credit him with more
service credit than he could acquire should he continue in the Service until he
reached the retirement age would be unwarranted.
Provision is also made to prevent duplication of disability benefits by the
Foreign Service Retirement and Disability System and the Bureau of Employees'
Compensation. The last sentence of paragraph (d) is based upon analogous
provisions of the Civil Service Retirement Act and has the same intent; t;) permit
a widow to receive an annuity in her own right; that is, based on her own service
as an employee of the U.S. Government, and also to receive any compensation
payable by reason of the death of her husband resulting from injury sustained in
the performance of his duty as an employee of the U.S. Government.
Section 831(e) is substantially the same as section 7(g) of the Civil Service
Retirement Act, as amended.
50864-60-5
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SECTION 38 (Sec. 832)
(See also pp. 146-153, 161)Ilkk
DEATH IN SERVICE
Existing legislation
SEC. 832. [In case a participant shall
die without having established a valid
claim for annuity, the total amount of
his contributions with interest thereon
at 4 per centum per annum, com-
pounded on June 30 of each year, except
as provided in section 881 and as here-
inafter provided in this section, shall be
paid to his legal representatives in the
order of precedence given under section
841 upon the establishment of a valid
claim therefor. If the deceased partici-
pant rendered at least five years of
service, and is survived by a widow to
whom he was married for at least three
years, or who is the mother of issue by
such marriage, such widow shall be paid
an annuity equal to the annuity which
she would have been entitled to receive
if her husband had been retired on the
date of his death and had elected to
receive a reduced joint and survivorship
annuity, computed as prescribed in
section 821, providing the maximum
annuity for his widow, unless prior to
the date of his death he shall have
elected, in lieu of such widow's annuity,
and with the approval of the Secretary,
to have his deductions returned with
interest as provided in the first sentence
of this section covering participants
dying without having established a valid
claim for annuity. If the deceased
participant had had less than twenty
years of service at the time of his death,
the annuity payable to his widow shall
be computed on the assumption that he
had had twenty years of service].
Proposed legislation
SEC. 832. (a) In case a participant
dies and no claim for annuity is payable
under the provisions of this Act, his con-
tributions to the Fund, with interest at
the rates prescribed in sections 841(a) and
881(a) shall be paid in the order of prece-
dence shown in section 841(b).
(b) If a participant who has at least
five years of service credit toward retire-
ment under the System, excluding military
or naval service that is credited in accord-
ance with the provisions of section 851 or
852(a)(2), dies before separation or retire-
ment from the Service and is survived by a
widow or a dependent widower as defined
in section 804, such widow or dependent
widower shall be entitled to an annuity
equal to 50 per centum of the annuity
computed in accordance with the pro-
visions of paragraph (e) of this section
and of section 821(a). The annuity of
such widow or dependent widower shall
commence on the date following death of
the participant and shall terminate upon
death of the widow or dependent widower,
or upon the dependent widower's becoming
capable of self-support.
(c) If a participant who has at least
five years of service credit toward retire-
ment under the System, excluding military
or naval service that is credited in accord-
ance with the provisions of section 851 or
852(a)(2), dies before separation or retire-
ment from the Service and is survived by a
wife or a husband and a child or children,
each surviving child shall be entitled to an
annuity computed in accordance with the
provisions of section 821(c)(1). The
child's annuity shall begin and be termi-
nated in accordance with the provisions of
section 821(e). Upon the death of the
surviving wife or husband or termination
of the annuity of a child, the annuities
of any remaining children shall be recom-
puted and paid as though such wife or
husband or child had not survived the
participant.
(d) If a participant who has at least
five years of service credit toward retire-
ment under the System, excluding military
or naval service that is credited in accord-
ance with the provisions of section 851 or
852(a)(2), dies before separation or retire-
ment from the Service and is not survived
by a wife or husband, but by a child or
children, each surviving child shall be
entitled to an annuity computed in ac-
cordance with the provisions of section
821(c)(2). The child's annuity shall'
begin and terminate in accordance with
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Existing legislation Proposed legislation
the provisions of section 821(e). Upon
termination of the annuity of a child, the
annuities of any remaining children shalt
be recomputed and paid as though that
child had never been entitled to the benefit,
(e) If, at the time of his or her death, the
participant had less than twenty years of
service credit toward retirement under the
System, the annuities payable in ac-
cordance with paragraph (b) of this
section shall be computed in accordance
with the provisions of section 821 on the
assumption he or she has had twenty years
of service, but the additional service credit
that may accrue to a deceased participant
under this provision shall in no case
exceed the difference between his or her
age on the date of death and the mandatory
retirement age applicable to his or her
class in the Service. In all cases arising
under paragraphs (b), (c), (d), or (e) of
this section, it shall be assumed that the
deceased participant was qualified for
retirement on the date of his death.
Section 832 has been changed to provide survivor benefits for dependent wid-
owers because for the first time married females have become participants in the
System.
A limitation is placed on the amount of free service credit that can be counted
in computing annuities for the same reason as that set forth in section 831. The-
provision inserted in section 831 forbidding the inclusion of credit for military
service in the "five-year period of service" is included in this section also.
It should be recalled here that proposed section 821 provides survivor benefits.
for dependent children of deceased annuitants, and that proposed section 832, by
'ware its reference to section 821, provides the same benefits for the dependent children
of participants who die in service.
SECTION 39 (Sec. 834)
(See also pp. 146-153, 161)
DISCONTINUED SERVICE RETIREMENT
Existing legislation Proposed legislation
No existing legislation. SEC. 834. (a) Any participant who
voluntarily separates from the Service
after obtaining at least five years of service
credit toward retirement under the System,
excluding military or naval service that
is credited in accordance with the pro-
visions of section 851 or 852 (a)(2), may,
upon separation from the Service or at any
time prior to becoming eligible for an an-
nuity, elect to have his contributions to
the Fund returned to him in accordance
with the provisions of section 841, or to
leave his contributions in the Fund and
receive an annuity, computed as pre-
scribed in section 821, commencing at the
age of sixty years.
(b) If a participant who has qualified
in accordance with the provisions of para-
graph (a) of this section to receive a de-
ferred annuity commencing at the age of
sixty dies before reaching the age of sixty-
his contributions to the Fund, with inter-
est, shall be paid in accordance with the.
provisions of sections 841 and 881.
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Section 834 is new in Foreign Service legislation. While participation in the
Foreign Service Retirement and Disability System was limited to the small group
of Foreign Service officers, there was comparatively little need for a provision for
deferred annuities, since resignations and separations of officers were relatively
infrequent after they had acquired as much as 5 years' service. Now, however,
since the number of Foreign Service officers has been greatly increased and since
it is proposed that certain Staff personnel be brought under the Foreign Service
Retirement and Disability System, we can expect a larger proportionate number
of voluntary separations than formerly. It is for this reason that the Department
needs legislation providing for deferred annuities similar to those provided by the
Civil Service Retirement System.
SECTION 40 (Sec. 841)
(See also pp. 146-153, 162)
PART E?DisposiTioN OF CONTRIBUTIONS AND INTEREST IN EXCESS OF
BENEFITS RECEIVED
Existing legislation
SEC. 841. (a) Whenever a participant
becomes separated from the Service
without becoming eligible for an annuity
or a deferred annuity in accordance with
the provisions of this Act, the total
amount of contributions from his salary
with interest thereon at 4 per centum
per annum, compounded annually [up
to the date of such separation], except
as provided in section 881, shall be
returned to him.
(b) In the event that the total con-
tributions of a retired participant, other
than voluntary contributions made in
accordance with the provisions of sec-
tion 881, with interest [compounded
annually] at 4 per centum added
thereto, exceed the total amount re-
turned to such participant or to an
annuitant claiming through him, in the
form of annuities, accumulated at the
same rate of interest up to the date the
annuity payments cease under the terms
of the annuity, the excess of the accumu-
lated contributions over the accumu-
lated annuity payments shall be paid in
the following order of precedence, upon
the establishment of a valid claim
therefor:
(1) To the beneficiary or benefi-
ciaries designated by the retired par-
ticipant in writing to the Secretary;
(2) If there be no such beneficiary,
[to the duly appointed executor or
administrator of the estate of the
retired participant];
(3) [If there be no such beneficiary,
or executor or administrator, pay-
ment may be made to such person or
persons as may appear in the judg-
Proposed legislation
SE c. 841. (a) Whenever a participant
becomes separated from the Service
without becoming eligible for an annuity
or a deferred annuity in accordance with
the provisions of this Act, the total
amount of contributions from his salary
with interest thereon at 4 per centum
per annum, compounded annually at the
end of each fiscal year through June 30,
1959; semi-annually as of December 31,
1969; annually thereafter as of Decem-
ber 31, and proportionately for the period
served during the year of separation in-
cluding all contributions made during or
for such period, except as provided in
section 881, shall be returned to him.
(b) In the event that the total con-
tributions of a retired participant, other
than voluntary contributions made in
accordance with the provisions of sec-
tion 881, with interest at 4 per centum
per annum compounded annually as is
provided in paragraph (a) of this section
added thereto, exceed the total amount
returned to such participant or to an
annuitant claiming through him, in the
form of annuities, accumulated at the
same rate of interest up to the date the
annuity payments cease under the terms
of the annuity, the excess of the accumu-
lated contributions over the accumu-
lated annuity payments shall be paid in
the following order of precedence, upon
the establishment of a valid claim there-
for, and such payment shall be a ban to
recovery by any other person:
(1) To the beneficiary or benefi-
ciaries designated by the retired par-
ticipant in writing to the Secretary;
(2) If there be no such beneficiary,
to the surviving wife or husband of such
participant;
(3) If none of the above, to the child
or children of such participant and
descendents of deceased children by
representation;
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Existing legislation
Inept of the Secretary to be legally
entitled thereto, and such payment
shall be a ban to recovery by any
other person.)
(c) No payment shall be made pur-
suant to paragraph (b) [(3)] of this
section until after the expiration of
thirty days from the death of the retired
participant or his surviving annuitant.
Proposed legislation
(4) If none of the above, to the parents
of such participant or the survivor of
them;
(5) If none of the above, to the duly
appointed executor or administrator of
the estate of such participant;
(6) If none of the above, to other next
of kin of such participant as may be
determined by the Secretary in his judg-
ment to be legally entitled thereto.
(c) No payment shall be made pur-
suant to paragraph (b) (6) of this section
until after the expiration of thirty days
from the death of the retired participant
or his surviving annuitant.
Sections 841 and 881 provide the basis upon which interest is computed on
compulsory contributions received under the Foreign Seryice Retirement and
Disability System and upon voluntary contributions to the fund. Because these
sections set the periods upon which interest on these contributions is compounded,
they also control the recordkeeping and reporting on the Foreign Service Retire-
ment and Disability Fund. Section 841 (a) and (b) have been amended to
establish the compounding of interest and the keeping of records on a calendar-
year basis instead of a fiscal-year basis as is now required by existing language.
This will simplify the administration of the Foreign Service Retirement and
Disability Fund by providing a uniform system of controls and records for all
retirement and tax deductions, payrolls, and for the computation of interest on
retirement deductions. At the present time records and reports pertaining to the
Civil Service Retirement Fund, the Federal income tax, and the FICA tax are all
maintained on a calendar-year basis. The fact that the Foreign Service Retire-
ment and Disability Fund has had to be maintained on a fiscal-year basis has
necessitated a separate system of recordkeeping involving 6-month reports from
Foreign Service posts on contributions to the fund, and a separate system for
the compilation of retirement deductions. An amendment to the Civil Service
Retirement Act, similar to this, was made by Public Law 216, approved Novem-
ber 9, 1945 (59 Stat. 577). This change in the Foreign Service Retirement and
Disability System will help reduce the cost of the administration of the System
as the number of participants increases with expansion of the Foreign Service.
The proposed additional changes in paragraphs (b) and (c) of this section
are fo,r the purpose of bringing into conformity with standard actuarial practice
the provisions relating to the order of precedence for the payment, when annuity
payments cease, of contributions and interest in excess of benefits received. This
will be an administrative convenience since it will further standardize accounting
practices in the Department.
SECTION 41 (Sec. 851)
(See also pp. 146-153, 162)
PART F?PERIOD OF SERVICE FOR ANNUITIES
COMPUTATION OF LENGTH OF SERVICE
Existing legislation
SEc. 851. For the purposes of this
title, the period of service of a partici-
pant shall be computed from the effec-
tive date of appointment as Foreign
Service officer, or, if appointed prior to
July 1, 1924, as (diplomatic secretary,
consul general, consul, vice consul,
deputy consul, consular assistant, con-
sular agent, commercial agent, inter-
preter, or student interpreter, and shall
include periods of service at different
times as either a diplomatic or consular
Proposed legislation
SEC. 851. For the purposes of this
title, the period of service of a partici-
pant shall be computed from the effec-
tive date of appointment as Foreign
Service officer, or, if appointed prior to
July 1, 1924, as an officer or employee
of the Diplomatic or Consular Service
of the United States, or from the date he
becomes a participant under the provisions
of this Act, as amended, but all periods of
separation from the Service and so much
of any leaves of absence without pay
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Existing legislation
officer, or while on assignment to the
Department, or while on special duty
or service in another department or
establishment of the Government, or
while on any assignment in accordance
with the provisions of part H of title
V,] but all periods of separation from
the Service and so much of any leaves
of absence as may exceed six months in
the aggregate in any calendar year shall
be excluded, except [sick] leaves of
absence [for illness or injury incurred
in the line of duty, with or without
pay,] and leaves of absences granted
participants while performing active
military or naval service in the Army,
Navy, Marine Corps, or Coast Guard
of the United States.
?
j16
kno: c4Akoain8?20)Pg,r00400020005-9
Proposed legislation
as may exceed six months in the aggre-
gate in any calendar year shall be
excluded, except leaves of absence while
receiving benefits under the Federal Em-
ployees' Compensation Act of September
7, 1916, as amended, and leaves of ab-
sences granted participants while per-
forming active and honorable military
or naval service in the Army, Navy,
Air Force, Marine Corps, or Coast
Guard of the United States.
The language of the former section 851 has been simplified and clarified with
respect to periods of service which are creditable toward retirement. In addition,
specific provision has been made to give participants full service credit toward
retirement while they are on leaves of absence during which they receive benefits
from the Bureau of Employees' Compensation. The insertion of the phrase
"and honorable" in relation to military and naval service precludes the possibility
of a participant receiving credit for a period of military service not terminated
honorably.
SECTION 42 (Sec. 852)
(See also pp. 146-153, 162)
PRIOR SERVICE CREDIT
Existing legislation
SEC. 852. (a) A participant may, sub-
ject to the provisions of this section,
include in his period of service--
(1) service [performed as a civilian
officer or employee] of the Govern-
ment prior to becoming a participant;
and
(2) active military or naval service
in the Army, Navy, Marine Corps,
Air Force, or Coast Guard of the
United States.
(b) A person may obtain [credit for]
prior service by making a special con-
tribution to the Fund equal to 5 per
centum of his annual salary for each
year of service for which credit is
sought subsequent to July 1, 1924,
[with interest thereon to date of pay-
ment compounded annually at 4 per
centum, except that no special contri-
butions shall be required for periods of
active military, or naval service in the
Army, Navy, Marine Corps, Air Force
or Coast Guard of the United States
prior to becoming a participant.] Any
such [participant] may, under such
conditions may be determined in each
instance by the Secretary, pay such
special contributions in installments
[during the continuance of his service.]
Proposed legislation
SEC. 852. (a) A participant may, sub-
ject to the provisions of this section,
include in his period of service?
(1) civilian service in the executive,
judicial, and legislative branches of the
Federal Government and in the Dis-
trict of Columbia Government, prior to
becoming a participant; and
(2) active and honorable military
or naval service in the Army, Navy,
Marine Corps, Air Force, or Coast
Guard of the United States.
(b) A person may obtain prior civilian
service credit in accordance with the pro-
visions of paragraph (a)(1) of this section
by making a special contribution to the
Fund equal to 5 per centum of his basic
annual salary for each year of service
for which credit is sought subsequent
to July 1, 1924, and prior to the effective
date of the Foreign Service Act Amend-
ments of 1959, and at 614 per centum
thereafter with interest compounded an-
nually at 4 per centum per annum to the
date of payment. Any such person may,
under such conditions as may be deter-
mined in each instance by the Secretary,
pay such special contributions in in-
stallments.
Oft
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AMENDMENTS TO THE FOREIGN SERVICE ACT 67
Agape'
Existing legislation,
No existing legislation.
[(c) Nothing in this Act shall be
construed so as to affect in any manner
a participant's right to retired pay,
pension, or compensation in addition
to the annuities herein provided, but
no participant may obtain prior service
credit toward an annuity under the
Foreign Service Retirement and Dis-
ability System for any period of service,
whether in a civilian or military capac-
ity, on the basis of which he is receiving
Proposed legislation
(c)(1) If an officer or employee under
some other Government retirement system,
becomes a participant in the System by
direct transfer, such officer or employ-
ee's total contributions and deposits,
incl2tding interest accrued thereon, except
voluntary contributions, shall be trans-
ferred to the Fund effective as of the
dale such officer or employee becomes a
participant in the System. Each such
officer or employee shall be deemed to
consent to the transfer of such funds and
such transfer shall be a, complete dis-
charge and acquittance of all claims and
demands against the other Government
retirement fund on account of service
rendered prior to becoming participant
in the System,
(2) No officer or employee, whose
contributions are transferred to the Fund
in accordance with the provisions of
paragraph (c)(1) of this section, shall be
required to make contributions in addi-
tion to those transferred, for periods of
service for which full contributions were
made to the other Government retirement
fund, nor shall any refund be made to
any such officer or employee on account
of contributions made during any period
to the other Government retirement fund,
at a higher rate than that fixed by section
811 of this Act for contributions to the
Fund.
(3) No officer or employee, whose
contributions are transferred to the Fund
in accordance with the provisions of para-
graph (c)(1) of this section, shall receive
credit for periods of service subsequent
to July 1, 1924, for which a refund of
contributions has been made, or for which
no contributions were made to the other
Government retirement fund. A partici-
pant may, however, obtain credit for .such
prior service by making a special contribu-
tion, to the Fund in accordance with the
provisions of paragraph (b) of this
sectio
(d) No participant may obtain, prior
civilian service credit toward retirement
under the System for any period of civilian
service on the basis of which he is receiving
or will in the future be entitled to receive
any annuity under another retirement
system covering civilian personnel of the
Government.
(e) A participant may obtain prior
military or naval service credit in accord-
ance with the provisions of paragraph
(a) (2) of this section by applying for it
to the Secretary prior to retirement or
separation from the Service. However,
in the case of a participant who is eligible
for and receives retired pay on account of
military or nava/ service, the period of
service upon which such retired pay is
based shall not be included, except that
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68 AMENDIVIENTS TO THE FOREIGN SERVICE ACT
Existing legislation
or will in the future be entitled to
receive any annuity, pension, or other
retirement or disability payment or
allowance.]
[CREDIT FOR SERVICE WHILE ON
MILITARY LEAVE
SEC. 854. Contributions shall not be
required covering periods of leave of
absence from the Service granted a
participant while performing active
military or naval service in the Army,
Navy, Marine Corps, or Coast Guard
of the United States.]
Proposed legislation
in the case of a participant who is eligible
for and receives retired pay on account of a
service-connected disability incurred in
combat with an enemy of the United
States or caused by an instrumentality
of war and incurred in line of duty during
an enlistment or employment as provided
in Veterans Regulation Numbered 1(a),
part I, paragraph I, or is awarded under
chapter 67 of title 10 of the United States
Code, the period of such military or nava/
service shall be included. No contribu-
tions to the Fund shall be required in con-
nection with military or naval service
credit to a participant in accordance with
the provisions of paragraph (a)(2) of
this section.
Section 852(a) has been changed to clarify creditable prior civilian service to
include service in the municipal government of the District of Columbia and to
provide that creditable military service shall have been honorable service.
Section 852(b) has been changed to clarify provisions relating to prior civilian
service and to provide that prior civilian service may be obtained by making
special contributions to the fund equal to 5 percent of basic salary for each year
of service subsequent to July 1, 1924, for which credit is sought prior to the
effective date of this act and at 6% percent thereafter with interest compounded
annually at 4 percent per annum to the date of payment.
Section 852{0 has been revised to provide for automatic transfer of contribu-
tions to the Foreign Service Retirement and Disability Fund from any other
Government retirement fund to which an employee has made contributions when
he becomes a participant in the Foreign Service Retirement and Disability Sys-
tem by direct transfer.
Section 852(d) is designed to avoid duplication of civilian service credit of a
participant under two retirement systems.
Section 852(e) is intended to prevent the possible denial of service credit to
participants with military service who may be eligible for retired pay on the basis
of certain defined types of service-connected disability or who receive benefits
under chapter 67, title 10, United States Code (formerly Public Law 8107 80th
Cong.).
SECTION 43 (Sec. 855)
(See also pp. 146-153, 163)
RECOMPUTATION OF ANNUITIES OF CERTAIN FORMER PARTICIPANTS
Existing legislation Proposed legislation
No existing legislation. SEc. 855. The annuity of each former
participant under the System who retired
prior to July 28, 1956, and who at the
time of his retirement had creditable serv-
ice in excess of thirty years, shall be re-
computed on the basis of actual years of
creditable service not in, excess of thirty-five
years. Service which was not creditable
under the System on the date a former par-
ticipant retired, shall not be included as
creditable service for the purpose of this
recomputation. The annuities payable
to such persons shall when recomputed,
be paid at the rates so determined, but no
such recomputation or any other action
taken pursuant to this section shall operate
to reduce the rate of the annuity any such
person is entitled to receive under the
System.
Public Law 828, 84th Congress, amended section 821(a) by increasing from
30 to 35 the number of years of creditable service that may be used in the computa-
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AMENDMENTS TO THE FOREIGN SERVICE ACT 69
?
tion of annuities. It is believed that through oversight this provision was not at
that time made applicable to former participants in the System who had retired
with more than 30 years of creditable service but whose annuities had been com-
puted on the basis of only 30 years' service. This proposed temporary section
will make it possible to recompute the annuities of all former participants in the
System who did not receive the full benefit of their creditable service at the time
of their retirement. The provision is applicable only to former participants and
does not apply to surviving annuitants.
SECTIONS 44 AND 45 (Sec. 871)
(See also pp. 146-153, 163)
Existing legislation Proposed legislation (as passed Senate)
PART II?[OFFICERS REINSTATED IN PART H?ANNUITAN T8 RECALLED, RE-
THE SERVICE] INSTATED, OR REAPPOINTED IN THE
SERVICE OR REEMPLOYED IN THE
GoV ERNMEN T
SEC. 871. [A Foreign Service officer
reinstated] in the Service in accordance
with the provisions of section 520(b)
shall, while so serving, be entitled in
lieu of his [retirement allowance] to the
full pay of the class in which he is
[temporarily] serving. During such
service, he shall make contributions to
the Fund in accordance with the provi-
sions of section 811. [If the annuity
he was receiving prior to his reinstate-
ment in the Service was based on less
than 35 years of service credit, the]
amount of his annuity when he reverts
to [the retired list] shall be recomputed
[on the basis of his total service credit].
RECALL
SEC. 871. Any annuitant recalled to
duty in the Service in accordance with
the provisions of section 520(b) or re-
instated or reappointed in accordance
with the provisions of section 831(b) shall,
while so serving, be entitled in lieu of
his annuity to the full salary of the class
in which he is serving. During such
service, he shall make contributions to
the Fund in accordance with the provi-
sions of section 811. The amount of his
annuity when he reverts to his retired
status shall be recomputed in accordance
with the provisions of section 8,21.
JUSTIFICATION FOR TIIE DEPARTMENT'S PROPOSED CHANGE
? Section 871 (sec. 45 of the bill), as passed by the Senate, makes no change in
the present law with respect to a recalled officer's obligation to contribute to
the fund during the period of recall. Since he must contribute to the fund,
and his annuity is recomputed upon his subsequent separation from the Service,
the Department would prefer a version of section 871. which would permit the
officer, in effect, to retire again, as though the prior retirement had not taken
place, and to allow his annuity benefits to be redetermined in accordance with
the provisions of section 821, including the right to make another election with
respect to survivor benefits. Therefore, the Department proposes a revised
amendment to this section as follows:
Existing legislation
Changes proposed by the Department
PART II?[OFFICERS REINSTATED IN PART H?ANNUI T ANTS RECALLED, RE-
THE SERVICE] INSTATED, OR REAPPOINTED IN THE
SERVICE OR REEMPLOYED IN THE
GOVERNMENT
SEC. 871. [A Foreign Service officer
reinstated] in the Service in accordance
with the provisions of section 520(b)
shall, while so serving, be entitled in
lieu of his [retirement allowance] to
the full pay of the class in which he is
[temporarily] serving. During such
service, he shall make contributions to
the Fund in accordance with the provi-
sions of section 811. [If the annuity
RECALL
SEC. 871. Any annuitant recalled to
duty in the Service in accordance with
the provisions of section 520(b) or re-
instated or reappointed in accordance
with the provisions of section 831(b) shall,
while so serving, be entitled in lieu of
his annuity to the full salary of the
class in which he is serving. During
such service, he shall make contribu-
tions to the Fund in accordance with
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70 AMENDMENTS TO THE FOREIGN SERVICE ACT
Eoyisting legislation
he was receiving prior to his reinstate-
ment in the Service was based on less
than 35 years of service credit, the]
amount of his annuity when he reverts
to [the retired list] shall be [recom-
puted on the basis of his total service
credit].
Changes proposed by Department
the provisions of section 811. The
amount of his annuity when he reverts
to his retired status shall be computed
in accordance with the provisions of
section 821.
Section 871 as amended will allow for the recomputation of annuities for all
annuitants recalled, reinstated or reappointed in the Service by permitting use of
additional years of service (up to but not exceeding 35 years) as well as a higher
salary rate and will permit the annuitant, upon termination of his services, to
make a new election with respect to survivor benefits if he so chooses.
SECTION 46 (Sec. 872)
(See also pp. 146-153, 163)
Existing legislation Proposed legislation
REEMPLOYMENT
No existing legislation.
SEC. 872. (a) Notwithstanding any
other provision of law, any officer or em-
ployee of the Service, who has retired under
this Act, as amended, and is receiving an
annuity pursuant thereto, and who is re-
employed in the Federal Government serv-
ice in any appointive position either on a
part-time or full-time basis, shall be
entitled to receive the salary of the position
in which he is serving plus so much of his
annuity payable under this Act, as
amended, which when combined with such
salary does not exceed during any calendar
year the highest basic salary such officer
or employee was entitled to receive under
sections 412 or 41.5 of the Act, as amended,
on the date of his retirement from the
Service. Any such reemployed officer or
employee who receives salary during any
calendar year in excess of the maximum
amount which he may be entitled to receive
under this paragraph shall be entitled to
such salary in lieu of benefits hereunder.
(b) When any such retired officer or
employee of the Service is reemployed,
the employer shall send a notice to the
Department of State of such reemploy-
ment together with all pertinent informa-
tion relating thereto and shall cause to be
paid, by transfer or otherwise, to the De-
partment of State funds necessary to cover
gross salary, employer contributions, and
gross lump sum leave payment relating to
the employment of the reemployed officer
or employee, The Department of State
shall make to and on behalf of the reem-
ployed officer or employee payments to
which he is entitled under the provisions
of paragraph (a) of this section, and shalt
make those withholdings and deductions
authorized and required by law.
(c) In the event of any overpayment
under this section the Secretary of State
is authorized to withhold the amount of
such overpayment from the salary payable
to such reemployed officer or employee or
from his annuity.
Aft
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At present an officer or employee of the Service who has retired under the
Foreign Service Retirement and Disability System and who is reemployed in any
position in the Federal Government must forfeit his annuity during the time of
such reemployment. An officer or employee retired under the Civil Service
Retirement Act may be employed in Federal Government service and continue
to receive his full annuity plus the difference, if any, between such annuity and
the salary of the position to which appointed. Officers and enlisted personnel
of the armed services are subject to a variety of provisions which permit, depend-
ing upon the circumstances, benefits which range from deferral of retired pay and
receipt of full salary to the receipt of retired pay plus full salary.
The purpose of the proposed new section 872 is to permit the Federal Govern-
ment to employ Foreign Service personnel retired under the Foreign Service
Retirement and Disability System in appointive positions for which they are
suited by reason of experience, background, and ability. These provisions would
also apply to retired officers or employees presently employed elsewhere in the
Federal service and to separated officers or employees of the Service who, at a
later date, become entitled to deferred annuity benefits.
This provision would permit the Government to compete on a more favorable
basis with industry and to obtain the services of retired Foreign Service personnel
of proven ability whose reemployment would be of benefit to the Government.
The proposed new section 872 provides that officers and employees retired
under the Foreign Service Retirement and Disability System who are reemployed
in appointive positions in the Federal Government service on a full-time, part-
time, or consultant basis will receive full salary of the position to which appointed
and, in addition, will receive such portion of their annuities as will make their
total pay (i.e., the salary of the position to which appointed plus annuity) equal,
during any calendar year, to the salary of one of the scheduled rates of compensa-
tion contained in section 412 or 415 of the act that such officer or employee was
receiving at the time of his retirement from the Service.
Salaries paid to Foreign Service personnel while serving as ambassadors, minis-
ters, or while assigned to positions the compensation of which exceeds their regular
Foreign Service salary, will not be used as the basis for determining such officer
or employee's total income under the provisions of this section.
Paragraph (b) of this section provides that in order that the limitation upon
the total income imposed by paragraph (a) may be controlled, the agency of the
Federal Government reemploying the annuitant shall pay to the Department
of State funds necessary to cover gross salary, employer contribution, and gross
lump-sum leave payment relating to the employment of such annuitant. Further,
the Department of State is authorized to pay to the aimuitant such salary and
annuity as he is entitled to receive under paragraph (a) and to make withholdings
and deductions in his behalf that are authorized and required by law, such as tax
and FICA withholdings and deductions for Government insurance, savings bonds,
and retirement.
Since it is possible that overpayments under this section may be made, para-
graph (c) authorizes the Secretary to withhold the amount of any such overpay-
ment from salary payments to such officer or employee or from his annuity.
SECTION 47 (Sec. 881)
(See also pp. 146-153, 164)
PART I?VOLUNTARY CONTRIBUTIONS
Existing legislation
SEC. 881. (a) Any participant may,
at his option and under such regulations
as may be prescribed by the President,
deposit additional sums in multiples of
1 per centum of his basic salary, but not
in excess of 10 per centum of such salary,
which amounts together with interest
at 3 per centum per annum, com-
pounded [on June 30 of each year],
shall, at the date of his retirement and
at his election, be--
Proposed legislation
SEC. 881. (a) Any participant may,
at his option and under such regulations
as may be prescribed by the President,
deposit additional sums in multiples of
1 per centum of his basic salary, but not
in excess of 10 per centum of such salary,
which amounts together with interest
at 3 per centum per annum, com-
pounded annually at the end of each
fiscal year through June 30, 1959; semi-
annually as of December 31, 1959; annu-
ally thereafter as of December 31, and
proportionately for the period served
during the year of his retirement, includ-
ing all contributions made during or for
such period, shall, at the date of his
retirement and at his election, be?
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Existing legislation
(c) In case a participant shall become
separated from the Service for any
reason except retirement on an annuity,
the amount of any additional deposits
with interest at 3 per centum per an-
num, compounded [annually], made
by him under the provisions of this
paragraph shall be refunded in the
manner provided in section 841 for the
return of contributions and interest in
the case of death or [withdrawal from
active] service.
Proposed legislation
(c) In case a participant shall become
separated from the Service for any
reason except retirement on an annuity,
the amount of any additional deposits
with interest at 3 per centum per an-
num, compounded as is provided in
paragraph (a) of this section, made by
him under the provisions of this para-
graph shall be refunded in the manner
provided in section 841 for the return
of contributions and interest in the case
of death or separation from the service.
Sections 881 and 841 provide the basis upon which interest is computed on
compulsory contributions under the Foreign Service Retirement and Disability
System and upon voluntary contributions to the fund. Because these sections
set the periods upon which interest on these contributions is compounded, they
also control the recordkeeping and reporting on the Foreign Service Retirement
and Disability Fund. Sections 881 (a) and (c) have been amended to establish
the compounding of interest and the keeping of records on a calendar-year basis
instead of a fiscal-year basis as is now required by existing language. This will
simplify the administration of the Foreign Service Retirement and Disability
Fund by providing a uniform system of controls and records for all retirement
and tax deductions, payrolls, and for the computation of interest on retirement
deductions. At the present time records and reports pertaining to the civil
service retirement fund, the Federal income tax, and the FICA tax are all main-
tained on a calendar-year basis. The fact that the Foreign Service Retirement
and Disability Fund has had to be maintained on a fiscal-year basis has necessi-
tated a separate system of recordkeeping involving 6-month reports from Foreign
Service posts on contributions to the fund, and a separate system for the compila-
tion of retirement deductions. An amendment to the Civil Service Retirement
Act, similar to this, was made by Public Law 216, approved November 9, 1945
(59 Stat. 577). This change in Foreign Service Retirement and Disability System
will help reduce the cost of the administration of the System as the number of
participants increases with expansion of the Foreign Service.
TITLE IX?ALLOWANCES AND BENEFITS
SECTION 48 (Sec. 912)
(See also p. 164)
PART 13?TRAVEL AND RELATED EXPENSES
Existing legislation
LOAN OF HOUSEHOLD EQUIPMENT
SEC. 912. The Secretary may, if he
shall find it in the interests of the
Government to do so as a means of
eliminating transportation costs, provide
officers and employees of the Service
*ith household equipment for use on a
loan basis in personally owned or leased
residences.
Proposed legislation
LOAN OF HOUSEHOLD FURNISHINGS AND
EQUIPMENT
SEC. 912. The Secretary may, if
he shall find it in the interests of
the Government to do so as a means
of eliminating transportation costs,
provide officers and employees of the
Service with basic household furnish-
ings and equipment for use on a loan
basis in personally owned or leased
residences.
The existing provision of section 912 authorizes the Secretary to provide
officers and employees of the Service with household equipment to use on a loan
basis in personally owned or leased residences as a means of eliminating transporta-
tion costs. The language and the legislative history of this section does not make
entirely clear the Department's authority to provide basic articles of furnishings
such as divans, dining-room furniture, etc., as distinguished from equipment items
such as "refrigerators" (the example used in the H. Rept. No. 2508, 79th Cong.,
2d sass., for "heavy articles of household equipment"), which the Government
should lend instead of transporting as personal and household effects. Experience
Aft
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has proved that it is in the interest of the Government to establish a clear legisla-
tive basis for providing basic furnishings in privately leased quarters which would
not be subject to any misinterpretation where such quarters and furnishings are
available. Savings in transportation costs resulting from the furnishing of divans,
dining-room furniture and other heavy furniture can equal or exceed savings which
result from the provision of such items as refrigerators, stoves, and other
appliances.
iftise
SECTION 49 (Sec. 913)
(See also p. 165)
Existing legislation Proposed legislation
TRANSPORTATION OF [AUTOMOBILES] TRANSPORTATION OF MOTOR VEHICLES
SEC. 913. The Secretary may, not-
withstanding the provisions of any
other law, transport for or on behalf
of an officer or employee of the Service,
a privately owned [automobile] in
any case where he shall determine
that water, rail, or air transportation
of the [automobile] is necessary or
expedient for any part or of all the
distance between points of origin and
destination.
SEC. 913. The Secretary may, not-
withstanding the provisions of any
other law, transport for or on behalf
of an officer or employee of the
Service, a privately owned motor vehicle
or replacement thereof in any case where
he shall determine that water, rail, or
air transportation of the motor vehicle
or replacement thereof is necessary or
expedient for any part or of all the
distance between points of origin and
destination,
The proposed amendment to section 913 substitutes "motor vehicles or replace-
ment thereof" for the word "automobile." It is necessary for Foreign Service
personnel to replace their motor vehicles from time to time particularly at posts
having adverse climatic and road conditions in order to have adequate transporta-
tion as well as to carry out their responsibilities as official representatives of the
U.S. Government.
There are occasions when conditions at oversea posts justify the use of motor
vehicles other than automobiles. Since the Comptroller General has ruled that
the Department does not have authority to transport motor vehicles other than
automobiles, e.g., motorcycles and motor scooters, the use of the broader term
"motor vehicle" is suggested.
TITLE X?MISCELLANEOUS
SECTION 50 (Sec. 1021)
(See also p. 168)
PART C-GIFTS
Existing legislation
SEC. 1021. (a) The Secretary may
accept on behalf of the United States
gifts made unconditionally by will or
otherwise for the benefit of the Service
or for the carrying out of any of its
functions. Conditional gifts may be so
accepted [if recommended by the
Director General], and the principal of
and income from any such conditional
gift shall be held, invested, reinvested,
and used in accordance with its condi-
tions, but no gift shall be accepted which
is conditioned upon any expenditure not
to be met therefrom or from the income
thereof unless such expenditure has been
approved by Act of Congress.
Proposed legislation
SEC. 1021. (a) The Secretary may
accept on behalf of the United States
gifts made unconditionally by will or
otherwise for the benefit of the Depart-
ment including the Service or for the
carrying out of any of its functions.
Conditional gifts may be so accepted at
the discretion of the ,Secretary, and the
principal of and income from any such
conditional gift shall be held, invested,
reinvested, and used in accordance with
its conditions, but no gift shall be
accepted which is conditioned upon any
expenditure not to be met therefrom or
from the income thereof unless such
expenditure has been approved by Act
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Existing legislation
(b) Any unconditional gift of money
accepted pursuant to the authority
granted in paragraph (a) of this section,
the net proceeds from the liquidation
(pursuant to paragraph (c) or paragraph
(d) of this section) of any other property
so accepted, and the proceeds of insur-
ance on any such gift property not used
for its restoration, shall be deposited in
the Treasury of the United States and
are hereby appropriated and shall be
held in trust by the Secretary of the
Treasury for the benefit of the Service,
and he may invest and reinvest such
funds in interest-bearing obligations of
the United States or in obligations
guaranteed as to both principal and
interest by the United States. Such
gifts and the income from such invest-
ments shall be available for expendi-
ture in the operation of the Service and
the performance of its functions, subject
to the same examination and audit as is
provided for appropriations made for
the Service by Congress.
? (c) The evidences of any uncondi-
tional gift of intangible personal
prooerty, other than money, accepted
pursuant to the authority granted in
paragraph (a) of this section, shall be
deposited with the Secretary of the
Treasury and he, in his discretion, may
hold them, or liquidate them except that
they shall be liquidated upon the request
of the Secretary whenever necessary to
meet payments required in the operation
of the Service or the performance of its
functions. The proceeds and income
from any such property held by the
Secretary of the Treasury shall be
available for expenditure as is provided
in paragraph (b) of this section.
(d) The Secretary shall hold any real
property or any tangible personal prop-
erty accepted unconditionally pursuant
to the authority granted in paragraph
(a) of this section and he shall permit
such property to be used for the opera-
tion of the Service and the performance
of its functions or he may lease or hire
such property, and may insure such
property, and deposit the income thereof
with the Secretary of the Treasury to be
available for expenditure as provided in
paragraph (b) of this section. The in-
come from any such real property or
tangible personal property shall be
available for expenditure in the discre-
tion of the Secretary for the mainte-
nance, preservation, or repair and
insurance of such property and any
Proposed legislation
of Congress.
(b) Any unconditional gift of money
accepted pursuant to the authority
granted in paragraph (a) of this section,
the net proceeds from the liquidation
(pursuant to paragraph (c) or paragraph
(d) of this section) of any other property
so accepted, and the proceeds of insur-
ance on any such gift property not used
for its restoration, shall be deposited
in the Treasury of the United States and
are hereby appropriated and shall be
held in trust by the Secretary of the
Treasury for the benefit of the Depart-
ment including the Service, and he may
invest and reinvest such funds in
interest-bearing obligations of the
United States or in obligations guaran-
teed as to both principal and interest by
the United States. Such gifts and the
income from such investments shall be
available for expenditure in the oper-
ation of the Department including the
Service and the performance of its
functions, subject to the same exami-
nation and audit as is provided for
appropriations made for the Department
including the Service by Congress.
(c) The evidences of any uncondi-
tional gift of intangible personal prop-
erty, other than money, accepted
pursuant to the authority granted in
paragraph (a) of this section, shall be
deposited with the Secretary of the
Treasury and he, in his discretion, may
hold them, or liquidate them except
that they shall be liquidated upon the
request of the Secretary whenever neces-
sary to meet payments required in the
operation of the Department including
the Service or the performance of its
functions. The proceeds and income
from any such property held by the
Secretary of the Treasury shall be
available for expenditure as is provided
in paragraph (b) of this section.
(d) The Secretary shall hold any real
property or any tangible personal
property accepted unconditionally pur-
suant to the authority granted in para-
graph (a) of this section and he shall
permit such property to be used for the
operation of the Department including
the Service and the performance of its
functions or he may lease or hire such
property, and may insure such property,
and deposit the income thereof with the
the Secretary of the Treasury to be
available for expenditure as provided in
paragraph (b) of this section. The
income from any such real property or
tangible personal property shall be
available for expenditure in the discre-
tion of the Secretary for the mainte-
nance, preservation, or repair and
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AMENDMENTS TO THE FOREIGN SERVICE ACT 75
Niro'
Existing legislation
inproceeds from insurance may be used to
restore the property insured. Any such
property when not required for the
operation of the Service or the perform-
ance of its functions may be liquidated
by the Secretary, and the proceeds
thereof deposited with the Secretary of
the Treasury, whenever in his judg-
ment the purposes of the gifts will be
served thereby.
Proposed legislation,
surance of such property and any
proceeds from insurance may be used to
restore the property insured. Any
such property when not required for the
operation of the Department including
the Service or the performance of its
functions may be liquidated by the
Secretary, and the proceeds thereof
deposited with the Secretary of the
Treasury, whenever in his judgment the
purposes of the gifts will be served
thereby.
The proposed amendment to section 1021 would broaden the authority of the
Department to accept and use gifts on a Departmentwide basis rather than solely
for the Foreign Service. In using gifts for training purposes the Foreign Service
Institute is now restricted to training Foreign Service personnel whereas the
inclusion of departmental personnel in the same training programs might be fully
justifiable. Many of the positions in the Department are designated as Foreign
Service officer positions and they may be occupied by either Foreign Service or
departmental personnel, While training programs made possible by gifts will
usually be designed for Foreign Service personnel it will be in the public interest
to include in such programs certain departmental officers and employees.
SECTION 51 (AS PASSED SENATE)
(See also p. 168)
SEC. 51., Foreign Service Staff officers and employees receiving basic salary immedi-
ately prior to the effective date of this Act at one of the rates provided by section 415
of the Foreign Service Act of 1946, as amended, shall be transferred to the new classes
established by section 4.15 of such Act, as amended, and shall receive basic salary on
and after the effective date of this Act as follows:
Present class and salary rate of section 415 of the
Corresponding ie' class and salary rate of
Foreign Service Act of 1946, as amended
section 415 of the Foreign Service Act of
(1958)
1946, as amended by this Act
Amount
of adjust-
ments
Class
Step
Rate
Class
Step
Rate
FSS-1
5
4
$13, 160
12, 880
FS-1
6
5
$13, 210
IR, 980
$150
150
3
12,480
4
IR, 650
170
2
12,120
3
IR, 820
ROO
1
11,770
2
11,990
no
FSS-2
5
12,120
FSS-1
3
12,320
200
4
11,770
2
11,990
no
s
11,485
FSS-2
7
11,550
65
2
11,205
6
11,275
70
I
10,920
if
11,000
80
FSS-3
5
11,165
FSS-2
6
1J,75
110
4
1O,88
5
11,000
116
8
e
10, BOO
lo, no
4
10,725
10,450
125
1so
1
10,030
2
10,175
145
FSS-4
5
10,230
FSS-2
/0, 450
220
4
9,945
10,175
230
8
9,665
F88-3
7
9,790
125
2
9,380
9,515
735
1
9,096
5
9,240
145
FSS-5
6
9,600
FSS-3
7
9,790
190
5
9,315
9, 616
ROO
4
9, 020
9, 240
210
3
8, 816
8,96?
150
2
8,610
8,690
80
1
8,395
8,415
AO
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76 AMENDMENTS TO THE FOREIGN SERVICE ACT
Present class and salary rateofsection,416 of the
Foreign Service Act of 1946, as amended
(1958)
Coaresgnmang new c/ass and salary rate of
seetian 415 of the Foreign Service Act of
1946, aS amended by this Act
Anwrunt
ofadjust-
rnents
Om
Step
Rate
Class
Step
Rate
FS,S-6
6
$8,756
FSS-3
4
$8,965
$210
6
8,540
3
8,690
150
4
8,825
FSS-4
7
8,850
26
3
8,120
6
8,125
5
2
7,905
6
8,125
220
1
7,690
5
7,900
210
FSS-7
6
8,050
FSS-4
6
8,125
75
6
7,840
5
7,900
60
4
7,650
4
7,675
45
8
7,415
3
7,450
36
2
7,200
2
7,225
26
1
6,990
1
7,000
10
FSS-8
6
7,860
FSS-5
7
7,850
5
7,140
6
7,160
10
4
6,926
5
6,950
26
8
6,710
4
6,750
40
2
6,495
8
6,550
56
1
6,285
2
6,350
65
FSS-9
6
6,660
FSS4
4
6,750
100
6
6,435
FSS-6_
7
6,500
65
4
6,220
6
6,300
80
3
6,005
5
6,100
96
2
5,795
4
5,960
106
1
6,685
3
6,700
115
FSS-10
7
6,175
FSS-6
8
6,300
125
6
5,970
5
6,100
130
5
5,755
4
6,900
145
4
6,540
F22-7
7
6,650
10
3
5,400
6
5,400
2
6,260
6
5,400
140
1
6,115
5
5,250
136
FSS-11_
7
5,500
FSS-7
7
6,650
50
6
5,555
6
5,400
45
6
5,216
6
5,250
55
4
5,070
4
6,100
30
3
4,980
8
4,950
20
2
4,790
2
4,800
10
1
4,650
1
4,650
FSS-12
7
5,025
F28-8
7
5,100
75
,
6
4,890
6
4,960
60
6
4,746
5
4,800
55
4
4,606
4
4,650
45
S
4,460
3
4,500
40
2
4,320
2
4,850
50
1
4,180
1
4,200
20
P.3,946
7
4,580
FSS-9
7
4,650
70
6
4,440
6
4,500
60
6
4,295
6
4,850
65
4
4,155
4
4,200
45
3
4,010
8
4,050
40
2
3,870
2
8,900
30
1
8,750
1
3,750
20
FSS -14
7
4,165
FS3-9
4
4,200
46
6
4,010
FSS-10
7
4,100
90
6
8,870
5
8,900
30
4
8,750
4
3,800
70
3
5,585
2
5,600
15
2
5,445
1
8,600
56
1
8,300
1
8,500
200
FSS-16
(1)
(1)
FSS-10
1
8,600
5
AU rates and below,
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Approved For Release4999/0827 ratkARDP7i8E03(7121A0007400020005-9
JUSTIFICATION FOR THE DEPARTMENT'S PROPOSED CHANGE
Section 51 of the bill contains temporary provisions for the transfer of Foreign
Service Staff officers and employees from their present classes and salaries pre-
scribed by section 415 of the act. This conversion table was designed by the
Department at the time the amendments to the Foreign Service Act were proposed
in 1958. This conversion in effect results in a downward consolidation of two
present classes and the splitting of several classes in the conversion of personnel
from the present to the new 10-class schedule. While these features presented
no particular problem at the time the conversion table was developed, certain
interim changes in the utilization, status, and population of the Staff suggest the
need for some modification in the conversion table.
The downward consolidation of present classes 9 and 10 effected in the existing
conversion table lowers the pay scales for the established levels of "senior" work
and responsibility of the bulk of the Department's Staff personnel above the clerical
levels. Further, it compresses 25- to 35-year career ladders for over one-half of the
Foreign Service Staff personnel into four or five classes. Because relatively few of
the present and future functions of Staff personnel warrant a higher grade, present
class FSS-9 (new class 6) represents the career ceiling for approximately 80 percent
of the Staff personnel.
The Department's policy must attract and retain the best qualified people
available. In order to maintain this policy, prevailing employment conditions
during the past year have compelled the Department to use a higher entrance
class to attract and retain qualified clerical personnel. This forced raising of the
clerical pay rate reduces the differential between the relatively easy and more
responsible senior grade work of Staff personnel and distorts significantly the
Forei'm Service officer, Staff technician, and clerical-rank relationships.
Another existing problem has been created in the hiatus by the change in salaries
of Staff personnel brought about by the annual in-class salary increases and class-
to-class promotion of clerical personnel. These salary changes have increased
substantially the number of employees who will be affected by the splitting of
classes.
Additionally, although some 175 qualified Staff officers were transferred in 1959
to the Foreign Service officer group by lateral appointment, there remain over
300 Staff officers and employees in the 32- to 49-a e brackets (average 392) who
are now at or above the presently established functional ceilings of the Staff Corps.
As a consequence, these employees have 11 to 28 years more of service without
further opportunity for promotion.
A reasonably satisfactory solution to these problems can be achieved by a
modification of the conversion table which will provide (1) basic pay considered
essential for a proper differential and pro-ression between classes, (2) somewhat
better career ceilings for the bulk of the Staff personnel, and (3) a wider salary
range with which to recognize and reward competence and length of service at
career ceilings in lieu of promotion opportunity. Moreover, the conversion of
personnel intact by class will avoid pay and rank inversions and other inequities
which woild seriously impair the morale of the Staff. The Department, there-
fore, requests a modification in the conversion table in accordance with the revised
schedule that follows.
50864-60-6
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Approved g)r RelemM949842714SIATAIRF7sps0I72A1h000400020005-9
NEW SECTION PROPOSED BY DEPARTMENT
SEC, 51. Foreign Service staff officers and employees receiving basic salary im-
mediately prior to the effective date of this Act at one of the rates provided by section
415 of the Foreign Service Act of 1946, as amended, shall be transferred to the new
classes established by section 415 of .such Act, as amended, and shall receive basic
salary on and after the effective date of this Act at one of the new rates established by
section 415 or authorized by section 642 of such Act, as amended, as follows:
Present class and salary rate of section 415 of the
Foreign Service Act of 1946, as amended
(1968)
Corresponding new class and salary rate of
section 415 of the Foreign Service Act of
1946, as amended by this Act
Amount
of adjust-
ments
Class
Step
Rate
Class
Step
Rate
F55-1
6
$13, 160
FSS-1
G
$13, 810
$150
4
12,8.90
5
12,980
150
3
12,480
4
12.650
170
2
12, 120
8
13,350
200
1
11,770
2
11,990
2.20
FSS--*
6
12,150
FSS-2
10(L)
12,375
255
4
11,770
8(L)
11.855
55
3
11,485
7
11,550
65
2
11,205
6
11,576
70
1
10,950
6
11,000
80
FSS-8
5
11,165
FSS-2
6
11,275
110
4
10,885
5
11,000
115
3
10,690
4
10.725
125
2
10,320
3
10,450
130
1
10,030
2
10,175
145
ESS 4.
5
10,230
FSS-3
9(L)
10,340
110
4
3
9, 9 (?5
9, 665
7 8(L)
10.065
9,790
120
125
e
9,950
6
9.826
135
1
9. 095
5
9, 240
145
FSS-5
6
9.600
1125 -3
7
9, 790
190
5
9,315
6
9,515
200
4
9, ;no
5
9, 240
210
3
8,815
4
8,965
150
2
8.610
8
8.690
80
1
8,3.95
2
8,415
20
VSS-6
6
8,755
FSS-4
9( L)
8.800
45
5
8, 540
8(L)
8, 575
35
4
.8,325
7
8,350
25
3
8,130
6
8,135
5
2
7,905
6
8.12.5
220
1
7,690
5
7,900
210
TSS-7
6
8,050
1123-4
6
8, 125
75
5
7,840
5
7,900
60
4
7,6.50
4
7,675
45
0
7,415
3
7,450
35
.2
7,200
2
7,9.55
25
1
6,990
1
7.000
10
(SS-8
6
7,850
1123-5
7
7,550
5
7, 140
6
7, 150
10
4
6,925
5
0,950
25
3
6,710
4
6.750
40
2
6,495
3
6,650
55
1
0,285
2
6.560
65
72S-9
6
6,650
1125-5
4
6,750
100
5
6,435
3
0,550
115
4
6,250
2
6,350
180
3
6,005
1
6,150
145
2
5,795
1
6,150
855
1
5,585
1
6. 150
565
'22-10
7
6.175
FSS-6
7
8,800
125
6
5,970
6
6,100
180
5
5,755
5
5,900
145
4
5,540
4
5,700
180
3
5,490
3
6, 500
100
2
5,290
1
6,800
40
1
5,115
1
6.300
185
'52-11
7
5, 600
FSS-7
7
5,650
60
6
6,355
6
5,400
45
5
6,215
6
5,260
35
4
6,070
4
5,200
30
$
4,930
3
4,950
20
2
4,790
2
4.800
10
I
?650
1
A Rsn
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Approved For Relt&p.RDMNQ/W2271 q4-RpFs7vip7A4A000401)020005-9
Present class and salary rate of section 415 of the
Foreign Service Act of 1946, as amended
(1958)
Corresponding new class and salary rate of
section 415 of the Foreign Service Act of
1946, as amended by this Act
Amount
of adjust-
ments
Class
Step
Rate
Class
Step
Rate
FSS-I2
7
$5,025
FSS-8
7
$5,100
$75
6
4,890
6
4,950
60
5
4,745
5
4,800
56
4
4,606
4
4,650
45
3
4,460
s
4,500
40
2
4,820
2
4,350
30
I
4,180
1
4,200
20
FSS-13
7
4,58C
FSS-9
7
4,650
70
6
4,440
6
4,500
60
5
4,295
5
4,850
55
4
3
4,155
4,010
4
3
4,300
4,060
45
40
2
3,870
2
3,000
30
I
3,730
1
3,750
20
FSS-14
7
4,155
F85-10
8W
4,200
45
6
4,010
7
4,100
90
6
3,870
5
3,900
30
4
3,730
4
3,800
70
3
3,555
2
8,600
15
2
3,445
I
3,500
55
1
3,300
1
3,500
ROO
FSS-15
1
3,000
FSS-I0
I
3,500
410
P25-162
1
3,875
FSS-10
1
3,500
626
All rates.
'All rates and classes below.
The temporary provisions proposed in section 51(a) provide for a more orderly
and equitable conversion of all personnel paid in accordance with the present
rates of the Foreign Service Staff salary schedule to the new classes and rates of
the proposed Foreign Service Staff schedule. The salary adjustments involved
are held to the minimum possible while maintaining present class and rank rela-
tionships of personnel. While the conversion plan necessitates new class designa-
tions in most all cases, the large majority of personnel will receive a higher class
number by virtue of the reduction in the total number of classes in the schedule.
This section also utilizes longevity rates for the conversion of Staff personnel
from the present to the new 10-class pay structure so that personnel may be
converted by class intact, thus avoiding a morale situation that otherwise would
be created by the splitting of classes or the loss of class rank when employees
whose salary at the time of conversion exceeds the maximum rate of the new
FSS class.
SECTION 52
(See also p. 169)
SEc. 52. Section 11 of Public Law 885, Eighty-fourth Congress (70 Stat. 890)
is hereby amended by inserting after the phrase "Government-owned vehicles" the
phrase "or taxicabs" and by inserting after the phrase "public transportation facil-
ities" the phrase "other than taxicabs'.
Under the existing provisions of section 11 of Public Law 885 the Secretary
of State inay authorize any chief of a diplomatic mission to approve the use of
Government-owned vehicles in any foreign country for transportation of U.S.
Government employees from their residence to the office and return when public
transportation facilities are unsafe or are not available. Under this authority the
Department provides, when circumstances warrant, transportation for U.S.
employees, including Marine guards who are stationed at Foreign Service posts
for official guard duty, from their place of residence to the place of their employ-
ment. Frequently, this type of transportation is required only for those U.S.
Government employees and Marine guards who are assigned to night duty, since
public transportation facilities are considered safe and are available during normal
business daytime hours. When public transportation facilities such as street-
railway systems, subway systems, and buses are inoperative or are on drastically
reduced schedules during the nighttime hours, adequate and satisfactory taxicab
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ApprovedCFor Releasext999/138/2I ecIAIRDElara3ZZIA000400020005-9
service is often available. However, taxicab service is considered part of "public.
transportation facilities" and personnel using taxicabs may not be reimbursed for
taxicab fares. As a result, at many posts Government-owned vehicles must be
operated by Government employed chauffeurs during the night hours, exclusively
for the use of a small number of U.S. Government employees, including Marine
guards. In many instances the cost of maintaining this chauffeur-operated vehicle
service is not justified by the number of people transported. The cost of such
transportation could be considerably reduced if taxicabs could be utilized. It is
for this reason that the change in section 11 of Public Law 885 has been proposed.
The Department is submitting two additional subsections to section 52 of the
bill. The new section 52 will read as follows:
SEC. 52. (a) Subsection (b) of section 5 of the Art of August 1, 1956 (70 Stat. 890),
is hereby/ amended by adding at the end thereof the following new paragraph:
(5) Travel expenses (not to exceed one round-trip) of the spouse and dependent
children of an officer or employee or other person serving the Government when
accompanying him to an international meeting or ccnference, and the furnishing
of quarters to any such officer, employee, or other person, and his family, if
authorized in advance by the Secretary of State."
(b) Section 11 of such Act is hereby amended by inserting after the phrase "Govern-
ment-owned vehicles" the phrase "or taxicabs", and by 'Inserting after the phrase
"public transportation facilities" the phrase "other than taxicabs".
(c) Section 12 of such Act is amended by changing the period at the end of the
section to a comma and adding the following: "and the Secretary may provide for the
payment of such other expenses as he deems appropriate to assure a suitable program
for any participant coming to the United States under the exchange of persons program
administered by the Department of Stale".
Section 52(a): Section 5 of Public Law 885, 84th Congress, authorizes the Sec-
retary to provide for participation by the United States in international activ-
ities which arise from time to time in the conduct of foreign affairs for which
provision has not been made by the terms of any treaty, convention, or special
act of Congress, provided that such participation does not involve U.S. mem-
bership in any international organization and is not continued for more than a
year without approval by the Congress. The same section provides for travel
and quarters expenses for the representatives of the United States, but it omits
any provision for the travel or housing costs of the families of these representa-
tives. Section 3.1c of the Foreign Service Travel Regulations drawn up pursuant
to the authority derived from section 911 of the Foreign Service Act provides
for travel and per diem expenses for Foreign Service employees on temporary
detail, such as would be involved in participation in a conference at a place away
from the employee's post of assignment. But there is no provision for his family
to accompany an employee while on temporary detail save at his own expense.
At brief conferences of several weeks' duration there is no need for their fam-
ilies to accompany the American representatives. However, when the conferences
run into several months' duration there can be a problem.
When it appears at the outset that a conference is likely to last for months
rather than weeks Foreign Service employees detailed away from their posts to
such conferences face extended separations from their families. Moreover as is
often the case in such ad hoc conferences, the United States must obtain experts
outside of the Foreign Service (e.g.' atomic scientists) to serve among its repre-
sentatives. Unless the Department of State is in a position to send the families
of its temporary representatives along with them to con ferences of protracted
duntion it may encounter difficulty in obtaining the services of highly qualified
people; they may not be willing to be separated from their families for an ex-
tended period and may not be wealthy enough to take their families along at
their own expense.
For this reason the Department urges the amendment of section 5 of Public
Law 885 by the addition of language to authorize travel expenses (not to exceed
one round trip) of the spouse and dependent children of an officer or employee or
other person serving the Government when accompanying him to an interna-
tional meeting or conference, and the furnishing of quarters to any such officer,
employee, or other person, and his family if authorized in advance by the Secre-
tary of State.
Section 52(b): Under the existing provisions of section 11 of Public Law 885
the Secretary of State may authorize any chief of a diplomatic mission to approve
the use of Government-owned vehicles in any foreign country for transPortation
of U.S. Government employees from their residence to the office and return when
public transportation facilities are unsafe or are not available. Under this
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Approved For Re16%Mb:inn
27H:ECEIAtalaPagicianclA0004W1020005-9
-authority the Department provides, when circumstances warrant, transportation
for U.S. employees, including Marine guards who are stationed at Foreign Service
posts for official guard duty, from their place of residence to the place of their
employment. Frequently this type of transportation is required only for those
U.S. Government employees and Marine guards who are assigned to night duty,
since public transportation facilities are considered safe and are available during
normal business daytime hours. When public transportation facilities, such as
street railway systems, subway systems, and buses, are inoperative or are on
drastically reduced schedules during the nighttime hours, adequate and satis-
factory taxicab service is often available. However, taxicab service is considered
part of "public transportation facilities" and personnel using taxicabs may not be
reimbursed for taxicab fares. As a result, at many posts Government-owned
vehicles must be operated by Government-employed chauffeurs during the night
hours, exclusively for the use of a small number of U.S. Government employees,
including Marine guards. In many instances the cost of maintaining this chauf-
feur-operated-vehicle service is not Justified by the number of people transported.
The cost of such transportation could be considerably reduced if taxicabs could
be utilized. It is for this reason that the change in section 11 of Public Law 885
has been proposed.
Section 52(c): The purpose of this subsection is to provide legislative authority
for the payment of various expenses essential to the success of the exchange of
persons program.
In the absence of such authority it has not been possible to plan in a systematic
way for these expenses that are considered vital to the success of programs ar-
ranged for distinguished foreign visitors invited to this country. The objective
in inviting these persons is to increase understanding between the people of other
countries and the people of the United States. Often this objective can best be
accomplished through meetings between these visitors and Americans of similar
interests, background, and status. Because the foreign visitors are able to remain
in the United States for only limited periods of time, and their American counter-
parts similarly have pressing demands upon their time programs must be arranged
which make maximum use of the time available. Many of the most productive
meetings that can be arranged are in the form of luncheons, receptions, or similar
functions.
Most of the meetings between these visitors and Americans are arranged by the
.cooperating agencies, both private and Government that assist in carrying out the
international educational exchange program. The Department considers costs
,of luncheons and other similar arrangements for meetings that are in every respect
a vital part of the program to be reasonable and proper program expense. The
Department is not seeking an increase in the amount for entertaining by Foreign
Service officers, but rather is seeking to show up a weak spot in our foreign leader
and specialist programs which in recent months have been damaged in numerous
cases by the acute shortage of funds to meet minimal needs of the kind described.
The subsection under consideration would provide the necessary legislative
authority. The authority would be used carefully and only as program require-
ments demand.
SECTION 53
(See also p. 172)
SEC. 53. (a) Paragraph (4) of section 104(a) of the Internal Revenue Code of
1954 (26 U.S.C. 104(a)(4)) (relating to the exclusion from gross income of com-
pensation for injuries and sickness) is hereby amended to read as follows:
"(4) amounts received as a pension, annuity, or similar allowance for per-
sonal injuries or sickness resulting from active service in the armed forces of
any country or in the Coast and Geodetic Survey or the Public Health Service,
or as a disability annuity payable under the provisions of section 831 of the
Foreign Service Act of 1946, as amended (22 U.S.C. 1081; 60 Stat. 1021).
(b)(1) Section 402(a) of the Internal Revenue Code of 1954 (relating to the
,taxability of a beneficiary of an employee's trust) is hereby amended as follows:
(a) by striking out in the first sentence of paragraph (1) thereof "paragraph
(2)" and inserting in lieu thereof "paragraphs (2) and (3)", and
(b) by redesignating paragraph (3) thereof as paragraph (4) and by inserting
after paragraph (2) thereof the following new paragraph:
"(3) The amount includible under this subsection in the gross income
of a nonresident alien individual with respect to a distribution made by
the United States in respect of services performed by an employee of the
United States shall not exceed an amount which bears the sense ratio. to
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the amount includible in gross income without regard to this paragraph
as the aggregate compensation paid by the United States to such employee
for such services and includible in gross income under this subtitle or prior
income tax laws bears to the aggregate compensation paid by the United
States to such individual whether or not includible in gross income."
(2) Subsection (d) of Section 871 of the Internal Revenue Code of 1954 (relating
to the tax imposed on nonresident alien individuals) is hereby amended to read as
follows:
"(d) CROSS REFERENCE.?
"(1) For doubling of tax on citizens of certain foreign countries, see section 891.
"(2) For taxability of amounts paid by the United States to certain nonresident
alien employees or their beneficiaries, see section 102(a)(3)."
Section 53(a) amends paragraph (4) of section 104(a) of the Internal Revenue
Code of 1954 to exempt disability annuities from Federal income tax. This is
in keeping with provisions relating to disability annuities payable by the Bureau
of Employees' Compensation. This proposed amendment to the Internal
Revenue Code has been approved by the Bureau of Internal Revenue, Treasury
Department.
Section 53(b) amends sections 402 and 871 of the Internal Revenue Code of
1954 to provide tax exemption for annuities paid to nonresident aliens who are
retired employees of American Government installations abroad and to survivors.
of such aliens.
Under the Treasury Department's interpretation of the existing provisions of
the Internal Revenue Code of 1954 the annuities paid under the Civil Service
Retirement and Disability System to nonresident aliens who are retired employees
of the U.S. Federal Government, have been subject to a 30 percent withholding
tax on the full amount of the annuity since January 1952. The imposition of
this 30 percent tax on annuities, many of which amount to $600 or less per year,
has caused severe hardship in many cases and engenders resentment against the
United States for its failure to comply with its contractual obligation to pay retired
employees the annuity they had been led to expect.
In a letter directed to the chairman of the House Committee on Ways and
Means dated August 8, 1958, the statement was made by the Treasury Depart-
ment that the 30 percent withholding rate on annuity payments to nonresident
aliens was not intended to apply to former employees of the United States and
that the Department of the Treasury was in favor of legislation which would
provide tax exemption for these annuitants. The amendment to section 402(a)
of the Internal Revenue Code of 1954 proposed in this section is identical with
that which the Treasury Department submitted to the House Ways and Means
Committee during the last session of Congress. This draft amendment has
been approved by the Bureau of the Budget, the Civil Service Commission, and
the Department of State. The Treasury Department has indicated that in the
interest of obtaining this remedial legislation expeditiously, it does not object
to the inclusion of this amendment in this bill.
SECTION 54
(See also p. 172)
SEC. 54. (a) Section 12 of the Act of June 26, 1884 (23 Stat. 56; 22 U.S.C. 1186),
is hereby repealed.
(b) The second proviso of section 1 of chapter 223 of the Act of June 4, 1920, as
amended (41 Stat. 750; 22 U.S.C. 214), is further amended by striking out the phrase
"or to seamen,".
Section 54 of the bill would repeal section 12 of the act of June 26, 1884 (22
U.S.C. 1186), which now prohibits the charging of fees by consular officers for
official services to American vessels and seamen. The Department will establish
a reasonable schedule of fees for such services, and give reasonable notice to the
parties affected, but it will not make a charge for services required by law or
services which are primarily in the public interest.
SECTION 55
(See also p. 173)
SEC. 55. Section 4 of the Foreign Service Buildings Act, 1926, as amended (22
U.S.C. 295), is amended by adding at the end thereof the following new subsection:
"(c) For the purpose of carrying into effect the provisions of this Act there is
hereby authorized to be appropriated, in addition to amounts previously authorized,
an amount not to exceed $100,000,000, of which $50,000,000 shall be available
exclusively for payments representing the value in whole or in part, of property or
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credits in accordance with the provisions of the Act of July 25, 1946 (60 Stat.
668). Sums appropriated pursuant to this authorization shall remain available
until expended.
Section 55 of the bill would add a new subsection (c) to section 4 of the Foreign
Service Buildings Act, 1926, as amended (22 U.S.C. 295) which would increase by
$100 million (of which $50 million represents foreign currencies) appropriations
authorized for the purpose of erecting office buildings and other buildings needed
by U.S. missions overseas.
SECTION 56
(See also p. 173)
SEC. 56. The following headings and sections in the Foreign Service Act of 1946,
as amended, are hereby repealed:
(1) Section 442 of such Act and the heading thereto.
(2) Section 525 of such Act and the heading thereto.
(3) Section 576 of such Apt and the heading thereto.
(4) Section 577 of such Act and the heading thereto.
(5) Sections 651 and 652 of such Act and the headings thereto including PART
F?Separation of Staff Officers and Employees.
The repeal of the various sections of the bill presently contained in the Foreign
Service Act of 1946, as amended, are proposed for the following reasons:
(1) Section 442.?Proposed new section 416 supersedes the provisions of
section 442.
(2) Section 525.?This provision which authorizes the Secretary to define by
regulation periods during which a Reserve officer may be considered as on active
duty is one that has not been used in the Foreign Service. An "inactive" Foreign
Service Reserve officer category does not exist and Foreign Service Reserve
officers are not recalled to "active duty."
(3) Section 576.?Revised section 571 supersedes section 576 and contains the
provisions of section 576 which the Department wishes to retain.
(4) Section 577.?The provisions of this section were repealed by Public Law
784, 81st Congress, section 301(85), and should therefore be removed from the
Foreign Service Act.
(5) Sections 651 and 652.?Revised section 637 supersedes sections 651 and
652 and includes the provisions of these sections which the Department wishes
to retain.
SECTION 57
(See also p. 173)
SEC. 57. Notwithstanding the provisions of this Act, existing rules, regulations of
or applicable to the Foreign Service of the United States shall remain in effect until
revoked or rescinded or until modified or superseded by regulations made in accordance
with the provisions of this Act, unless clearly inconsistent with the provisions of this
Act.
Section 57 is a necessary provision as it may not be possible to revise completely
all regulations and Executive orders now affecting the Service before the effective
date of the act. Without a provision such as that contained in this section, there
might be a question regarding the continuing effect of some of these regulations.
SECTION 58 (As PASSED SENATE)
(See also p. 173)
SEC. 68. (a) The provisions of this Act shall become effective as of the first day of
the first pay period which begins one month after the enactment of this Act, except as
provided in paragraphs (b), (c), and (d) of this section.
(b) The provisions of paragraphs (c)(1) and (c)(2) of section 808 of the Foreign
Service Act of 1946, as amended, by section 33(b) of this Act, shall become effective
on the first day of the first month which begins one year after the date of this Act,
except that any Foreign Service staff officer or employee, who at the time this Act
becomes effective meets the requirements for participation in the Foreign Service
Retirement and Disability System, may elect to become a participant in the System
before the mandatory provisions become effective. Such Foreign Service staff officers
and employees shall become participants effective on the first day of the second month
following the date of their application for earlier participation.
(c) The amendments made by section 53 of this Act shall be effective with respect'
to taxable years ending after the date of enactment of this Act.
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(d) The amendments made by section 43 of this Act shall take effect on the first day
of the first month which begins more than thirty days after the date of enactment
of this Act.
JUSTIFICATION FOR TIIE DEPARTMENT'S PROPOSED CIIA.NOE
Since the text of the act contains provisions relating to certain effective dates,
the Department proposes that there be added at the end of section 58(a) the
phrase ", and except as otherwise provided in the text of the Act". Further,
since the budget for fiscal year 1961 has already been prepared, the amendment
made by section 35 with respect to a contribution to the Foreign Service Retire-
ment and Disability Fund to be made by the Department should be made effec-
tive July 1, 1961. See redraft of section 58 which follows.
NEW SECTION PROPOSED BY DEPARTMENT
SEC. 58. (a) The provisions of this Act shall become effective as of the first day
of the first pay period which begins one month after the enactment of this Act, except
as provided in paragraphs (b), (c), (d), and (e) of this section, and except as otherwise
provided in the text of this Act.
(b) The provisions of paragraphs (c)(1) and (c)(2) of section 803 of the Foreign
Service Act of 1946, as amended by section 33(b) of this Act, shall become effective on
the first day of the first month which begins one year after the date of this Act, except
that any Foreign Service staff officer or employee, who at the time this Act becomes
effective meets the requirements for participation in the Foreign Service Retirement
and Disability System, may elect to become a participant in the System before the
mandatory provisions become effective. Such Foreign Service staff officers and
employees shall become participants effective on the first day of the second month
following the date of their application for earlier participation.
(c) The amendment made by section 36 of this Act, with respect to a contribution
to the Foreign Service Retirement and Disability Fund to be made by the Department,
shall become effective July 1, 1961.
(d) The amendment made by section 43 of this Act shall take effect on the first day
of the first month which begins more than thirty days after the date of enactment of
this Act.
(e) The amendments made by section 53 of this Act shall be effective with respect
Lo taxable years ending after the date of enactment of this Act.
Mr. HAYS. Mr. Henderson.
Mr. BENTLEY. Off the record.
(Discussion off the record.)
Mr. HAYs. Mr. Henderson.
STATEMENT OF HON. LOY W. HENDERSON, DEPUTY UNDER
SECRETARY OF STATE FOR ADMINISTRATION
Mr. HENDERSON. In the first place, I want to thank you for your
statement, Mr. Chairman. We will cooperate to our utmost in trying
to give you all the detailed information you desire.
I have before me a principal witness statement which will take me
some time to read. Nevertheless, since it does prepare the ground-
work for the more detailed discussion of the bill, I would like to read
it, if that is agreeable to you.
Mr. HAYs. Would you like to have somebody read it for you?
Mrs. KELLY. Mr. Chairman, does Mr. Henderson intend to read all
of this now?
Mr. HENDERSON. Yes.
Mrs. KELLY. Could it be submitted for the record, Mr. Chairman?
Mr. HAYS, Normally, Mrs. Kelly, I would go along with that.
Since this is a complex bill and since Mr. Henderson will have to do
the explaining, I think it desirable to have it read so we can get a little
education.
Mrs. KELLY. May I speak off the record?
(Discussion off the record.)
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PREPARED STATEMENT OF MR. HENDERSON, BEAD BY MR. AARON BROWN, DEPTJTY
ASSISTANT SECRETARY OF STATE FOR PERSONNEL
Mr. Chairman, I am grateful to you and to this committee for the opportunity
to appear in support of needed legislative improvements in the Foreign Service
Act of 1946. The Department appreciates deeply this committee's continuing
and helpful concern in the problems and needs of the Foreign Service.
For a considerable period of time the Department has been studying the Foreign
Service Act of 1946, as amended, in order to determine what further amendments
were necessary to enable the Foreign Service to discharge effectively the increasing
responsibilities that are laid upon it by the stresses and complexities of interna-
tional relations in this day and age. From this study have come most of the
proposals now before you in S. 2633. These proposals, moreover, are the first
substantial changes in the Foreign Service Act of 1946 since the amendments of
1956 were enacted.
For the purpose of presenting the proposed amendments and indicating their
effect on the Foreign Service, it may be helpful if I group them in four general
categories.
Strengthening of Staff Corps.?The first of these categories covers amendments
that would strengthen the Foreign Service Staff.
It will be recalled that one of the recommendations of the Wriston committee
was that Staff officer positions, except for a limited number of highly technical
positions, should be converted into Foreign Service officer positions, and that
qualified incumbents should be offered cm/missions as Foreign Service officers.
This recommendation has been carried out with the result that opportunity
for advancement in the Staff now is severely limited because of the relatively
small number of high level positions which remain. Since the work performed
by Staff personnel is essential to the effectiveness of the Foreign Service, we
believe there should be a program for the Staff that will assure the recruitment
and retention of persons possessing appropriate qualifications. Accordingly,
among the amendments proposed are several which will strengthen the Foreign
Service Staff, and will provide an incentive to young men and young women to
join it.
The Department recommends a new 10-class salary structure for the Staff.
The structure of the Foreign Service officer schedule was modified in 1956 to
provide basic improvements in accordance with the needs of the Service. At
that time the personnel integration program was underway and it was not possible
to determine clearly the future needs of the Staff. The proposed new class and
salary schedule for the Staff is specifically designed to provide a more adequate
promotion ladder for these employees, including appropriate salary adjustments
when promotions to the next higher class are awarded.
The main features of the proposed new structure are:
1. It provides for the consolidation of the present 22-class structure into a
10-class structure with the result that the lower classes, 14 through 22, which
are not being used are eliminated;
2. It consolidates overlapping classes, eliminates overlapping at the top levels,
and improves the periodic salary increase plan;
3. The salary rates of the top three Foreign Service Staff classes are the same
as the rates in classes 3, 4, and 5, respectively, of the Foreign Service officer
schedule. This provides equitable treatment for personnel serving at similar
levels and will facilitate the conversion of Staff personnel at these levels who may
qualify in the future for lateral appointment as Foreign Service officers.
The proposed amendments also would make it possible to bring personnel
into the Staff at any salary rate of a given class which is appropriate on the
basis of former experience and salary levels; they would provide for in-class
promotions on the basis of merit; and they would provide for additional salary
increases within each class based on proficiency and length of service. The
amendments would make it possible to appoint Staff to temporary, limited or
permanent positions, and they would provide for the establishment of probationary
periods for such appointees. Under the proposed amendments, there would be
provision for the separation of Staff personnel on the same basis as is now provided
for Foreign Service officers.
Another significant provision would provide for the participation of certain
members of the Staff in the Foreign Service retirement and disability system.
Strengthening the Foreign Service as a whole.?The second group of amendments
would clarify certain existing provisions of the Foreign Service Act, make possible
greater flexibility in managing the Service, and provide the Department with
more leeway in recruiting and utilizing Foreign Service personnel.
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One of the amendments would give the Secretary authority to convert civil
service positions in the Department to Foreign Service positions and vice versa.
Mr. HAYS. Right there, if you change the Foreign Service position
to civil service, what happens to the man who is holding that Foreign
Service position? He doesn't become a civil service employee?
Mr. HENDERSON. No, he doesn't. He remains a Foreign Service
officer. If he happens to be a Foreign Service officer holding the
position; just the position changes.
Similarly, if a civil service position occupied by a civil service
officer is converted into a Foreign Service position, the civil service
officer will continue to hold the position but he will not become a
Foreign Service officer. When he leaves the position, a Foreign
Service officer would be put in his place.
Mrs. KELLY. Do you want to ask questions as we proceed?
Mr. HAYS. If you want to. I think sometimes that is the best
time to ask them because the things are fresh in your mind.
Mrs. KELLY. These questions do not have to be answered now,
Mr. Chairman, if we can obtain an answer at a later date.
I would like to know, if it is possible, how many total high level
positions would remain, how many do remain that need to be brought
in, and how many did you retire since the last time we had hearings
?before this subcommittee? How many are in there now, how many
retired
Mr. HENDERSON. Foreign Service?
Mrs. KELLY. Yes, how many remain to be integrated? If you
can answer that at a later time
Mr. HENDERSON. We Will do that.
Mrs. KELLY. How many are there, how many we are considering
and so forth.
Mr. HENDERSON. We will give you that information.
(The information requested is as follows:)
Foreign Service officer positions in the Department as of Aug. 31, 1969
Number of Foreign Service positions 1, 523
Incumbents:
Foreign Service officers 896
Foreign Service Reserve officers_ 61
Foreign Service Staff personnel_ 32
Civil Service personnel 358
Vacancies 176
SUMMARY OF ACTION UNDER THE INTEGRATION PROGRAM
At the termination of the integration program (Aug. 1, 1956), 1,902 incum-
bents of F80 positions and 497 applicants from non-FSO positions had been
processed for appointments to the Foreign Service Officer Corps. Under the
program, 1,526 officers have been appointed as FSO's; 377 appointments have
been disapproved; and 496 declinations have been made because of the inability
-or unwillingness of officers to accept Foreign Service officer appointments.
Mrs. KELLY. I don't know whether there is a breakdown later on,
but there are two questions I would like to have answered.
Two points: (1) If someone is disabled, can they retire on disability
prior to the age limit with a fair amount of salary?
Mr. HENDERSON. Yes, they can. That will be brought out later.
We have a special provision relating to that.
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AMENDMENTS TO THE FOREIGN SERVICE ACT 87
Mrs. KELLY. Then the second point I would like to have brought
laut later on, what is the cost of transportation of the household goods
of the personnel who are sent abroad?I have many questions that
have been raised on that point, we should not permit Foreign Service
officers to take their entire household goods abroad?
I would like the total cost of transportation of household goods and
if there are any limitations on need. Thank you, Mr. Chairman.
(The information requested is as follows:)
During fiscal year 1959, the amount of $3,683,195 was obligated from the appro-
priation, "Salaries and expenses" for the transportation of effects. This amount
covered 2,993 trips.
Mr. BROWN (reading):
As the needs of the Service change to meet new conditions, situations develop
which require that certain classified civil service positions in the Department be
changed to Foreign Service positions or that Foreign Service positions be recon-
verted to civil service positions.
In order that the Department may have more freedom in selecting persons who
have developed specialties urgently needed in the Service, one of the amendments
provides for the removal of the presently existing numerical limitation upon lateral
entry into the Foreign Service Office Corps.
It is not the intention of the Department to weaken the career principles which
must be maintained if there is to be a highly efficient professional Foreign Service.
Nevertheless, the Department should be able to recruit especially well qualified
and needed personnel from other Government agencies without being restricted
by numerical limitations. A proposed amendment would also permit the direct
appointment to class 7 of a limited number of persons who have qualified for
FSO-8 appointment when age, experience, and other qualifications make such
higher level appointment appropriate.
Other amendments would authorize the Secretary, if he determined it to be in
the public interest, to extend beyond retirement age the service of officers who are
approaching mandatory retirement and to recall temporarily into service officers
who have been retired.
At present the Secretary may extend the service of officers beyond retirement
age or he may recall retired officers only when he has determined "an emergency to
exist."
Use of the phrase, "in the public interest," would give the Secretary more
discretion in utilizing the specialized skills of experienced officers as the need for
their services occurs. It is not the intention of the Department to extend the
service of officers beyond retirement age or to recall retired officers into the Service
except under unusual conditions.
Experience has demonstrated, however, that occasionally it would be in the
public interest, even though no emergency exists, if officers who are urgently
needed for certain positions could be retained beyond the retirement age or if
retired officers could be temporarily recalled to active duty when it is determined
that there is a particular need for their specialized experience and skills. Provision
is made also for the reemployment in the Service of Foreign Service officers who
have left the Service.
Another proposed amendment would permit the assignment of Foreign Service
personnel, without the loss of their Foreign Service status, to other Government
agencies and to international organizations or commissions. Under present
provisions, a Foreign Service officer may not serve as a Presidential appointee in an
agency other than the Department of State without retiring or resigning from the
Service.
Furthermore, the Department has encountered difficulties which this amend-
ment would remove, in assigning officers to international organizations or corn-
missions in which it is in the interest of the United States to have representatives.
A proposed amendment to restore authority to grant inclass increases to For-
eign Service officers ?for especially meritorious service is proposed in view of a
determination by the Comptroller General that authority of this nature which
the Secretary formerly had was made inoperative by the Government Employees'
Incentive Awards Act. Cash awards are not as appropriate for career Foreign
Service officers as are inclass promotions for meritorious service.
Nave
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88 AMENDMENTS TO THE FOREIGN SERVICE ACT
A further amendment provides for special monetary or other incentives to
encourage Foreign Service personnel to acquire or retain proficiency in esoteric
foreign languages or special abilities needed in the Service.
The proposed amendments would combine into one section of the Foreign
Service Act provisions governing separation for cause that would be applicable
on a uniform basis to all employees of the Foreign Service. Under the present
provisions, separation for cause is covered in four separate sections of the act in
such a manner that there is not equitable application of the provisions to all cate-
gories of Foreign Service personnel.
Proposed amendments which relate to the Foreign Service Institute would pro-
vide authority for spouses of Foreign Service personnel to receive language, orienta-
tion, and other training at the Institute when such training is in the interest of the
Service. Authority to employ persons who are noncitizens of the United States
for use in specialized language and other training programs when citizen instruc-
tors are not available would also be provided.
At the present time a number of Foreign Service officers are assigned to posi-
tions in the Department which are classified under the Classification Act at rates
of pay higher than the Foreign Service officer's salary. Under present provisions
such officers now receive differentials to cover the differences between their
salaries and those of higher level Department positions to which they are assigned.
One of the proposed amendments would eliminate this salary differential in the
case of officers assigned to positions in the Department designated as Foreign
Service positions. We believe that with the integrated departmental and Foreign
Service program now in effect, and the resultant rotation of Foreign Service offi-
cers between field posts and the Department, there is no justification for the con-
tinuance of these differential payments.
Foreign Service officers assigned to oversea posts do not receive a salary differen-
tial relating to the positions they occupy regardless of the nature of their assign-
ments. To pay salary differentials to a limited number of all such officers as-
signed to Foreign Service officer positions in the Department is clearly ineouitable.
I should add, with respect to the elimination of this salary differential, that
S. 2633 in its present form provides that the effective date of this amendment will
be June 30, 1960.
At the time the proposal was drafted, the Department had anticipated a suffi-
cient interval between possible enactment and the effective date of the provision
to enable the officers involved to make the necessary adjustments. Under the
present time schedule, such an interval will not be possible. I would like to
suggest, therefore, that the effective date be changed to June 30, 1961.
Section 16(c) of S. 2633 would authorize the Secretary to grant a housing allow-
ance to Foreign Service personnel who are assigned to duty in the United States
between assignments abroad, and to Foreign Service officers of class 7 or 8 assigned
to duty here prior to duty abroad, This section was not contained in the original
bill suggested to the Congress by the Secretary of State, and has not had the
approval of the administration.
The Bureau of the Budget, moreover, under date of January 25 addressed a
communication to the Secretary raising certain questions about the section.
I shall be glad to comment on these questions and on the Department's views
as to the desirability of a domestic housing allowance at such time as the com-
mittee wishes.
Improvements in the retirement system.?The third category of proposed amend-
ments includes a number of changes in title VIII of the Foreign Service Act which,
as you know, relates to the Foreign Service Retirement and Disability System.
During the 14 years since the passage of the Foreign Service Act of 1946, there
has been substantial improvement in the provisions of other Federal retirement
systems which have not been reflected in similar improvements in the Foreign
Service retirement and disability system.
As a result, the Foreign Service system now is in need of major changes if it is
to provide equitable annuities for Foreign Service officers and their surviving de-
pendents. Among the proposed improvements in the Foreign Service retirement
and disability system are a provision to include certain Staff officers and em-
ployees in the system; modernization of provisions relating to the computation of
annuities and survivorship benefits which will bring the Foreign Service system
in line with other Federal retirement systems; clarification of the provisions re-
lating to retirement for disability and to the reinstatement of recovered disability
annuitants; and clarification of the provisions relating to death in service.
Further proposed amendments to title VIII will provide discontinued service
annuities similar to those of other Federal retirement systems and an increase in
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the rate of participant contributions to the Foreign Service retirement and dis-
ability fund from 5 to 61/Z percent of basic salary, with a matching contribution
to the fund to be paid by the Department from the appropriation from which a
participant's salary is paid.
In this connection, since the budget for fiscal year 1961 has already been pre-
pared, it would appear necessary to change section 58 of the bill to make this pro-
vision relating to contributions made by the Department to the fund effective
July 1, 1962. If the committee desires, my staff will be available to the com-
mittee staff for assistance in drafting this and other Suggested changes,
In connection with the modernization of the Foreign Service retirement system,
the proposed amendments provide that retired participants in the system may
be reemployed in the Government service in any appointive position for which
they are qualified.
Under present provisions, participants who retired voluntarily must forfeit
their annuities if reemployed; those retired for age may not be reemployed.
Mr. HAYS. You mean, if this were adopted this would let the
fellow draw his pension and let him be reemployed and draw a salary
in another department?
Mr. HENDERSON . I think we answer that question in the next
sentence. The proposal would be this: That if a person is retired
from the Foreign Service either because of age or for some other
reason, and is entitled to an annuity, and if this officer is subsequently
employed in an agency of the Government, he would receive salary
from that agency plus so much of his annuity as would, when com-
bined with the salary, equal the salary that he was entitled to receive
at the time he retired from the Service.
We will enlarge on that a little later, Mr. Chairman. This is some-
thing to which we have given a great deal of thought. It has been
reviewed by the Budget Bureau and it has their approval. We will
explain this in more detail.
Mr. HAYS. I won't hold that against it, that it has the approval of
the Budget Bureau.
Mr. BROWN (reading):
Further, the amendments provide that such reemployed personnel may receive
both the salary of their positions and such portion of their annuity as will equal
the highest basic salary to which they were entitled when they retired. This
will permit the Federal Government to compete with private industry in obtaining
the services of retired Foreign Service personnel whose experience would benefit
the Government.
Miscellaneous amendments.?The fourth and last category of amendments
contains a number of miscellaneous provisions which, if adopted, would strengthen
and improve the administration of the Service.
Specifically, these amendments provide for?
(1) improvement in the provisions for the establishment of compensation
plans for local (alien) employees, and authority for the use of these provi-
sions by other departments and agencies of the Government authorized to
administer local employee programs;
(2) authority to grant couriers a salary differential of up to 15 percent of
their basic pay in view of the hazardous nature of their assignments;
(3) simplification of provisions relating to the selection-out of Foreign
Service officers in classes 4, 5, 6, and 7;
(4) clarification of provisions relating to the furnishing of household
equipment in order to effect economy in transportation costs;
(5) clarification of authority to ship Foreign Service employees' vehicles.
With the approval of the Treasury Department, there are also included among
these proposals two amendments to the Internal Revenue Code of 1954 which
are of great importance to the Department.
One will exempt from income-tax liability the annuities paid to participants
in the Foreign Service retirement and disability system who are retired for dis-
ability. The other is a change in the Internal Revenue Code which will solve a
very serious problem relating to the annuities paid nonresident aliens who are
retired employees of the U.S. Government.
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The majority of these retired local nationals of other countries, who have
served the U.S. Government loyally and well over periods of many years, have
been retired on annuities which amount to only a few hundred dollars per year.
These annuities are considered a contractual obligation of the United States
which many pensioned employees, after having made contributions to the civil
service retirement fund during the years of their employment, count on to pro-
vide for their old age. However, on the basis of a Treasury Department inter-
pretation of existing provisions of the Internal Revenue Code, these annuities
since January 1952 have been subject to a 30-percent withholding tax on the full.
amount of the annuity.
This has caused severe hardship in many cases and has reflected unfavorably
upon the United States as an employer. While affected alien annuitants can be
found in limited numbers throughout the world, it is significant that a great
majority of those affected (approximately 3,000) are in the Philippines.
These annuitants considered themselves American citizen employees of the
U.S. Government while the Philippines were a possession of the United States.
They lost their American nationality when independent status was given to the
Philippines. Now being considered alien employees, they have had their an-
nuities reduced by one-third. This has been the subject of protests from the
Philippine Government to the U.S. Government each year since the imposition,
of this 30-percent tax. The Treasury Department now agrees that the tax
should not be applied to the annuities of aliens who were former employees of
the United States. The draft amendment to the Internal Revenue Code has
the approval of the Civil Service Commission as well as that of the Treasury
Department and the Department of State.
Mr. BENTLEY. This last suggestion of the Department, as con-
tained in S. 2633, has been introduced legislatively by myself and
Congressman Keogh of New York. I recall last year the House
Ways and Means Committee reported his bill out and, I believe,
though it is subject to verification, it did pass the House and is pend-
ing before the Senate. I raise the question whether if we start writ-
ing tax legislation into this bill when it has already been acted upon
by the Ways and Means Committee and the House, there may be
some objections.
MT. HENDERSON. This was incorporated in this bill because We
have had such bad luck during the last 3 years in getting a bill of this
kind passed. We are very grateful to you for bringing it up. I think
it did pass the House. We just don't know what action it will have
in the Senate and we are afraid it will fail again.
If it looks like it is going to pass the Senate during the next few
weeks, then we can withdraw it from this bill.
Mr. BENTLEY. I raise the question as to whether or not the Ways
and Means Committee might object to our writing something in the
bill which they have acted on.
Mr. HAYS. The Senate might take the position that they have acted
on it. I think we will have to work that out some way.
Mr. BENTLEY. Maybe We can get in touch with the Finance Com-
mittee and Congressman Keogh and see what the situation is on this
bill.
Mr. BROWN (reading):
Suggested modifications in S. 2633.?As I have indicated, Mr. Chairman, the
Department strongly endorses most of the provisions of S. 2633. There are,
however, a few items about which the Department has serious question and which
it desires to call to the attention of this committee.
Section 14 of S. 2633 provides that there shall be a hearing before the Board of
the Foreign Service in all cases involving the separation for misconduct of limited
or probationary Staff employees. In proposing amendments to the Foreign
Service Act, the Department sought to clarify the authority of the Secretary of
State to make temporary or limited appointments and to terminate the service
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of employees serving under such appointments, when there is reason for so doing.
The broad authority which the Department needs is not provided if a hearing
procedure is required for probationers and those serving under limited appoint-
'" ments when misconduct is involved. Further, since the term "misconduct" does
not lend itself to a precise definition, the provision would be exceedingly trouble-
some.
Mr. HAYS. I suspect that is the reason the Senate put that in.
Misconduct does not lend itself to a precise definition and maybe the
fellow you are firing for misconduct might want to know why he was
being fired.
Mr. HENDERSON. Could I just state, Mr. Chairman, if a proba-
tioner is dismissed, he is dismissed because he hasn't passed his proba-
tion not because of misconduct?charged with misconduct.
Mr. HAYS. You must have it in there. You are asking to have it
stricken out.
Mr. HENDERSON. The Senate put it in.
Mr. HAYS. If you never discharge anybody for misconduct, it
won't bother you any more, if it stays in.
Mr. BROWN (reading):
Similarly, the authority which the Department sought in section 27 relating to
separation for cause is limited by a requirement that a board of the Foreign
Service hearing be provided. This section also contains a clause denying a de-
ferred annuity to anyone separated for cause and otherwise entitled to a deferred
annuity if "the Secretary determines that separation was based in whole or in
part on the ground of disloyalty to the United States."
This would seem to go further than legislation which denies annuities to persons
who commit offenses involving the national security of the United States, if such
a person is convicted after due process of law.
The Department believes that denial of earned annuity benefits cannot equit-
ably be a part of punitive action in separation-for-cause cases. We ask that this
provision be eliminated.
A portion of section 28 also requires a hearing before the Board of the Foreign
Service in cases involving termination for misconduct of Foreign Service Reserve
officers and Staff officers and employees serving under limited appointments.
As I have indicated in connection with sections 14 and 27, this requirement
unduly restricts the authority of the Secretary of State in such cases and we
believe it should be eliminated.
Section 18 would require the Secretary to designate every Foreign Service
officer position in a forefrn country whose incumbent should have a useful knowl-
edge of the language or dialect common to such country.
In view of the administrative problems in carrying out this section as it is now
drafted, and the need for flexibility in meeting the language problems of the
? Foreign Service, we believe that if the section is to be retained it should be
redrafted to provide that the Secretary rather than designating actual positions
should determine the number of officer positions in a country which must be
filled by language officers. Chiefs of mission would then be able to use the language
competence of their staffs where it was most needed at any given time.
? Although the Department would have no objection to this section if it were
rewritten as suggested, we do not believe that such legislation is necessary. The
Department's firm objective is to staff all appropriate positions at field posts
with personnel having the necessary language facility. Further, the rigid require-
ments of this section, even if rewritten, are likely to reduce the administrative
flexibility that is essential to effective staffing of missions overseas.
There are two final items, Mr. Chairman, which I would like to mention.
The Department concurs with the objectives of these items. We believe,
however, that the objectives can be more equitably accomplished if certain pro-
cedural changes are made in the provisions:
Section 33(b) of the bill provides that a Staff officer or employee who becomes a
participant in the Foreign Service retirement and disability system and is
mandatorily retired under this section shall receive a gratuity payment if he is
age 61 or over on the effective date of the section. We suggest that a more
equitable formula for computing the proposed gratuity would be a graduated
scale of payments covering all such employees who are 57 or over on the effective-
date of this section and who thus would be mandatorily re tired at age 61.
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Section 51 of the bill provides a table to be used in converting Staff officers
and employees from the existing salary and class schedule to the proposed new
10-class structure. This table was designed by the Department at the time the
amendments to the Foreign Service Act were proposed in 1958. Since that time
changes which have taken place in the utilization and the population of the
Staff suggest modification in this table to eliminate the splitting of classes in
order to accomplish the necessary conversion.
Since both of these items are somewhat technical in nature, the committee may
desire to have members of my staff work with the committee staff in perfecting
details.
Finally, I should say that the U.S. Information Agency understandably has some
concern about the possible interpretation of the wording of certain sections of the
bill.
I have received a letter on this subject from Mr. Abbott Washburn, Deputy
Director of the Agency, which, with your permission, Mr. Chairman, I would like
to have included in the record.
Mr. HAYS. Without objection, the letter will appear in the record
at this point.
(The letter referred to is as follows:)
Hon. Lor W. HENDERSON,
Deputy Under Secretary for Administration,
Department of State.
DEAR LOY: I understand hearings are scheduled on S. 2633, "Foreign Service
Act Amendments of 1959," on Wednesday and Thursday, January 27 and 28,
1960, before the House Committee on Foreign Affairs.
As you know, the U.S. Information Agency administers its Foreign Service
personnel under the provisions of the Foreign Service Act, as authorized by Re-
organization Plan No. 8 of 1953 and related Executive orders. The proposed
amendments to the act, therefore, will have a significant effect on personnel opera-
tions of the Agency and the changes are of vital interest to us.
The Agency regards the proposed amendments as important improvements in
the Foreign Service personnel system and repeats the endorsement it gave to the
proposals when the draft legislation was referred to the Agency last year by the
Bureau of the Budget for review and comment.
We are, however, concerned about the wording of sections 441(b), 571(c), and
578. These sections use the phrase "Foreign Service officer positions." Regard-
less of the precise wording of these sections it is intended that the authorities of
these sections be available to the U.S. Information Agency. However, in the
interests of clarity and uniformity, it would be helpful if you could attempt to have
the language changed to read "Foreign Service positions", which is the language
we agreed to in clearing the draft legislation last year.
If it is not practicable to arrange this change in language with the House Com-
mittee on Foreign Affairs, we would be grateful if a way could be found to establish
in the legislative history of the bill that the use of the phrase "Foreign Service
officer positions" does not exclude the Agency from using the authorities of sections
441(b), 571(c) and 578.
Sincerely,
U.S. INFORMATION AGENCY,
Washington, January 26, 1960.
ABBOTT WASHBURN, Deputy Director.
Mr. BROWN (reading):
Mr. Chairman, this concludes my statement. Members of my staff and I are
at your disposal to discuss individual provisions of the bill and to supply you with
any background data or supplementary information you may wish.
Mr. HAYS. Mr. Secretary, this bill is long. As I stated in the be-
ginning, it will require a lot of questions, I think, on the part of the
committee.
Since Mrs. Kelly has to get away at 10 minutes to 12 and since there
are some procedural matters that I would like to take up with the
committee, I wonder if we could adjourn right now and meet at 10:30
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AMENDMENTS TO THE FOREIGN SERVICE ACT 93
*ewe
in the morning for questions. If possible, we will try to continue to-
morrow afternoon, if you can be available.
Mr. HENDERSON. We will be very glad to be here.
Mr. HAYS. I would like to talk over with the committee how we are
going to go about the bill, how we are going to handle the questioning
and if we desire to make any eliminations before we start.
We have your statement as a basis for discussion.
(Whereupon, at 11:20 a.m., the subcommittee proceeded in ex-
ecutive session.)
60864-60--7
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AMENDMENTS TO THE FOREIGN SERVICE ACT
TUESDAY, FEBRUARY 2, 1960
HOUSE OF REPRESENTATIVES,
COMMITTEE ON FOREIGN AFFAIRS,
SUBCOMMITTEE ON STATE DEPARTMENT,
ORGANIZATION AND FOREIGN OPERATION,
Washington, D.C.
The subcommittee met at 10:40 a.m., in room G-3, U.S. Capitol,
Hon. Wayne L. Hays (chairman of the subcommittee) presiding.
Mr. HAYS. We will proceed with questions on S. 2633.
I think it would be a good idea to proceed very informally on this.
There are a whole series of questions here that were worked up by
the staff which I think it would be well to have answered. As we go
along, if any member has a question which is a derivative or
connected
Mr. FARBSTEIN. Will I be asking too much, Mr. Chairman, if you
would tell me in about 25 or 30 words what is in this?
Mr. HAYS. I am afraid I am not capable of condensing it that fine.
Mr. FARBSTEIN. I wasn't here, as you well know. Glancing over
the statement, I don't think that I get enough out of it, just hurriedly
reading it, to know enough to engage in a discussion of it. I would
appreciate, unless I am overstepping the bounds of propriety
Mr. HAYS. The bill covers a series of how many amendments,
Mr. Secretary, 58 is it?
STATEMENT BY HON. LOY W. HENDERSON, DEPUTY UNDER
SECRETARY OF STATE FOR ADMINISTRATION
Mr. HENDERSON. I am not sure. There will be at least between
50 and 60.
Mr. HAYS. There are 58 amendments to the Foreign Service Act.
They are pretty wide in range of things they ask. I think one
of the main things is the reduction of the number of classes of Foreign
Service Staff officers.
Mrs. BOLTON. That sounded very good to me.
Mr. HAYS. Permission to recruit people abroad is another thing.
There are 56 more.
What I had in mind was that we start with the questions which our
staff has prepared, and develop it as we go along.
Mr. FARBSTEIN. Very well.
Mr. HAYS. The first question is how many individuals are presently
serving in FSS-15 or below?
Mr. FARBSTEIN. I would like to know what FSS-15 is.
Mr. HAYS. Foreign Service Staff grade 15.
Mr. FARBSTEIN. What does grade 15 encompass?
95
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Mr. HAYS. Well, there is a classification on page 2 of the bill
which is a new classification they want. Do we have a copy of the
old classification?
Mr. WESTPHAL. Yes.
Mr. FARBSTEIN. I think if somebody could give a short description
of these things so we could know
Mr. HAYS. Actually the Staff officers classes are what we call
grades in civil service. It sets up grades and payment rates, except
they start with the highest number and go to the lowest number as
they go up, which is a converse situation as far as civil service grades
are concerned.
Mr. FARBSTEIN. Just a word of interpretation as to the signifi-
cance of class 15 so that I will know whether or not it is a very im-
portant
Mr. HAYS. At the present time let me say to you that class 22 is
the lowest class. That starts at a salary of $1,600. Class 15 has
a starting salary of $3,000. What I am trying to find out in this
question is how many people are in classes 15 through 22.
Mr. FARBSTEIN. That salary, I see according to this book, runs
from $3,009 to $3,730, which is the end column if you will note.
Mr. HAYS. That is right.
Mr. FARBSTEIN. That is page 6.
Mr. HENDERSON. Could I make a brief statement?
Mr. HAYS. Yes.
Mr. HENDERSON. Mr. Farbstein, the Foreign Service is divided
into three categories: the Foreign Service officer category; the
Foreign Service Reserve officer category, which really represents a
group of officers who are temporarily on duty as Foreign Service
officers, and the Staff category. The lower classes of Staff personnel
are for the most part clerical; in the higher classes most Staff personnel
are specialists of certain kinds who don't have the qualifications
required of regular Foreign Service officers such specialists as elec-
tronic engineers, building superintendents, et cetera.
At the present time the Staff service has 22 classes. We haven't
used classes below 14 for a numbn of years to any extent because the
janitors, messengers, et cetera, the lowest ranking personnel that we
have abroad are usually resident aliens who are hired in still another
category known as locals. So we have proposed that instead of
? having 22 classes as there are at present in the Staff Corps, there shall
be 10 classes, and that the personnel who are in the Staff Corps be
? converted from their present classes to the appropriate grade in the
new schedule of 10 classes. The three upper classes of the new
system would be comparable to classes 3, 4, and 5 of the Foreign
Service officer group.
The chairman has asked me how many personnel we have at the
? present time in the Staff Corps who are in class 15 or below. The
answer is that we still have five in class 16.
Mr. HAYS. In other words, then to make it short, if we adopt this
amendment, we are abolishing a bunch of classes that you don't use
or use very little?
Mr. HENDERSON. Yes, we make practically no use of the lower
classes. We are trying also to take a more rational approach toward
the classification in the upper classes.
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AMENDMENTS TO THE FOREIGN SERVICE ACT 97
Mr. HAYS. What will be the cost of the conversion of this new
structure? Will that cost more than you presently are spending?
Mr. HENDERSON. We figure it will cost about $217,000.
STATEMENT OF WILLIAM E. WOODYEAR, DEPUTY CHIEF, PER-
SONNEL PROJECTS STAFF, DEPARTMENT OF STATE
Mr. WOODYEAR. To make the adjustment, the continuing cost
would not be any greater.
Mr. FARBSTEIN. YOU are to abolish the classes below 15?
Mr. HENDERSON. We are abolishing all the classes and replacing
them with 10 new classes. We are picking up the personnel who are
now in 12, 13, 14, and putting them in the new classes at similar
salaries.
Mr. FARBSTEIN. The question I direct myself to is, what will
happen to the various salary classifications? In other words, you
employ someone for a menial job at $1,800. .You employ another
menial and pay $2,455. What is going to happen to those salary
classifications with the allocation of that entire group of Foreign
Service?
Mr. HENDERSON. We are not using those classifications.
Mr. FARBSTEIN. I understand that. My question is not directed
.to the classification but to the salaries that will be paid to individuals
who are being hired which will come within the first 10 classifications
that you suggest. What happens to the salaries that will run from
$1,600 to $5,115 on this first column on page 6?
Mr. HAYS. They are also readjusted. We are not using those first
10 classes. The lowest salary under the new classification will be
$3,500 under class 10.
Mr. FARBSTEIN. You are goinc,b to do away altogether with any
salary below $3,500, is that correct?
Mr. HENDERSON. Yes, sir, for American employees.
Mr. FARBSTEIN. You will pay no employee below $3,500?
Mr. HENDERSON. There will be one exception. We are asking for
authority to hire in certain circumstances, Americans who are resi-
dents abroad. We might need to hire, say, the wife of a businessman
in an embassy. She would not be subject to transfer like regular
Staff personnel. We would like to be able to employ her at a lower
salary than $3,500.
As far as the regular classified Foreign Service Staff personnel are
concerned, we would start them at the bottom with $3,500.
Mr. HAYS. Your menial employees will be locals and will not be
Staff officers?
Mr. HENDERSON. Yes, sir, they are paid according to local salary
scales.
Mr. HAYS. We are operating, Judge Saund and Mrs. Kelly?we are
asking a series of questions prepared by the staff. If any of you have
any questions at any point, feel free to ask derivative questions or
related questions or anything at all about the particular section.
The next question is how are Staff officers chosen?
Mr. HENDERSON. I think maybe Mr. Brown could answer that; he
is the Deputy Assistant Secretary of State in charge of Personnel.
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98 AMENDMENTS TO THE FOREIGN SERVICE ACT
STATEMENT OF AARON BROWN, DEPUTY ASSISTANT SECRETARY
OF STATE FOR PERSONNEL
Mr. BROWN. We recruit Staff officers and Staff clerks directly for
the Staff Corps. They are not subjected like Foreign Service officers
to formal examinations. We recruit them, at the clerical level, just
as we recruit clerks in the Department, based on their demonstrated
qualifications. Then they may be appointed to one of the classes,
depending on their experience, education, and previous employment
level.
Certain Staff officers whom we may recruit directly from outside,
such as security technicians, are appointed directly to the proper class.
We sometimes go out and look for Staff technicians in industry or
universities. If we need a man who is a security technician, we look
for the man with the qualifications we need and appoint him to the
Staff Corps.
Mr. FARDSTEIN. Does civil service enter into this at all?
Mr. BROWN. No, sir. We have the authority in the Foreign Service
Act to appoint directly to the Foreign Service. Civil service status
is not required.
Mrs. BOLTON. From what groups do you draw, not the specialists,
but the regulars?
Mr. BROWN. The regulars, Mrs. Bolton, are usually stenographers,
typists, file clerks, et cetera.
Mrs. BOLTON. You send your people out across the country?
Mr. BROWN. As recruiters. We have local television programs
and publicity in the newspapers.
Mrs. BOLTON. One of my girls has just gone over. I wondered if
that was the regulation for all these classes?
Mr. BROWN. Yes.
Mr. FARDSTEIN. Have we had any resistance from the Civil Service
Commission at all?
Mr. BROWN. No, sir; we have not. In fact, our requirements for
entry are sometimes similar to those of the civil service.
Mrs. KELLY. On page 24 of this report, are those the class classifi-
cations that you are speaking of under section 415?
Mr. HENDERSON. Yes.
Mr. HAYS. Those are the ones that they are talking about.
Mrs. KELLY. At the present time. It is on page 24. This is the
classification.
Mr. HAYS. Those are the classes they propose to abolish and sub-
stitute the one below which is 10 classes; yes.
Mrs. KELLY. Do you recruit these people for class 10 as class 10
and then for class 2 as class 2?
Mr. BROWN. We would.
Mrs. KELLY. Depending on the needs?
Mr. BROWN. Yes.
Mrs. KELLY. That being the case, who finally determines, if you
have a group of applicants for class 1, who is the one most qualified?
You alone?
Mr. BROWN. The office of personnel.
_ Mrs. KELLY. It is entirely up to you if you select from a group of
applicants the one to be appointed?
Mr. BROWN. That is correct.
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May I add that normally a person in the Staff Corps would reach
class 1 by promotion. That would be the normal thing. It would
be unusual to recruit somebody into the higher classes.
Mrs. KELLY. Then you recruit them for class 10 and go up the
ladder or you leave them for class 2 and 3 according to qualifications
and background?
Mr. BROWN. Yes.
Mrs. KELLY. Are there any from other agencies of Government
that you bring in here?
Mr. BROWN. Yes.
Mrs. KELLY. Have you done this in the past?
Mr. BROWN. Yes. Not in the new class 10, but in the present
class 14.
Mrs. KELLY. This same system was applied in 1 to 22 that you are
proposing to abolish?
Mr. BROWN. Yes.
Mr. HENDERSON. We are not changing any method at all. We
are merely changing the classification.
Mrs. KELLY. Would you give us an example?
Mr. BROWN. We will be, as we always are looking for well-qualified
stenographers for the Foreign Service. "VS;-e will send a recruiting
team out as we have done in the past and are still doing, with a cer-
tain amount of publicity to arouse some interest. Generally they
are youn.g ladies, but not always, who come in and apply for the job.
We explain to them at that time what Foreign Service duty involves
for them and the qualification we are looking for. We also give a
typing and stenography test. I have here a statement concerning
the opportunity for such personnel which I shall be glad to submit
for the record.
(The statement referred to is as follows:)
THE U.S. DEPARTMENT OF STATE FOREIGN SERVICE STAFF
The U.S. Department of State is accepting applications from qualified candi-
dates for the following clerical positions in the Foreign Service of the United
States:
Secretary (female only)
FSS-12
$4,180
($160.76 each 2 weeks)
Clerk-stenographer (female only)
FSS-13
$3,730
($143.46 each 2 weeks)
Communications clerk (male preferred) _ _
FSS-13
$3,730
($143.46 each 2 weeks)
Pouch clerk (male only)
FSS-13
$3,730
($143.46 each 2 weeks)
General clerk (male only)
FSS-13
$3,730
($143.46 each 2 weeks)
1. Basic requirements
1. Age.?Applications for clerical positions in the Foreign Service are being
accepted from qualified candidates who are at least 21 years of age and who, prior
to reaching 62 years of age, can potentially complete a minimum of 15 years of
Federal service, of which there must be a potential minimum of 7 working years
in the Foreign Service Staff Corps.
2. Marital status.?Must be single, without dependents.
3. Citizenship.?American citizen for a minimum of 5 years.
4. Availability.?Must be available for assignment to any of the 285 American
Embassies, Legations, or Consulates, and for assignment in Washington, D.C.,
for a period of 6 to 9 months prior to departure overseas.
5. Duration of employment.?Permanent?must remain at post abroad for a
minimum of 2 years before becoming eligible for transportation back to the
United States at Government expense.
6. Physical condition.?Must pass a physical examination comparable to U.S.
military standards.
7. Education.?Must be high school graduates or have passed the general
educational development examination.
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8. Tests.?Applicants for all positions must qualify on aptitude, spelling, and
typing tests, and shorthand (steno-typing and speedwriting are acceptable) tests
in the case of secretary and clerk-stenographer.
9. Background investigation.?All applicants are subject to a background in-
vestigation which may require from 2 to 6 months to complete.
././. Specific qualifications
1. Secretary.?Must be able to take dictation at a minimum speed of 96 words
per minute and type at a minimum speed of 50 words per minute by the touch
system. A minimum of 6 years of general office experience, or the equivalent,
2 years of which must have been in continuous full-time secretarial work involving
shorthand dictation. The 2 years of secretarial experience must have been within
the 3 years immediately preceding application for employment.
2. Clerk-stenographer.?Must be able to take dictation at a minimum speed of
80 words per minute and type a minimum speed of 50 words per minute by the
touch system. A minimum of 3 years' work experience, or equivalent, including
1 year of specialized continuous full-time office experience is required.
3. Communications clerk.?Must type 45 words per minute by the touch system
with a high degree of accuracy. A minimum of 3 years' work experience, or
equivalent, including 1 year of specialized training and experience in typing and
standard office procedures is required. Satisfactory work experience in the use of
standard devices for encoding or decoding messages is given additional weight.
4. Pouch clerk.?Must be able to type at the rate of 35 words per minute by
the touch system with a high degree of accuracy. A minimum of 3 years of
general work experience, or the equivalent, including 1 year of specialized work
experience such as mail distribution, typing, filing, records, or general office
procedure is required.
5. General clerk.?Must type a minimum of 40 words per minute by the touch
system with a high degree of accuracy. A minimum of 3 years of general work
experience, or the equivalent, including 1 year of specialized work experience which
included typing, filing, recordkeeping, accounts, statistics, or general office
procedures is required. (Appointments made in this category will result in
assignments as mail clerk, file clerk, records clerk, clerk-typist, or a combination
of any of these.)
(Norn.?Selection is made on a highly competitive basis and the recency and
pertinence of an applicant's office experience will be among the determining factors
for employment in the Foreign Service Staff. In all cases of rejection of an
application, the Department's decision is final and no statement of specific reasons
is made to the applicant.)
SUBSTITUTION OF EDUCATION FOR EXPERIENCE
Generally, 1 year of training at a business school or 1 year of college work which
included pertinent business subjects may be substituted at the rate of 1 school
year for 9 months of experience; college work which does not include business
training may be substituted at the rate of 2 years of college for 9 months of work
experience. However, a minimum of 1 year of actual office experience is required
in all instances, and education beyond the high school level may not be substituted
for more than 18 months of general work experience.
///. General information
The base salary, as indicated, commences on the day the new appointee is
authorized to begin travel from his home to Washington. Travel costs when
reporting for duty are paid by the Department.
Accommodations at reasonable rates are readily available, and assistance is
given to new employees in securing suitable living quarters.
Employees are paid every 2 weeks by U.S. Government check. Deductions
for Federal income tax and retirement are made from each paycheck. Deductions
for U.S. savings bonds will be made upon request. Since the first paycheck is
not received until approximately 1 month after entrance on duty in Washington,
new employees should arrive with ample funds to cover this period.
Government employees at the time of entrance on duty are automatically
insured under the Federal employees' group life insurance plan. This insurance
coverage is not mandatory, however, and upon receipt of a waiver form, the
employee will not be insured. This program is designed to give protection in
multiples of $1,000. Each employee's coverage amounts to $1,000 for each
$1,000 of his annual salary, or fraction thereof (e.g., an employee whose salary
is $3,730 per annum will have $4,000 coverage in insurance). This is term
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AMENDMENTS TO THE FOREIGN SERVICE ACT 101
insurance. The cost is borne in part by the Government, and a deduction of
25 cents for each $1,000 of insurance is made from each paycheck. An appointee
may obtain additional information about the program at the time of his entrance
on duty.
Usually newly appointed Foreign Service Staff employees are assigned to
positions in the Department's home office in Washington, D.C., for a period of
6 to 9 months. Prior to departing for their overseas posts, new employees
receive approximately 3 weeks of specialized instructions concerning adminis-
trative practices, customs of foreign countries, personal conduct and other
matters relating to their overseas assignment.
Thirteen to twenty-six days of paid annual leave are earned each year, based
upon the length of Government and/or military service. However, annual
leave may not be used during the first 90 days after appointment. Sick leave is
earned at the rate of 13 days a year by all employees, regardless of the number
of years of service. Upon completion of the 2 years of continuous service over-
seas, Foreign Service employees are eligible for 6 weeks of home leave with
travel to the United States at Government expense. This home leave is granted
only to employees who proceed to another post of assignment.
In addition to the annual salary, a number of allowances may be granted after
an employee arrives at his post of assignment. If Government housing is not
available, a tax-free allowance is provided to cover the cost of rent, heat, light,
fuel, and water. Secondly, a tax-free allowance is granted at posts where living
costs are in excess of those in Washington, D.C. Thirdly, a salary differential
of from 10 to 25 percent of the base salary is paid to employees who are assigned
to certain posts where extraordinarily difficult living conditions prevail. This
differential, as well as the annual salary, is subject to the U.S. income tax.
(Nomn.---Under Selective Service regulations, men subject to the Universal
Military Training and Service Act, as amended, are not permitted to leave the
United States without written permission from their local draft boards. All
appointments for service abroad of persons subject to these regulations are,
therefore, necessarily dependent upon the appointees' being able to secure the
required permission. It is suggested that young men check with their local
boards concerning these regulations before applying.)
Mrs. KELLY. Is a language needed?
Mr. BROWN. No.
Mrs. KELLY. It is your sole responsibility?
Mr. BROWN. Yes.
Mrs. KELLY. Mr. Henderson does not review this?
Mr. BROWN. No. I don't review them personally.
Mr. HENDERSON. We have panels to examine these people. Then
if there is a problem in connection with any particular person it may
come up to Mr. Brown or, in certain instances, it can come to me and
theoretically even to the Secretary.
don't think I have a Staff recruitment problem once a year.
Mrs. KELLY. One other question. With what degree of security
are they covered?
Mr. BROWN. There is a complete security check by our office.
Mrs. KELLY. CIA?
Mr. BROWN. No, We are authorized to establish our own security
system and we do this. We have a tough security check.
Mr. HENDERSON. Perhaps Mr. Woodyear could add a few words
in this regard.
Mr. WOODYEAR. I think there is one factor missing, Mrs. Kelly,
that Mr. Brown uses in making this determination?there is a classi-
fication process that must be gone through. He doesn't arbitrarily
determine that the person will be a class 3 or class 10. Each employee
is selected on the basis of his or her qualifications to meet a job which
has been evaluated and classified at a specific level. S,o there are no
haphazard determinations regarding classes of entry.
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102 AMENDMENTS TO THE FOREIGN SERVICE ACT
Mr. HAYS. What about politics? Does that enter into it at all,
any political references?
Mr. BROWN. No, sir.
Mr. HAYS. Not even up around the top grades?
Mr. BROWN. No, sir.
Mrs. KELLY. There isn't as far as we are concerned. When we
were in Europe this fall I found many Staff personnel from my dis-
trict and I didn't even know they were over there.
Mr. HENDERsoN. I can assure you, Mr. Chairman, that we are
following a completely nonpartisan approach in this matter?not only
a nonpartisan approach but one of nonfavoritism, We feel we have
been entrusted by the approach,
with this responsibility and our honor
is involved. We try, therefore, to live up to the trust placed in us.
Mr. HAYS. What are the provisions for the promotion of these
people?
Mr. BROWN. Promotion in the Staff Corps? We have Staff Corps
panels which meet once a year, somewhat similar to the Foreign
Service officer promotion panels. Lists are drawn up by my office of
Staff Corps people at various classes, based on their eligibility under
the rules for promotion. By this I mean time in grade. There is a
minimum period of time.
Then we have files on them covering not only technical competence
such as stenography or competence as a code clerk, but personal and
other factors which enter into an evaluation of their effectiveness as
Staff employees. These files are reviewed by a panel of people senior
to them who recommend them on their competence in their class and
in the Staff Corps, within their functional specialty. All stenog-
raphers in a grade compete with each other on a worldwide basis for
promotion in their class.
Mrs. BOLTON. Do they have health examinations?
Mr. BROWN. Before they are appointed.
Mrs. BOLTON. Does it include psychiatry?
Mr. BROWN. No. Unless something has turned up which in the
course of the routine examination warrants it. The examination may
include psychiatry if in the opinion of the examining physician such
an examination would be desirable.
Mrs. BOLTON. I would say from some of my experiences that would
be important.
Mr. HAYS. These people, like Foreign Service officers, are selected
up or selected out? Do you have provision for that?
Mr. BROWN. They are not selected out.
Mr. HAYS. They are not selected out?
Mr. BROWN. No, sir. They may remain in the same class in-
definitely.
Mr. HAYS. How do you get rid of one if he or she is a lemon?
Mr. BROWN. By preferring charges on the basis of conduct.
Mr. HAYS. What does that involve?
Mr. BROWN. It involves a hearing, preparation of charges by all
the people concerned and a hearing before the Boara of Foreign
Service.
Mr. HAYS. Do you ever fire anyone for inefficiency?
Mr. BROWN. This is difficult to do, in the Staff Corps, because we
have to prefer charges.
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AMENDMENTS TO THE FOREIGN SERVICE ACT 103
Mr. HAYS. You told me you had to prefer charges. I realize when
you say you prefer charges that makes it difficult. The question is,
Do you ever do it?
Mr. BROWN. I can't remember that we have fired somebody from.
the Staff Corps for inefficiency.
Mr. HAYS. In other words, once you hire them, you have them,
period, as long as they want to stay with you, whether they are any
good or not?
Mr. HENDERSON. May I say this bill contains a provision that
would put Staff recruits on probation for a certain period of years,
during which period we could let them go without preference of
charges. After the probationary period is expired, however, separation
will be more difficult.
Mr. HAYS. What period of years is that?
Mr. HENDERSONT. That is for the Secretary to determine. It is OUT
proposal at present to have a 2-year period of probation.
Mr. HAYS. When you have gone out and recruited a stenographer,
I don't know whether your recruiters follow the usual practice of
overgilding the lily-1 mean this happens in a lot of recruiting,
especially the Army where somebody promises them the moon, not
only they can't deliver, but had no intention of delivering, what do
you tell them? Do you tell them they will be on probation for 2
years, or what do you tell them about the security of tenure?
Mr. HENDERSON. We have not told them this far that they are
going to be on probation for 2 years. We have not had the right.
If this bill becomes law we would tell them that they are on probation
for 2 years, just as in the Foreign Service Officer Corps a man entering
class 8 is on probation as long as he is in that class. Our FS08's can
be dropped during the period of probation if they turn out to be a
disappointment.
We are rather particular about the employment of our Staff people.
We do give them very careful scrutiny, before taking them on?not a
formal examination, but a complete investigation of character and
qualifications.
We have to look into their past record in life with extreme caution.
I think most of our Staff people turn out to be all right. We do,
unfortunately, now and then find Staff employees whom we would
like to get rid of. This isn't easy to do. We haven't had eases
brought up formerly against Staff employees during the last 5 years,
so far as I can recall, for inefficiency that resulted in their leaving
the service. We have persuaded quite .a number of them, however,
of their own volition to leave the service, by pointing out to them that
they were not suited for it, that it was not their forte and that they
would be better to go into some other work.
Mr. BROWN. On the question, if I may add, Mr. Henderson, of
overglamorizing the Service, there is a danger of this, of course.
Fortunately, however, we have found that the competitive position
of the Staff Corps say, as competing with private industry or with
other Government agencies, is relatively good in that the members
of the corps have opportunities to travel and live abroad. This fact
has an appeal that renders glamorizing unnecessary.
Mr. FARBSTEIN. What has been your experience in connection
with the gradual advancement of a lower grade employee up to the
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104 AMENDMENTS TO THE FOREIGN SERVICE ACT
highest? Have you found that there are many who in the course
of time advance sufficiently in their knowledge to be promoted or do
you find that in your experience these people generally remain either
Staff or grow into officers?
Mr. HENDERSON, May I answer that?
Some 6 years ago the Secretary appointed a committee to look into
the problems of the Foreign Service and to make certain suggestions
for improvements. One of the suggestions made by this committee,
which was headed by Dr. Wriston, president of Brown University,
was that the officer positions in the Staff Corps, that is, the upper
positions in the Staff Corps, should be converted into Foreign Service
officer positions unless they were of a highly technical nature and that
the Staff officers who held these positions should be given an oppor-
tunity, if they had appropriate qualifications, to become Foreign
Service officers and to come into the Foreign Service Officer Corps
along with the positions which they were occupying.
That recommendation was accepted and has been put into practice,
so that the upper Staff classes, that is, say, from 1 down to 5, at the
present time have very few people in them. Most of the people who
remain in those classes were officers who for some reason or other were
not available for entry into the Officer Corps or they were highly
skilled technicians who would not fit into the Foreign Service Officer
Corps.
The only persons who now go up into classes 1, 2, 3, and we may add
4, are those with special qualifications other than qualifications of a
stenographic or clerical character. In other words, there is a ceiling
on the advancement within the Staff Corps of our clerical and our
stenographic personnel. When they reach this ceiling they can't
go any higher because the positions which they hold are not the kind of
positions that would merit a higher salary.
They must remain under this ceiling, without a chance of going into
a higher class, unless they are able, after examination, to enter the
Foreign Service Officer Corps which would carry them still higher.
Some don't want to go into the Foreign Service Officer Corps, some
are not qualified. So they stay at this level. In some instances,
Staff personnel engaged in, say, clerical work, are able to qualify as
technicians in other lines of Staff work and to go up the technician
ladder.
We feel that these Staff personnel who have reached their ceilings
are in a rather frustrating situation. In order to be of help to them,
we have incorporated in this bill provisions which would give them a
promotion without going into a higher class?that is, an "in-class"
promotion on the grounds of longevity and merit, so that over the
years they can gradually get a higher and higher salary while remain-
ing in the same class. They would not be able, however, to reach the
peak of the upper salaries unless they should qualify as technicians.
Mr. FA RBSTEIN. Should they desire to take examinations for the
Foreign Service officer and they are sufficiently knowledgeable to be
able to pass them, they are given all the consideration in the world?
Mr.-HENDERSON. Yes, sir. We give special credit points for good
performance. A Foreign Service Staff employee who has a good record
takes the examination like anybody else for the Foreign Service
Officer Corps. But he is given a special bonus for his work in the
Staff service. I think we had some illustrations of this in the last
examination, Mr. Brown?
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?
'ger'
Mr. BROWN. Yes, 122 members of the Staff Corps took the written
Foreign Service officer examination which was given early in Decem-
ber 25 passed. This is a higher average, actually, than that attained
by the candidates from outside. Of those 25, only 8 would have
passed, however, if they had not received the bonus points which we
offer to our Staff Corps. If it is desired, I shall be glad to place in the,
record this Foreign Service Circular, No. 277, describing the bonus.
system.
FOREIGN SERVICE CIRCULAR No. 277
AUGUST 31, 1959.
Subject: Foreign Service Staff examination for FSO-8 appointment.
1. Purpose
This circular prescribes the policies and procedures for implementing section
9 of Foreign Service Circular No. 239, dated March 28, 1958, relating to the
FSO-8 examination point credit and appointment quota program for Foreign
Service Staff personnel of the Department of State.
2. Background
The quota and point credit features of the Foreign Service Staff program are
designed to (a) recognize pertinent Foreign Service experience, training, superior
performance, and proven capabilities of Staff personnel, (b) to broaden the career
horizons for the most able and ambitious employees, and (c) to enhance the
competitive spirit of the Staff.
3. Effective date of program
3.1 The program shall become operative concurrently with the first FSO-8
written examination after the date of this circular.
3.2 Announcement of the next FSO-8 examinations has been transmitted to
field posts by Forei ,_;n Service Circular No. 269, dated June 3, 1959. Future
examinations will be similarly announced.
4. Written examination
4.1 All Foreign Service Staff candidates for appointment as Foreign Service
officers of class 8 shall take the open, competitive written examination.
4.2 Upon completion of the written examination, each Foreign Service Staff
candidate shall apply in writing to the board of examiners for the performance
merit bonus described in section 5 of this circular.
4.3 As of the closing date for the filing of application for the written exami-
nation, candidates must (a) be at least age 21 and under age 35, (6) have com-
pleted 3 years of satisfactory service as a-Foreign Service Staff employee, and (c)
have been a citizen of the United States for 9 years.
4.4 Any candidate who receives a weighted average grade of 70 or above on
the written examination after certain bonus points are added shall be eligible to
take the oral examination.
5. Bonus points on written examination
5.1 Foreign Service Staff candidates for the FSO-8 written examination who
are found qualified by the merit bonus review panel shall receive bonuses, not
to exceed an aggregate of 15 points, for the purpose of determining eligibility to
take the oral examination.
5.2 Such bonus points shall be based upon language proficiency, sustained
superior performance, and proven advancement potential.
5.3 Such bonus points shall be added to the weighted average grade of Foreign
Service Staff candidates.
6. Language proficiency bonus
As in the case of outside recruits for the FSO--S examination, any Foreign
Service Staff candidate who scores 70 or higher on the optional language portion
of the examination shall receive 5 bonus points.
7. Merit bonuses
Foreign Service Staff candidates for the FSO-8 examination who are certified
by the Department for a merit bonus under prescribed procedures shall receive
10 bonus points for "outstanding" or 5 bonus points for superior" performance
and advancement potential as determined by the merit bonus review panel.
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8. Eligibility criteria for merit bonus
Consideration for a merit bonus shall be given to Foreign Service Staff candi-
dates for the FSO-8 examination who:
(a) Have completed at least 3 years of oversea service as a Staff employee,
and
(b) Have received 3 or more regular and interim efficiency reports, cover-
ing the 3-year period immediately prior to the date of the examination.
9. Merit bonus review panel
A merit bonus review panel, comprised of three senior officers, shall be desig-
nated by the Deputy Assistant Secretary for Personnel after each FSO-8 written
examination to (a) evaluate the performance records and rate all technically quali-
fied Foreign Service Staff candidates according to the length and overall level of
their performance and their advancement potential, and (b) assign the bonus
points which shall be accorded to each candiate.
M. Approval and certification of merit bonus eligibility
Approval of eligibility of Foreign Service Staff candidates for merit bonus
points, based upon recommendations of the merit bonus review panel, and certifi-
cation of such eligibles to the board of examiners shalt be made by the Deputy
Assistant Secretary for Personnel.
11. Ora/ examination
11.1 The oral examination of eligible candidates will be conducted in the
Department by an examining panel designated by the board of examiners.
11.2 The oral examination will take fully into account the candidate's (a)
specialized skills and the nature of his Foreign Service experience in the assess-
ment of advancement potential, (b) his demonstrated interest and ability in for-
eign languages, (c) his ability to observe and analyze a typical Foreign Service
situation, and (d) his personality effectiveness.
12. Register of successful Foreign Service Staff candidates
12.1 A Foreign Service Staff subrank order register shall be established for
successful Foreign Service Staff candidates.
12.2 Successful Foreign Service Staff candidates shall be carried in rank-order
on both the regular register and the Foreign Service Staff subregister of eligibles.
13. FSO-8 Appointment quota for successful Foreign Service Staff candidates
13.1 A quota of 5 percent of the planned intake of new FSO-8 officers shall be
established and reserved each fiscal year for the appointment of successful Foreign
Service Staff candidates.
13.2 The planned fiscal year appointment quota and any subsequent revisions
shall be announced either by Foreign Service circular or in the news letter, or both.
14. Appointment of successful Foreign Service Staff candidates
14.1 Successful Foreign Service Staff candidates shall be appointed as class 8
Foreign Service officers from either the Foreign Service Staff subrank order list
or the regular rank-order list of eligibles on which they are reached first.
14.2 Appointments of successful Foreign Service Staff candidates under the
reserved FSO-8 appointment quota shall be made concurrently with outside can-
didates and shall comprise approximately 5 percent of each periodic intake of new
FSO-8 officers.
14.3 Successful Foreign Service Staff candidates in excess of the reserved
annual quota may remain for 30 months from the date of taking the written ex-
amination on both the regular and the Foreign Service Staff subregister of eligibles.
14.4 Any portion of the reserved quota set aside for Foreign Service Staff
candidates in any given fiscal year which remains unfilled shall be filled from the
regular register.
Mr. HAYs. How do you distinguish between a Staff officer and an
employee?
Mr. HENDERSON. The words are almost interchangeable at the
present time. There was a period when we considered a Staff officer
was a Staff employee whose salary had reached the level of a Foreign
Service officer of class 8, the lowest rank of Foreign Service officer.
At the present time we are gradually doing away with the words
"Staff officer," we prefer to refer to all Staff employees as Staff
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personnel. Nevertheless, a man who is, say, a building engineer of
high qualifications still is usually referred to as a Staff officer. There
?rrol is no finely drawn line.
May I say something off the record?
(Discussion off the record.)
Mr. HAYS. In subsection (b), page 2, why would the Secretary want
to recruit Americans abroad? I think you touched on that, but it might
be well to amplify that point.
Mr. HENDERSON. There are times when it is useful to employ an
American citizen abroad. Let's say that a businessman is living
permanently in Istanbul. He has a wife who is a good stenographer-
typist. We would like to make use of her services. We wouldn't
have to pay her house rent, or her transportation from the United
States. She would be there permanently. It would be of some
advantage to use her there. Of course, she would not be subject to
transfer to any other post. Therefore, we would not feel that she
should be treated like a regular Staff employee and her salary would
probably be less than a regular Staff employee.
Her salary would be influenced by the salaries which prevail in
Istanbul, although being an American and beinub able to do confidential
work, she would probably get a somewhat higher salary than a local
employee. We are asking for leeway in establishing the salary of
people of that kind.
Mrs. KELLY. Are you limiting it to those people in industry or do
you consider those whose husbands are in the communications medium,
such as the newspapers, television, radio?
Mr. BROWN. In any walk of life. It could be a missionary's wife,
an American child of a citizen of the country who has reached adult-
hood would be very useful as a receptionist, for example, because of his
or her knowledge of both languages, both English and the language of
the country.
Mrs. KELLY. You do not exclude anyone then whose husband is
active in the communications mediums?
Mr. HENDERSON. We don't exclude anyone for that reason, but
we take into consideration the security aspects. I think we would
consider the wife of a newspaper correspondent just as reliable as the
wife of anyone else, but, of course, we have to use care in employing
any American who would have access to classified material.
Mr. BROWN. It might depend on the newspaper.
Mr. HAYS. What about the wives of your own personnel? Would
you use them?
Mr. BROWN. No, sir, we do not, except in emergency situations.
Mr. HENDERSON. In certain posts we have done SO, and we may
continue to do so. This would be particularly true in posts where we
have severe housing problems. For instance, in Moscow, at times
we have made use of wives of American personnel because we were able
to get only very limited housing facilities there.
In general, we frown upon employing the wives or the daughters
of our own personnel on a local basis.
Mr. SAUND. In the Small Business Administration Act no one can
obtain a loan for the purpose of engaging in newspaper or television.
Mr. HENDERSON. I beg your pardon?
Mr. SAUND. You cannot obtain a Small Business Administration
loan for a newspaper, or a radio or television station, I found that
out the other night.
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Mr. HENDERSON. I don't know about that provision.
Mr. SAUND. That idea came to me when you were asked the ques-
tion about the newspapers.
Mr. IIAYs. Section 3, pages 2 and 3: What does the phrase "uni-
formly at a rate above the minimum rate of the applicable class"
mean?
Mr. WOODYEAR. We need that provision for the reason that there
are certain groups of employees who may be in short supply. One
example may be the one that Mr. Brown has used of the electronics
engineers brought in to do special security work. In order to compete
in the open market to employ those people, we may need to employ
them at a level above the base rate of the class. We don't 1:vant to
reclassify the jobs to a higher level. So the Secretary determines
that a particular occupation is to be classified at a certain rate, that
personnel are to be recruited at that level, and that the salaries of all
other people doing that sort of work are to be adjusted to the same
rate.
Mr. HAYS. Will that permit promotion to a higher class without
regard to the usual promotion process? Will that cause your promo-
tion process to break down?
Mr. WOODYEAR. This is an in-class adjustment. It prevents
overclassification and disruption of the normal promotion process.
Mr. HAYS. You set up a certain range of salaries within a class and
then you come along and ask for permission to disregard that. Why
set it up in the first place?
Mr. HENDERSON. Mr. Chairman, I don't think that we are asking
permission to disregard the range of the steps within each class. Let
us take class 8 for example. In class 8 there will be 7 in-step salaries.
Suppose we want to hire a nurse. There is a war situation and nurses
are very difficult to get. We can't employ a nurse except at a salary
which is one of the higher salaries in class 8. We have to pay that
salary or get no nurse. If we pay her that salary in the upper grade
of class 8 and ignore the fact that we have with us some 10 or 15 other
nurses who are receiving salaries below that, we are in trouble.
Therefore, we would like the Secretary to have the authority to say
the nurses should be recruited at a salary in the upper in-grade step
of class 8 and that the salaries of the other nurses should be raised
correspondingly.
Mr. WOODYEAR. This might clarify it, Mr. Chairman: Section 3
amending section 416(a) would give the Secretary authority which
he does not now have to appoint people at a level above the base
rate of a class. That may now be done in FSO or in the FSR appoint-
ments. The result is that persons who have served in civil service jobs
and have reached higher salary levels must be brought in and adjusted
simultaneously, or later by administrative procedure, to a higher
salary level than the base rate of a class.
To obtain skills gained by prior Government or industry experience,
we must be able to offer salaries equal to those being earned outside.
Section (b) takes care of the situation which Mr. Henderson has
been explaining. When, because of skills shortages, a whole group
of employees is worth more in the competitive market, we need the
authority to employ at the midrate of a class.
Mr. FARBSTEIN. Will you define "midrate"?
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Mr. WOODYEAR. There are seven separate step rates proposed in
each of these classes. If we consider the recruitment level of staff 10,
for example, $3,500 is the base rate of the class.
The third step rate is $3,700. The top step rate is $4,100. On the
basis of the authority given here, the Secretary might determine that
any given group of people at that time was worth more than the
base rate of a class and need to adjust their salaries to a step rate
within the class.
Mr. FARBSTEIN. Then class 10 at some time can very well get a
salary higher than someone in a class which is of a much higher grade
than the class for which he has been recruited; is that correct?
Mr. WOODYEAR. No, sir.
Mr. FARBSTEIN. Class 10 can go $4,100. That is the top salary,
but you can recruit SOIlleolle from class 10 and give them up to 84,100.
Mr. WOODYEAR. You could do that.
Mr. FARBSTEIN. Someone in class 9 would be recruited at $4,050,
which would be below the sum received by a class 10 person; isn't
that correct?
Mr. WOODYEAR. Yes; but it is not envisioned that we would appoint
people from the top rate of the class. If you reach that level, you
would be reclassified.
Mr. FARBSTEIN. That is why I inquired as to what you meant by
midsalary. The question to follow was whether or not somebody
couldn't be employed as a class 10 employee and get more money
than somebody employed in a higher class or a class 9.
Mr. WOODYEAR. Normally not with a specific occupational group
on a limited or temporary basis.
Mr. FARBSTEIN. That is what I wanted to know.
Mr. WOODYEAR. In view of the circumstances at the present time.
Mr. FARBSTEIN. Those are the words that I am concerned about.
Mr. HAYS. It occurs to me at tins point to tell us why you have an
entirely different?and I might say to the people who deal with it on a
sporadic basis?a different classification. Why not use the civil
service classification and if you transfer you don't have to reclassify
them? Why does your class run opposite from the civil service and the
higher you go the lower the number, whereas the higher they go the
higher the number? It is completely opposite.
Why do you do that?
Mr. HENDERSON. Ever since the Foreign Service was founded, a
class 1 officer was the highest ranking officer. That is the way it
has been. We have followed the same policy in the Staff Corps.
We could switch it around and make a class 8 officer the highest.
Nevertheless, we are following an old tradition in this matter. For
over a hundred years in the various diplomatic services a first secre-
tary has outranked a second, and a second a third.
In dealing with foreigners, a Foreign Service officer of class 1
sounds like a higher rank than a Foreign Service officer of class 8. I
suppose that was the reason. I am not fully cognizant of the reason.
Mr. HAYS. I don't know what it does to Foreign Service, but it
seems to me it causes just a little more confusion here at home.
Mr. HENDERSON. This has been in vogue since about 1917, 7 years
before the Rogers Act of 1924. When I entered the Service in 1922,
I was a class III vice consul, three grades below a consul of class 8.
Mr. HAYS. How many locals do we now employ?
50864-60---8
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classified according to these criteria: If we have a Foreign Service
officer position vacant in the Department, and we can't find a Foreign
Service officer qualified to fill this position for a period of 3 months,
we can take a civil service officer and put him in this position.
Mrs. BOLTON. He must also be qualified.
Mr. HENDERSON. Who is qualified. If there is a civil service officer
qualified to fill the position and no qualified Foreign Service officer
available to fill it, and if we can't find one in 3 months, we may put
the civil service officer in the position.
This brings up something which I would like to explain briefly to
the committee?the difference in philosophy and approach between
the Foreign Service and the civil service. A Foreign Service officer
must, when he enters the Service, realize that he is subject to being
transferred to any spot in the world at any time to do anything he is
requested to do by the Secretary of State. His rank is attached to
him personally and so is his salary. His rank and his salary do not
depend upon the position he holds. They depend upon the class to
which he is appointed or holds in the Foreign Service. Therefore,
he is completely mobile.
There-is no agreement necessary between the Secretary and him as
to where he is going to go. He just goes where directed. It is like
the military service in that regard, like the uniformed services.
In the civil service, a man's salary depends on the position which
he holds. The salary goes with the position, not with the officer.
The officer cannot be transferred from that position unless he agrees
to it or unless there is some sort of a formal arrangement made be-
tween him and the Government. Accordingly, in the Department of
State we hesitate to put a civil service officer in a Foreign Service
officer position unless we have to because when he is once there, he
can stay there for the rest of his career and we cannot do much about
it. Whereas, if he is a Foreign Service officer, he can be moved when-
ever the Secretary desires to move him. In the Department of State
we need a lot of mobility just as we need it in the Foreign Service
abroad, because the international situation changes to such an extent
that the pressures on certain positions may also change. At certain
times, therefore we may want an officer for a certain position who has
different qualifications from those of the officer who is holding it.
, Mr. FARBSTEIN. It is not altogether clear in my mind. You say
that the salary attaches to the officer rather than to the job?
Mr. HENDERSON. Yes, sir.
Mr. FARBSTEIN. Supposing a man is a vice consul and gets a certain
salary, and after being a vice consul it is determined that this man is
really a brilliant man. He is able to effectuate contacts that are highly
desirable; he is able to do things that in the normal course of events
an ambassador does, and you think well enough of him to make him
an ambassador or a step below the ambassador and he is highly
trained and highly successful on that job. He still gets the same
salary as he did when he was a vice consul?
Mr. HENDERSON. Yes. When I was a Foreign Service officer class
5, I was made charg?'affaires in Moscow and remained as such for
nearly 2 years and my salary was
Mr. HAYS. What is the normal rank for a charg?'affaires?
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AMENDMENTS TO THE FOREIGN SERVICE ACT 113
Mr. HENDERSON. At the present time it is usually a class 1 officer
or career minister. We have other cases where this has happened.
I understood the situation and was happy to have the experience in
the job, even though I didn't get the salary, because I was obtaining a
background which would be useful to me in future years.
The Foreign Service is a career service. That means a slow flow
toward the top over the years. A young man going into the career
service must be prepared to adjust himself to the relatively slow mo-
tion of a career service.
If he is brilliant and exceptional, he will probably be given jobs
where he can use his talents, but nevertheless that doesn't mean he
is going to jump immediately to the top of the Service. He has to
work his way up the line. Otherwise the Service would gradually
cease to be one of career.
I would say that experience has shown that it is not too bad that
a brilliant officer may not shoot at once to the top because brilliance
needs depth. A man who is brilliant and quick at 25 should be still
more valuable when he attains the depth and the steadiness that goes
with depth. He acquires depth by plodding along and doing the
work assigned to him until he reaches a rank where he can be en-
trusted with the highest positions in the Service.
Mr. HAYS. Doesn't that put a premium on plodders?
Mr. HENDERSON. I don't think it does, Mr. Chairman.
The kind of work which we are doing can vary even at the same
class level. There can be a job that a plodder can do and a job that
a highly brilliant man would find to be a challenge?both jobs at the
same level. Sometimes plodders turn out to be extremely valuable
officers. We have officers who did not seem so brilliant when they
were young; who moved along steadily, however; who worked hard
and thoroughly; who gradually overcame their deficiencies; and who
in the end are among the most valuable officers we have.
Mr. HAYS. I don't argue that premise at all. I think you are
answering ray question by arguing from another point of view, if you
will permit me to say so.
I just asked you in another way if this didn't put a premium on
mediocrity? I am an old debater, Mr. Secretary.
Mr. HENDERSON. I didn't mean to get into ?
Mr. HAYS. I want you to. Maybe we will get an answer. I just
asked you, doesn't this put a premium on mediocrity? In my view,
it does. There is a lot to be said for plodders as you say. I think
sometimes there is something to be said for mediocrity. I just asked
you if this system didn't put a premium on it.
Mr. HENDERSON. I don't think so.
Mr. HAYS. I have always said in the Army you don't have to have
brains but only to live long enough and know the right people, and
eventually you'll be a general. I will stand on that argument.
Mr. HENDERSON. ID the Foreign Service we have OUT promotion
panels which pass on a man's performance. If a man's performance
is relatively poor, he will not be promoted. If he stays 10 years in
grade without being promoted, he is automatically selected out from
the Service.
Furthermore, under our selection-out system, we have arrangements
whereby if a man is in the lowest 3 percent of his class, he is subjected
to a very careful scrutiny for the purpose of ascertaining whether or
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114 AMENDMENTS TO THE FOREIGN SERVICE ACT
not his name should be sent to the selection-out board for determina-
tion.
To come back to your point, I must admit that the brilliant man
in the Foreign Service doesn't jump to the top of the service as rapidly
as a brilliant man in the civil service. His brilliance is tempered as
he goes along.
Mr. HAYS. Or in private industry.
Mr. HENDERSON. Or in private industry.
Mr. BROWN. There is a premium on excellence, however, in the
Foreign Service. The better officers move ahead more rapidly.
Mr. HAYS. At another time, and I want to discuss this with you
today, there are two or three people down there that are handling
pretty important jobs today that this committee would like to know
how they ever got as far as they did. The fact of the matter is --
off the record.
(Discussion off the record.)
Mrs. KELLY. If this civil service person is brought into the Foreign
Service and you say he is not subject to regulations of Foreign Service
in that case, can you not make an agreement with him that he is
to go in under the same conditions as Foreign Service?
Mr. HENDERSON. Yes, if he is willing to become a Foreign Service
officer.
Mrs. KELLY. Do you waive that?
Mr. HENDERSON. During the period the civil service employee holds
his Foreign Service position, he must be treated as a civil servant with
all the perquisites of the civil service.
Mrs. KELLY. Once he is in there, he can't be removed, you say?
Mr. HENDERSON. That is right.
Mrs. KELLY. Before you take him in, why don't you take him in so
that he can be removed or give up his civil service--
Mr. HENDERSON. Many of them don't want to go into the Foreign
Service. We have a couple of hundred civil service officers who at the
present time are holding Foreign Service positions. Many of them
were offered opportunities to go into the Foreign Service at the time of
integration. For various reasons, however, they didn't want to go into
the Foreign Service at that time, and do not wish to do so today.
We can't say to the civil servant, "You must change the basis of
your service from civil to Foreign Service." He entered the civil ser-
vice and he has all the rights of a civil service officer. We could of
course refuse to place a civil service officer in a Foreign Service officer
position. But sometimes we are in need of him.
Mrs. KELLY. Could you tell me how many you integrated into the
Foreign Service who have civil service status and maintain it now?
Mr. HENDERSON. The moment a person enters the Foreign Service
he loses his civil service status.
Mrs. KELLY. I have to go back. I thought you said you take in
civil service into Foreign Service and you can't remove them.
Mr. HENDERSON. Into Foreign Service positions in the Department.
Mr. HAYS. The difference between employing a civil servant in
a Foreign Service position and having him become a Foreign Service
officer I think is the question.
Mr. SAUND. You said a while ago that you were chargO d'affaires in
Moscow when you were third or fourth grade Foreign Service official.,
Did the Secretary have any authority to compensate you in some way
with extra money?
Aft
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Mr. HENDERSON. Yes. I received half of the Ambassador's salary
during that period. At the present time the Secretary has specific
authority to compensate a man who is charg?'affaires. I used my
case only as an illustration. A man might be deputy chief of mission
in an important post and still be in an unusually low class. In that
case he would not receive the salary that a deputy chief of mission
usually receives.
Mr. HAYS. That brings up another interesting question. At the
moment we have an ambassador home from Cuba. Presumably, at
least I hope he will stay home a long time, until conditions change
down there. What does he do here? Does he have any job at all?
Mr. HENDERSON. He is working in the Department, giving advice
to the Secretary and to the Bureau of American Republic Affairs
regarding Cuba. He is kept quite busy working on Cuban problems
here.
Mr. HAYS. Who is running the Embassy down there?
Mr. HENDERSON. The deputy chief of mission is running the
Embassy.
Mr. HAYS. What does his rank become?
Mr. HENDERSON. He is a Foreign Service officer class 1.
? Mr. HAYS. Does he have a title now?
Mr. HENDERSON. Charge d'affaires.
Mr. SAUND. There was an opportunity of giving a premium to
brilliance and you received that?the Secretary gave Mr. Henderson
the job of charg?'affaires and the Secretary had authority to com-
pensate him for that?
Mr. HENDERSON. Yes. I would like to correct that. It didn't
happen because I was brilliant. It was the result of a set of cir-
cumstances.
Mr. HAYS. Would it be desirable to extend the classification of
Department positions to include those that the Foreign Service
Staff may occupy, thus permitting a rotation between oversea and
home assignments?
MT. HENDERSON. Mr. Brown, do you have any ideas on that?
Mr. BROWN. It is possible today. We do have some measure of
rotation of Staff Corps people up to a number of approximately 100.
It is normally understood by the Staff Corps people that the greater
part, if not all of their service, will be overseas. However, in many
cases after a number of years it proves desirable for various reasons
to give the Staff Corps employee a tour of duty in Washington.
We do have an arrangement by which we can place them in positions
here.
Mrs. BOLTON. I think it would be just as important because they
can get just as warped in their ideas as anybody else if they stay
over there forever.
Mr. BROWN. Except for the fact, Mrs. Bolton, a warping of the
viewpoint for Staff Corps is not so serious.
Mrs. BOLTON. That is right, but in their contacts.
Mr. BROWN. Most of their contacts are limited to the Staff.
Mr. HAYS. How many positions in the Department are now
designated "Foreign Service officer" positions?
Mr. HENDERSON. 1,540.
Mr. FARBSTEIN. Up to what class?
Mr. HENDERSON. Between classes 8 and 1.
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Mr. HAYS. For instance?we will take a hypothetical case?
suppose you have a Latin American country in which you are having
problems and there is some fellow who had made a long career of
business in Latin America and knows this country intimately and
knows a lot of the leaders and so forth and so on; is there a chance
of recruiting him and putting him down there as consul?
Mr. HENDERSON. If there IS a special need for a man of his qualifi-
.cations and background, and those needs can't be satisfied in the
Service, we can make him a Foreign Service Reserve officer and send
him to the post for a limited period.
Mr. HAYS. You say there are 1,500 and how many?
Mr. HENDERSON. 1,540.
Mr. HAYS. How many of these positions are filled by Foreign
Service officers?
Mr. HENDERSON. 945.
Mr. HAYS. The rest are filled by what?
Mr. HENDERSON. The rest are filled by Reserve officers, Foreign
Service Reserve officers, by civil service officers, by Foreign Service
Staff officers, or are vacant at the moment.
Mr. HAYS. What is the future of civil service personnel who
occupy Foreign Service positions?
Mr. HENDERSON. There is no doubt that the career of civil service
officers in the Department who are stationed or have been stationed,
in fields that are related closely with the conduct of our foreign rela-
tions, are now somewhat limited. Since most of the positions which
have to do with the conduct of foreign affairs are now Foreign Service
officer positions, a civil servant officer may have difficulties in being
promoted to a higher position. He 111E97 have a choice of staying
frozen in his job, or of going into the Foreign Service. Entry into the
Foreign Service would give him promotional opportunities but it
would also mean that he may be assigned abroad at any time.
Mr. FARBSTEIN. And possibly a demotion as far as salary goes?
Mr. HENDERSON. There is no demotion
Mr. FARBSTEIN. No possibility of reduction of salary when he goes
into the Foreign Service officer
Mr. HENDERSON. If he goes into the Foreign Service, he will go in
usually at the salary that he is receiving as a civil service officer.
If, however, he happens to be exceptionally young for his position?
let us say that at the age of 30 he has a GS-15 Job, he would probably
be compelled to take a decrease in salary if he entered the Foreign
Service. A person entering the Foreign Service laterally must be no
younger than the average age of the lowest 20 percent of the Foreign
Service class which he enters.
If we are to maintain morale in the Foreign Service, we can't bring
in from the outside people who are younger than the average youngest
20 percent of each class in which they enter.
A brilliant man in the Foreign Service cannot jump to the top
immediately. It would not therefore, be fair to put younger men from
the outside above them.
Mr. FARBSTEIN. You have the same situation as was suggested by
the chairman in comparing it to the Army. In other words, if you
get there you have to live long enough. You won't permit a man,
because of age, to attain a status that his ability permits.
Alk
01411
0141k
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AMENDMENTS TO THE FOREIGN SERVICE ACT 117
' Mr. HENDERSON. That is right. A man's age will have an effect
on his rank and his salary.
Mr. FARBSTEIN. Do you think that is Wise
Mr. HENDERSON. Yes, if we are going to have a career service, a
career based on the dedication of one's whole life to the Government,
the members of that Service must have patience in the matter of
promotions. Otherwise the Service might get clogged at the top with,
young men and there would be no promotions for those below.
Mr. FARBSTEIN. Have you found that has discouraged anyon&
from entering the Foreign Service?
Mr. HENDERSON. I think it has. I think some young men who,
are more interested in holding high positions at an early age than in
serving the United States through thick and thin prefer not to enter
the Foreign Service.
Mr. FARBSTEIN. Do you think that should be continued Or do you
think consideration should be given to some change?
Mr. HENDERSON. You are asking my personal opinion
Mr. FARBSTEIN. You are the head of the Department. Whom
else could I ask?
Mr. HENDERSON. I don't want to take the position that my per-
sonal opinions are necessarily governing. My own opinion is that a
career Foreign Service is essential for the good of this country. If
we are going to have a career Foreign Service, we must have a Service
in which the members who are doing meritorious work can foresee a
flow toward the top. If we take in people from outside, into the top
classes of the Service who are years younger than the officers below
them, the officers below cannot look forward to promotions. Men
younger than they would be clogging the top positions.
As long as we have a Foreign Service which has a mandatory retire?
ment age, we, must take age into consideration in the matter of lateral
entry or of promotion.
Mr. HAYS. Mr. Secretary, don't you think that the whole system,
however?I am not saying there is anything you can do about it?
don't you think that whole system tends to breed caution? That you
play the game according to the rules? You don't stick your neck out.
You don't get any new ideas.
You stay in line and eventually you get to the top. Isn't that about
the philosophy that it breeds?
Mr. HENDERSON. I don't think SO. It is necessary, of course, for RS
to combat that philosophy all the time. We are conscious of the
danger of such a philosophy. We try to reward people for imagina-
tion and for courage by giving them promotions.
If a young man can get Class 1 by the time he is 40, he can become an
ambassador at that age. At present we have ambassadors in the early
40's. We had one appointed a short time ago at about 40. It seems
to me that that is a reasonable speed of advancement for a brilliant
person. Mr. Rountree was about 40, when lie was named Ambassador
to Pakistan.
Mr. BROWN. He is in his low forties.
Mr. HAYS. I feel personally the whole attitude of the Department
is one of undue caution as to the world scene. I wonder if the system
is responsible for that. No matter what happens around the world,.
we seem to take the position that , we have to placate these people.
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118 AMENDMENTS TO THE FOREIGN SERVICE ACT
We can't take a position. It might make them angry. I think that
is a good philosophy at times. I think there are other times when the
situation might call for something entirely different. I haven't seen
much of that. I have heard by the grapevine that?not altogether
of the system, things that went on before, persecutions of State
Department people that there is a whole atmosphere down there that
you don't say anything at all that will attract attention to you.
You ride along with the system.
What about that?
Mr. HENDERSON. I don't think that is accurate, Mr, Chairman. I
do think that the conduct of foreign affairs is such a delicate matter
that people who are working in that field are likely to be very cautious
in what they do. That which might in another field seem to be an
insignificant gesture, or an unimportant phrase, could, in the field of
foreign affairs, be magnified into something of the utmost international
significance.
I think you can recall that sometimes one of the ranking officers of
the Department at a press conference will drop a certain phrase which
seemed quite casual and that this phrase has been picked up and con-
strued in such a way as to suggest a contemplated change in our
foreign policy. This has happened again and again. Therefore,
there is a tendency on the part of those who are working in the foreign
field to be extremely careful with regard to what they say. They,
therefore, phrase their sentences in such a way that they sometimes
seem to be unduly cautious. I think also in our actions we seem to
the world sometimes to be unduly cautious.
On the other hand, the repercussions can be so great from a word
dropped hastily or from an intemperate remark that I suppose some-
times we can be excused if we seem to lean over backward.
Mr. HAYS. I have been told by some of your people in various
countries that once the policy is set by the Department toward a
given country that the word comes down that if you want to get
ahead in this business you don't deviate, no matter what your opinion
is, or when you put in a report, it should fit in the philosophy or else.
What about that? Your own people say this is true.
Mr. HENDERSON. There might be Some truth in it. An officer
writing from a certain post may say some things in a dispatch which
would indicate a violent disagreement with a policy which has been
established by the Department; some officer in the Department who
feels strongly on the subject might take umbrage and make things
difficult for the officer in the field. But that is contrary to what we
want. We are opposed to that sort of thing. If an officer in the
Department acts in this manner, we consider him to be petty and
unworthy of his position. We want officers to give the unvarnished
story as they see it of what the situation is where they are. There is
hardly a day goes by that I don't see dispatches or telegrams, phrased
in such a way as to be critical of certain of the policies of our Govern-
ment or of certain decisions or actions of the Department. Yet these
criticisms or disagreements are not held against these officers.
Mrs. KELLY. Mr. Chairman, are we going to continue the hearings
at this time? We have two resolutions reported from the Foreign
Affairs Committee and I desire to be on the floor.
Mr. HAYS. Without objection, the committee will stand adjourned.
(Whereupon, at 12:05 p.m., the subcommittee adjourned.)
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ANALYSIS OF PROPOSED AMENDMENTS TO THE FOREIGN SERVICE ACT BASED
UPON QUESTIONS SUBMITTED BY THE SUBCOMMITTEE ON STATE DEPARTMENT
ORGANIZATION AND FOREIGN OPERATIONS AND ANSWERS SUPPLIED BY THE
DEPARTMENT OF STATE
SECTION 2 (SEC. 415 OF THE FOREIGN SERVICE ACT)
1. How many individuals are presently serving in FSS-15 or below?
There are five FSS employees below class 15.
2. What will be the cost of conversion to the new class structure?
The conversion cost for FSS personnel of the Department of State is estimated
to be $217,025 under the conversion plan suggested by the Department. This
plan, which varies slightly from that in S. 2633 in order to avoid splitting classes,
will be discussed in connection with section 51 of the bill.
3. Row are Staff officers chosen?
The Foreign Service Staff is appointed by the Office of Personnel from among
applicants on the basis of their qualifications.
The Staff is comprised of stenographic, clerical, and technical personnel in the
lower and middle grades. The greatest need in the Staff is for secretaries, stenog-
raphers, communications clerks, and general clerical personnel. Occasionally a
need arises for diplomatic couriers, nurses, and telecommunications technicians.
Other technical positions are listed in an addendum when there are vacancies.
Technical personnel normally are appointed to positions at the level for which
their age, background, and experience qualify them.
Qualifications requirements.?Candidates for all nontechnical Staff positions
must meet the following basic requirements for foreign service, in addition to the
special requirements indicated under each title:
Age.?At least 21 years of age, and who, prior to reaching 62 years of age, can
potentially complete a minimum of 15 years of Federal service, of which there
must be a potential minimum of 7 working years in the Foreign Service.
Citizenship.?American citizenship for at least 5 years.
Marital status.?Single and without dependents.
There follows information concerning the qualifications requirements for FSS
appointment:
Availability.?All applicants for appointment to the Foreign Service Staff
must be willing to accept initial assignment and subsequent transfer to any
foreign post. Persons who limit their availability to specific locations will not
be considered.
"Educational requirements.?All applicants must be high school graduates, or
the equivalent.
"Physical examination.?Applicants must be in excellent physical condition
and must be able to pass a physical examination comparable to U.S. military
standards. This examination will not involve any expense to the applicant.
"Tests.?All clerical and diplomatic courier appointments are subject to the
satisfactory completion of the necessary performance tests, which include typing
and/or shorthand, verbal ability, and spelling.
"Substitution of education for experience.?Candidates for employment in the
Foreign Service Staff who do not possess the required work experience for the
position in which they may be interested may substitute education above the
high school level on the following basis:
'Generally 1 year of training at a business school or 1 year of college work
which included pertinent business subjects may be substituted at the rate of 1
school year for 9 months of experience. College work which did not include
business training may be substituted at the rate of 2 years of college for 9 months
of work experience. However, a minimum of 1 year of actual office experience is
required in all instances, and education beyond the high school level may not
be substituted for more than 18 months of general office work experience.
"Employment standards.?Every effort is made to assure that all applicants
receive complete and equitable consideration. However, the Department's
special responsibilities in the field of foreign policy necessitate high employment
standards. Appointments are therefore made on a highly selective basis after
full consideration has been given to the applicants' qualifications, including
training, the recency and pertinence of office experience, health, and general
background.
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"Positions.?Based on the needs of the Service, applications ars accepted from
candidates who meet the requirements for the following positions:
"Title
Secretary (female only)
Clerk-stenographer (female only).
Communications clerk
General clerk 2
Pouch clerk (male only)
Diplomatic courier (male only)
Nurse (female only)
Grade Salary
FSS-12 $4, 180
FSS-13 3, 730
FSS-13 3,730
F66-13 3,730
FSS-13 3, 730
FSS-11 4, 650
FSS-10
FSS-9
5, 115
5, 585
Requirements
Shorthand i_93 words per minute. Typing-
(touch system)-50 words per minute. 6 years'
office experience, or equivalent, including 2'
years of specialized continuous employment in
secretarial duties involving shorthand dicta-
tion. The 2 years of secretarial experience,
must have been within the 3 years immediately
preceding the date of application for employ-
ment.
Shorthand 1-80 words per minute. Typing
(touch system)-50 words per minute. 3 years'
work experience, or equivalent, including 1
year of specialized continuous office experience.
which included stenography, typing, filing,
recordkeeping, or general office procedures.
Typing (touch system)--45 words per minute.
3 years' work experience, or equivalent, includ-
ing 1 year of specialized training and experience
in typing and standard office procedures.
Satisfactory work experience in the use of
standard devices for encoding or decoding mes-
sages is given additional weight.
Typing (touch system)--40 words per minute.
3 years' general work experience, or equiva-
lent, including 1 year of office experience, such
as typing, filing, recordkeeping, statistics, ac-
counts, or general office procedures.
Typing (touch system)--35 words per minute.
3 years' general work experience, or the equiv-
alent, including 1 year of specialized experience
In mail distribution, typing, filing, records, or
general office procedures.
Typing-35 words per minute. Single veterans.
between 25 and 31 years of age. 4 years of
college, minimum of 6 months' travel or work
experience overseas in a military or civilian
capacity. Since vacancies occur infrequently,
applicants are urged to designate a clerical
position as an alternate choice. Clerical per-
sonnel who have completed one tour of duty
may request consideration for courier positions.
Between 25 and 40 years of age. Single. Must
be a registered nurse, licensed in one of the
States or the District of Columbia. A mini-
mum of a year's experience as a registered
nurse is required, 1 year of which must have.
been in public health or industrial nursing.
Preference is given to those candidates who
have a B.S. degree in nursing.
"1 Stenotyping and speedwriting are acceptable.
"2 Appointments made in this category will result In assignments as mail clerk, file clerk, records clerk,
clerk-typist, accounting clerk, general services clerk, or a combination of any of these duties.
"2 Nurses will assume charge of henith needs and facilities and provide health supervision, health coun-
seling, and nursing care for on-the-job illnesses or injuries to Government employees and their families."
4. What are the provisions for their promotion?
It is the basic policy of the Department to reward proven meritorious perform-
ance by advancement to the degree that promotional opportunities afford an
opportunity to do so. Further, it is the practice of the Department to endeavor
to choose those who most deserve advancement by a competitive system involving
the composite judgment of selected members of the Foreign Service who are con-
vened in boards annually to review and compare the records of each officer and
employee in the Foreign Service. Promotions are then made in the exact rank
order determined by these boards, to the number determined to be permissible for
the current year. This basic concept and system is carried out annually with
respect to Foreign Service Staff personnel in classes FSS-11 and above. Staff
employees in classes FSS-12 and lower are promoted on the basis of such factors a
their performance ratings, time in class, recommendations by the post of
assignment, and other eligibility requirements.
5. Are they, like the Foreign Service officers, selected up or selected out?
Foreign Service Staff personnel are not subject to selection-out.
6. How do you distinguish between a Staff officer and an employee?
These terms are interchangeable at the present time.
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Formerly, when a Staff employee's salary reached the level of FSO--8 (the FSO
,entrance class) he was considered to be a Staff officer, The Department is now
trying to use the term Staff personnel for all Foreign Service Staff, although when
particularly high qualifications are required an individual is usually referred to as a
,Staff officer.
7. In subsection (b), page 2, why would the Secretary want to recruit Americans
abroad?
Americans are recruited abroad to meet special requirements or emergency
situations. For example, it is desirable to have a receptionist who speaks the local
language. It might be possible, particularly in a country in which a difficult
language is spoken, to employ the wife of an American businessman residing
permanently in the country if she speaks the local language. Again, the shortage
of acceptable living quarters for American girls might be reason to employ as
a typist the daughter of an American serving a tour as foreign representative
of a U.S. company.
SECTION 3 (SEC. 416 OF THE FOREIGN SERVICE ACT)
1. What does "uniformly at a rate above the minimum rate of the applicable class"
mean?
This proposed provision would enable the Secretary to take into account the
needs of the Service in fixing appointment salaries. Thus, in an exceedingly tight
labor market, the Secretary could prescribe an above-the-minimum rate as the
minimum rate for a particular type of skill that was in short supply and which
required special training, such as security technicians and electronics engineers.
In the event the Secretary should make such a determination, however, serious
morale problems would arise unless adjustments were made also in the salaries
of the employees in the same class and occupational group whose salaries were
less than the rate prescribed for new appointees.
2. Will this permit promotion to a higher class without regard to the usual pro-
motion process?
No, this provision only concerns the salary steps within a particular FSS class.
SECTION 4 (SEC. 417 OF THE FOREIGN SERVICE ACT)
1. How many locals do we now employ?
As of December 31, 1959, the Department employed 9,755 foreign nationals.
SECTION 5 (SEC. 431 OF THE FOREIGN SERVICE ACT)
1. The present law is 80 days exclusive of time in transit. The proposed change
is 50 days including time in transit. What is the significance of this change?
The present provisions of section 431 place no legal limitation on the duration
of the time in pay status of a chief of mission after he relinquishes charge of his
mission. It merely limits time in pay status to 30 days plus travel time. Thus
one chief of mission might return to this country by slow boat, taking 60 days to
reach his place of residence, and still have 30 days' salary due him. Another
chief of mission whose appointment is being terminated might return from a
neighboring country by plane in 2 days, so that his total time in pay status would
be only 32 days. This inconsistency has made it very difficult to administer the
section equitably.
The Department would not expect the proposed 50-day period to have any
effect on the average time spent in pay status by chiefs of mission following
relinquishment of duties. The 50-day period would be interpreted by the Depart-
ment to be a maximum period and not a standard period.
SECTION 6. (SEC. 441 OF THE FOREIGN SERVICE ACT)
1, Does the proposed change in language of section 441(a) imply that the Secretary
of State is not able under existing law to classify all positions overseas?
No.
2. What is the purpose of the proposed change?
Effective personnel management requires that there be a uniform basis for
classifying positions regardless of the category of American personnel used in
staffing positions. The present language of section 441 draws a distinction in this
respect between the FSO?FSR categories on the one hand and the FSS category
on the other, which has not proved to be meaningful in practice.
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A second purpose of the proposed section is to authorize the Secretary to classify
positidris in' the Department without regard to the Classification Act of 1949, as
amended, in those instances where he determines the positions are of such a
character as to justify their designation as Foreign Service Officer positions.
Some 1,500 positions in the Department have been designated as Foreign Service
Officer positions under the Secretary's integration program. When a position is
filled by a person other than an officer or employee of the Foreign Service, it
would continue to be classified in accordance with the provisions of the Classifi-
cation Act of 1949, as amended. The position would not be classified under the
provisions of this section unless the position was filled by a Foreign Service
officer or employee.
3. What is the present practice regarding classification of positions?
All positions in the Foreign Service at overseas posts are classified under the
Foreign Service Act. Most positions in the Department, including those desig-
nated for staffing by FSO's, are subject to the Classification Act of 1949, as
amended, and must be classified under that act. In order to provide a sound
basis for personnel planning and the administration of the Foreign Service, it has
been necessary also to classify FSO designated positions in accordance with the
classification pattern prescribed in section 412 of the Foreign Service Act. This
duplicate classification procedure creates unnecessary work and serves no useful
purpose.
4. Re section 441 (b) on line 14: Has the Civil Service Commission permitted the
Secretary to declassify departmental positions?
The Civil Service Commission in 1954 agreed to the Department designating
departmental positions as Foreign Service Officer positions, by adding to qualifica-
tions standards a requirement of appropriate overseas experience for the staffing
of departmental positions which require employees with such experience.
5. Would it be desirable to extend the classification of department positions to
include those that Foreign Service Staff may occupy, thus permitting a rotation be-
tween overseas and home assignment?
The Department does have a rotation program for Staff personnel involving
about 100 positions. Staff rotation, however, is not as essential as is Foreign
Service officer rotation because of the nature of their work.
6. How many positions in the Department are now designated Foreign Service
Officer positions?
As of December 31, 1959, there were 1,540 FSO designated positions in the
Department, of which 1,489 were covered by the Classification Act of 1949, as
amended, the remaining 51 positions included FSO designated positions at the
U.S. Mission to the United Nations and the Foreign Service inspector positions.
7. How many of these are filled by Foreign Service officers?
There were, as of December 31, 1959, 945 Foreign Service officers filling FSO
designated positions in the Department. As of the same date 341 designated
positions were occupied by civil service personnel. In addition, there were 66
FSR's and 15 Staff officers assigned to FSO designated positions in the Depart-
ment.
8. What is the future for the civil service personnel who occupy Foreign Service
Officer positions?
One of the most difficult problems which the carrying out of the integration
program has created is that of the career future of civil service officers in the
Department. This problem relates to all civil sell ice officers but particularly to
those whose positions have been designated as Foreign Service Officer positions.
Both categories of civil service officers quite understandably believe that their
opportunities for advancement in the Department have been curtailed as a result
of the integration program. Prior to the carrying out of that program there were
a variety of positions in the Department to which they might have had an oppor-
tunity to be promoted. As a result of that program, however, most of these posi-
tions are no longer open to civil service personnel. It is true that the civil service
officers who were occupying positions designated as Foreign Service Officer posi-
tions in 1954 may continue to hold such positions but they have little oppor-
tunity for promotion except within areas which are not primarily concerned with
the conduct of foreign affairs. In view of the Department's need to continue the
use of many efficient civil service personnel who were unwilling or unable to become
FSO's under the integration program, some of these positions will continue to be
occupied by civil service employees for a number of years.
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AMENDMENTS TO THE FOREIGN SERVICE ACT 123
The alternatives which face civil service officers holding Foreign Service positions
are:
(a) To remain frozen in their present position;
(b) To be transferred to a civil service position in the Department;
(c) To be transferred elsewhere in the Government;
(d) To leave the Government service;
(e) To become Foreign Service Officers.
9. Would the conversion of civil service positions to Foreign Service positions pre-
vent a reduction in force in the Depw intent?
No. The removal from the coverage of the Classification Act of positions
designated for occupancy by FSO's would not preclude the possibility that some
of these or other positions might be found unnecessary and therefore abolished.
Any reduction in force would, however, have to be conducted within the frame-
work of reduction-in-force regulations hi effect at the time.
10.: What plans does, the Department have for reclassification?
It is planned that the Department initially would remove approximately 1,100
positions from the coverage of the Classification Act. Positions now occupied by
civil service officers who were unwilling or unable to become FSO's under the inte-
gration program would not be removed from the coverage of the Classification Act
initially. Some of these positions will be occupied by civil service employees for
a number of years. When a designated position is occupied by a civil service
officer, it would be classified under the Classification Act.
11. Will reclassification result in 'upgrading positions now held by civil service
personnel?
No.
12. In a memorandum of December 1959, entitled "Foreign Service Officer Bed-
tions in the Department of State," this statement appears (pp. 8-9):
"It is in what might be called 'functional specialization' that the needs of the
Departmen,t and Foreign Service are the most acute. There has been, for instance,
for many years a chronic shortage of officers highly skilled in international economic
and financial problems. This is partly due to the fact that an artificial bureaucratic
wall has long existed between the Foreign Service and the economic area of the De-
partment. There was, unfortunately, a tendency on the part of civil service officers
who had acquired .skills in the econontic area of the Departinent to look toward
eventual employment in private enterprise, in 'universities, or in foundations for
their future careers rather than toward the Foreign Service. The Foreign Service,
therefore, did not fully benefit from the experience acquired in the economic areas of
the Department.
"The integration of many of the positions in the economic area into the Foreign
Service and the departure of officers holding those positions to the foreign field have
created particularly difficult problems in that area. There were relatively few officers
in the Foreign Service Who have had an opportunity to obtain experience in the eco-
nomic area of the Department ana, therefore, it has been particularly difficult to find
qualified replacements for the integrated officers."
On pages 53-54 there is a statistical analysis of the economic area. This shows that
there are 173 officer positions in that area of which 143 have been designated Foreign
Service officer positions and 30 as civil Service positions. But 46 of the 143 aesig-
noted positions continue to be manned by civil service personnel. In short, 76 are
occupied by civil service personnel and 97 by Foreign Service personnel.'
On pages 55-56 this statement appears:
"The positions in the E (economic) area have been reviewed several times during
the last 5 years in the light of changing conditions with the purpose of ascertaining
whether or not it would be in the public interest to change the designation of any of
the positions. As a result of these reviews some 12 positions have been changed
from Foreign Service officer to civil service * * *. The problem of continuity is
also an urgent one in this area. It is believed that this problem can be solved by the
retention of Foreign Service officers for longer periods, by bringing in from the field
Foreign Service officers who have had previous experience in the area; and by the
retention of a certain number of civil service officers who prefer to remain in the
Department even though their careers are likely to be restricted, rather than to enter
the Foreign Service."
What are the grades of those in the economic area who are civil service?
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124 AMENDMENTS TO THE FOREIGN SERVICE ACT
Grade, salary, and position titles of civil service employees assigned to the E area
[Total number of civil service employees as of Dec. 31, 1959, 73]
Grade
Salary
Position title
Grade
Salary
Position title
OS-16
$14, 670
Deputy Director.
GS-14
$11, 355
Supervisor, administrative
VS-16
14, 430
Do.
officer.
08-15
14,450
International economist.
GS-14
11,355
Supervisor, foreign affairs
08-15
14,450
Fiscal financial economist
officer.
(division chief).
GS-14
11,335
International economist.
OS-15
14,450
Supervisor, foreign affairs
GS-14 __ _ ___
11, 355
Do.
officer.
GS-13
11,570
Do.
0S-15
13, 970
International economist,
------11,330GS-13
Supervisor, foreign affairs
GS-15
13, 970
Do.
officer.
OS-15
13, 970
Supervisor, foreign affairs
GS-13
11,330
Fiscal financial economist.
officer.
GS-13
11, 090
International economist.
GS-15
13, 970
Do.
GS-13
11,090
Foreign affairs officer.
GS-15
13,970
Do.
GS-13
11,090
International economist.
GS-15
13, 970
International economist (di-
GS-13------10,610
Do.
vision chief).
GS-13
10,370
Do.
GS-I5
13, 970
International economist.
GS-2
10, 130
Foreign affairs officer.
G8-15
13, 370
Do.
GS-13
10, 130
Do.
GS-15
13, 370
Fiscal financial economist
GS-13
10, 130
International economist.
(division chief).
GS-13
10,130
Do.
GS-15
13,370
International economist (di-
GS-13
9,890
Do.
vision chief).
GS-12
10,010
Do.
GS-15
13,070
Supervisor, foreign affairs
GS-12
9, 770
Budget officer.
officer.
GS-12
9, 770
International economist,
GS-15
13, 070
Foreign affairs officer.
GS-12
9,530
Foreign affairs officer,
08-15
12, 770
International economist.
GS-12
9,050
International economist.
G$-15
12,770
Do.
GS-12
9,050
Do.
GS-15
' 7,262
Supervisor, foreign affairs
GS-I2
8, 810
Foreign affairs officer.
officer.
GS-12
8, 810
International economist.
GS-14
12, 555
Fiscal financial economist.
08-12
8, 570
Do.
GS-14.
13, 035
International economist,
GS-11
8,470
Do.
GS-14
13,035
Foreign affairs officer.
GS-11
7,510
Supervisor administrative
OS-14
12, 795
International economist.
assistant.
GS-14
12,795
Do.
GS-11
7, MO
International economist.
GS-14
12,555
Do.
GS-11
7,270
Foreign affairs officer.
GS-14
12, 555
Fiscal financial economist.
GS-9
6, 885
Administrative assistant.
OS-14
12, 555
International economist.
GS-9
6,435
Do.
OS-14
11,595
Do.
GS-9
6, 135
Foreign affairs officer.
GS-14
11, 595
Foreign affairs officer.
GS-9
5,985
International economist.
MDAC
STAFF
GS-2
14, 450
Foreign affairs officer.
GS-13
10,370
Supervisor, committee offi.-
GS-15
14,210
Do.
COT.
GS-14
12,315
Information officer.
GS-12
9, 290
International economist,
GS-14
12, 315
Foreign affairs officer.
GS-9
6, 885
Economic assistant.
08-14
11,835
Do.
GS-9
6, 435
Administrative officer.
I Annuitant.
13. Isn't this one case where pushing integration does not produce the Foreign
Service officers qualified to hold the position and, at the same time, impairs the morale
of those able to hold those positions-----the net effect of which is a loss to the Government?
Would a not be better to utilize the services of the present civil service personnel by
offering them the possibility of advancement and, as they retire or resign, reclassify
the positions to Foreign Service?
Many of the civil service personnel in the E area chose to become Foreign
Service officers, went to the field and were replaced in the Department by Foreign
Service officer personnel from the field. Practically all the civil service personnel
who now occupy Foreign Service officer positions were already in the E area
when the integration program was launched for various reasons they did not
desire to become Foreign Service officers. They are, therefore, to an extent,
frozen in their present position. The Department has no desire to push them
out because most of them are doing good work and are valuable. However,
through attrition they will eventually leave their present positions and will be
replaced by Foreign Service officer personnel. If all of them should leave their
positions simultaneously, the Department would be hard pressed to find in a
short space of time qualified Foreign Service officer personnel to take their places.
It is, however, carrying out energetic programs to provide Foreign Service per-
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?sonnel with special training in economics. Some 25 Foreign Service officers each
year are sent to universities to study economics. In addition, several hundred
of them with economic backgrounds are developing their skill through work in
economic areas both in the field and in the Department. In all FSO-8 recruit-
ment activities, moreover, the need for more officers with economic backgrounds
and interests is stressed.
If the Department should abandon the integration program in the E area and
permit the civil service officers to go up the promotion ladder, there would be a
return to a situation in which practically all top positions in the E area would be
occupied by civil service officers without field experience and there would again
be no opportunity for Foreign Service officers to gain the experience derived from
holding positions in that area.
SECTION 7 (SEC. 444 OF THE FOREIGN SERVICE ACT)
1. What is the present practice of other Government agencies regarding the employ-
ment of aliens?
It is the present practice of other Government agencies to employ aliens under
the specific authority contained in their own legislation. The Department ad-
ministers the local personnel program for its own local employees and coordinates
activities with other U.S. departments and agencies which operate in close relation-
ship to diplomatic and consular posts.
The Department has assumed responsibility for interagency coordinative action
in administering local (alien) personnel programs in foreign areas. Close coordi-
nation and clearance processes are carried out by the Department with the U.S.
Information Agency, the International Cooperation Administration, the Defense
Department, and other Government agencies employing local (alien) personnel
abroad. In order, however, that all Federal departments and agencies employing
local personnel abroad may administer their local personnel programs equitably
and on a uniform basis, it is necessary that they be authorized to utilize the
provisions of this act which are applicable to local personnel.
2. Would this cover locals employed by the Department of Defense?
Yes. Paragraph (b) of this section would enable the Department of Defense
to use this authority.
3. What is the meaning of "to the extent consistent with the public interest"?
Prevailing wages and pay practices will be followed to the extent practicable
in terms of the best interests of the U.S. Government. For example, administra-
tive costs of a local pay practice might be much greater than the value of the
benefit provided and therefore would not be followed.
SECTION 8 (SEC. 446 OF THE FOREIGN SERVICE ACT)
1. What is the entrance class for couriers?
Under the present FSS class structure, the entrance class for couriers is F55-11.
2. Does the Department have difficulty filling courier positions?
No. There are normally far more qualified applicants than there are positions
to be filled.
3. What is the turnover in courier positions?
The Department faces the problem of inducing qualified couriers to remain
longer in the Service. The average courier now serves approximately 4 years in
that capacity.
4. Why not upgrade couriers?
After comparing the duties, responsibilities, and working conditions of courier
positions with all other FSS positions, it is believed that the present classification
is proper. In this connection it is noticed that the entrance class for courier
positions has been raised twice since 1947. Any further upward reclassification
for this type of work would undoubtedly have an adverse effect on other FSS
personnel at similar levels. Further, arbitrarily increasing ?the level of courier
positions would unduly decrease the spread between such positions and courier
supervisory positions.
It is not believed that increasing the classification of couriers would have a
lasting effect in terms of improved morale. The significance of a higher classi-
fication would diminish in a short number of years and would soon be considered
to be the regular job level because the extra compensation received could not be
specifically identified as a bonus paid in recognition of the hazardous nature of
couiier work.
50861-80---9
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SECTION 9 (SEC. 500 OF THE FOREIGN SERVICE ACT)
1. What is the Department's position on this section added by the Senate?
The Department concurs in the policy of sending to foreign countries as its
chief representatives persons of the type described in this section. Such persons
are not always available among either Foreign Service officers of appropriate rank
and experience nor among candidates for direct appointment, but as area special-
ization comes of age adherence in an increasing proportion of cases to the proposed
policy will be feasible.
SECTION 10 (SEC. 516 OF THE FOREIGN SERVICE ACT)
1. What percentage of new appointees does the Department think will qualify
under new section 516(b)?
It is expected that 15 to 20 percent might qualify.
2. how does the Department plan to use the authority of 516(b)?
If this provision is enacted, the Department will develop regulations to assure
tight control of the authority. It is planned that such regulations would provide
that candidates?
A. Be at least 28 and, perhaps, not over 35 years old. (The Department
has under consideration the possibility of raising the present age ceiling
from 31 to 35.)
B. Clearly be a mature person with personality, judgment, and discretion.
C. Have a successful record of substantial graduate training in a field or
fields related to the work of the Foreign Service, or
Have a demonstrable record of increasingly responsible work over a
period of several years in a Government agency?which work experience
will be of value to the Foreign Service, or
Have had several years of significant experience in private industry,
which experience clearly will contribute to a successful Foreign Service career.
D. Have a competence in a modern foreign language.
3. What is the average age of officers appointed to class 8?
The average age at time of appointment is 26.
4. Will the use of this provision effect the morale of present FSO-8's and FSO-7's?
The effect of this provision, if enacted, on the morale of junior officers will
depend on the administration of the provision. Since the Department intends
to use the authority only when class 7 appointment is clearly warranted, no
morale problem is foreseen.
There may be few complaints from junior officers in both class 7 and class 8.
We believe, however, that such individual morale problems could be handled
without detriment to the overall morale of the Service.
Under existing legislation, it has been necessary for some older, mature and
experienced men to take a substantial salary reduction to accept appointment at
the same level as young men just out of college. While these men have accepted
appointment willingly, it is only natural that they have been concerned about
the situation. In this respect the proposed provision would improve morale.
SECTION 11 (SEC. 617 OF THE FOREIGN SERVICE ACT)
1. Restrictions on lateral entrants were placed in previous law to insure the career
principle. Would the removal of the quota cause a morale problem?
The removal of the quota at this time would cause no morale problem in the
Department's judgment. The integration program has been completed and the
Department has taken several steps to assure that lateral entry will support the
career principle of the Foreign Service. The major step has been the develop-
ment of an orderly continuing lateral entry program geared to meet the require-
ments of the Service. This program:
(1) Establishes a firm policy to govern lateral entry.
(2) Provides for lateral entry to meet certified needs.
(3) Maintains the high standards of the career Foreign Service system.
(4) Assures that the program will be carried out under uniform conditions.
(5) Has been made known to all Foreign Service personnel.
2. Why does the Department favor the retention of the requirement that lateral
entrants must have rendered 3 or 4 years of previous Government service?
The Department believes that it would be a mistake to appoint laterally at
above class 8 persons who have not had 3 or 4 years of prior Government experi-
ence. Even though special examinations were required, the danger would always
exist that persons not fully qualified would be introduced from private life into
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WNW
the Service from time to time as a result of pressures which it would be difficult
for the Department to resist. Over many years the Foreign Service has main-
tained its career and nonpartisan features and its freedom from favoritism because
it has been difficult for inroads to be made into it by persons with powerful and
influential backing who have spent their youthful years in making a career in
private life.
There can be no doubt that the Service would be enriched by the introduction
into its various levels of a limited number of persons who in private life have
acouired experience and qualifications of which the Service is in need. Never-
theless, the Department is convinced that the avenue of Foreign Service Reserve
officer appointment represents the hest method for such persons to enter the
Foreign Service. By this method, a person enters the Service on a temporary
basis for 3 or 4 years, during which period the Department has an opportunity
to examine his qualifications and general fitness for the Service. ITe also has an
opportunity to determine for himself whether he and his family like and are
fitted for the Service.
There is a distinct difference between service in Government and service in
private life. A man can 1-e a most successful Government servant, yet he a person
who would not make a success in a private business or profession. Similarly, a
person who has been outstanding in the business or professional world may prove
to be completely unfitted for the Foreign Service where teamwork, the spirit of
cooperation, dedication and self-effacement are essential. A person who already
has served for 3 or 4 years in the Federal Government in most cases already has
been tested in work akin to the Foreign Service, particularly if he has been working
in a field connected with foreign affairs.
3. How many lateral appointments have been made since August 1954, excluding
those under the 175 authority?
As of December 31, 1950, :1,636 such appointments had been made as follows:
Class 1
18
Class 6
569
Class 2
150
Class 7
102
Class 3
314
Class 8 (formerly class 6)
0
Class 4
188
---
Class 5
295
Total
1,
636
4. //ow many appointments have been made under the 175 subguota?
As of December 31, 1959, 38 appointments had been made under the 175
subquota:
Class 1
2
Class 6
4
Class 2
7
Class 7
1
Class 3
11
Class 8 (formerly class 6)
0
Class 4
10
Class 5
3
Total
38
5. Would not the removal of the numerical limitation increase the entrance of ICA
and USIA personnel into the Foreign Service?
Removal of numerical limitations would not have any effect on lateral entry
of officers employed by ICA and USIA, since the controlling factor would be the
needs of the Foreign Service for additional officers above class 8,
SECTION 12 (SEC. 520 OF TIIE FOREIGN SERVICE ACT)
1. - Would this provision apply to officers who resigned as well as retired?
Yes, the purpose of this section is to remove the present requirement that
?Foreign Service officers who leave the Service and later seek reinstatement must
have served continuously in the Government betw3en the time of leaving the
Foreign Service and the time of reappointment to the Service.
Sometimes an officer is obliged to resign from the Service through no fault of
his own; family health problems, for example. If the situation changes and he
again becomes able to serve it is believed that the President should have authority
to use his discretion in considering his reapp)intment. The requirement for
previous Government service relating to the lateral appointment of officers to
classes FSO-1 through 7 should wit be applicable to such persons who have already
been Foreign Son: ice officers and have fulfill2d all the requirements for such
appointment.
2. Would the recalled officer-, if previously retired, receive his salary and his annuity?
No. A recalled officer would receive only his salary. His annuity would be
discontinued and would be redetermined upon his subsequent separation..
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3. How many officers would this affect?
The number of officers affected would be very small. It is anticipated that
recall would normally be in connection with specific tasks of short duration.
SECTION 13 (SEC. 528 OF THE FOREIGN SERVICE ACT)
This is a technical change to reflect the current reference to the Classification
Act.
SECTION 14 (SEC. 531 OF THE FOREIGN SERVICE ACT)
1. What is the difference between a temporary and a limited appointment?
A limited appointment is one made for a specified time, in excess of 1 year, to
be terminated at the end of the specified period, expiration of the special program
for which employed, or when the need for the employee's services no longer
exists, whichever is earlier.
A temporary appointment is specifically limited in duration to 1 year or less.
2. How does the proposed language change existing practices of the Department?
The proposed language will simplify and facilitate administrative procedures by
clarifying, not changing, existing authority.
It defines more specifically and clarifies the Secretary's appointing authority.
It also eliminates reference to section 441 (classification of positions) and section
443 (establishments of salary differentials) which are not considered pertinent,
and to section 442 (increasing of minimum salary rates) which is superseded by
the proposed amendment to section 416 (entrance salary).
The Department's proposed revision to section 14 of S. 2633 (revising section
531 of the act) is designed (a) to simplify and facilitate the administrative proce-
dures involved in exercising the authority the Secretary has under the existing
language, and (b) to make a clear distinction between the Secretary's authority to
separate the services of employees for cause under the proposed new section 637
and for failure to meet probationary requirements or at the expiration of an
appointment of limited or indefinite tenure.
The proposed amendment makes clear that in appointing Foreign Service staff
personnel, the Secretary may provide for appropriate types of appointments in
terms of tenure.
3. What type of probationary periods would be established under the authority
proposed in the new language?
The Department believes that a 2-year probationary period is most suitable
for the Staff. This provides a sufficient period of time in which to assess both
the competence of the employee and, importantly, his ability to make a satisfac-
tory adjustment to ?the demands of overseas service. The appointment could,
of course, be terminated at any time during the probationary period if it becomes
evident that the employee fails to meet probationary requirements.
4. What standards does the Department use in determining whether an employee
meets probationary requirements?
The standards applied to the probationer are: Industrious application to
assigned tasks; display of ability to perform assigned tasks; adaptability;
acceptable private life; willingness to make extraordinary efforts in office emer-
gencies; ability to get along with personnel; and sufficiently good health of em-
ployee and dependents.
SECTION 15 (SEC. 532 OF TEE FOREIGN SERVICE ACT)
1. What difference is there between the policies governing the assignment and
transfer of Foreign Service Staff and Foreign Service officers?
The same policy governs the assignment and transfer of Foreign Service Staff
personnel (FSS-9 and above) and Foreign Service officers (FSO-5 and above).
Such officers normally serve at posts abroad, including differential posts, for
significantly longer periods of time than officers and employees in lower classes.
This policy recognizes the value of maintaining continuity and deriving full
benefit from acquired knowledge and understanding of local conditions.
Foreign Service officers below class 5 generally are given shorter assignments
than those in higher classes in order that they may have a varety of post and duty
assignments during their early years of service. Regular staff personnel below
class 9 normally are transferred on completion of their first period of home leave
following a 2-year period at a differential post, but are assigned to nondifferential
posts for longer periods of time.
2. Will the deleting of the second sentence of section 532?re demonstration of
ability and promotion?have an adverse effect on morale?
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No; the deletion of the sentence will not have an adverse effect on morale. The
language of section 532 of the Foreign Service Act relating to promotion is deleted
because section 641 covers the promotion of staff officers and employees to a
higher class. The principle of promotion on the basis of performance and merit is
preserved and strengthened, not discarded.
3. How many Staff are serving at a class higher and at a class lower than their per-
sonal rank?
On December 31, 1959, there were 860 assigned to a higher class position than
their own rank, and 720 were assigned to a lower class position.
4. What changes in policy governing assignments and transfer of Staff personnel
will the Department make if the proposed language is adopted?
No change will result from the proposed revision. It merely clarifies the pro-
vision which governs procedures currently being followed in the assignment and
transfer of FSS personnel.
SECTION 16 (SEC. 571 OF THE FOREIGN SERVICE ACT)
. 1. Under proposed section 571(c) how much will be saved by cutting out the Wash-
ington salary differential?
The annual salary differential paid to Foreign Service employees assigned to
Washington as of December 31, 1959, amounts to a total of $234,255.
2. How does the housing allowance contained in section. 571(e) compare with allow-
ances granted to military personnel assigned to the Washington area?
It is difficult to provide a realistic answer to this question because of the problem
of relating Foreign Service officer classes to military. rank. The following tables,
however, show, by grade, the average amount of the proposed housing allowance
for Foreign Service officers assigned to Washington and of the housing allowance
granted to military personnel assigned to the Washington area.
Foreign Service:Military
Career ambassador
Career minister
FSO-L__..
FSO-2.
FSO-3
FSO-4
FSO-5
FSO-6
FSO-7
FSO-8
$2, 200
2, 117
1, 911
1, 633
1, 391
1,179
986
800
671
574
service:
Lieutenant general
Major generaL
Brigadier general
Colonel
colonel
Lieutenantaojr1,
Captain
1st lieutenant
2d lieutenant
$2, 052
2, 052
2,052
1,642
1, 642
436
1, 231
1, 130
1, 026
3. Does this section have the approval of the Bureau of the Budget?
The following statement is submitted by Mr. Henderson in this connection:
"STATEMENT ON SECTION 16(e) BY HON. LOY W. HENDERSON, DEPUTY UNDER
SECRETARY OF STATE FOR ADMINISTRATION REGARDING EXECUTIVE BRANCH
CLEARANCES
"In undertaking to discuss section 16(c) which would provide for a housing
allowance for Foreign Service personnel assigned to duty in the United States
between foreign tours of duty, I would like to make it clear that this proposal
was not contained in tile original bill suggested by the Secretary of State to the
Congress. It has not had the approval of the administration. In fact, under
date of January 25, 1960, the Director of the Bureau of the Budget addressed a
communication to the Secretary of State in which he referred to questions con-
cerning this provision which had been raised by Bureau of the Budget staff
during recent budget hearings. He commented in the letter that, 'No convincing
justification has been brought to the attention of the Bureau and, accordingly,
the Bureau at this time would be unable to recommend favorable action.'
"Among the pertinent questions raised by the Bureau in its letter to the Secretary
are the following:
"1. Why should Foreign Service personnel be entitled to receive a housing
allowance of this kind when personnel of other agencies who are stationed overseas
from time to time, or personnel of agencies who are required to move about
frequently in the United States do not receive such an allowance?
"2. Is the legislation intended to compensate for specific expenses of relocation
in Washington or for service in Washington per se?
"3. Is the real problem which this proposal undertakes to remedy a hardship
inherent to service in Washington or does it arise from the loss of special benefits
enjoyed overseas?
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"Before undertaking to answer these questions, I should like to discuss briefly
this proposal to provide financial assistance to Foreign Service personnel which
will offset, in part, their excessive cost of housing while on assignment in the
United States. This is a matter to which the Department of State has given
considerable attention. Foreign Service personnel are required by the nature of
their duties to travel frequently from place to place for indeterminate periods at
the convenience of the Government. Homeownership or rental for them while
assigned to duty in the United States is both temporary and costly.
"Numerous elements enter into the higher housing costs for members of the
Foreign Service who, as a mobile corps, are subject to frequent assignment changes.
Some of these elements are obvious, such as the inability of these people to buy
a home over a long period of time. Most home purchases for them are abortive
and as 'transient buyers' they acquire little or no equity and may be forced to
sell at unreasonably low prices when departing for another post. Other high-cost
elements, while not so obvious, are nevertheless real. For example, Foreign
Service personnel stationed at certain posts abroad are provided with furnished
or partly furnished quarters. At other posts they are provided with a housing
allowance with which to rent living quarters and must supply complete furnishings.
Consequently' household furnishings which they own may be surplus at some posts
and needed at others. Such furnishings not used during assignments abroad
may be stored at Government expense. If it becomes necessary for these people
to rent furnished quarters while on assignment in the United States, they must
bear the expense of storage.
"Studies made by the Department reveal that most Foreign Service personnel
while on assignments of 2 to 4 years in the United States are compelled to spend
excessive amounts of their salary for housing. Consequently, most such person-
nel, although realizing how important it is that they serve from time to time in
the Department, are reluctant to serve in Washington because of the financial
sacrifices involved.
"With respect to the questions which have been raised by the Bureau of the
Budget, it should be pointed out that the Department of State is not in a position
to judge whether or not personnel of other Government agencies should be en-
titled to receive allowances of this kind. It is known that military service per-
sonnel and personnel of the Public Health Service who work under conditions
similar to those of the Foreign Service receive housing allowances regardless of
whether they are serving in the United States or abroad.
"Personnel of USIA and ICA who are employed under the provisions of the
Foreign Service Act of 1946, as amended, would, of course, be eligible for the
benefits of this section, if enacted.
"The Department does not consider that this legislation is intended to compen-
sate for specific expenses of relocation in Washington or for service in Washington
per se. Neither is it intended to remedy a hardship inherent to service in Wash-
ington or arising from the loss of special benefits enjoyed overseas. This proposal
would make it possible for Foreign Service personnel to serve in the United States
without being subjected to excessive financial hardship resulting from housing
costs. If enacted section 16(c) would authorize an allowance that would defray
only one-half of the cost of housing for these people when they are assigned to
Washington. Even if this section should become law, therefore, Foreign Service
officers assigned to Washington from the field would encounter certain financial
problems. Nevertheless, these problems would be more manageable than they
are now. Practically everyone connected with the administration of the Service
has recognized how helpful such an allowance would be, but the matter came up
in concrete form only in connection with discussions of the hardship which the
elimination of differential payments would impose upon certain Foreign Service
officers on duty in the Department of State.
"In connection with the letter which the Department received from the
Director of the Bureau of the Budget under date of January 25, 1960, I should
also like to point out that the proposed revision of section 33 relating to financial
benefits for certain staff officers who would be retired early under the provisions
of that section were made subsequent to the passage of the bill by the Senate
and have not had the approval of the administration.
"Similarly, although the original conversion table contained in section 51 was
approved by the Bureau of the Budget, the proposed change in this section
which will provide for a more orderly conversion of staff officers and employees
to the new class and salary schedule was not cleared with the administration
due to the lack of time."
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4. Do any other agencies of Government pay a housing allowance to their personnel
assigned to Washington?
It is our understanding that a Washington housing allowance is payable to
military personnel and to Public Health Service personnel.
5. What is the estimated cost of this proposal?
As of October 31, 1959, there were a total of 1,869 Foreign Service officers and
employees assigned to Washington, D.C. Of these, there would be approximately
365 employees with no dependents receiving an average differential of $607; 685
with 1 to 3 dependents receiving an average differential of $1,142; and 298 with
4 or more dependents receiving $1,480. The 536 employees not accounted for
represent those employees who would not be eligible for the proposed housing
allowance plus those for whom the Department is reimbursed.
Since the proposed revision of section 571(c) would eliminate the Washington
differential, resulting savings in this item would offset a part of the estimated
cost of the proposed housing allowance. The housing allowance ($1,422,666)
less the Washington differential of $234,255 would make a net cost for the housing
allowance of $1,188,411.
6. How did the Department decide on 8, 11, or 18 percent as the amount for
differential payments?
The specific percentages were derived from an application of the premise that
a reasonable housing allowance would cover 50 percent of rent (or mortgage
payments and other basic costs) and utilities. A survey made by the Depart-
ment, the results of which are summarized in the following table, provided a
practical basis for fixing percentages.
Average cost of housing incurred by Foreign Service personnel assigned to the United
States?Owners and renters
Single
Three or less
dependents
Four or more
dependents
Total
Number of respondents
238
819
275
1,032
Percent of total
23. 1
50. 3
26. 6
100
Average salary
*6,901. 24
$10, 184.47
$11, 629. 05
Average housing expense
$1, 303. 86
$2, 163. 26
$2, 690. 10
Percent of salary devoted to housing
18. 9
21, 2
23, 1
Average of proposed U.S. salary differential.....
$552.10
$1, 120. 29
$1, 511. 78
7. If this section is made law, will it be desirable to eliminate the home transfer
allowance or, at least, reduce the Washington housing allowance by the amount of the
home transfer allowance?
The home service transfer allowance is intended to meet specific initial costs
which are encountered only by certain Foreign Service officers. There is no
correlation either with the present Washington differential or with a possible
housing allowance. The home service transfer allowance is a one-time payment
that defrays the cost of hotel rooms for up to 1 month upon first return to the
United States from a post abroad. In addition about one-third of the trans-
ferees (those coming from a different climatic zone) receive a transfer allowance
payment ranging from $75 to $175 depending on size of family.
8. What will be the cost to USIA and ICA?
(a) The estimated cost of the proposed housing allowance for employees
assigned to ICA is $275,470. As of December 31, 1959, there were a total of
208 members of the Foreign Service assigned to Washington, D.C. Of these
there were 49 employees with no dependents receiving an average differential
of $665; 112 with 1 to 3 dependents receiving an average differential of $1,367;
and 47 with 4 or more dependents receiving $1,729.
(b) The estimated cost of the proposed housing allowance for employees
assigned to USIA is $266, 950. As of December 31, 1959, there were a total of
235 members of the Foreign Service assigned to Washington, D.C. Of these
there were 60 employees with no dependents receiving an average differential of
$670; 119 with 1 to 3 dependents receiving an average differential of $1,274;
and 56 with 4 or more dependents receiving $1,494.
SECTION 17 (SEC. 575 OF THE FOREIGN SERVICE ACT)
This is merely a technical change to bring up to date the statutory references.
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SECTION 18 (SEC. 578 OF TILE FOREIGN SERVICE ACT)
1. In view of the greater emphasis the Department is giving to language training, is
this section necessary?
Although the Department would have no objection to this section if slightly
rewritten it is not believed that such legislation is necessary. The Department's
firm objective is to staff all appropriate positions at field posts with personnel
having the necessary language facility.
This proposal would require the Secretary to designate every Foreign Service
officer position in a foreign country whose incumbent should have a useful knowl-
edge of the language or dialect common to that country and to fill such positions
only by assigning to them officers having the required language facilities. In
view of the need for flexibility in meeting the language problems of the Foreign
Service it is believed that this section should be redrafted to provide that the
Secretary rather than designate actual positions should determine the number of
officer positions in a country which must be filled by language officers. Chiefs of
mission would then be able to use the language competence of the staffs where it
was most needed at any given time. However, the rigid requirements of this
section, even if rewritten as suggested, are likely to reduce the administrative
flexibility that is essential to effective staffing of missions overseas.
If there is to be a section of this general character, the Department suggests
that it be redrafted as follows:
"SEc. 578. The Secretary shall determine annually the number of Foreign
Service officer positions in a foreign country which shall be occupied only by an
incumbent who has a useful knowledge of a language or dialect commonly used in
such country. After December 31, 1963, the prescribed quota of language officers
shall be maintained for each country: Provided, That the Secretary may make
exceptions to this policy when special or emergency conditions exist. The Secre-
tary shall establish foreign language standards for assignment abroad of officers
and employees of the Service, and shall arrange for appropriate language training
of such officers and employees at the Foreign Service Institute or elsewhere."
2. What administrative problems would it present in the assignment of personnel?
Section 18 provides that specific positions at specific posts be filled only by
officers with a knowledge of the language of tile country. The effect of the
rigidity of this section would be to sacrifice functional and specialist skills needed
at posts for language skills. Particular problems foreseen as a result of the
provisions of section 578 include:
(a) Inflexibility in filling a "designated" vacancy arising from the direct
transfer of an officer to another post to meet a Service requirement for his
skills or to meet a medical need of the officer or a member of his family.
(b) Home leave and transfer of an officer with an exotic language would be
difficult to coordinate with that of another officer of comparable class and
functional experience with a knowledge of the same exotic language. To keep
a specified position filled by an officer with competence in languages peculiar
to one country or small region would require delays in otherwise desirable
transfers, or would necessitate direct transfer of a replacement from a post
where he was needed for other reasons than that of competence in the required
language.
(c) Particularly in countries where exotic languages are spoken, it would not
be possible to keep "specific positions" filled realistically, either on a functional
or organizational basis. For example, if an FSO-3 political position should
be a specific position" in Karachi, it might be necessary, on the transfer or
retirement of the incumbent, to fill it with a class 5 officer, not because he
possessed the demonstrated functional competence but because he would be
the only available political officer possessing the required knowledge of Urdu.
(d) The changing needs for functional specialization in Foreign Service
posts would require frequent changes of designation of positions.
3. Would this section have th-e effect of severely limiting tie number of positions in
a foreign country whose incumbents must know the language?
It is not believed that this section would limit the number of positions in a
foreign country whose incumbents should know the language. It would establish
a floor to that number but not a ceiling. However, it would introduce an un-
desirable element of inflexibility into the staffing of the posts concerned.
4. Can you give the committee some current statistics on the language facility of
Foreign Service officers?
" Yes, we have statistics on the language facility Of Foreign Service officers.
These statistics are constantly changing because of our continuing language testing
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lirri,c L#U r KalaININILL
LANGVAqpupdvswesyd
FOREIGN SERVICE
'WORLD' LANGUAGES
'WORLD'AND 'HARD' HARD' NO SIGNIFICANT
LANGUAGES LANGUAGES PROFICIENCY UNREPORTED
219 267 518
WORLD' LANGUAGES
FRENCH
SPAN ISH
GERMAN
ITALIAN
PORTUGU ESE
100
200
300
400
500
600
8,00
1000
1200 .
1300
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1500
1600
3,515
361
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'HARD' LANGUAGES
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*IIARD' LANGUAGE SKILLS
IN RELATION TO 'HARD' LANGUAGE GOAL
r7.7,71 5-2, 6-2, Level
984
Total Language Requitement
to meet staffing objective,
*These figures do not include 336 'hard language skills at the 5-3, level or better
which exceed the minimum requirements in specific 'hard' languages.
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program and because of our emphasis upon improvement in foreign language
skills. Our most recent complete tabulation is a year old.
The language policy of the Department is to encourage each officer to acquire a
useful knowledge of two foreign languages as well as a basic command of the
language of each post cf assignment. All candidates for the Foreign Service are
encouraged to pass a language test when they take the Foreign Service examina-
tion, and no junior officer can now get off probation until he passes a test in a
modern foreign language. This requirement alone insures that in the long run
almost all our officers will have a useful skill in at least one foreign language.
Howevr, as this requirement does not affect those who formerly entered the
Service or who came in laterally above the lowest class, we have also laid down
the requirement that every officer must attain a useful capability in a major
European language by March 1963. Moreover, with only minor exceptions, we
already insist that every officer assignA to Europe shall have at least a practical
knowledge of the language of the country to which he is going, even when this
means that the language is a second or third language for the officer.
In many areas of the world today neither Emdish nor major European lan-
guages satisfy our communication needs, and for that reason the Department has
entered upon a 5-year plan of intensive training in hard languages. We started
out by establishing the number of positions at every post in the world which
should be filled by officers knowing the language of the country. The goal of
the 5-year plan is to man each such position with a language officer and to have
two other officers in reserve to take their turn at filling it. This will result, by
about 1965, in a hard-language pool of 984 officers out of a corps numbering
approximately 3,500 officers.
Against this background the Department can report that as of January 1959
the date of the last complete tabulation (based upon both examination results
and self-appraisals by those officers who had not yet been examined), 2,672 of
our officers (93.7 percent of the total) had at least a useful knowledge of one of
the major European or so-called world languages. There were 486 who had a
similar proficiency in hard languages (219 of these officers knew both European
and hard languages). There were 576 officers who had no significant proficiency
in any foreign language.
Two thousand eighty officers took language tests at the Foreign Service In-
stitute between July 1, 1958, and October 1, 1959. Only 303 of these officers
did not have a useful knowledge of some foreign language. One thousand seven
hundred seventy-seven had a useful knowledge of one or more foreign languages.
Major European (or "world") languages accNinted for 1,574 officers. A smaller
number showed proficiency in hard languages: Eastern European, 90; Near
Eastern, 94; and Far Eastern 69. Under the 5-year plan we are training about
100 officers each year in the hard languages.
'rhe table giving statistics for January 1959 follows. (A comprehensive up-to-
date tabulation is currently under preparation in the Department.)
5. What would this section cost to implement?
This section will cost no more to implement than we are already planning to
spend upon the essential expansion of our group of hard language officers through
the 5-year language training program. Thus it involves no additional costs in
and of itself. However, the 5-year program, which is designed to meet the
minimum staffing needs for language officers at all posts (where appropriate), will
require an estimated $251,331 in the ensuing fiscal year.
SECTION 10 (SEC. 625 OF THE FOREIGN SERVICE ACT)
1. There is no limit to the additional increases in salary within the class that an
officer may receive for especially meritorious service?
No. It is unlikely, however, that any officer would receive more than one or
two increases while serving in the same class.
2. Why not limit this to one salary increase in class on the theory that his meri-
torious service will undoubtedly result in his more rapid promotion?
It is probably that officers whose performance would justify inclass salary
increases for especially meritorious service also would merit early promotion.
However, the Department would prefer not to have a statutory restriction on the
number of additional in-class increases which might be granted to an officer
while serving in a class. Such a restriction might prevent, fcr example, the
Department from granting a deserved increase to an officer not yet eligible for
promotion who had served with distinction in a position several levels above
his personal class and who had received an additional increase for undertaking
and obtaining proficiency on his own in a difficult foreign language.
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3. How many officers does the Department estimate will qualify for such increases?
What will be the cost?
It is anticipated that less than 1 percent of the Foreign Service officers would
receive in-class promotions under this authority. The cost would be negligible.
4. Are language and area training the only bases for determining meritorious
service?
It is anticipated that meritorious in-class promotions also would be granted for
such meritorious service as distinguished or protracted service by officers in
positions classified several levels above their personal rank.
SECTION 20 (SEC. 626 OF THE FOREIGN SERVICE ACT)
1. Is this section necessary if instructions were given to selection boards that re-
flected the objectives of this new section?
This section was not included in the legislative proposals which the Department
initially submitted to the Congress. However, the Department has no objection
to its inclusion, although it does not believe it necessary.
For some time the precepts given to the selection boards have stressed the im-
portance of specialists. The instructions to the 13 selection boards, for example,
direct the boards to "give positive recognition to the fact that the needs of the
present day Foreign Service require that many of our officers become specialists in
one or more of the functional areas of Foreign Service work."
In addition to the standing instruction to the boards, the Deputy Assistant
Secretary for Administration has personally emphasized to them the necessity for
recognizing equally the work of the "specialist" and "generalist."
2. What is the Department's present definition of a specialist?
The Department has not labeled officers as "specialists" but rather has identified
each officer's "specialties." A broad-gage officer may have several specialties;
on the other hand, an officer more limited in terms of education, experience, ability,
or potential may have only one specialty.
A specialty represents a combination of education, experience, and personal
qualities and abilities which enables an officer to perform effectively in a particu-
lar type of Foreign Service work.
3. How many officers are now determined to be functional and area specialists?
Almost all officers tend to be specialists in one or two functional fields during
their midcareer years, but not to the point of total exclusion of other types of
assignment unless the individuals are themselves limited in ability and potential.
Officers' specialties (whether in function, area, or language) are identified by the
Department and represent important considerations in the development and
utilization of each officer in the Serivce.
SECTION 21 (SEC. 631 OF THE FOREIGN SERVICE ACT)
This is merely a technical change.
SECTION 22 (SEC. 631 OF THE FOREIGN SERVICE ACT)
1. What is the estimated number of retired officers this section would affect?
This provision would not affect any retired officer. It would be used only in a
limited number of cases in which it clearly would be in the public interest to
extend the services of career ambassadors and career ministers beyond the manda-
tory retirement age until the expiration of their assignments to key positions.
SECTION 23 (SEC. 632 OF THE FOREIGN SERVICE ACT)
1. Would an officer whose services were extended be eligible for further in-class
salary increases?
Yes.
SECTION 24 (SEC. 634 OF THE FOREIGN SERVICE ACT)
1. Why is the Department inserting a 5-year minimum service credit in subsection
(b)(2)?
The 5-year minimum service requirement is inserted to bring the provision
governing eligibility of officers selected-out for a deferred annuity into line with
eligibility requirements for annuities under other Federal retirement systems, and
to make the provisions consistent with other sections of the Foreign Service Act
relating to eligibility for annuities.
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SECTION 25 (SEC. 635 OF THE FOREIGN SERVICE ACT)
1. How is this section reconciled with section 27 which requires in cases involving
the separation of class 8 officers by reason of misconduct that the Secretary must grant
a hearing if it is requested?
It cannot be reconciled with section 27. The direct conflict between section
25 and section 27 is one of the reasons the Department is proposing a change in
section 27.
SECTION 26 (SEC. 636 OF THE FOREIGN SERVICE ACT)
This is merely a technical change.
SECTION 27 (SEC. 637 OF THE FOREIGN SERVICE ACT)
1. What tests would the Secretary use to determine disloyalty to the United Statess?
In the Department's proposed amended section 637 of the Foreign Service Act
(see the answer to the question under sec. 25 of the bill under consideration)
the provision of section 27 of S. 2633, amending section 637(b) of the act, would
be changed to omit reference to determinations by the Secretary that separation
was based in whole or in part on disloyalty to the United States. One of the
reasons the Department makes this suggestion is the difficulty of making such a
determination on an administrative basis.
In any event, the Department is unable at this time to indicate what consider-
ations should go into a determination with respect to disloyalty. If the provision
is enacted?which the Department hopes will not be the case?it will be necessary
to study this question carefully in conjunction with appropriate legal authorities
of the Government.
2. Should disloyalty charges be a matter for court determination rather than for the
Secretary to determines?
The Department believes that the determination of disloyalty is not a matter
for administrative determination. Further, in the light of Government experi-
ence in this area, it is highly probable that if the provision remains in the bill
and if adverse determinations should be made by the Secretary, there would be
an appeal to a court.
3. What are existing regulations that set forth unsatisfactory performance of duties?
The Foreign Service Manual, volume 1, part IV, section 762.2 describes "Un-
satisfactory performance of duty" as "any performance below that expected of
an employee of his class and at the level and type of position to which the employee
is assigned."
4. In subsection (a) what would be examples of "other cause"?
"Other causes" are meant to include any misconduct or malfeasance now covered
by section 638. Section 637 as revised combines all provisions for separation for
cause in the case of Foreign Service officers. Section 638 as revised would not
apply to Foreign Service officers. Misconduct is described by the Manual as
"deviation from the standards of acceptable conduct of the Foreign Service or
of the local community." Malfeasance is violation of the law through official
acts, the use of authority for wrongful purposes, or other serious and willful
offense against law or regulations. It is the use of official position to accomplish
an improper purpose.
5. Is the Department satisfied with the provisions of section 27?
Not entirely; as will be seen in the proposed amended section 637, which follows,
it was the Department's intention to combine in one section the provisions for-
merly contained in four sections of the Foreign Service Act (i.e., secs. 637, 651,
638, 652), provisions relating to the separation for cause of all categories of
personnel in the Foreign Service. Because of the number of separate provisions
relating to separation for cause, the specific authority of the Secretary was some-
what obscured and there was not provision for equity in the treatment of the
various categories of Foreign Service personnel.
Important among the improvements the Department was seeking was the
elimination of the requirement for hearings in certain instances involving the
separation of officers and employees serving on temporary or limited appoint-
ments or serving probationary periods. The Department was also seeking to
eliminate any "penalty" clauses relating to retirement benefits when employees
are separated for cause.
Amended section 637 as it appears in S. 2633 requires a hearing in cases where
separation for cause involves "misconduct." It also provides that annuity benefits
shall be denied when an officer or employee is separated for cause if "the Secretary
determines that separation was based in whole or part on the ground of disloyalty
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to the United States." The requirement for a hearing where a limited, temporary,
or probationary employee is separated for misconduct restricts unnecessarily the
authority of the Secretary. Denial of annuity benefits when a determination
is made that "disloyalty to the United States" is involved is considered unduly
severe. Such a provision would seem to go further than legislation which denies-
annuitieS to persons who commit offenses involving the security of the United
States if such persons are convicted. The Department and the executive branch
have taken the position that denial of earned annuity benefits cannot equitably
be a part of punitive action in separator-for-cause cases. Because of these
objections to section 637 as it appears in S. 2633, the Department proposes the
revised amendment to this section that follows.
EXISTING LEGISLATION
SEPARATION FOR [UNSATISFACTORY
PERFORMANCE OF DUTY]
SEC. 637. (a) The Secretary may,
under such regulations as he may pre-
scribe, separate from the Service any
Foreign Service officer [above class 8]
on account of the unsatisfactory per-
formance of his duties [;] but no such
officer shall be so separated [from the
Service] until he shall have been granted
a hearing by the Board of the Foreign
Service and the unsatisfactory perform-
ance of his duties shall have been
established at such hearing [.]
[PART F?SEPARATION OF STAFF
OFFICERS AND EMPLOYEES
[FOR UNSATISFACTORY PERFORMANCE OF
DUTY
[SEc. 651. The Secretary may, under
such regulations as he may prescribe,
separate from the Service any staff
officer or employee on account of the
unsatisfactory performance of his duties,
but no such officer or employee shall be
so separated from the Service until he
shall have been granted a hearing by the
Board of the Foreign Service and the
unsatisfactory performance of his duties
shall have been established at such
hearing.
[SEPARATION FOR MISCONDUCT OR
MALFEASANCE
[SEc. 638. The Secretary shall sepa-
rate from the Service and Foreign Serv-
ice officer or Reserve officer who shall be
guilty of misconduct or malfeasance in
office, but no such officer shall be so
separated from the Service until he shall
PROPOSED LEGISLATION
SEPARATION FOR CAUSE
SEC. 637. (a) The Secretary may,
under such regulations as he may pre-
scribe, separate from the Service any
Foreign Service officer, or any staff officer
or employee, on account of the unsatisfac-
tory performance of his duties, or for
such other cause as will promote the
efficiency of the Service, and for reasons
given in writing, but no such officer or
employee Flail be so separated until he
shall have been granted a hearing by the
Board of the Foreign Service and the
unsatisfactory performance of his duties,
or other cause for separation, shall have
been established at such hearing, or else
he shall have waived in wi-iting his right
to a hearing. The provisions of this sec-
tion shall not apply to Foreign Service
officers of class 8, Foreign, Service Reserve
officers or any other officer or employee
of the Service who is in a probationary
status or whose appointment is limited or
temporary.
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EXISTING LEGISLATION
have been granted a hearing by the
Board of the Foreign Service and his
misconduct or malfeasance shall have
been established at such hearing. Any
officer separated from the Service in
accordance with the provisions of this
section shall not be eligible to receive
the benefits provided by title VIII of
this Act, but his contributions to the
Foreign Service Retirement and Dis-
ability Fund shall be returned to him in
accordance with the provisions of sec-
tion 841(a).
(FOR MISCONDUCT OR MALPEASANCE
[Sc. 652. The Secretary shall sep-
arate from the Service any staff officer
or employee who shall be guilty of mis-
conduct or rnaffeasance in office, but no
such officer or employee shall be so sep-
arated from the Service until he shall
have been granted a hearing by the
Board of the Foreign Service and his
misconduct or malfeasance shall have
been established t such hearing.]
SEC. 637. (b) [Any Foreign Service
officer over forty-five years of age, sep-
arated from the Service in accordance
with the provisions of paragraph (a) of
this section, shall be retired upon an
annuity computed in accordance with
the provisions of section 821 but not in
excess of 25 per centum of his per annum
salary at the time of his separation.
[(c) Any Foreign Service officer un-
der forty-five years of age, separated
from the Service in accordance with the
provisions of paragraph (a) of this sec-
tion, shall at the time of separation
receive a payment equal to one year's
salary or the refund of the contributions
made by him to the Foreign Service
Retirement and Disability Fund, which-
ever shall be greater.]
(d) Any payments made in accord-
ance with the provisions of this section
shall be made out of the Foreign Service
Retirement and Disability Fur d.
PROPOSED LEGISLATION
SEC. 637. (b) Any participant in the
Foreign Service Retirement and Disabil-
ity System separated under the provisions
of paragraph (a) of this section shall re-
ceive a refund of the contributions made to
the Foreign Service Retirement and Dis-
ability Fund, with interest, as provided in
section 841(a) except that in lieu of such
refund such officer may if he has at least
5 years of service credit toward retirement
under this system, excluding military or
naval service that is credited in accordance
with the provisions of section 851 or
852(a), elect to leave his contributions in
the Fund and receive an annuity, com-
puted as prescribed in section 821 com-
mencing at the age of sixty years. In the
event that an officer who has elected under
the provisions of this section to receive a
deferred annuity dies before reaching the
age of sixty, his contributions to the Fund,
with interest, shall be paid in accordance
with the provisions of sections 841 and
881.
(c) Any officer or employee of the Serv-
ice separated under the provisions of par-
agraph (a) of this section who is not a
participant in the Foreign Service Retire-
ment and Disability System shall be en-
titled only to such benefits as shall accrue
to him under the retirement system in
which he is a participant.
(d) Any payments made in accord-
ance with the provisions of paragraph
(b) of this section shall be made out of
the Foreign Service Retirement and
Disability Fund.
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New section 637(a) combines into one section the provisions of sections 637
and 651 relative to separation for unsatisfactory performance of duty as well as
the provisions of sections 638 and 652 relative to separation for misconduct and
malfeasance. In so doing the following substantive changes have been made:
(1) The Secretary is given the discretion to determine whether an officer or
employee should be separated for cause. At present he does not have complete
discretion in this matter. Under present provisions it is frequently difficult if
not impossible to distinguish between unsatisfactory performance and misconduct.
(2) The requirement of a hearing does not apply if the officer or employee
waives his right to a hearing.
(3) It may be noted that the revised section applies equally to all Foreign
Service officers and Foreign Service Staff officers and employees.
Foreign Service officers who are in probationary status, Foreign Service Reserve
officers, and any other officers and employees of the Service whose appointments
are temporary or limited (e.g., Staff personnel appointed for a special program)
are not subject to the provisions of this section as their services may be terminated
at any time at the discretion of the Secretary. FSBN -are not included since their
appointments have a statutory expiration date.
Paragraph (b) has been revised to provide that a participant separated from
the Service for cause may receive a refund of contributions to the Foreign Service
retirement and disability fund, with interest, or may elect in lieu of a refund of
such contributions to receive a deferred annuity payable when he reaches age 60.
This brings the retirement provisions of this section into line with retirement
provisions covering other types of separation from the Foreign Service. Under
present provisions relating to separation for cause, officers 45 years of age or
over who are separated for unsatisfactory performance of duty are entitled to
an immediate annuity based upon their years of service, computed in accordance
with the provisions of section 821, but such annuity may not exceed 25 percent
of their basic per annum salary at the time of separation. Officers under 45 years
of age who are separated from the Service for unsatisfactory performance are
entitled to a payment of 1 year's salary or the refund of contributions made to
the Foreign Service retirement and disability fund, "whichever shall be greater."
Under present provisions officers separated for misconduct or malfeasance are
denied annuity benefits and are entitled only to a refund of contributions made
by them to the Foreign Service retirement and disability fund.
It is the Department's view that there should be no 'penalty" clause relating
to retirement benefits when there is separation for cause. Further, it is the
Department's view that an officer who has contributed to the retirement fund
and has served for a sufficient number of years (i.e., at least 5 years of civilian
service) to qualify for a deferred annuity should not be denied the benefits he has
earned regardless of the reason for his separation, and that he therefore should
have the choice of a refund of retirement contributions or a deferred annuity.
New paragraph (c) has been added to make clear that retirement benefits under
the Foreign Service Retirement and Disability System relating to separation for
cause apply only to participants in that system. Other officers or employees of
the Service separated under the provisions of this section are entitled only to such
benefits as shall accrue to them under any other retirement system in which they
are participants.
Paragraph (d) has been changed only with respect to a cross reference.
SECTION 28 (SEC. 638 OF THE FOREIGN SERVICE ACT)
1. There is concern among a group of about .45 officers that the deletion of the second
sentence may result in the termination of their employment. Does the Department
object to the inclusion of this sentence now in S. 2683 (p. 19, 11.21-2.0?
The Department does not object to the inclusion of the sentence in section 28
referred to in this question.
The Department's policy with respect to the length of employment of those
Staff officers who accepted Foreign Service Reserve appointments under the pro-
visions of Foreign Service Circular 252 dated August 29, 1958, was set forth clearly
at the time they accepted the Reserve appointment. The Department did not
then, nor does it now, have any intention of circumventing these terms of em-
ployment.
In essence, the Department advised those who accepted Reserve appointments
that the period of employment would be equivalent to that to which they would be
entitled if they remained Staff officers and became participants in the Foreign
Service Retirement and Disability System with the earlier mandatory retirement.
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A copy of Foreign Service Circular 252 which explains the length of appointment
for these Reserve officers is submitted for the record.
2. Under S. 2638 a hearing would be required only when misconduct was the basis
for termination of service. How would the Department define misconduct?
(The Department's definition of misconduct was stated during discussion of
sec. 27 of S. 2633.)
The Department does not believe that this provision for a hearing should be
included in the bill. Historically a person serving on limited or probationary
appointment is not given a hearing when termination is proposed. Further, it is
our view that a person separated during his probationary period might indirectly
be entitled to the reason for such separation in order that determination could be
made as to whether or not it constituted misconduct. If this provision remains
in the bill, persons separated as probationers might well go to court to force the
Department to give the exact reasons for such separation.
Essentially the same situation would occur in the case of an individual serving
under limited appointment. Such appointment, for example, might be for 2
years for the duration of the program or for so long as his services might be
needed, whichever is shorter. Thus, if an individual serving under such appoint-
ment was separated at any time he might be entitled to know whether he was
being separated for misconduct.
SECTION 29 (SEC. 641 OF TIIE FOREIGN SERVICE ACT)
1. Isn't it redundant to refer to promotion to a higher class at a higher salary?
It is not necessarily redundant to refer to promotion to a higher class at a
higher salary. Heretofore the FSS salary schedule has in some cases allowed for
overlap between the highest step of a given class and the lowest step of the class
above. It was for that reason that the language of old section 641 refers to pro-
motion "to a vacant position in a higher class at the same or at a higher rate of
salary." The proposed language in section 641 would insure that all staff
personnel receive a tangible increase in salary upon promotion to a higher class.
2. How many Staff were promoted in 1959?
F SS promotions I
From?
To?
Number
From?
To?
Number
FSS-2
FSS-1
FSS-9
FSS-8
_
40
F55-3
555-2
FSS-10
FSS-9
70
FSS-4
FSS-3
FSS-11
FSS-10
166
FSS-5
555-4
FSS-12
5511-11
211
FSS-6
FSS-5
2
FSS-13
555-12
260
FSS-7
FSS-6
1
758
FSS-8
F116-7
8
Total
1 Includes Staff officers and employees assigned to other agencies.
3. Does the new language in this section increase the prospect of promotion in the
upper classes of the Staff?
The new language does not increase the prospect of promotion in the upper
classes of the Staff. It does encourage the application of uniform standards for
promotion and tends to insure that the most deserving will get promoted. This is
tied in with the amendment of section 441.
The Department has proposed the amendment of section 441 to provide, among
other things, a uniform basis for classifying positions occupied by Foreign Service
officer, Foreign Service Reserve, and Foreign Service Staff personnel in accordance
with the class structure specified in sections 412, 414, and 415 of the act. Here-
tofore, section 441 has required the classification of FSS positions in accordance
with the class structure spelled out in sections 415 and 442 and has required the
classification of positions occupied by FSO's and FSR's but has not specified the
class structure to be used in classifying the jobs. Section 641 further promotes
uniformity in personnel administration in the Department by providing legislative
authority for the promotion of FSS personnel to a higher class based on perform-
ance and merit, as is the case with respect to Foreign Service officers, rather than
for the promotion of FSS personnel to vacant positions at higher classes as required
under the existing section 641.
In administering section 641 the Department has determined the number of
vacant positions in each FSS class on a worldwide basis and has made promotions
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based on competitive merit of personnel in each class without regard to their post
of assignment or the level of the position occupied.
In the case of employees in class FSS-11 through FSS-2 the determination of
merit for promotion is made by the Staff Review Panels.
4. Will not vacant positions in a higher class still determine the number promoted?
The number of vacant positions in a higher class will still determine the number
of promotions, but occupancy of those positions will not be a prerequisite for
promotion.
The Department's experience under the Foreign Service Act has shown clearly
that in a service where personnel are subject to transfer in the interest of the
Government to any post in the world to do any job for which they are needed and
for which they are qualified, it is not feasible to place the rank in the job rather
than in the individual. In the worldwide system of assignments used in the For-
eign Service it is not feasible to permit the employee to pick and choose the assign-
ment that would offer the greatest promotional opportunity. The interests of the
Service require that the Department have the flexibility to use its personnel re-
sources where they are needed, when they are needed, to cope with shifting foreign
affairs problems and programs.
In addition, the personnel of the Foreign Service are subject to a tour of duty
policy under which they are transferred periodically to assure equitable rotation
of personnel between unhealthful or hardship posts and nonhardship posts, to
insure that employees do not serve for unduly protracted periods of time at a
particular post or in a particular area in connection with a given assignment, and
to increase the usefulness to the Service of personnel through varied experience at
a number of posts. It frequently is not possible to arrange assignments for the
most efficient, deserving employees to positions which are classified higher than
their personal rank. On the other hand, it is frequently in the public interest,
because of transfer cost factors or because of special circumstances incident to a
given assignment, to assign less deserving employees to positions classified higher
than their personal class.
In order to assure that those most deserving of promotion receive promotions,
the Department believes promotions should be based on worldwide com
merit, as is the case with the FSO promotion system, regardless of the level of the
position occupied at the moment.
The Department will continue to use its present Foreign Service staff promotion
plan for personnel in classes FSS--1l and higher. This plan is patterned after the
FSO Selection Board system. It provides for competition with others in the same
class; the review of performance records and the ranking of relative merit for j ro-
motion by annual FSS Promotion Review Panels, the members of which are desig-
nated by the Deputy Under Secretary for Administration; and promotion from the
review panel rank order lists against worldwide vacancies. Promotions of per-
sonnel in classes FSS-12 and FSS-13 are based upon post recommendations:
periodic review of recommendations by a review panel comprised of senior officers
in the Office of Personnel, and promotions are based upon relative merit, against
worldwide vacancies. FSS personnel who are promoted may be reassigned to a
higher grade position at their post of assignment or upon completion of their tour
of duty and transfer to another post.
5. Does not the Department now take into account "performance and merit" in
making promotions of the staff?
The Department has very definitely taken into account "performance and
merit" in making promotions of the staff. In the case of employees in class FSS-11
through FSS-2, as stated above, the determination of merit for promotion is made
by the staff review panels.
Employees in class FSS-12 are promoted to higher level vacancies from a rank
order register of eligible employees prepared by special promotion panels, based
upon merit, and length of service in class FSS-12. Employees considered by the
special panels must be recommended for promotion by the post of assignment.
Employees in class FSS-13 are promoted by the Department either after
12 months' service if the post of assignment certifies that the employee's perform-
ance has been superior, or upon completion of the 2-year probationary paciod if
their performance has clearly exceeded the basic requirements of the position.
SECTION 30 (SEC. 692 OF THE FOREIGN SERVICE ACT)
1. Why not limit the "within class" salary increase for especially meritorious service
to one within the class?
The Department of State would prefer, in view of the limited potentialities of
a career in the Staff Corps, and in view of the essential character of the work, to
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employ every reasonable encouragement for superior performance. The anticipa-
tion of special rewards must, in their case, replace the .Vista of advancement
Characteristic of a truly career-type service. We believe that the proper use of
standards will prevent any abuse of the system.
2. What standards would be set up for Staff officers to determine "especially
meritorious service"?
It is contemplated that "especially meritorious service" awards: (a) would be
determined by annual staff promotion review panels in accordance with promotion
precepts; (b) would be based upon a minimum of 2 consecutive years of sustained
outstanding performance as evidenced by promotion review panel ranks order
listings in the top 15 percent of the class; and (c) would be limited to 15 percent
of FSS strength at any given time and in order so avoid stagnation would be
phased toward- the computed- figure over a period of 4 years.
3. The bill uses the criteria "longevity and proficiency." The Department wants
"longevity or proficiency." Under the principles set up to determine overall compe-
tence can it not be presumed that an individual who was not proficient would be unable
to reach a point where he can enjoy longevity?
It is to be expected that competence and proficiency will in the long run bring
a Staff employee to the point where he can enjoy the benefits of longevity pay.
The objective is to encourage him to continue to perform proficiently and not
just coast along.
The proposed revision would authorize the Secretary to grant a salary increase
at reasonable intervals on the basis of sustained superior to outstanding per-
formance commensurate with rank in accordance with prescribed standards. In
other words, it is not intended that longevity or proficiency increases will be
awarded automatically. Rather, it is intended that longevity increases will
recognize length of service and above average proficiency. This will provide a
stimulus for long-service employees who remain in the same class to continue
to maintain optimum performance standards as well as to remain in the Service.
Proficiency increases, on the other hand, are intended to recognize and reward
ability and superior performance of Staff technicians of intermediate and lower
rank and clerical employees.
SECTION 31 (SEC. 701 OF THE FOREIGN SERVICE ACT)
1. Can't wives now take language training?
The Department does not now have authority to provide language training for
wives. Occasionally wives are permitted to sit in on a language class for officers
when space is available and no cost to the Government is involved, but such class
attendance is not language training.
The Department believes the proposed authority is important, because wives
are an integral part of the official representational unit. They have, therefore,
almost the same need for adequate language training and orientation for life
overseas as do employees.
SECTION 32 (SEC. 704 OF THE FOREIGN SERVICE ACT)
1. What would be "other incentives" (p. 22, 1.4) provided by the Department for
language training?
The Department of State has in mind no incentives which are basically other
than monetary. However, the specific plan which it has developed, and which is
outlined in the following written statement, relates only to languages meeting
specified criteria. The Department also desires to encourage the acquisition of
skills in other languages such, for example as Norwegian and Russian. By
application of new section 625 concerning within-class salary increases it will be
possible to reward especially meritorious achievement in languages which are of
importance but which are not included in the three incentive groups by the award
of a within-class salary increase. The salary increase from such an award con-
tinues to reward the officer until his next promotion.
2. Would "monetary incentives" be a lump-sum payment or a within-class salary
increase?
Monetary incentives would normally be paid in lump sum twice a year so long as
the recipients maintain their eligibility.
3. Do other Federal agencies use alien instructors in language training? What
law prohibits the Department from using aliens?
To our knowledge, the following agencies hire aliens in their language programs:
CIA, Department of Navy, Department of Army, and National Security Agency.
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Also, many other agencies employ foreign speaking people or aliens in their pro-
grams; these are: Department of Agriculture, Department of Justice (Immigra-
tion and Naturalization Service), USIA, and the Public Health Service. All of
these have specific legislation authorizing the employment of aliens under given
circumstances.
Section 202 of the act which each year makes appropriations for the Executive
Office of the President and sundry general Government agencies (General Govern-
ment Matters Appropriation Act) prohibits use of these funds to compensate,
for service in the continental United States, most aliens unless they have filed
declaration of intention to become U.S. citizens.
"GENERAL STATEMENT BY THE DEPARTMENT OF STATE CONCERNING MONETARY
INCENTIVES FOR HARD LANGUAGE STUDY
"Section 32(b) of S. 2633 would amend the Foreign Service Act by adding a
new paragraph (f) to section 704 of that act as follows:
" `(f) The Secretary may, under such regulations as he may prescribe, provide
special monetary or other incentives not inconsistent with this Act to encourage
Foreign Service personnel to acquire or retain proficiency in esoteric languages or
special abilities needed in the Service."
"Although the initial recommendation for this provision did not come from the
Department, as the committee is aware, nevertheless the Department supports
it as meeting a particular need, has prepared a specific plan to implement it, and
has estimated the costs involved.
"The need for foreign language competence among Foreign Service officers is
so obvious?such competence is so patently an essential tool of their profession?
that one is entitled to question how the Foreign Service could have gotten itself
into such a plight that it must give special incentives to its officers to learn foreign
languages. A question like this is natural enough, but it is wide of the mark.
The Foreign Service in fact requires competence in at least one major Western
European language of each Foreign Service officer. No junior officer can be
removed from probation until he has demonstrated mastery of a modern foreign
language, and every officer above probationary rank who has not yet done so
must pass an examination in a major Western European or "world" language
before March 1963. The Department of State is not proposing incentive pay-
ments for any of this. So successful have been the efforts of the School of Lan-
guages of the Foreign Service Institute in the past few years that at the present
time 83 percent of all FSO's have developed a useful competence in one or more
foreign languages.
"The nub of the problem is that most of this language competence lies in the
field of major Western European languages. We are short of officers competent
in the esoteric languages in which our people must communicate at the posts in
the many new countries which have emerged since World War II. There is
continued need for language specialists in such languages as Japanese, Chinese,
and Turkish which traditionally have been learned by a limited number of Foreign
Service officers. But the esoteric languages in which we have traditionally trained
our officers are now far outnumbered by the dozens of languages representing the
dominant native tongues of the nations which have achieved statehood since
World War II and where prior to World War II our representatives, if we had
any, used to rely either upon English or one of the major European languages, or
upon native interpreters.
"The trend which emerges from this transformation is the fading importance of
major European languages in former colonial areas of Asia and the Middle East
and the growing importance not of an equal number of Asian or African languages,
but rather of a plethora of Asian and African tongues. Of growing importance
also are some of the lesser European languages, particularly those in the Com-
munist zone.
"If the creation of new states and the opening of new posts were all we had to
contend with, the job of learning new languages would still be important and it
would still present a formidable challenge. But these are not the only factors.
There is yet another factor, one which contributes urgency to the need for us to
train experts in all of the many languages of the new and underdeveloped countries.
It is that these countries are the major battleground of the cold war. A primary
objective of U.S. foreign policy is to prevent their absorption into the Communist
bloc, just as the major foreign policy objective of the Communist bloc is to achieve
their absorption. We shall be fighting with our right hand tied behind our back
if we cannot communicate in their own tongues with the peoples of these many
threatened nations.
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"There was a time in simpler days when communication through native inter-
preters was the most reasonable procedure. It is still the easiest procedure, but
it is not reliable and certainly makes no sense when the interpreter may himself
be a Communist. In the course given by our Foreign Service Institute on Com-
munist strategy we show an excerpt from a motion picture study made in Vietnam
just prior to the Communist takeover of Hanoi by one of our major television
broadcasting concerns, and shown throughout the United States several years ago.
The fact that a native interpreter was a Communist, hoodwinking both the
American reporter and his native countrymen was discovered when this film was
shown to a Vietnamese language elms in the FSI, and the language instructor
observed the interpreter's duplicity. We now use this film as an object lesson.
"It is obvious that the Foreign Service requires officers in large numbers to be
skilled in many languages other than those normally taught widely in the schools
and colleges of the United States. That the requisite number is not produced by
our school system is no indictment of the schools even if we admit, as we do, that
foreign language instruction needs to be undertaken on a far vaster and more
intensive scale by the American education system. Schools train for normal
requirements, not for the exceptional requirements of the Foreign Service. To be
sure there is excellent instruction available in many of the esoteric languages in
various universities, and officers are assigned to these universities for study by the
FSI. What is not available in the universities is provided by the FSI itself.
But the important thing to note in either case is that the instruction must be
provided after entry into the Service. Even assuming great expansion in foreign
language instruction in our colleges it would be entirely unrealistic to anticipate
that the junior officers recruited each year will have command of all and sundry
of the esoteric languages in approximate proportion to the needs of the Service.
They will have command of some of the languages. The training requirement,
then, will concern the gap between the supply of ad the demand for language
specialists.
"The Department has made a survey of the minimum number of positions at
every post in the world which must be staffed by language specialists. Going on
the assumption that it should have three officers in the Service available to fill
each such position on rotation, it has established the minimum total number of
specialists required in each language. The 5 year language training plan upon
which we have already launched is aimed at supplying this minimum total
number.
"Certain problems in language specialization have already been encountered,
however, which suggest that establishing quotas and providing a training estab-
lishment and schedules is not enough. It is not enough because the Service
cannot obtain good language officers simply by assigning the appropriate number
of officers to training.
"The intrinsic difficulty of the languages, the willingness of the officer to immerse
himself in the particular culture, and his ability to tolerate living conditions at
the posts where the language is used, are all factors making it virtually essential
to rely upon volunteers. First, the difficulty of learning the language: the length
of time required to learn a hard language well enough to use it professionally takes
anywhere from a year to 2% years of full-time study. Aptitude alone will not
insure success. Strong motivation is also required. Languages difficult to learn
are also easy to forget if they are not used or studied constantly until such time
as they are thoroughly internalized. Thus strong motivation is required to retain
skill in a language as well as to learn it, particularly when an officer is assigned
outside the language area. It is apparent that failure to select officers carefully
for training in esoteric languages could result in great expenditure, and little
accomplishment.
"In addition to the factor of difficulty of learning and retaining a language
there is the factor of assignment disincentive in the case of those esoteric languages
which are used in only a small area or which are used only in countries where
health conditions and living standards are backwards. Even if the living condi-
tions are desirable there may be relatively few positions in a language area which
are available for the career ladder of the officer specializing in the language
concerned. Knowledge of the career limitations he may be imposing upon him-
self and the numerous unhealthful assignments he is lining up for himself by elect-
ing to specialize in a given language may well deter an officer from volunteering for
training. This is not to be regarded as showing lack of discipline or loyalty.
All officers are expected to take their share of assignments to hardship posts.
But since a language officer is expected to spend a predominant share of his years
of service in his language area, his share of hardship posts may well be excessive.
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There must be some special motivation or incentive to induce him to subject
himself and his family to these conditions for icing periods.
"In' our admittedly limited experience with the 5-year language training plan,
which has been in progress for not yet 2 years we ha\ e encountered a shortage of
officers at the class 6 level, deemed to be ideal for intensive hard language train-
ing, who volunteer for the hard languages; it has been necessary to draw upon the
less mature officers of classes 7 and 8 to fill out the training quotas. There is no
incontrovertible proof that in the long run the supply of desired candidates will
not equal the demand, but such evidence as there is confirms our original suspicion
that officers are deterred from volunteering by the assignment considerations
mentioned.
"The conclusion which we have reached with considerable reluctance is that
monetary incentives may be needed to bring forward volunteers in sufficient
nuffibers and to keep their noses to the language grindstone after their formal
language instruction has been completed. It seems that other nations have pre-
ceded us to that conclusion and have already introduced the payment of monetary
inducements for the study and maintenance of skill in esoteric languages. Among
these nations are Great Britain, Canada, West Germany, and the Soviet Union.
Great Britain has had the system the longest?as long as senior officers now in the
Service can recall, while the Soviet Union offers the highest monetary rewards
for esoteric language skills. Each nation has its own system, geared to what it
considers to be its peculiar requirements.
"A second look at the various factors of language difficulty and post assignment
considerations suggests that the degree of incentive need not be the same for all
languages to insure filling the language quotas. On the contrary the suggestion
presents itself that incentives should be tailored to specific conditions including
the factor of the ratio of supply to demand. Other factors also appear to have
a bearing. It seems unreasonable, for example, to provide any incentive pay
while an officer is taking an intensive language course under FSI auspices, because
he is relieved of regular duties during this period and is free to devote himself to
full-time study on a salaried basis. Since the goal of intensive language instruc-
tion is to enable the officer to attain a professional speaking and reading com-
petence (S-3, 11-3 on the FSI test scale) it is believed that this is the minimum
level of competence which should be rewarded by incentive pay.
"During the ensuing 10 years the language officer must keep up with his lan-
guage if he is to internalize it effectively rather than lose it. Moreover, utilization
of language officers is most intense during this period through assignment to
language positions. Consequently, a minimum or maintenance rate of incentive
pay during this 10 year period, so long as he is certified by the FSI every 3 years
(a period compatible with the home leave schedule) would seem justified, both
from the viewpoint of training need and of anticipation of payoff in actual use.
Since, moreover, the ultimate purpose of training an officer is to use him, it seems
reasonable to pay double the maintenance rate when an officer is actually assigned
to his language area, so long as he has been certified by the FSI to have at least
an S-3, R-3 competence within 3 years prior to his assignment.
"Moreover, since an expert (S-4, R-4) level is of greater benefit to the Service
than the minimum professional level (5-3, 11-3), it can well claim a 50 percent
higher reward.
"There is finally the matter of establishing incentive groups. The most
meaningful and equitable method in our opinion is to list all the languages in
which we need officers and to ascribe to each of these languages a number of
points on a uniform basis: more points to the most difficult languages, to those
spoken at the fewest posts, having the least number of positions, and used in the
fewest countries, and to those whose posts have the most unattractive living
conditions; less points to their opposites; more points to languages in which
specialists are badly needed; less points to those where the need is less pressing.
Changing circumstances will change the number of points ascribed to each lan-
guage when the annual tabulation is made, and it will thus be possible to add
languages to the list, remove them, or have them shift from one incentive group
to another.
"The two following tables indicate how the esoteric languages for which there
are requirements in the Service have been rated one against another, and how
they fall into three groups. It is significant that this formula excludes Russian
from even the lowest group because the supply of Russian language officers
exceeds the need, while, for example, Persian is boosted in importance because of
the great dearth of Persian language specialists.
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ger'
"TABLE I.?Application of language gradation scale to specific languages
Language
Factors relating to personal and career
motivation (50)
Factors relating to
needs of the Service (50)
Total
points
(100)
Language
difficulty
(30 points)
Number of
countries
(5 points)
Number of
positions
(10 points)
Post con-
ditions
(5 points)
Skills
shortage
(30 points)
Applicant
shortage
(20 points)
Albanian
?
1-1 0 0 0 0 1--L E?L 1?, 0 10 Ca Ca 0 1--1 0 1-1 0 Cal 0 CC OD
CDDCDODOZ0,4,00000000.:0000D0C400,00C0400000C.CD
5
10
4
CO CD 0 CD 0 CD OCO DC VP cO 0
g
0
0 >
4=k 0
0 0
0 0
0 4=k
IV 0
0 0
0 0
0 IV
cn 0
6
) )
0
0
01
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D. Creditable service
1. LWOP
2. District of Columbia em-
ployment.
3, Transfer of funds
E. Officers recalled or reinstated
F. Reemployment of annuitants
in an order of precedence to
widow, children, parents,
etc.
Includes:
Leave of absence without
pay granted during
covered employment
while performing active
honorable military serv-
ice.
Leave of absence without
pay granted during cov-
ered employment while
receiving FEC benefits.
Civilian employment with
District of Columbia gov-
ern_ment.
No provision
No provision exactly com-
parable.
Any annuitant reemployed
after retirement for age or
based on voluntary separa-
tion or an involuntary sep-
aration for cause, or if retired
for disability and is age 60
or over at the time of reem-
ployment, retains his full
annuity, but the salary of
his position must he reduced
by the amount of annuity
received.
ence: Designated benefici-
ary or beneficiaries; execu-
tor or administrator of
estate of participant; such
person or persons as may
be legally entitled thereto
in the judgment of the
Secretary.
Includes:
Leave of absence for active
military or naval service.
No provision
do__
do
Recomputation of annuity of
an officer recalled in the
Service and retired a second
time.
No provision (Foreign Service
annuity is suspended if
reemployed in the Federal
Government).
8.51
812
852
871
872
in an order of precedence to
widow, children, parents,
etc.
Inserts the phrase "and hon-
orable" in relation to mili-
tary and naval service.
Includes leave of absence
granted during covered em-
ployment while receiving
FEC benefits.
Includes civilian employment
with District of Columbia
government.
Provides for direct transfer to
FSR fund of all regular
contributions (with interest)
made by officer or employee
to other Government retire-
ment system under which
previously covered. Funds
transfer discharges other
system of all benefit obliga-
tions based on service in-
volved.
Simple es the language of
existing legislation.
Provides that reemployed
Foreign Service annuitants
receive full salary of the
position appointed plus por-
tion of their annuity which
when added to the salary
would equal the base salary
received at time of retire-
ment from the Foreign
Service.
FSR same as CSR.
Do.
Do.
At present persons becoming
participants in FSR system
may purchase prior service
credit by making . a special
contribution to FSR fund for
such amount of service credit
as they elect to purchase.
The new provision provides
for the automatic 'transfer of
contributions in another
Government system to the
FSR fund when a person
becomes a participant in the
FSR system by transfer from
other Government service.
Clarifying change in FSR pro-
visions.
FSR provides for potential
higher combined income for
ieemployed Foreign Service
annuitants and provides
authority to reemploy FSO
retired for age.
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Approved kgli Releamagme4g7TiipliAapplpiumhoomoo20005-9
SECTION 33 (SEC. 803 OF THE FOREIGN SERVICE ACT)
1. Wfiy is. the Department proposing that certain Foreign Service Staff officers
and employees be mandatorily covered by the Foreign Service retirement system?
At the present time Staff personnel are covered by the civil service retirement
system. The Foreign Service retirement system is designed to give recognition
to the need for an earlier retirement age for career Foreign Service personnel who
spend the majority of their working years outside of the United States, withstand-
ing the rigors of moving and adjusting themselves and their families to new work-
ing and living situations every few years. Participation in this system is now
limited to Foreign Service officers and to a few noncareer ambassadors who have
served for periods of 20 years or more. It is apparent that Staff personnel who
make a career in the Foreign Service are subject in large measure to the same con-
ditions of service as Foreign Service officers. Under the Secretary's integration
program, many Staff officers and employees were integrated as Foreign Service
officers. Approximately 400 Staff officers, however, have been unable to qualify
for lateral appointment as Foreign Service officers due primarily to their inability
to meet prescribed age requirements. A recent study of Staff personnel in classes
FSS-1 through FSS-i1, inclusive, indicate that there are about 475 Staff officers
and employees in those classes who have served 10 or more years in the Foreign
Service.
In many instances Staff officers and employees who have relatively long periods
of service in the Foreign Service may desire to retire voluntarily with full annuity
at the earlier age permitted under the Foreign Service retirement system. In
some cases, it would be in the interest of the Service and of individual officers
and employees if the Foreign Service retirement system's mandatory provision
for retirement at age 60 were made applicable to Staff personnel. The need for
encouraging somewhat earlier retirement, which is recognized in the case of
Foreign Service officers, is also significant in the case of certain Foreign Service
Staff officers and employees. The proposed revision would also increase promo-
tion opportunities for younger Staff personnel.
The purpose of the amendment to section 803, therefore, is to provide that
Foreign Service Staff personnel who have completed, and who will hereafter
complete, 10 years of continuous service in the Foreign Service shall become
participants in the Foreign Service Retirement and Disability System. Provision
is made for the retirement of officers and employees who are above mandatory
retirement age at the time they become participants in the system.
2. The proposed amendment to section 808(c) will change the mandatory retirement
age for Staff personnel now covered by the civil service retirement system from age 70
to age 60. Will this earlier retirement not result in hardships in some cases? What
is the attitude of the Staff personnel toward the proposed change?
Most people have discharged their heaviest financial obligations to their families,
particularly their children, by the time they have reached age 60. Frequently
having only themselves and their wives to support, they are in a position to
retire on annuities considerably lower than the salary they are earning at the time
of retirement. It is not believed that in most cases any real hardship will result
from earlier mandatory retirement although it is recognized that some employees
affected by this provision would work until age 70 if permitted to do so. A
significant number of the group who will be affected have been consulted, and
attitude of the majority is that they hope that the proposed change can be accom-
plished. Many older women in the Staff (whose ages range from 50 to 60) would
welcome the opportunity for voluntary retirement provided by the amendment.
Most men in their early sixties when informed that the delayed effective date
(approximately 1 year after the effective date of the act) would allow an interval
of from 2 to 5 years before mandatory retirement, have favored the proposal.
Many employees below age 60 would welcome the opportunity to retire at earlier
age on a full annuity. A special plan has been proposed to provide financial
assistance for those who are mandatorily retired during the first 5 years after this
provision becomes effective. This plan for financial assistance would also servo
as an incentive for the earlier voluntary retirement of certain of the older FSS.
personnel.
3. What are the present mandatory and voluntary retirement ages for Foreign.
Service Staff offic--s and employees?
Retirement for ?oreign Service Staff officers and employees is mandatory at
age 70 if the in -lividu.,l has coml. leted 15 years of service or as soon thereafter
as he has completel 15 years of service. Retirement on full annuity for Foreign
Service Staff officers and employees is voluntary at age 60 with 30 years service,
at age 55 with a reduced annuity.
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4. Will Foreign Service Staff who do not yet have 10 years of service subsequently
be included in the Foreign Service retirement system as soon as they have completed
10 years of service?
Yes. The purpose of excluding those with less than 10 years service is to insure
that only those officers or employees who are planning to make the Foreign Service
their career are included under the Foreign Service Retirement and Disability
System. A large percentage of Staff personnel serve only one, two or at the
most three tours of duty, chiefly as clerks and stenographers. The Service
attracts clerical personnel who desire to serve abroad briefly before they settle
down in the United States. These people are an essential part of the Foreign
Service but their replacement after limited periods of employment is not a serious
problem. Their inclusion in the Foreign Service Retirement and Disability System
for limited and temporary periods is not desirable. In many instances, they are
employees who come from and return to positions under the civil service retire-
ment system, and in such eases there is no point in transferring their participatipil
from the civil service retirement system. to the Foreign Service retirement system,.
5. Is the Department satisfied with the provisions of subsection 803(c)(3) regarding
mandatory retirement for those over age 61?
The Department is not entirely satisfied with these provisions and is proposing
a change in paragraph 3.
The new subsection 803(c) (3) is the outgrowth of Senate committee hearings
and relates by reference to the applicability of subsection 803(c) (1) which provides
for the mandatory transfer to the Foreign Service retirement system of all
Staff personnel on completion of 10 years of continuous service, and subsection
803(c) (2) which provides for the retirement on a gradual scheduled basis
over a 5-year period of Staff personnel who will be retired above the normal
Foreign Service retirement age. These new earlier retirement provisions will
become effective 1 year after enactment of this bill.
The latter provision will bring about the earlier mandatory retirement of 93
Staff officers and 64 clerical employees (by periods varying from a few months to
10 years) than would be required were they continued as participants in the civil
service retirement system. The Staff officers were unable to qualify for lateral
appointment as Foreign Service officers because of age and other factors. The
clerical employees have reached the limit of their potential. Most of these em-
ployees are age 60 or older and all are more or less marking time pending retirement.
Since the accelerated retirement of older Staff personnel is considered to, be
in the best interests of the Service and the Government, subsection 803(c) (3)
was intended to give these older Staff employees some kind of financial aid, in
addition to the annuities to which they are entitled, in recognition of possible
hardship which would be imposed upon them by earlier mandatory retire-
ment. Also, it was intended to provide other older personnel a financial
incentive for earlier voluntary retirement. Without benefit of opportunity for
detailed study of its possible disadvantages and/or inequities, a financial aid plan
similar to that provided Foreign Service officers who are selected out appeared
to be the most feasible and equitable.
This provision, as written into the bill, will provide a lump-sum payment of
one-twelfth of the current yearly salary for each year of service not exceeding a
total of 1 year's salary to older Staff employees who (a) are age 61 or older when
they become participants in the Foreign Service retirement system, and (b) are
retired mandatorily as prescribed in the gradual retirement schedule.
Projection studies made subsequent to the passage of S. 2633 by the Senate of
the benefits accruing to individual employees under this provision reveal that
failure to relate the proposed financial aid to age when retired, the number of
years earlier that retirement takes place, and losses sustained in terms of salary
and additional retirement benefits by the employee, will result in serious inequities.
Specifically, one-third of the older Staff employees, although equally deserving,
would be ineligible for financial aid. All eligible employees would receive a full
year's salary. A Staff officer mandatorily retired at age 69% years would receive
the same financial aid as the Staff officer who would be retired at age 61. Further,
the Staff officer would in effect receive his full salary until age 703/ years, and
maximum retirement benefits, whereas in the case of the employee age 61, v ith
say an annual salary of $6,000, would lose 8 year's salary and 9 years of accrued
retirement benefits equating to $1,080 per year. Additionally, restricting this
financial aid to mandatory retirement would encourage Staff personnel to remain
on the rolls who otherwise might be planning voluntary retirement at an earlier
age.
The inequities were found to be of sufficient number and importance to warrant
consideration of alternative financial aid plans. After further study, a modification
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of this section which fully carries out its original intent is indicated. This modifi-
cation would extend financial aid eligibility to the 157 Staff employees who will be
(a) age 57 or older when the provisions of this section become effective, and (b) over
age 60 when mandatorily retired. The,fortM4 provides 4apeia1 aid based upon
the number of years that earlier retirement takes place. The Department,
therefore, requests a change in this subsection in accordance with the redraft it
has submitted to the committee.
SECTION 34 (SEC. 804 OF THE FOREIGN SERVICE ACT)
1. What changes in law does this section make?
Amended section 804(a) provides that in addition to former participants and
their widows, children and dependent widowers may now become annuitants under
the Foreign Service Retirement and Disability System. At the time of enactment
of the Foreign Service Act of 1946, annuity benefits for children and dependent
widowers were not generally included in the provisions of Federal retirement sys-
tems. Since that time, however, improvements in the various other Federal
systems have resulted in provisions for automatic benefits for surviving dependent
children and dependent widowers and in elective benefits for surviving husbands.
New paragraph 804(b) provides definitions of the terms "widow," "dependent
widower," and "child" in order to clarify the use of these terms in title VIII of
the Foreign Service Act of 1946, as amended.
2. Is it necessary to include "dependent widower" in this bill?
During recent years an increased number of women have become Foreign Service
officers. It is the Department's view that provision should be made for survivor-
ship benefits for dependent widowers, and for women participants to be able to
elect at the time of retirement a reduced annuity, to provide survivorship benefits
for their husbands. Such improved benefits as these will bring the Foreign
Service Retirement and Disability System into line with other Federal retirement
systems.
SECTION 35 (SEC. 811 OF THE FOREIGN SERVICE ACT)
1. What is the present condition of the Foreign Service retirement fund?
There is attached a balance sheet submitted to the Department by the Secretary
of the Treasury on January 20, 1960.
2. What will be the effect on it of the provisions of this section, i.e. an increase in
contribution from 5 to 6% percent and a contribution to the fund from regular
appropriations?
An increase in the mandatory contribution is necessary in order to provide for
the increase in benefits provided by the proposed revisions in title VIII. It is
estimated that the improved survivor benefits (i.e. for widows, dependent widowers
and children) will require an increase in each participant's contribution of 11/4
percent of basic salary and a matching contribution of 63/4 percent by the Govern-
ment. The requirement that the Department make this matching contribution
from the respective appropriation or fund which is used to pay the salary of a
participant will help to keep the fund in financial balance. Under existing pro-
visions the Department must seek a separate annual appropriation for the fund.
It has seldom received the amount requested and for a number of years (1950-56)
no appropriations for this purpose were approved.
8. Will this increase the State Department appropriation bill?
It is estimated that this provision for a matching contribution by the Depart-
ment will increase the Department's appropriation bill by approximately $2,500,-
000. Since, however, the Department's budget estimate for fiscal year 1961 has
already been submitted the Department is suggesting that the effective date of
this provision be changed to July 1, 1962.
?
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Approved For RelenalieDMIOrp0/217Hi,. FOREIGN1 l Ps Tt-pd 7A2jA000199020005-9
Balance sheet, Foreign Service retirement system-Valuation at 4 percent, as of
Dec. 31, 1958
'tow
LIABILITIES (PRESENT VALUE)
Existing retired roll:1
Service annuitants
$26,
287,
000
Disability annuitants
811,
000
Survivor annuitants
3,
228,
000
Prospective survivor annuitants
Prospective annuities to present active members:1
1,
698,
000
Service annuitants
181,
629,
000
Disability annuitants
Prospective annuities to survivors of present active members:1
6,
845,
000
Service annuitant survivors
11,
079,
000
Disability annuitant survivors
1,
647,
000
Death in service survivors
Prospective return of past contributions to present active members:
10,
150,
000
On death in service
234,
000
On withdrawal
Prospective return of past voluntary contributions to present active
315,
000
members
Prospective return of future contributions to present active members:
717,
000
On death in service
516,
000
On withdrawal
Prospective lump-sum and deferred annuity selection-out benefits
442,
000
to present active members, classes 4 to 7
511,
000
Total
ASSETS (PRESENT VALIIE)
246,
109,
000
Funds in hand
Prospective contributions by present active members (5 percent of
26,
071,
000
future payroll)
Prospective contributions by present active members for outside
24,
762,
000
Noe
service (ft 19 percent of future payroll)
Prospective normal premiums by Government with respect to pres-
1,
040,
000
ent active members (15.69 percent of future payroll)
77,
703,
000
Unfunded liability
116,
533,
000
Total
'Includes selection-out benefits, classes 1 to 3.
246,
109,
000
ire
SECTION 36 (SEC. 821 OF THE FOREIGN SERVICE ACT)
1. Can you give an example or two of the advantages to participants in the Foreign
Service retirement system under the proposed amendments to section 8211
Examples of the advantages to participants of the proposed formula for computing
joint and survivorship annuities
CASE A-FSO-1
Average salary for highest 5 years of service
Annuity (2 percent, times 35 years of service)
EXISTING
$16,
PROPOSED
000
11,200
Maximum survivor annuity__ $4,
000
Maximum survivor annuity____ $5, 600
Cost to officer 2,
000
Cost to officer (TA percent of
$2,400 equals $60; 10 percent
of $8,800 equals $880)
940
Officer's reduced annuity
Maximum surviving annuity
9,
200
Officer's reduced annuity
Maximum surviving annuity
10,
260
payable to a dependent child_
0
pays' le to a dependent child:
With surviving parent_ _ _ _
600
With no surviving parent
720
'50464 60- - 11
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Approved For Release 1999/08/27 : CIA-RDP78-03721A000400020005-9
158 AMENDMENTS TO THE FOREIGN SERVICE ACT
CASE B-FSO-3
Average salary for highest 5 years of service
Annuity (2 percent times 30 years of service)
EXISTING
Maximum survivor annuity__ $3, 000
Cost to officer 1, 500
Officer's reduced annuity 5, 700
Maximum surviving annuity
payable to a dependent child.. 0
CASE C 1SO-6 (OFFICER AGE
PROPOSED
$12, 000
7, 200
Maximum survivor annuity__ $3, 400
Cost to officer (23 percent of
$2,400 equals $60; 10 percent
of $4,800 equals $480) 540
Officer's reduced annuity 6, 660
Maximum survivor annuity
payable to a dependent child:
With surviving parent_ _ 600
With no surviving parent 720
50, VOLUNTARY RETIREMENT)
Average salary for highest 5 years of service
Annuity (2 percent times 20 years of service)
EXISTING
Maximum survivor annuity____ $1, 400
Cost to officer 700
Officer's reduced annuity 2, 100
Maximum surviving annuity
payable to a dependent child_ 0
PROPOSED
$7, 000
2, 800
Maximum survivor annuity____ $1, 400
Cost to officer (2Y2 percent of
$2,400 equals $60: 10 percent
of $400 equals $40)..
Officer's
Officer's reduced annuity 2, 700
Maximum surviving annuity
payable to a dependent child:
With surviving parent _ _ _ _ 600
With no surviving parent_ 720
CASE D FSO-7 (DEATH IN SERVICE AT AGE 40 WITH 10 YEARS OF SERVICE)
Average salary for highest 5 years of service $6, 000
Annuity (2 percent times 20 years of service) 2, 400
EXISTING
Maximum survivor annuity____ $1, 200
Maximum surviving annuity
payable to dependent child__ 0
PROPOSED
Maximum survivor annuity____ $1, 200
Maximum surviving annuity
pa, able to a dependent child:
With surviving parent_ ___ 600
With no surviving parent_ 720
CASE E FSO-7 (DISABILITY AT AGE 35 WITH 6 YEARS OF SERVICE)
Average salary for highest 5 years of service
Annuity (2 percent times 20 years of service)
$6, 000
2, 400
EXISTING
Maximum survivor annuity____ $2, 100
Cost to officer 600
Officer's reduced annuity 1, 800
Maximum surviving annuity
payable to a dependent child_ 0
2. Flow close do the provisions of this
system?
They are essentially identical except for the 2 percent factor in the computation
of annuities, and the 35-year maximum service credit.
PROPOSED
Maximum survivor annuity____ $1, 200
Cost to officer (2 percent of
$2,400) 60
Officer's reduced annuity 2, 340
MP XiM um surviving annuity
payable to a dependent child:
With surviving parent_ _ 600
With no surviving parent_ 720
section come to the civil service retirement
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SECTION 37 (SEC. 831 OF THE FOREIGN SERVICE ACT)
1. Approximately how many officers are retired annually for disability?
An average of two participants in the Foreign Service Retirement and Disability
System are retired for disability annually. Less than 30 participants have been
retired for disability since the enactment of the Foreign Service Act of 1946.
2. Are such Foreign Service annuitants subject to an annual physical examination
as are the military?
Yes. They are subject to an annual examination if their disability is not
considered "permanent."
3. Subsection (a) limits additional service credit to the difference between age at the
time of retirement for disability and the mandatory retirement age applicable to his
class in the Service. What is the mandatory retirement age of each class? How has
that been established?by regulation?
Foreign Service officers of class 1 and below are retired mandatorily at age 60;
career ministers and career ambassadors are retired mandatorily at age 65. This
has been established by law (secs. 631 and 632 of the Foreign Service Act).
4. What benefits would participants in the Foreign Service retirement system have
as a result of the language in section 831(b)?
The proposal will enable a recovered disability annuitant to be reinstated or
reappointed in the Service. Existing provisions of section 831(b) (possibly through
oversight when the Foreign Service Act of 1946 was drafted), do not now authorize
the reinstatement of a recovered disability annuitant nor do they give him any
continued benefits under the Foreign Service retirement and disability system.
The amendment proposes that a recovered disability annuitant shall be given an
opportunity to be reinstated in the Service. It further provides that in the event
a recovered disability annuitant is, for any reason, not reinstated, he shall be
given the opportunity to receive an immediate annuity if he is at that time qualified
for voluntary retirement; or in lieu of a refund of any contributions in the Fund
remaining to his credit, he may elect to receive a deferred annuity upon reaching
age 60.
5. Can a participant who is retired for disability after 5 years of service take a
reduced annuity and provide thereby for his surviving wife to receive an annuity in the
event of the participant's death?
Yes. Section 831 provides that such a participant retired for disability shall
receive an annuity computed as prescribed in section 821. Section 821 provides
either a full or a reduced annuity in accordance with the participant's election
with respect to a survivorship annuity for his wife (or her husband). If the
participant has served over 5 years but less than 20 years, his annuity shall be
computed on the assumption that he had served 20 years except the additional
credit shall not exceed the difference between his age at time of retirement and
the mandatory retirement age applicable to his class.
6. How do the benefits conferred by the language in section 37 compare with those
of the civil service retirement system?
The benefits provided by section 37 compare favorably with those of the civil
service retirement system in these respects:
(a) The civil service system, in disability retirement cases, guarantees (with at
least 5 years of civilian service credit), a minimum annuity of 40 percent of a
participant's high 5 years' average salary, or his earned annuity by increasing
years to age 60, whichever is lesser.
(b) Under the formula proposed in section 37 a participant who is retired for
disability with more than 5 but less than 20 years of service, would receive credit
for 20 years' service in most cases. He would not receive additional service credit
which would exceed the difference in his age and the mandatory retirement age
for his class.
Examples:
FSO-3 mandatory age 60
Age 40
Actual service 6 years
Free service credit 14 years
FSO-3 mandatory age 60
Age 50
Actual service 6 years
Free service credit 10 years
Therefore, cases would vary; but in general, benefits would compare favorably
with those of the civil service retirement system.
7. Are Foreign Service personnel covered by the Federal Employees' Compensation
Act?
Yes.
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8. Explain how the provisions of the Federal Employees' Compensation Act would
be applicable to Foreign Service personnel under the language proposed in section
37(b), which would add sections (d) and (e) to section 831.
New section 831(d) allows an employee, or a survivor, to receive benefits
resulting from line of duty disability retirement, or death, from either the Federal
Employees' Compensation Act or the Foreign Service retirement and disability
system, at the election of the person who will receive the benefits. Sometimes,
it is more advantageous to the beneficiary to take the survivor's annuity (Foreign
Service retirement); in other cases, it is more advantageous to the beneficiary to
take the survivor's compensation (Federal Employees' Compensation Act).
In the case of a young widow, she might elect to take the survivor's annuity under
the Foreign Service retirement system, even though it might be smaller, since it
does not terminate upon remarriage. This section is substantially the same as
section 7(f) of the Civil Service Retirement Act.
New section 831(e) is substantially the same as section 7(g) of the Civil Service
Retirement Act. Under the Federal Employees' Compensation Act, in certain
circumstances, the Administrator of the Bureau of Employees' Compensation,
may make a lump-sum settlement in case of death, permanent total or permanent
partial disability. As an illustration, let us say that a participant in the Foreign
Service retirement system sustained in line of duty a permanent partial dis-
ability?loss of an arm. The normal payment for this loss would be 312 weeks'
compensation. If the Administrator determined that this should be paid in
lump sum (sec. 14 of the Federal Employees' Compensation Act) equal to the
value of future payments, he could so discharge the Government's liability.
Then, if it should develop that the employee is retired for disability (the same
disability) under the Foreign Service retirement system, the amount of the lump
sum representing any period extending beyond the effective date of the disability
annuity under the Foreign Service Retirement Act, would have to be refunded
to the Department of Labor.
9. A bookkeeper (civil service) is working in a Navy yard--he steps out of his
office and is struck by a flying bolt and is killed. What are his widow's benefits
under the Employees' Compensation Act, and what does it do to his widow's benefits
under the Civil Service Retirement Act? Same question: If a Foreign Service person
is killed in line of duty, what does it do to the widow's benefits under the Foreign
Service retirement system?
Let us assume that our bookkeeper is covered by the Ci-11 S g-s ice Retirement
Act (or the Foreign Service retirement system); that he has 15 years of creditable,
Federal service--no military service was 35 years old at time of death, survived
by widow age 33, no children, st time of death his salary rate was $7,500, and
had been married to the surviving widow for inoie than 3 years. His death was
determined to be in line of duty. His average high salary for 5 years is $6,000.
(a) Benefits ur der Civil Service Retirement Act.--His widow would be entitled
to a survi :or annuity, until death or remarriage. The annuity would be based
on actual service, computed as follows:
1%X 5 years X $6,000_ $450. 00
15/4X 5 years X $6,000 525. 00
2X 5 years X $6,000 600. 00
Total 1, 575. 00
I $1,575 divided by 2?$787 or $65 per month.
(b) Benefits under Foreign Service retirement system.?His widow would be
entitled to a survivor annuity until death. The annuity would be based on
presumed service of 20 years, as follows: 2X20 years X 86,000=82,400 divided
by 2= $1,200 or $100 per month.
(c) Benefits under Federal Employees' Compensation Act.?HiQ widow would be
entitled to survivor compensation benefits until death or remarriage, based on
45 percent of his monthly salary (but not to exceed $525). His monthly salary
was $675. His widow's compensation benefit would be $281 per month.
Survivor annuities (Civil Service Retirement Act) and survivors' compensa-
tion benefits (Federal Employees' Compensation Act) are not payable concur-
rently if based on the death of the same employee, except v here a v iclow is being
paid the balance of a "scheduled" compensation award due the deceased employee.
In such a case, the widow may receive the survivor annuity (civil service retire-
ment) and compensation award concurrently.
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A "scheduled" compensation award occurs when an employee files claim for
a permanent disability (loss of or loss of use of a member, eye, arm, etc.) and dies
vuore of other causes before the entire amount due for such schedule is paid.
In the case of the bookkeeper's widow, she could elect to receive the benefits
of the Federal Employees' Compensation Act, which would be more than either
of the retirement systems; however, as pointed out above, if she were the widow
of a Foreign Service participant and had in mind the fact that remarriage would
not terminate the benefits, she might elect the smaller monetary benefit because
of this feature.
10. Compare widows benefits in this same case under the Civil Service Retirement
Act and the Federal Employees' Compensation Act with the existing and proposed
benefits under the Foreign Service retirement and disability system.
Existing legislation
Civil Service Retirement
Act
Foreign Service retire-
ment system
Federal Employees'
Compensation Act
Proposed legislation?
Foreign Service Retire-
ment Act
Widow entitled to sur-
vivor annuity, based on
actual service, until
death or remarriage.
Amount: $05 per month....
Widow entitled to sur-
vivor annuity, based
on 20 years of service,
until death.
Amount: $100 per month_
Widow entitled to sur-
vivor compensation
until death or remar-
riage.
Amount: $281 per month_
Widow entitled to sur-
vivor annuity based on
20 years, until death.
Amount: $100 per month.
SECTION 38 (SEC. 832 OF TIIE FOREIGN SERVICE ACT)
1. The civil service retirement system terminates the annuity of a surviving widow
when she remarries and that of a surviving dependent widower when he becomes
capable of self-support. Why does section 832(0 provide similar treatment for a
surviving dependent widower in the Foreign Service system but with respect to a sur-
viving widow provide that the annuity shall continue until her death?
Wives of Foreign Service officers have always been regarded as making to
material contribution to the successful discharge of their husbands' representa=
tional responsibilities abroad. In addition to the support provided their husbands
in carrying on official entertainment they perform important representational
functions independently by participating in women's organizations and charities
or by teaching English either at the American cultural centers or elsewhere at
the post of assignment. Through these various activities they establish useful
and friendly contacts with important persons who form public opinion in foreign
countries. In effect the officer and his wife are a team working together for thd
Enited States. The surviving widow in a very real sense has earned her annuity
and is entitled to it whether or not she remarries. It is for this reason that both
the existing and the proposed legislation provide for continuation of her annuity
until her death.
The surviving dependent widower of a woman participant who dies in service
is provided with an annuity because he is incapable of self-support by reason of
mental or physical disability. When he becomes capable of self-support he is
no longer entitled to an annuity.
SECTION 39 (SEC. 834 OF THE FOREIGN SERVICE ACT)
r? 1. "Discontinued service retirement" does not appear in existing law. Why is
this section being added?
At the present time a participant in the Foreign Service retirement and din..
ability system who voluntarily separates from the Service prior to becoming
eligible for voluntary retirement is entitled only to a refund of contributions.
Certain participants with 5 years of civilian service credit who are selected-out
may elect to receive deferred annuities.
In sections 634 and 637 the Department is proposing that all officers separated
for cause, if they have 5 years civilian service credit, may elect to receive a
deferred annuity.
The proposed provisions of new section 834 will provide equity of treatment of
officers who voluntarily resign.
A provision of this type is already applicable to participants in the civil service
retirement system.
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SECTION 40 (SEC. 841 OF TEE FOREIGN SERVICE ACT)
1. What is the purpose of this section?
It does two things. First, it prescribes the method for computing interest on
compulsory contributions to the fund. Secondly, it provides for the disposition
of a participant's compulsory contributions (with interest) if the participant
leaves the service without becoming eligible for an annuity, and for the disposition
of any undisbursed balance following termination of the participant's annuity
and/or that of his survivor.
? 2. What are the proposed changes in this section?
One is that the annual compounding of interest is changed from a fiscal to a
calendar year basis. Another change is that if the participant has not designated
a beneficiary, the surviving spouse, the surviving children, and next of kin are
placed in the line of precedence for any undisbursed balance of the participant's
contributions to the fund.
3. What is the advantage of changing the computation and compounding of interest
from a fiscal year to a calendar year basis?
This change will bring the maintenance of the Foreign Service retirement and
disability fund's records into line with records and reports of the civil service
retirement fund, the Federal income tax, and the FICA tax, which are on a
calendar year basis. It will simplify the administration of the fund by providing
a uniform system of controls and records for all retirement and tax deductions,
payrolls, and for the computation of interest on retirement contributions.
4. How can there be a surplus in the fund after an annuity termination?
An annuity terminates for various reasons and at various times. The annuity
of a participant ceases upon his or her death or if retired for disability, 6 months
after recovery from the disability. The annuity of a surviving wife or husband
ceases upon death or in the case of a dependent widower upon his becoming able
to support himself. The annuity of a surviving child ceases upon attainment of
age 18, death, or at the time he becomes capable of self-support. In any of these
cases it is conceivable that the annuity may, through premature death, early
attainment of majority or, self-sufficiency, terminate before the compulsory
contributions are exhausted.
SECTION 41 (SEC. 851 OF THE FOREIGN SERVICE ACT)
1. What does this section do?
The changes made in this section are principally for the purpose of clarifying
existing provisions relating to periods of creditable service used in computing
annuities. The only basic change is to give participants full service credit toward
retirement while they are on leaves of absence during which they receive benefits
from the Bureau of Employees Compensation (line of duty injuries, et cetera).
SECTION 42 (SEC. 852 OF THE FOREIGN SERVICE ACT)
1. Why is the Department proposing that contributions to other Federal retirement
systems be automatically transferred to the Foreign Service Retirement and Disability
Fund when a person becomes a participant by direct transfer from another Federal
retirement system?
During the integration program, initiated in 1954, large numbers of Foreign
Service Staff personnel and Department officers and employees were appointed as
Foreign Service officers. At that time the Department experienced considerable
difficulty in getting these people continuity of retirement coverage to protect them
and their families in case of death in service. The rather cumbersome procedure
involving the issuance of a refund from the civil service retirement system and
the redeposit of such refund into the Foreign Service Retirement and Disability
Fund not only brought about delays which resulted in lateral appointees losing
the death and disability protection provided by the civil service retirement system
before being covered by the Foreign Service system but also on the basis of deci-
sions by the Bureau of Internal Revenue resulted in their having to pay income
tax on the amounts of such refunds which represented accrued interest on deposits.
Although the bulk of the integration program has been completed, persons now
covered by other Federal retirement systems will continue to be appointed as
Foreign Service officers. Staff personnel brought into the Foreign Service Retire-
ment and Disability System under the proposed amendment to section 803 will
also be required to transfer contributions from the civil service retirement and
disability fund to the Foreign Service Retirement and Disability Fund. Provision
for the automatic transfer into the Foreign Service Retirement Fund of contribu-
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tions to other Federal retirement systems will not only provide continued protec-
tion for the employees involved but will simplify accounting and recordkeeping
in connection with such transfers.
2. Why does the Department propose in its amendment to section 852 that no
officer whose contributions are transferred to the Foreign Service retirement fund
from another Federal retirement fund shall be required to make contributions in
addition to those transferred for periods of service for which full contributions were
made and that no refund shall be made to any such officer on account of contributions
made to the other Government retirement fund at rates higher than those required by
,the Foreign Service system?
Normally, the amount transferred into the fund from other retirement funds
closely approximates the sums that would have been deposited into the Foreign
Service retirement fund had the employee served during the full period of credit-
ble service in that system. In order to avoid income tax liability for interest
accrued on contributions made to other retirement funds, it is not possible to
refund any part of the contributions and consequently it is not believed that
additional contributions would be justified.
SECTION 43 (SEC. 855 OF THE FOREIGN SERVICE ACT)
1. What does this section do?
This will benefit persons who retired prior to July 1956 with more than 30 years
,of service, but who, because of the law in effect at the time of retirement, were
allowed to count only 30 years.
Public Law 828, 84th Congress, amended section 821(a) by increasing from 30 to
35 the number of years of creditable service that may be used in the computation
of annuities. It is believed that through oversight this provision was not at that
time made applicable to former participants in the system who had retired with
more than 30 years of creditable service but whose annuities had been computed
on the basis of only 30 years' service. This proposed temporary section will
make it possible to recompute the annuities of all former participants in the system
who did not receive the full benefit of their creditable service at the time of their
retirement. The provision is applicable only to former participants and does not
apply to surviving annuitants.
SECTION 44 (SEC. 871 OF THE FOREIGN SERVICE ACT)
This is a perfecting amendment.
SECTION 45 (SEC. 871 OF THE FOREIGN SERVICE ACT)
1. Does an annuitant recalled from retirement now have the right to make a new
,election regarding annuity benefits?
No. A participant must at the time of initial retirement elect either to receive
a full annuity or to provide a survivor annuity by taking a reduction in his
annuity. This election may not thereafter be changed.
2. Under the proposals would the recall of a participant under the provisions of
section 520(b) or the reinstatement or reemployment of a participant under the pro-
visions of section 831(b) ever affect the annuity of a survivor?
Yes. The annuity of a survivor could be increased because of added service
credit and possibly an overall higher 5 years average salary. Or, upon retirement
after recall, a new election could be made to provide for a survivor or to change
an election with respect to amount.
SECTION 46 (SEC. 872 OF TILE FOREIGN SERVICE ACT)
1. How do the provisions of subsection (a) compare with reemployment compensa-
lion of persons retired under the Civil Service Retirement Act?
Civil service annuitants reemployed in the Federal service, generally, continue
to receive their annuities, but may only receive as salary the difference between
their annuity and the salary of the position to which appointed.
Under the proposed provision of section 872(a) a Foreign Service annuitant
reemployed in the Federal Government would receive the full salary of the position
to which he is appointed plus such portion of his annuity as will, when added to
the salary he is receiving, equal, during any calendar year, the salary he was receiv-
ing at the time of retirement from the Service.
2. Does this provision have the approval of the Bureau of the Budget?
This proposed provision has the full approval of the Bureau of the Budget.
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3. Can annuitants under the Foreign Service retirement and disability system now
be reemployed in the Federal Government and continue to receive all or part of their
annuities?
No. Generally annuitants under the Foreign Service Retirement and Dis-
ability System who are reemployed in the Federal Government have their annu-
ities suspended during the period of such reemployment. The one exception of
which we are aware is that found in section 532 of the Mutual Security Act which
permits the reemployment in very limited circumstances of retired Foreign
Service officers and receipt of annuity concurrently with compensation for serv-
ices rendered.
This pr pp osed provision will permit the reemploy-ed Foreign Service annuitant
to be fully compensated for the position to which he is appointed as well as to
receive a portion of his annuity to make possible restoration of his earnings to the
level of his salary at the time of retirement.
Under this proposal there is an added incentive for retired officers to seek re-
employment in the Federal Government and in many instances there will be a
saving in the retirement fund during the time of such reemployment because the
employing agency will pay the full amount of the salary of the position to which
the annuitant is appointed (rather than only a portion of it as is the case under the
Civil Service Retirement Act). If the salary of the reemployed annuitant equals
or exceeds his formee salary as a participant he would receive no annuity payments
during the period of employment. Further, such reemployed annuitant has an
opportunity to make contributions to the retirement system covering his employ-
ment and thus he may be able to build up credit toward a second annuity.
SECTION 47 (SEC. 881 OF THE FOREIGN SERVICE ACT)
1. What is the purpose of this section?
Section 881, as is also the case with a proposed amendment to section 841, will
establish the accounting system for the Foreign Service Retirement and Dis-
ability Fund on a calendar-year basis instead of on a fiscal-year basis as is now
required. At the present time records and reports pertaining to the Federal
income tax, the FICA tax, and the civil service retirement fund are all maintained
on a calendar-year basis. The fact that the Foreign Service Retirement and
Disability Fund has to be maintained on a fiscal-year basis has necessitated a
separate system of recordkeeping involving separate reports on this system.
This proposed amendment will simplify the administration of the Foreign Service
Retirement and Disability Fund and will result in savings in the cost of admin-
istering the system.
SECTION 48 (SEC. 912 OF THE FOREIGN SERVICE ACT)
1. Can you estimate the possible savings in transportation costs that would result
from the adoption of this section?
The attached tables indicate the maximum weight allowances that are applicable
to Foreign Service officers and employees who are assigned to posts abroad. Table
I shows the maximum weight allowance applicable to those employees moving
into unfurnished quarters abroad (Government-owned or privately leased) and
table II shows the maximum weight allowance when such quarters are completely
furnished.
If basic furniture and appliances were supplied to 80 percent of the personnel
assigned abroad and Foreign Service officers and employees were authorized to
make nominal shipments only as outlined in table II resultant savings would
approximate $510,000 a year (for the transportation of furniture and appliances
for above employees).
2. Why is there a need for this broadened authority?
Section 912 of the Foreign Service Act of 1946, as amended, authorizes the
Secretary to provide officers and employees of the Service with household equip-
ment to use on a loan basis in personally owned or leased residences as a means of
eliminating transportation costs.
This language and the legislative record raises a question as to the Department's
authority to provide basic articles of furnishings such as divans, dining room furni-
ture, etc., as distinguished from equipment items such as "refrigerators," the
example used in the House Report No. 2508, 79th Congress, 2d session, for "heavy
articles of household equipment," which the Government should lend instead of
transporting as personal effects.
Experience has proved that it is in the interest of the Government to establish a
clear legislative basis for providing basic furnishings in privately leased quarters
Ofib
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which would not be subject to any misinterpretations where such quarters and
furnishings are available. Sayings in transportation costs resulting from the
furnishing of divans, dining room furniture, and other heavy furniture can equal
or exceed savings which result from the provision of such items as refrigerators,
stoves, and other appliances.
TABLE I.?Maximum weight allowances effective Aug. 17, 1953
With family
No family
Pounds
Pounds
$12,830 and over
18, 000
11,000
88,540 to $12,830
16, 000
10, 000
$5,735 to $8,539
13, 500
9,000
$4,285 to $5,754
10, 000
7,000
Below $4,295
7,000
4,000
TABLE II.?Normal shipment allowed when quarters are completely furnished,
effective Apr. 21, 1954
With family
No family
Pounds
Pounds
$12,830 and over
4, 600
2, 750
$8,540 to $12,830
4, 000
2,500
$5,735 to $8,539
3, 375
2, 250
$4,285 to $5,754
2, 500
1,750
Below $4,295
1, 750
1, 000
Per Jan. 1, 1960.
SECTION 49 (SEC. 913 OF TIIE FOREICN SERVICE ACT)
1. Is there any intention to include motorboats under the term "motor vehicles"?
No.
2. Why does the Department need specific authority to replace motor vehicles?
Under existing authority the Department authorizes the transportation at
Government expense of a privately owned vehicle to a post of assignment only
once during a tour of duty abroad. From time to time it is necessary for Foreign
Service personnel to replace these motor vehicles at posts having adverse climatic
and road conditions which materially lessen the useful life of an automobile.
3. How does this section compare with the provisions in the Overseas Differentials
and Allowances Act which passed the House in the last session?
The most important difference is that the Overseas Differentials and Allowances
Act limits the replacement of motor vehicles to once in 4 years. The provision
in S. 2633 gives the Secretary authority to use his discretion in the replacement
of motor vehicles.
S. 2633 contains an amendment to section 913 of the Foreign Service Act.
H.R. 7758 amends that same section.
Basically there is no difference in the effect of these amendments. Each
authorizes transportation of motor vehicles, rather than automobiles only, and
each authorizes shipment of replacement vehicles. If H.R. 7758 were to be
enacted into law earlier than S. 2633, this provision in the subject bill should be
eliminated. If the reverse situation occurs, and S. 2633 is enacted into law first,
II.R. 7758 would supersede the wording of this provision of S. 2633. This would
be satisfactory to the Department.
4. To prevent any abuse in the sale of motor vehicles that were transported at
Government expense, would the Department agree to language comparable to that in
the overseas differential bill?
The Department would not object to the substitution of language comparable
to that in the Overseas Differentials and Allowance Act.
5. What additional benefits does H.R. 7758, the proposed Overseas Differentials
and Allowances Act, provide for the Foreign Service?
Although this bill is designed primarily to equalize benefits among the American
employees of all Federal agencies serving in foreign countries, it does provide the
following improvements for the Foreign Service along with other groups of
employees.
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(a) Adds for all agencies a new provision to permit payment of "temporary
lodging" allowance for a period not to exceed 1 month immediately prior to
final departure from post;
(b) Adds for all agencies authority to reimburse personnel for unusual
expenses for initial repairs, alteration, and improvement to make sub-
standard dwellings habitable;
(c) Amends for all agencies existing "separate maintenance" allowance to
permit payment if separate establishment is away from the post of assign-
ment and not necessarily outside the country of assignment;
(d) Increases the maximum annual leave accumulation from the present
30 days to 45 days, which is the maximum now available to agencies other
than the Foreign Service.
6. If H.R. 7758 is intended to equalize benefits among employees serving abroad,
why should not title IX, allowances and benefits, of the Foreign Service Act be repealed?
Those portions of title IX which are treated in H.R. 7758 are repealed by that
bill or, in two cases, storage and shipment of automobiles, are rewritten to conform
generally to the authority available to other agencies in the Administrative Ex-
penses Act of 1946.
Most of the provisions of title IX, however, are retained because II.R. 7758 does
not deal with the subjects involved.
7. Indicate the number and the cost involved in the transportation of motor vehicles
by the Department from Washington to post and from post to post during fiscal years
1957, 1958, and 1959. How many of these, if any, were replacement vehicles?
The attached table shows the type of travel orders issued authorizing the
transportation of automobiles, the total number of automobiles shipped at
Government expense, and the cost of these shipments during fiscal years 1957,
1958, and 1959.
The Department authorizes the transportation at Government expense of a
privately owned vehicle to a post of assignment only once during a tour of duty
abroad. The issuance of travel orders authorizing the replacement of motor
vehicles at a post of assignment is prohibited under existing legislation. However, 2
in connection with a permanent change of station an employee may ship an auto-
mobile from the United States to his new post of assignment on a constructive
cost basis.
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Automobiles shipped at Government expense during fiscal years 1957, 1958, and 1959
Type of travel
Fiscal year 1957
Fiscal year 1958
Fiscal year 1959 PO
Total num-
ber cars
shipped
Total cost
Average
cost
Total num-
bar cars
shipped
Total cost
Average
cost
Total num-
bar cars
shipped
Total cost
Average
cost
Appointments
Combined orders, post to post
Combined orders, post to United States
United States to post
Transfers without home leave, post to post
Transfer without home leave, post to United States
Total
216
249
57
254
93
33
$116, 640
136,203
25, 821
134,811
50,466
15,081
$540
517
453
531
542
457
211
235
71
163
79
32
$106, 855
106, 420
23,343
34,752
36,661
10,537
$506
453
333
520
464
329
203
342
156
225
118
55
$103, 677
151,284
52,067
110,130
42,865
21, 108
8511
44234
3
489 VI
363 AP
384
902
478,962
531
791
308,048
466
1,099
481, 131
438 t
Apprond ForARsilgagf0919,9#4412FLiEglekappc18-A3721A000400020005-9
SECTION 50 (SEC. 1021 OF THE FOREIGN SERVICE ACT)
1. What kind of gifts are envisioned in this section?
Although the language of this section is not restrictive, the Department has in
mind particularly gifts of -funds, material, or property for special purposes. For
example, the Ford Foundation recently made a grant to the Service for African
language and area training.
2. Why is there need to broaden authority for the acceptance of gifts by the Secretary?
The Secretary now has authority only to accept gifts for Foreign Service
activities. The revised section 1021 would provide authority to accept and use
gifts on a departmentwide basis. Illustrative of the need for this broadened
authority, the Foreign Service Institute in using gifts for training purposes is
now restricted to training Foreign Service personnel whereas the inclusion of
departmental personnel in the same training programs might be fully justifiable.
Many of the positions in the Department are designated as Foreign Service Officer
positions and they may be occupied by either Foreign Service or departmental
personnel.
SECTION 51 (NEW SECTION THE FOREIGN SERVICE ACT)
1. Have there been any changes in the conversion tables since S. 2633 passed the
Senate?
Section 51 of S. 2633 contains temporary provisions for the transfer of Foreign
Service Staff officers and employees from their present classes and salaries to
classes and salaries under the proposed new 10-class structure. This conversion
table, designed by the Department at the time the amendments to the Foreign
Service Act were proposed in 1958, results in a downward consolidation of two
present classes and the splitting of several classes. While these features presented
no particular problem at the time the conversion table was developed, subsequent
changes in the utilization, status, and population of the Staff suggest the need for
some modification in the conversion table.
The revisions in the conversion table proposed by the Department are essen-
tially technical in nature, in order to (1) avoid splitting classes; (2) provide
somewhat better career ceilings for the bulk of the Staff personnel; and (3) permit
a wider salary range with which to recognize and reward competence and length
of service at career ceilings in lieu of promotion opportunity.
The Department asks that section 51 of S. 2633 be modified to read as follows:
"SEC. 51. Foreign Service Staff officers and employees receiving basic salary
immediately prior to the effective date of this Act at one of the rates provided by
section 415 of the Foreign Service Act of 1946, as amended, shall be transferred to
the new classes established by section 415 of such Act as amended, and shall re-
ceive basic salary on and after the effective date of this Act at one of the new
rates established by section 415 or authorized by section 642, as amended, as
follows:
"Present class and salary rate of section 415 of the For-
eign Service Act of 1946, as amended (1958)
Corresponding new class and salary rate of sec-
tion 415 of the Foreign Service Act of 1946, as
4
amended by this act
Class
Step
Pate
Class
Step
Rate
Amount of
adjustments
FSS-1
5
$13, 160
FSS-1
6
$13, 310
$150
4
12. 830
5
12, 980
150
3
12,480
4
12, 650
170
2
12, 120
3
12,520
200
11, 770
2
51,090
220
FSS-2
5
12, 120
FSS-2
10(L)
12, 375
255
4
11,770
8(L)
11,825
55
3
11, 485
7
11, 550
65
2
11,205
6
11,275
70
1
10,920
5
11,000
80
FSS
5
11, 165
FSS-2
6
11, 275
110
4
10, 885
5
11, 000
115
3
10, 600
4
10, 725
125
2
10,320
3
10,450
130
1
10,030
2
10, 175
145
FSS-4
5
10, 230
FSS-3
9(L)
10, 340
110
4
(J,945
8(L)
10, 065
120
3
9,005
7
9, 790
125
2
9, 380
6
9, 515
135
1
9,095
5
9, 240
145
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"Present class and salary rate of section 415 of the For-
eign Service Ad et 1946, 'is amended (1958)
Corresponding new class and salary rate of sec-
tion 415 of the Foreign Service Act of 1946, as
amended by this act
Class
Step
Rate
Class
Step
Rate
Amount of
adjustments
PSS-5
6
$9, 600
FSS-3
7
$9, 790
$19&
5
9, 315
6
9, 515
200
4
9,030
9,240
210'
3
8815
4
8, 965
150
2
8, 610
3
8, 690
so
1
8, 395
2
8, 418
20
FSS-6
6
8, 755
PSS-4
9(L)
8,800
45
5
8,540
8(L)
8, 575
35
4
8,325
7
8,350
25
3
8, 120
6
8, 125
5
2
7, 905
6
8, 125
220
1
7, 690
5
7,000
210
FSS-7
6
8, 050
FSS-4
6
8, 125
75
5
7, 840
5
7, 900
oo
4
7,630
4
7, 675
45
3
7,415
3
7,450
35
2
7,200
2
7,225
25.
1
6, 990
1
7, 000
10
PSS-8
6
7, 350
FSS-5
7
7, 350
5
7, 140
6
7, 150
10
4
6,025
5
6,950
25
3
6, 710
4
6,750
40
2
6, 495
3
6, 550
53
1
6, 285
2
6, 350
06
FSS-9
6
6, 650
FSS-5
4
6, 750
100
5
6, 435
3
6, 550
115
4
6,220
2
6, 350
130
3
6,005
1
6, 150
148
2
5, 795
1
6, 150
355
1
5, 585
1
6. 150
565
FSS--10
7
6, 175
PSS-6
7
6, 300
125
6
5, 970
6
6, 100
130
5
5, 755
5
5,900
145
4
5, 540
4
5, 700
160
3
5, 400
3
5, 500
190
2
5,260
2
5,800
40
1
6, 115
1
5, 300
185
PSS-11
7
5, 500
PSS-7
7
5, 550
50
6
5, 355
6
5,400
45
5
5,215
5
5,250
35
4
6,070
4
5, 100
so
3
4, 930
3
4, 950
20
2
4, 790
2
4, 800
10
1
4, 650
1
4, 650
FSS-12
7
5, 025
FSS-8
7
5,100
75
6
4, 890
6
4, 950
410
5
4, 745
5
4,800
55
4
4, 605
4
4,650
45
3
4,460
3
4, 500
40
2
4, 320
2
4, 350
50
1
4, 180
1
4, 200
zo
FSS-13
7
4, 580
FSS-9
7
4, 650
70
6
4, 440
6
4,S00
60
5
4, 295
4, 350
65
4
4, 155
4
4,200
45
3
4,010
3
4,050
40
2
3, 870
2
3,000
30
1
3, 730
1
3, 750
20
FSS-14
7
4, 155
FSS-10
8(L)
4,200
48
13
4, 010
7
4, 100
90
5
3, 870
6
3, 900
so
4
3, 730
4
3, 800
70
3
3, 585
2
3, 600
, 15
2
3, 445
3, 500
55
1
3,300
3, 500
200
FSS-15, all rates
3, 090
FSS-10
1
3, 500
410
FSS-113, all rates and classes
below
1
2, 875
PSS-10
1
3, 500
625
SECTION 52 (AMENDING PUBLIC LAW 885, 84T11 coNo.)
The Department is submitting two additional subsections to section 52 of the
bill. The new section 52 will read as follows:
"SEC. 52. (a) Subsection (b) of section 5 of the Act of August 1, 1956 (70
Stat. 890), is hereby amended by adding at the end thereof the following new
paragraph:
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" `(5) Travel expenses (not to exceed one round-trip) of the spouse and de-
pendent children of an officer or employee or other person serving the Government
when accompanying him to an international meeting or conference, and the fur-
nishing of quarters to any such officer, employee, or other person, and his family,
if authorized in advance by the Secretary of State.'
"(b) Section 11 of such Act is hereby amended by inserting after the phrase
'Government-owned vehicles' the phrase 'or taxicabs', and by inserting after the
phrase 'public transportation facilities' the phrase 'other than taxicabs'.
"(c) Section 12 of such Act is amended by changing the period at the end of
the section to a comma and adding the following: 'and the Secretary may provide
for the payment of such other expenses as he deems appropriate to assure a suitable
program for any participant coming to the United States under the exchange of
persons program administered by the Department of State'."
SECTION 52(a) (SEC. 5 OF PUBLIC LAW 885, 84TH CONG.)
^ 1. Why does the Department need this authority?
The authority is required to make the participation of the United States in
certain international conferences more effective.
Section 5 of Public Law 885, 84th Congress, authorizes the Secretary to provide
for participation by the United States in international activities which arise from
time to time in the conduct of foreign affairs for which provision has not been
made by the terms of any treaty, convention' or special act of Congress, provided
that such participation does not involve U.S. membership in any international
organization and is not continued for more than a year without approval by the
Congress. The same section provides for travel and quarters expenses for the
representatives of the United States, but it omits any provision for the travel or
housing costs of the families of these representatives. Section 3.1c of the Foreign
Service Travel Regulations drawn up pursuant to the authority derived from
section 911 of the Foreign Service Act provides for travel and per diem expenses
for Foreign Service employees on temporary detail, such as would be involved in
participation in a conference at a place away from the employee's post of assign-
ment. But there is no provision for his family to accompany an employee while
on temporary detail save at his own expense.
At brief conferences of several weeks' duration there is no need for their families
to accompany the American representatives. However, when the conferences run
into several months' duration there can be a problem.
When it appears at the outset that a conference is likely to last for months
rather than weeks Foreign Service employees detailed away from their posts to
such conferences face extended separations from their families. Moreover, as is
often the case in such ad hoc conferences, the United States must obtain experts
Outside of the Foreign Service (e.g., atomic scientists) to serve among its rep-
resentatives. Unless the Department of State is in a position to send the families
of its temporary representatives along with them to conferences of protracted
duration it may encounter difficulty in obtaining the services of highly qualified
people; they may not be willing to be separated from their families for an extended
period and may not be wealthy enough to take their families along at their own
expense.
For this reason the Department urges the amendment of section 5 of Public
Law 885 by the addition of language to authorize travel expenses (not to exceed
one round trip) of the spouse and dependent children of an officer or employee
or other person serving the Government when accompanying him to an inter-
national meeting or conference, and the furnishing of quarters to any such officer,
employee, or other person, and his family if authorized in advance by the Sec-
retary of State.
2. Would it not be possible to assign such officers to a mission such as an embassy
or consulate for the duration of the conference?
The Department makes assignments for periods normally in excess of 2 years.
Considerable expenses, involving transfer of entire households are automatically
authorized in the case of assignments. Since the movement of entire households
is not contemplated in the present case, which relates to ad hoc conferences that
may be relatively extended, but in which American participation could not exceed
1 year without act of Congress, assignment in the normal sense would be less
appropriate than temporary detail with provision for certain additional costs
(viz travel and quarters but not full transportation of household effects).
3. Would this subsection be applicable to all personnel, such as clerical staff
assigned to an international meeting?
It would apply to all personnel.
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AMENDMENTS TO THE FOREIGN SERVICE ACT 171
4. What criteria would the Secretary of State set up to administer this section?
The travel expenses and maintenance of a spouse and dependent children at
an international conference would not be approved unless (a) in the opinion of
the Secretary the conference would last for a period in excess of 3 months, and
(h) the Secretary should make a determination that the United States would be
more effectively represented at such meeting or conference if he should approve
the payment of such expenses for travel and quarters.
5. Would this subsection cover living expenses or N limited only to transportation?
It would cover expenses for travel to and from the conference and for quarters
while at the conference.
SECTION 52(B) (SEC. 11 OF PUBLIC LAW 885, 84TH CONG.)
1. What is the purpose of this subsection?
Under the existing provisions of section II of Public Law 885 the Secretary of
State may authorize any chief of a diplomatic mission to approve the use of
Government-owned vehicles in any foreign country for transportation of U.S.
Government employees from their residence to the office and return when public
transportation facilities are unsafe or are not available. Under this authority
the Department provides, when circumstances warrant, transportation for U.S.
employees, including Marine guards who are stationed at Foreign Service posts
for official guard duty, from their place of residence to the place of their em-
ployment. Frequently this type of transportation is required only for those
U.S. Government employees and Marine guards who are assigned to night duty,
since public transportation facilities are considered safe and are available during
normal business daytime hours. When public transportation facilities such as
street railway systems, subway systems, and buses are inoperative or are on
drastically reduced schedules during the nighttime hours, adequate and satis-
factory taxicab service is often available. However, taxicab service is considered
part of "public transportation facilities" and personnel using taxicabs may not
be reimbursed for taxicab fares. As a result, at many posts Government-owned
vehicles must be operated by Government-employed chauffeurs during the night
hours, exclusively for the use of a small number of U.S. Government employees,
including Marine guards., In many instances the cost of maintaining this
chauffeur-operated vehicle service is not justified by the number of people trans-
ported. The cost of such transportation could be considerably reduced if
taxicabs could be utilized. It is for this reason that the change in section 11 of
Public Law 885 has been proposed.
SECTION 52(0 (SEC. 12 OP PUBLIC LAW 885, 84TH CONG.)
1. What is the purpose of this subsection and why is it needed?
The purpose of this subsection is so provide legislative authority for the payment
of various expenses essential to the success of the exchange of persons program.
In the absence of such authority it has not been possible to plan in a systematic
way for these expenses that are considered vital to the success of programs arranged
for distinguished foreign visitors invited to this country. The objective in inviting
these persons is to increase understanding between the people of other countries
and the people of the United States. Often this objective can best be accom-
plished through meetings between these visitors and Americans of similar interests,
background, and status. Because the foreign visitors are able to remain in the
United States for only limited periods of time, and their American counterparts
similarly have pressing demands upon their time, programs must be arranged
which make maximum use of the time available. Many of the most productive
meetings that can be arranged are in the form of luncheons, receptions, or similar
functions.
Most of the meetings between these visitors and Americans are arranged by the
cooperating agencies, both private and Government that assist in carrying out
the international educational exchange program. The Department considers
costs of luncheons and other similar arrangements for meetings that are in every
respect a vital part of the program to be reasonable and proper program expense.
The Department is not seeking an increase in the amount for entertaining by
Foreign Service officers, but rather is seeking to shore up a weak spot in our foreign
leader and specialist programs which in recent months have been damaged in
numerous cases by the acute shortage of funds to meet minimal needs of the kind
described.
The subsection under consideration would provide the necessary legislative
authority. The authority would be used carefully and only as program require-
ments demand.
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172 AMENDMENTS TO THE FOREIGN SERVICE ACT
SECTION 53 (INTERNAL REVENUE CODE)
1. What is the purpose of this section?
Section 53(a) amends paragraph (4) of section 104(a) of the Internal Revenue
Code of 1954 to exempt disability annuities from Federal income tax.
Section 53(b) amends sections 402 and 871 of the Internal Revenue Code of
1954 to provide tax exemption for annuities paid to nonresident aliens who are
retired employees of American Government installations abroad and to survivors
of such aliens.
2. Why is the Department proposing an amendment to the Internal Revenue
Code which will exempt disability annuities under the Foreign Service retirement
system from Federal income tax?
The Department believes that it is inequitable to subject disability annuities
to income tax. Disability compensation payable by the Bureau of Employees'
Compensation is exempt from this tax.
The proposed amendment to the Internal Revenue Code has the approval of
the Bureau of Internal Revenue.
3. Why is the Department proposing an amendment to the Internal Revenue Code
to exempt annuities paid nonresident aliens?
Under the Treasury Department's interpretation of the existing provisions of
the Internal Revenue Code, annuities paid under the civil service retirement act
to nonresident aliens who are retired employees of the U.S. Government have been
subject to a 30-percent withholding tax on the full amount of the annuity since
January 1952. The imposition of this 30-percent tax on annuities, most of which
amount to $600 or less per year, has caused severe hardship in many cases and
engenders resentment against the United States for its failure to comply with its
contractual obligation to pay retired employees the annuity they had been led to
expect. A large number of the annuitants are in the Philippines and were for-
merly American nationals. The Government of the Republic of the Philip-
pines has repeatedly protested the imposition of this tax.
The Bureau of the Internal Revenue has DOW decided that this statute, aimed
at alien investors in American securities trying to avoid U.S. income tax, should
not apply to the annuities of former alien employees of the United States.
The Treasury Department has indicated that in the interest of obtaining this
remedial legislation expeditiously, it does not object to the inclusion of this amend-
ment in this bill.
SECTION 54
Section 54(a) of S. 2633 repealing section 12 of the act of June 26, 1884, (23
Stat. 56; 22 P.S.C. 1186) ann (b) amends the second proviso cf section 1 of chapter
223 of the act of June 4, 1920, as amended (41 Stat. 750; 22 U.S.C. 214) by striking
out the phrase "or to seamen."
1. What is the purpose of section 54?
The purpose of section 54 is to enable the Department of State and the American.
Foreign Service to charge and collect fees, which are now prohibited, for certain
services rendered for American vessels and seamen. Also, to permit compliance
with 5 U.S.C. 140 passed in 1951 in which the Congress established a policy re-
quiring a fee to be charged to reimburse the Government for the cost of personal
services rendered to individuals, to the effect that services of this nature "shall be
self-sustaining to the full extent possible."
2. What is the estimated cost to the Department of this consular service now being
provided?
It would be difficult to calculate the approximate number of free services now
being rendered such as for passport, citizenship, notarial, visa, etc., but it is certain
that the cost to the Government for the performance of all the services in this
category is considerable. The total cost to the Government for the performance
of all services to American shipping and seamen probably would run into several
hundred thousand dollars per year.
3. What savings will the Department realize from this provision?
The Government would realize from the repeal of the above-noted provisions-
of law the fee charged for the services rendered for the performance of all services
to American shipping and seamen, excluding, of course, such services as may be
performed in the public interest, which services will continue to be rendered on a
no-fee basis. It is estimated if this amendment is passed the income to the Treas-
ury might be roughly $100,000 a year.
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Section 55 is the language of the original Foreign Service buildings bill.
Section 56 is conforming language.
Section 57 is language designed to safeguard and assure the orderly and effective
application of the act.
SECTION 58
Section 58 has been amended by the Department to add at the end of subsection
(a) the following phrase: ", and except as otherwise provided in the text of the
Act."; to insert a new paragraph "(c)" relative to the effective date of an amend-
ment contained in section 35; and to redesignate existing paragraph "(c)" as
paragraph "(e)".
JUSTIFICATION FOR THE DEPARTMENT'S PROPOSED CHANCE
Since the text of the act contains provisions relating to certain effective dates,
the Department proposes that there be added at the end of section 58(a) the
phrase , and except as otherwise provided in the text of the Act."
Further, since the budget for fiscal year 1961 has already been prepared, the
amendment made by section 35 with respect to a contribution to the Foreign
Service Retirement and Disability Fund to be made by the Department should
be made effective July 1, 1961.
See redraft of section 58 which follows.
SEC. 58(a) The provisions of this Act shall become effective as of the first day
of the first pay period which begins one month after the enactment of this Act,
except as provided in paragraphs (b), (c), (d) and (e) of this section, and except
as otherwise provided in the text of this Act.
(b) The provisions of paragraphs (c) (1) and (c) (2) of section 803 of the Foreign
Service Act of 1946, as amended by section 33(b) of this Act, shall become effec-
tive on the first day of the first month which begins one year after the data of
this Act, except that any Foreign Service staff officer or employee, who at the
time this Act becomes effective meets the requirements for participation in the
Foreign Service Retirement and Disability System, may elect to become a par-
ticipant in the System before the mandatory provisions become effective. Such
Foreign Service staff officers and employees shall become participants effective
on the first day of the second month following the date of their application for
earlier participation.
(c) The amendment made by section 35 of this Act, with respect to a contri-
bution to the Foreign Service Retirement and Disability Fund to be made by the
Department, shall become effective July 1, 1961.
(d) The amendment made by section 43 of this Act shall take effect on the
first day of the first month which begins more than thirty days after the date of
enactment of this Act.
(e) The amendments made by section 53 of this Act shall be effective with,
respect to taxable years ending after the date of enactment of this Act.
50864-60 12
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1. Bow much will the proposed benefits in this bill add to the Department's annual
budget?
Estimated cost of proposed bill, S. 2633, Department of State
Item
1
2
3
4
5
6
1st-year cost
Sec. 2. Conversion to the proposed 10-class FSS schedule (see. 415):
Comment: The estimated cost is based on salary adjustments of Foreign Service
Staff employees of the Department of State (3451) who are paid in accordance
with sec. 415, of the Foreign Service Act of 1946, as amended
Sec. 8. Hazardous duty pay for diplomatic couriers (see. 446):
Comment: The estimated cost is based on an average 10 percent salary adjust-
ment for 69 of the 78 couriers on the Department's rolls as of Dec. 31, 1959___ _
Sec. 16. Housing allowance for certain officers on assignment in the United States
(sec. 571):
Comment: As of Oct. 31, 1959, there were a total of 1,869 Foreign Service officers
and employees assigned to Washington, D.C. Of these, there would be ap-
proximately 365 employees with no dependents receiving an average differen-
tial of $607; 685 with 1 to 3 dependents receiving an average differential of $1,142;
and 298 with 4 or more dependents receiving $1,480. The 536 employees not
accounted for in this report represent those employees who are not eligible for
the proposed housing allowance plus those for whom the Department of State
is reimbursed.
Since a proposed amendment to section 571 would modify provisions relat-
ing to the payment of the "Washington differential", resulting savings in this
item would offset a part of the estimated cost of the proposed housing allow-
ance.
Housing allowance 1,422, 666
Less: Washington differential 234, 255
Sec. 18. Improving the Department's language and training facilities (sec. 578):
Comment: A 5-year language training program designed to meet the minimum
staffing needs for language officers at all posts (where appropriate) will require
an annual estimated increase in language traiqing costs
See. 30. Inclass promotion of Foreign Service Staff officers and employees (sec. 642):
Comment: It is estimated that 1 percent of FSS employees (35) would receive
inclass promotions and 1.9 percent (65) would receive longevity increases.
The estimated cost of $20,500 was computed by multiplying 100 times $205,
the average within-class increment
Sec. 32. Language incentives (sec. 704):
Comment: Special monetary or other incentive for acquiring or retaining
proficiency in esoteric Foreign languages or special abilities needed in the
Service
Total
$217, 025
35, 700
1,188,411
251,331
20, 500
156,675
$1, 809, 642
Other agencies of Government (such as USIA, ICA, etc.) use the provisions of the
Foreign Service Act as the basis for their pay and allowances. Bow much will be
added to the annual budget of each other Government agency that will benefit from these
proposed amendments?
The estimated cost of the proposed bill for the International Cooperation Ad-
ministration (ICA) and the U.S. Information Agency (USIA) is as follows:
Item
1st year cost
ICA
USIA
1
Conversion to the 10-class FSS schedule (see. 415)
$39,240
144,635
2
Housing allowance for certain officers on assignment in the United
275,470
266,960
States (sec. 571).
3
Inclass promotion of Foreign Service Staff officers and employees
4, 100
7, 585
(sec. 642).
Total
318,810
419,170
AM*
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?orie"
AMENDMENTS TO THE FOREIGN SERVICE ACT
175
ESTIMATED EFFECT OF THE PROPOSED BILL, S. 2633, ON THE FOREIGN SERVICE RETIRE-
MENT AND DISABILITY FUND
The following estimates relating to proposed changes in title VIII of the
Foreign Service Act of 1946, as amended, will not be reflected in additional
appropriation requirements. They relate to the Foreign Service retirement and
disability liability and are actuarily projected over a period of years.
item
Estimate
1
2
3
4
Sec. 33. Coverage of present FSS officers (sec. 803):
Comment: Approximately 300 FS S officers and employees presently on the rolls
have been in the Service at least 10 years and qualify for the proposed cover-
age. The additional liability for the coverage of this group under the Foreign
Service retirement system is estimated at $8,841,000. It is pointed out, how-
ever, that the civil service retirement fund would be relieved of a comparable
liability _
Sec. 33. Coverage of approximately 25 additional FSS officers annually (sec. 803):
Comment: An average of 25 ESS officers would qualify for coverage annually
upon completion of 10 years of service. The additional liability for this group
would be approximately $250,000. Again It is pointed out that the civil
service retirement fund would be relieved of a comparable liability
Sec. 36, Revised formula for computing reduction in officers annuities when sur-
vivorship benefits are elected (sec. 821):
Comment: At present elected survivors' annuities average about $2,400 for
which the respective officer's annuity is reduced by approximately 60 percent,
or $1,200. Under the revised formula the comparable reduction in the officer's
annuity would be 12.5 percent, or $300. During the 1st year cf operation
under the revised formula the additional cost to the retirement fund would
be negligible. Eventually the cost would average 6.( percent of the retired
rolls
Sec. 43. Crediting officers now on retired rolls with up to 35 years service credit (see.
855):
Comment: Based on an analysis of officers on the rah ed rolls at the beginning of
fiscal year 1959, the cost of the provision would be approximately $100,000
during the 1st year. Thereafter the annual cost would decrease and eventually
disappear with the death of sueh officers
Total
Onset by saving in the civil service retirement fund
Net additional liability
*8,841, 900
250,000
Negligible
190, 000
9,281,900
9,091, 900
190,000
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AMENDMENTS TO THE FOREIGN SERVICE ACT
TUESDAY, FEBRUARY 9, 1960
HOUSE OF REPRESENTATIVES,
COMMITTEE ON FOREIGN AFFAIRS,
SUBCOMMITTEE ON STATE DEPARTMENT
ORGANIZATION AND FOREIGN OPERATIONS,
Washington, D.C.
The subcommittee met at 10:40 a.m., in room G-3, U.S. Capitol,
Hon. Wayne L. Hays (chairman of the subcommittee) presiding.
Mr. HAYS. We will Come to order.
On section 33, page 22, subsection (c), line 16, as I understand that
paragraph, any Foreign Service Staff officer has to be with the De-
partment 10 years and then he becomes a participant in the system?
STATEMENT OF HON. LOY W. HENDERSON, DEPUTY UNDER
SECRETARY OF STATE FOR ADMINISTRATION
MT. HENDERSON. Yes.
Mr. HAYS. What about his contributions that he would have made
to that system in 10 years?
Mr. HENDERSON. He would be contributing to the civil service re-
tirement system until he has been in the Foreign Service Staff for 10
years. Then he would come into the Foreign Service retirement
system and his contributions would be transferred to that system.
Mr. HAYS. What is the advantage of that?
Mr. HENDERSON. Many of our Staff people are stenographers and
typists young girls who don't expect to make a career in the Foreign
Service. They come in for 3 or 4 years and then they go back home.
They are not seriously making a career of the Foreign Service. There-
fore, it would seem unwise to put them under the Foreign Service
Retirement System.
For example from time to time young girls who work in the Gov-
ernment in various departments decide that they would like to serve
abroad for a while. They come into the Staff service and serve per-
haps two terms abroad. They then return to a civil-service position
in this country. Under the present system their retirement is con-
tinued while serving abroad under the civil-service system. If they
stay in the Foreign Service 10 years or more, however, we consider
that they are really making a profession of the Foreign Service and
they would therefore be transferred to the Foreign Service retirement
system.
Mr. HAYS. My question is not from that angle, but what is the
advantage of moving them out of the civil service retirement system
into the Foreign Service retirement system?
Mr. HENDERSON. The advantage from OUT point of view would be
that we believe that all the personnel in the Foreign Service, regardless
177
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whether they are Staff or Foreign Service officers, should be under the
same system.
Staff personnel may be transferred at any place at any time. They
are subject to transfer to unhealthful posts, to hardship positions, just
as Foreign Service officers are subject to transfer. There is a good
deal of strain and stress on them. It seems to us that the Staff per-
sonnel, like Foreign Service officers' who have been in the Foreign
Service 20 years and who are over 50 years of age should have the
option to retire if they want to do so. At the present time they can't
do so under the civil service retirement system.
Mr. HAYS. That is the crux of it.
Mr. HENDERSON. Furthermore, after they are 60, many of the Staff
people lose their pep and zip. We can't afford to maintain people
abroad in our consulates who haven't the necessary drive. Therefore,
we think that at the age of 60 they should retire just as do most
Foreign Service officers.
Mr. HAYS. Anyone have any other questions?
Mr. HENDERSON. I would like to make a suggestion on this section,
if you don't mind. May I read section 803 (c)(2) aloud? [Reading:I
Any such officer or employee who, under the provisions of paragraph (0(1) of
this section' becomes a participant in the System, shall be mandatorily retired for
age during the first year after the effective date of this section if he attains age
sixty-four or if he is over age sixty-four; during the second year at age sixty-three;
during the third year at age sixty-two; during the fourth year at age sixty-one,
and thereafter at age sixty.
I would like to have this additional clause considered:
Whenever the Secretary shall determine it to be in the public interest, he may
extend the service of an officer or employee for a period not to exceed five years,
but in no event shall such participants' services be extended beyond age seventy.
There may be times when a Staff employee at the age of 60 is doing
a job which is rather important and we would need him in that job
for a year or longer. We would like to have the opportunity to keep
him in that job for the additional period. We have a similar provision
for the Foreign Service officer.
Mr. HAYS. Why are you anxious to get the mandatory retirement
age down to 60?
Mr. HENDERSON. Because that makes it uniform with Foreign
Service officers of class 1 and below. Most Staff personnel beyond the
age of 60 who have served a great many years abroad lose, to an ex-
tent, their drive, just as do most Foreign Service officers. Sixty has
been found to be a good age for retirement. Otherwise we might
have on our hands Staff personnel who are really not carrying their
weight. We can't afford to have personnel staffing our embassies
and consulates who are not carrying their weight. Furthermore the
earlier retirement speeds up the promotions of those below them.
Mr. HAYS. Suppose I give you a hypothetical case of a man who
has served 25 years and he becomes 60 and he is mandatorily retired.
What pension would he get, roughly? Can you give me some idea?
Mr. HENDERSON. You mean a Staff member?
Mr. HAYS. Yes.
Mr. HENDERSON. He would get 50 percent of his average annual
salary for his last 5 years of service. For instance, if he was getting,
say, $6,000 a year, he would receive an annuity of $3,000.
Mr. HAYS. Is there any penalty if he works at another job? Can
he draw that and take another job besides?
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Mr. HENDERSON. You mean in private life?
Mr. HAYS. Yes.
Mr. HENDERSON. There is no penalty.
Mr. BENTLEY. There is no limit on outside income?
Mr. HENDERSON. No.
Mr. HAYS. Of course, one of the problems that I have in my
district is, where we have chronic unemployment anyway, people
who retire and get a fair pension and then go take a job with someone
else. There are a lot of company retirement plans and others?
people who are very upset about it. I don't know what the answer is.
Mrs. BOLTON. That, is right.
Mr. BENTLEY. A man, in the interest of the Service, is retained to
the age of 60, that is with his consent?
Mr. HENDERSON. Yes, Of Course.
Mr. BENTLEY. I mean
Mr. HENDERSON. He can voluntarily retire at the age of 50 if he
desires to do so provided the Secretary should not object. There
wouldn't be anyone staying in the Staff Corps up to the age of 70
within a few years because if this becomes law all of them would be
retiring at 60 or earlier. This provision, which I have suggested would
allow some of them to stay in up to 5 years more, which would be 65.
That would be the maximum.
The reason we mention 70 in our suggested addition is that we have
at the present time some members of the Staff Corps who are 66, 67,
68, and 69. Although some of them if urgently needed could be
kept on until 70, none could remain after reaching that age.
Mr. BENTLEY. I am not sure whether you have covered it in this
bill, the question of disability. What benefits are payable in the case
of either a FSO or FSS in the case of disability while on active service?
Mr. HENDERSON. At the present time if a Foreign Service officer
is found physically incapable of continuing to be effective in the For-
eign Service, he is retired on an immediate annuity, if I am not mis-
taken, of 40 percent, isn't it, of his salary?
STATEMENT OF WILLIAM E. WOODYEAR, DEPUTY CHIEF, PER-
SONNEL PROJECTS STAFF, DEPARTMENT OF STATE
Mr. WOODYEAR. If he has had more than 5 but less than 20 years of
service, his annuity is computed as though he had served 20 years.
Mr. BENTLEY. He gets 40 percent.
Mr. HENDERSON. If he has served 20 years or less. The factor is
2 percent for every year in the Service. If he has had less than 20
years of service and he is retired for physical disability, he would get
40 percent. If he has served 25 years he would receive 50 percent,
and so forth.
Mr. BENTLEY, That 2 percent is of the salary at the time of his
disability?
Mr. HENDERSON. The average salary for the last 5 years.
Mr. HAYS. The last 5 or best 5?
Mr. HENDERSON. The highest 5 consecutive years. That is nor-
mally the last, with the exception of those who have been an ambas-
sador or Presidential appointee. We have a special arrangement with
regard to them. Let me give you an example: a man has been an
Nov' ambassador, which brings with it a salary of $22,500 a year. After
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3 years as an ambassador he is assigned to the Department with the
salary of a career minister, which is $19,250 in a position that has
been designated by the Secretary to be comparable in importance
with that of a chief of mission. Subsequently he is again assigned as
an ambassador to a period of 2 years before retirement. His annuity
could be computed upon the basis of the high 5 years as an ambassa-
dor in spite of the interruption in assignment.
Mr. BENTLEY. Suppose he is not physically or mentally disabled,
and could not secure other employment. Does that affect his annuity?
Mr. HENDERSON. No; an officer retired for disability must come
up for examination periodically. If it should be found that he is
physically able to go back into the Foreign Service his annuity stops.
It is not clear in the present legislation whether or not he has the right
to be reemployed in the Service. Our amendments make it clear
Mr. BENTLEY. Where are the amendments? In this bill?
Mr. WOODYEAR. They are in section 37 of the bill.
Mr. HAYS. What page?
Mr. HENDERSON. It is section 831 of the Foreign Service Act.
Mr. WOODYEAR. Senate bill, section 37, bottom of page 28.
Mr. BENTLEY. He has to have at least 5 years?
Mr. HENDERSON. Yes; in which he has contributed to the retire-
ment fund. Our new provisions are similar to the civil service pro-
visions ? isn't that correct?
Mr. WOODYEAR. That is correct.
Mrs. BOLTON. What are the differences between the civil service
retirement legislation and Foreign Service?
Mr. HENDERSON. We have here a table summarizing in parallel
columns the main features of the present Foreign Service retirement
system; the corresponding features of the civil service provisions; and
our proposed amendments.
Copies of this table are on the way from the State Department here
and we would like to provide each member with one of them.
Mrs. BOLTON. You feel the Foreign Service retirement plan is a
vast improvement on the civil service?
Mr. HENDERSON. We think that at the present time the civil
service system in some ways is more generous in its benefits than the
Foreign Service. When our Foreign Service retirement system was
established, it was the more generous, but during recent years legisla-
tion has been enacted which has materially improved the civil service
system, particularly with respect to beneficiaries and to dependents.
The main difference, if our suggestions are adopted, between the
Foreign Service and the civil service systems would be, in my opinion,
? that in the Foreign Service there is an option of retiring after 50 with
20 years of service. There is no such option in the civil service.
Mrs. BOLTON. You have to retire in the civil service.
Mr. HENDERSON. You mandatorily retire in the civil service at 70
although you can retire voluntarily somewhat earlier. All Foreign
'Service officers who are not above class 1 retire mandatorily at the age
of 60, and this would apply to Staff personnel.
Foreign Service officers with the rank of career minister and career
Ambassador retire mandatorily at 65. That, I think is the primary
difference. You may add
Mr. WOODYEAR. The compensation factor averages out slightly
better than 1.75 percent under the civil service formula. There is also
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an advantage we are carrying over from our existing legislation which
provides that when a man dies in service his survivors benefit as if he
had had 20 years of service rather than the actual number of years
that he may have served, as is true of disability retirement.
The only other significant factor that I know of is the provision for
continuation of annuity for a widow who remarries, which we now
have in our system and which the civil service does not have.
Mr. HENDERSON. Under the civil service system, if a widow who is
receiving an annuity remarries, she loses her annuity. Under the
Foreign Service system at the present time a widow of a Foreign
Service officer continues to receive her annuity. Under our suggested
amendments she would still receive her annuity.
Our reason for this provision is that some wives of our Foreign
Service personnel work just as hard over the years as their husbands
do. They have tremendous responsibilities in the field. The wife is
a party to a kind of a partnership arrangement. It has seemed to us
unfair that a woman who, for instance, has devoted 30 years of her
life working for the American Government abroad with her husband
should lose her annuity if she should marry after her husband dies.
A Foreign Service officer dies believing that his widow is provided for.
If she should remarry and if in a year or so her second husband should
die, she might then be left unprovided for, although she had given 25
or 30 years of her life to the Foreign Service.
MTS. BOLTON. We outlast you. We must be pretty tough.
MT. HENDERSON. I don't know whether it should be ascribed to
toughness. In any event the women seem to outlast us.
There is one other provision in the Foreign Service legislation
which is somewhat different from the civil service. The maximum
number of years which can be counted in computing the annuity of
a Foreign Service officer is 35, whereas a person who has been in the
civil service 40 years can retire at about 78 percent.
MT. WOODYEAR. Eighty percent.
Mr. HENDERSON. A maximum of 80 percent of his salary, whereas
the maximum at which a Foreign Service officer can retire is 70
percent.
Mr. BENTLEY. I want to suggest that where feasible possibly your
staff and our staff might be able to draw up a table and put in a
great many of these provisions with respect to retirement, particularly
showing the differences that may exist between civil service
MT. HENDERSON. We have it right here.
Mr. BENTLEY. I complimented you before on anticipating ques-
tions. Can we make that part of the record?
MT. HAYS. Yes.
(The table referred to appears on pp. 140-153.)
Mr. BENTLEY. Let me ask a question. I am a little confused
reading this particular section about the question of annuities and
compensation in the case of injury and disability. In some instances
apparently the participant can receive both annuity and compensa-
tion and in other cases it is not possible.
Could you clarify that for me?
Mr. WOODYEA n. That relates to the surviving widow who cannot
receive an annuity from the Bureau of Employees' Compensation and
from the Foreign Service retirement system at the same time.
Mr. BENTLEY. You mean annuity from one source and a lump-
sum payment from the other?
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Mr. WOODYEAR. She may receive an annuity as a widow, and if
she has in her own right earned an annuity she may also receive that.
Mr. HENDERSON. If a widow herself has worked in the Govern-
ment and has an annuity, she can receive this annuity and also she
can receive benefits if her husband has died and she is entitled to
an annuity based on his service.
Mr. BENTLEY. What about the lump-sum death payment?
Mr. WOODYEAR. If a lump-sum death benefit is paid by the Bureau
,of Employees' Compensation, there is no continuing annuity.
Mr. BENTLEY. On page 32 here, subsection (e), it says?
Notwithstanding any provision of law to the contrary, the right of any person
,entitled to an annuity under this Act shall not be affected because such person
has received an award of compensatior in a lump sum?
and so forth.
Mr. WOODYEAR. That is true, Mr. Bentley. The lump-sum
payment based upon section 14 of the act of September 7, 1916,
is from the Bureau of Employees' Compensation. It would not
deprive anyone in our system from an annuity to which they were
,otherwise entitled.
Mr. BENTLEY. The annuity and the lump sum has to be payable
for different reasons?
Mr. WOODYEAR. Yes. There have been cases when officers in the
Service have died in line of duty and it has been to the advantage of
the widow to elect to receive benefits from the Bureau of Employees'
Compensation rather than ours because she receives a greater benefit,
but she can't receive both in the form of an annuity.
Mr. BENTLEY. She has the right of option for which is greater.
MT. WOODYEAR. Yes.
Mr. BENTLEY. In a case, for example, where you are getting lump-
sum compensation for one form of disability and annuity for another
form of disability, if that is feasible, I seem to read this language down
here further that apparently it is possible. It would not deny the
survivor under this system an annuity earned for her by her husband
if she had got that lump sum.
Mr. BENTLEY. Provided it is not the same disability.
Mr. WOODYEAR. That is right.
Mr. FARBSTEIN. Would you please explain a typical form of annuity
find a lump-sum disability?
Mr. WOODYEAR. Based on a death in service? I will try to, sir.
Annuity might be acquired if a person dies in line of duty through the
Bureau of Employees' Compensation. A lump-sum payment--
Mr. FARBSTEIN. Compensation for what? That has nothing to
?do with the pension? Whether you talk of annuity?when you say
"annuity" that is synonymous with pension, isn't it?
MT. WOODYEAR. Yes, sir. A lump-sum death payment would be
paid by the Bureau of Employees' Compensation. This would not
apply under the Foreign Service retirement system. We cannot make
lump-sum payments for death in service.
If a survivor receives such a benefit from the Bureau of Employees'
Compensation because an employee was killed in line of duty
MT. FARBSTEIN. What has that to do with pension? If a person is
injured, if he is hit by a truck and he is killed and as a result of third- AMA,
party liability, his heirs get a certain lump sum of money. That has
nothing to do with compensation or annuity.
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Mr. WOODYEAR. No. One type of benefit won't cancel out another;
a lump-sum payment given under one type of system will not cancel
out the earned benefit from another system.
MT. FARDSTEIN. YOU say that it is covered here, but it Seems SO
obvious to me that if there is a third-party lawsuit or a form of com-
pensation under the compensation laws for which an employer makes
payment, I don't see where that has anything to do with any pensions
that he earns as a result of the employment in a particular industry
or Government service. You are referring to both of them which to
me is very confusing when I don't see that they have any connection.
STATEMENT OF J. EDWARD LYERLY, DEPUTY ASSISTANT LEGAL
ADVISER FOR ADMINISTRATION AND FOREIGN SERVICE, DE-
PARTMENT OF STATE
Mr. LYERLY. I think what Mr. Woodyear is saying is that under
the Federal Employees' Compensation Act payments may be made
under certain circumstances for the death or illness of an employee
in line of duty. If under that law a widow elects to take an annuity,
Or pension payments, she forfeits her right to receive an annuity
under the Foreign Service retirement system because that law requires
her to make such an election. The only time that she would be en-
titled to get both is if she is entitled under the Federal Employees'
Compensation Act to a pension or a payment of a nature which is
not the result of the same disability under the Foreign Service retire-
ment system.
Mr. HAYS. That is as clear as mud.
Mr. FARBSTEIN. Let's see if we can straighten this thing out so
that I can see what is involved here.
Let's put aside any lump-sum payment that an estate or a widow
would be entitled to as a result of accident or anything else. Let's
forget about that because that has nothing to do with this.
Now, question No. 1: Is an employee in the Foreign Service under
social security?
MT. WOODYEAR. No.
Mr. FARDSTEIN. They get no social security payments?
Mr. LYERLY. No.
Mr. FARBSTEIN. Now, you talk of compensation as against pension.
First, please explain what you mean so that I in my dense way can
understand what you mean by compensation as against pension.
We will use the word "pension" instead of "annuity." At least
that is clearer in my mind. We understand they are used inter-
changeably. Will you please explain what you mean by compensa-
tion in case of death?
MT. WOODYEAR. AS to
Mr. FARBSTEIN. Excuse me. And also to what system does one
belong in order to obtain that compensation and what must occur
in order for that individual's estate to obtain compensation?
Mr. WOODYEAR. If any Federal employee, Mr. Congressman, is
covered by the provisions of the Bureau of Employees' Compensation,
he may be entitled to certain types of death-in-service benefits.
Mr. FARBSTEIN. Tell me what types of death-in-service?
Mr. WOODYEAR. Death while on duty or death in service actually.
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Mr. FARBSTEIN. Suppose he gets pneumonia
considered death in service?.
MT. WOODYEAR. No.
MT. FARBSTEIN. That is what I want to know.
dent or natural death?
Mr. LYERLY. I think one of the typical cases is that of an officer who,
was flying in from the Far East and was killed in an airplane accident
outside of Hawaii. His widow, as I recall, elected to receive payments
under the Federal Employees' Compensation Act because they were
greater than the annuity she would have received under the Foreign
Service retirement system.
Mr. FARBSTEIN. That is clear and very understandable, but I don't
think that that is all that has been meant here. A suggestion was
made here that there may be death resulting from heart attack in the
course of their duties. Is that so?
Mr. HENDERSON. I believe that if a person should be given?if
compensation should be paid under the Employees' Compensation Act
because of a heart attack, I think it has to be shown it is some special
situation due to his employment.
Mr. FARBSTEIN. It begins to clarify itself because there are State
laws that are very similar.
I was very confused in the manner of the presentation as to what was
meant by compensation. There are compensation laws to cover em-
ployees for injuries that they sustain on the job. That has nothing
to do whatsoever with annuities or pensions.
In the normal course of events, at least so it is in the State laws,
because you contribute toward a pension or annuity and you do not
contribute toward any compensation. An employer, contributes
toward compensation. They are separate and distinct fields.
If a person is hurt?this case that you speak of?while flying in an
airplane, he has one or two forms of recovery. He has what is known
as a third-party action; lie can sue the line to recover for injuries that
he sustained, or his estate can sue because of death that occurred.
The second type of recovery is under the compensation laws.
Neither of those have anything to do with pension because in
pension a man contributes toward his pension. I don't see why the
question of compensation should interfere with the question of pension
or any moneys received under a third-party lawsuit.
In other words, the officer was killed in an accident. His estate has
a right to sue the airplane company; or if hit by an automobile and
killed, his estate has a right to sue the driver of the automobile and
recover for the fatality sustained as a result of negligence. It is a
legal procedure. What has that to do with pension?
Why should there be any choice or is there?
Mr. HENDERSON. Under the Employees' Compensation Act, the
Government may pay a pension as well as a lump sum. Sometimes
if a person is killed in line of duty, it is possible for the widow to choose
between receiving a pension through the Employees' Compensation
Act of September 7, 1916, or to receive a pension or annuity through
the Foreign Service retirement legislation.
As I understand it, she cannot receive both. She has to choose
which course she will follow in order to get this pension.
Mr. FARBSTEIN. Let's go back to my original question. What
about the officer killed in the airplane accident? What did his widow
receive?
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As a result of acci-
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AMENDMENTS TO THE FOREIGN SERVICE ACT 185
Mr. LYERLY. She elected to receive under the Federal Employees'
Compensation
Mr. FARBSTEIN. She got DO pension?
Mr. LYERLY. No; not from the Foreign Service retirement fund.
Mr. BENTLEY. Why is it if a person gets an award of compensation
in a lump sum under section 14 of the act of September 7 that person
is estopped from receiving an annuity under this act if the annuity
would have been payable for the disability that the compensation was
awarded?
Mr. LYERLY. A provision under the
Mr. BENTLEY. Between the lump payment and annuity.
Mr. LYERLY. A lump-sum payment and annuity? Up to the point
that the annuity would pay back the lump-sum payment.
Mr. BENTLEY. How can you predict how long an annuity will go?
You are asking the person to choose between receiving an amount of
money here and now and an annuity running into the future.
Mr. LYERLY. That is what I understand the provisions of the
Federal Employees' Compensation Act require.
Mr. FARBSTEIN. What do you think of this? If a person is killed
in an accident as a result of negligence on the part of an automobile
,driver, his widow has to choose between the sum they are to recover
from the negligence of the third party as against an annuity for which
there has been contribution made?
Mr. HENDEasoN. Of course, the Employees' Compensation Act?
Mr. FARBSTEIN. I am inquiring about a third-party accident.
Mr. HENDERSON. I think it would be very unfair and improper for
a widow to be denied an annuity merely because she had had recourse
to law.
Mr. HAYS. Is she under this act?
MT. WOODYEAR. No.
Mr. HAYS. The only application, as I understand it
Mr. FARBSTEIN. I am getting more confused by the minute. In
the case you mentioned, did they sue the airplane company?
Mr. HENDERSON. No; the airplane was owned and operated by the
U.S. Government,
Mr. FARBSTEIN. That will eliminate that. Let's get to the com-
pensation.
Do you think that if a person is injured while on the job as a result
of an accident, he fills down the stairs and hits his head, becomes ill
and dies as a result of that accident, in that case do you believe that
there should be a choice between pension or compensation, whichever
is higher, as I understand the law is now, or that the employee be
,entitled to recover separately under the compensation laws irrespective
.of annuity? I would like to get your opinion.
And I might preface it by saying that under the State laws, I know
it is so in New York?I don't know about the other States?one has
nothing to do with the other; that an employee who is injured as a
result of an accident that occurs during the course of his employment
is entitled to compensation irrespective of any annuity or pension
fund to which his estate is entitled.
With that prefacing statement, I would like your reaction.
Mr. HENDERSON. Well, I
MT. FARBSTEIN. Have you thought about it? I don't want to pin
you down
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186 AMENDMENTS TO THE FOREIGN SERVICE ACT
Mr. HENnERsoN. From the point of logic, it seems to me that you
are quite correct, that the widow should receive the annuity and also
some kind of special compensation as a result of the untimely death
of her husband. I don't think that we could well take the position
that she should receive two separate annuities from the Government.
Mr. FARBSTEIN. I am not talking about annuities.
Mr. HAYS. I dislike talking about specific cases because it may
embarrass someone, but presuming that we have a case of a career
officer being killed in an automobile accident, as I understand it, his
widow can either elect a lump-sum payment or annuity, but not both.
Mr. HENDERSON. Yes; if he was traveling in the automobile for
the purpose of carrying out his official functions; if he was traveling
for pleasure, that would be a different matter.
Mr. HAYS. How different would it be?
Mr. LYERLY. In the latter instance his widow would have no right
of action against or claim against the Government unless he was
actually killed in line of duty.
Mr. HAYS. If he was on a pleasure trip, all right. Suppose he was
going from Paris to Strasburg on business, and he were killed? Does
she have to choose between a lump-sum payment on the one hand
and the annuity on the other, or can she draw both?
Mr. LYERLY. The Federal Employees' Compensation Act permits
a survivor spouse to make a claim for monthly payments based on
those facts, and under certain circumstances a lump-sum payment
can be made. They dislike to make a lump-sum payment.
Mr. HAYS. All compensation funds dislike that.
Mr. LYERLY. The widow would submit a claim under the Federal
Employees' Compensation Act. They would determine the facts of
the case and make an award. She would then check with the State
Department as to what annuity she would be entitled to receive under
the Foreign Service retirement system.
Under the Employees' Compensation Act, if she elects to receive
benefits under its provisions, she is barred from getting an annuity
under our Foreign Service retirement system.
Mr. HAYS. What amount of money could she elect to accept?
What would be the maximum?
Mr. WOODYEAR. The other point that has been confusing, I believe,
is that there are two types of benefits being discussed. If there is a
lump-sum payment made, and then the widow wants to receive an
annuity from the Foreign Service retirement and disability system,
she must refund that lump-sum payment for whatever period she
receives annuity.
In other words, what this does is bar her from receiving two types
of pension, annuity, compensation, or what have you, at the same time
for the same purpose.
Mr. HAYS. You haven't answered my question yet. I want to
know, What is the maximum lump-sum payment she could get because
of her husband being killed in the automobile accident?
Mr. WOODYEAR. As far as a lump-sum payment is concerned, I
don't know if there is any maximum. That would be controlled by
the Bureau of Employees' Compensation.
Mr. HAYS. She couldn't get $100,000, could she?
Mr. WOODYEAR. I would not think so. Suppose she got $5,000,
for example. And she was entitled to benefits under the Foreign
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AMENDMENTS TO THE FOREIGN SERVICE ACT 187
Service retirement system. That $5,000 payment would have to be.
returned to the Treasury because she could not receive dual compensa-
tion or dual annuity for the same cause.
Mr. FARBSTEIN. One other question.
Mr. HAYS. Just a minute. Off the record.
(Discussion off the record.)
Mr. FARBSTEIN. Does the Government purchase compensation
insurance from any organization?
Mr. LYERLY.No; it is provided by appropriation. No contribu-
tions by the employees.
Mr. FARBSTEIN. I am not talking about them. Does the Govern-
ment pay for any compensation from a private insurance company or
any other organization?
Mr. LYERLY. Not to my knowledge, sir.
Mr. FARBSTEIN. How is the fund created, the compensation fund?
Mr. LYERLY. By virtue of the act of September 7, 1916, as amended,,
which authorizes the appropriation of funds to carry out the provisions,
of the act. I assume it is under the regular appropriation process, like
the veterans' pensions and various other pensions that are authorized
by statute.
Mr. FARBSTEIN. I am not talking about pensions, but compensa-
tions. The compensation fund is different from the pension fund.
Mr. HENDERSON. Could I say that we are fairly well informed here
regarding the workings of our own retirement provisions, but we are
so fully informed regarding the operation of the Employees'
Compensation Act of September 7, 1916, since that applies to all
Government employees, not just to members of the Foreign Service.
We don't administer that act.
We have really very little contact with the act, except as one of the:
widows or one of the dependents of a Foreign Service officer presents,
a claim to the Commission.
Mr. FARBSTEIN. Mr. Henderson, I am satisfied to go on record that
these two funds be treated separate and distinct; that an annuity
or pension fund which has been created and is in existence for em-
ployees of the State Department in no way be affected by any com-
pensation?off the record.
(Discussion off the, record.)
Mr. FARBSTEIN. Can in no way be connected with any compensa-
tion fund resulting, or rights under that compensation fund resulting,
from injury to employees, and that the benefits be separate and_
distinct and that individual employees be permitted to collect from
both in the case of death or injury.
Mr. HENDERSON. Could I make a comment on that? I am sorry
that we are not better informed with regard to the details of this,
particular section. One reason is that we have lifted this section
almost entirely from the Civil Service Retirement Act. We had
assumed that at the time the civil service retirement legislation was
enacted the justice or injustice of this provision had been studied very
carefully.
Therefore, we merely put into our bill here what is already in the
civil-service legislation.
Mr. BENTLEY. Wouldn't Mr. Farbstein's suggestion require an
amendment to the act of September 7?
Mr. HENDEnsoN. Yes; I think SO.
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188 AMENDMENTS TO THE FOREIGN SERVICE ACT
Mr. FARBSTEIN. That is all right with me.
Mr. BENTLEY. I want to get back for a moment to this question of
the cause of death. I understood you to say earlier that if an indi-
vidual contracted pneumonia or had a heart attack that compensation,
even while on active duty, that compensation would not be granted.
Am I correct?
Mr. HENDERSON. I can't answer that specifically.
Mr. WOODYEAR. Under the act of September 7, 1916, it would
not be.
Mr. BENTLEY. Suppose an individual had a heart condition and for
reasons of the Department's policies or exigencies he was sent to
La Paz; because of his being posted to La Paz, his heart went bad on
him. Suppose an individual went to a known malarial post and
contracted malaria and died there. We can go on indefinitely with
that type of case. In such cases could the individual be considered to
have died in line of duty as if struck down by an automobile or any-
thing like that, or flying in an airplane?
Mr. HENDERSON, I don't believe SO. I believe unhealthy climates
are considered as being part of Foreign Service life and that therefore
the ordinary annuities would take care of the situation.
Mr. WOODYEAR. The decision would be made by the Compensation
Commission.
Mr. BENTLEY. The act of September 7 was, I think we would all
agree, not designed to take care of the Foreign Service employees as
such. If you, for reasons determined by the Service to be in its best
interest, send a man with a condition to a place whereby his precarious
physical condition was aggravated, such as a man in a high altitude
post, would the compensation still be denied?
Mr, WOODYEAR, I think the chances are he would get an annuity
under the Foreign Service system, unless a valid claim could be made
against the Compensation Commission on the basis of his death in
service because of an action taken by the Department of State.
Mr. HAYS. Did you every try a case before the Compensation
Commission on a heart case?
MT. BENTLEY. I am not a lawyer.
Mr. HAYS. I am not either, but in Ohio you can handle the cases
before the State compensation commission. I used to do quite a bit
of it. Maybe you could prove to them that a heart attack was con-
nected with anything at all in a fellow's employment, but I have
never seen it done.
Mr. FARBSTEIN. I think the whole business of this is so unfair in
itself.
Mr. BENTLEY. I think it is, but whether it is up to this committee
to rewrite it or not
Mrs. BOLTON. Can I suggest something? Surely the State Depart-
ment has learned too much sense to send a man with a heart condition
to a high altitude.
Mr. HENDERSON, We would not do SO deliberately. We have
every officer examined before he is sent to such a post, to ascertain
whether or not his health would permit him to function effectively at
that post. Sometimes, of course, it is not possible to detect a heart
ailment and a man goes to a post without our knowing his true
condition.
Mr. HAYS. That brings me to a very interesting question that I
have had on my mind from time to time, and that is on this disability
Oft
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provision: How difficult is it to prove disability to your Board?
We have a disability provision, as you know, under the social-security
law. I am convinced that the only way you can prove it to their
satisfaction is to bring the fellow in in a basket without any arms or
legs, and probably without a head would be even better. I have
never been able to get them to call a man completely disabled if he
had one arm and one leg. They say, "Well, he could do something."
What is your experience?
Mr. HENDERSON. Our experience has been it is more difficult to
convince an officer that he is disabled than it is to convince a doctor
that the officer is disabled.
Mr. HAYS. Your doctors are more lenient.
Mr. HENDERSON. The difficulty is that Our personnel hate to
admit even to themselves that they are disabled. They say, "I can
do the job. Don't retire me." It is sometimes rather tragic when we
have to tell them on medical grounds, "You must retire.'
Mr. Brown might speak to that.
STATEMENT OF AARON BROWN, DEPUTY ASSISTANT SECRETARY
OF STATE FOR PERSONNEL
Mr. BROWN. If an employee or dependent goes overseas with a
threatening condition, the benefits, the medical benefits, and the
possibility of evacuation from the post of his dependents are naturally
greater. Because of the expense involved, therefore, our doctors are
more lenient in determining disability for the purpose of retirement
than would normally be the case. If we continue an employee in
Service who has a physical impairment, we increase the potential
impact on our costs in terms or having to bring him back from his
post before his time is up.
Mr. HAYS. I thought until we passed the social security amend-
ment that the toughest thing in the world was to get the Ohio Bureau
of Workmen's Compensation to declare a man totally and perma-
nently disabled because they are loathe to do it. He has to be totally
disabled. I have had at least a dozen cases in which the Ohio Bureau
of Workmen's Compensation has found a man to be totally disabled
and the Social Security Administration would say he is not.
Mr. BENTLEY. Look how many people are ruled 100 percent dis-
abled by the Veterans' Administration and still go on.
Mr. HAYS. I am convinced unless he is a basket case you have
very little chance with the social security.
Mr. BENTLEY. I think the question of disability only relates to
his duty, his work, his performance in the Service. It has no relation
to any employment that he might get out of the Service. He might
have a full-time job back here and be declared unable to perform
in the Service.
Mr. HENDERSON. If a man is a Foreign Service officer in active
service it makes no difference whether he is on duty in the United
States or serving abroad. The same criterion applies in either
case.
Mr. BENTLEY. I mean if a man under this section 37(a) is declared
to be totally disabled, that is on lines 5 and 6, and is thereby retired
on an annuity pending a medical examination, or reexamination,
during the time that he is retired he can still, if he is fortunate enough
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to be fully employed in this country?let's say he is brought back
from abroad or retired while on duty in the United States, he could
be fully employed and draw that annuity.
Mr. HENDERSON. He could be as long as our examinations con-
tinue to show that he is disabled; that he has a disability of such a
character that he cannot perform effectively in the Foreign Service.
Mr. BENTLEY. The question of whether or not he may be elsewhere
fully employed would have no bearing on that question.
Mr. HENDERSON. I would think it would have some bearing insofar
as the doctors who examined him are concerned.
Mr. HAYS. I would think under the new proposed legislation it
would have a great deal of bearing. It seems to me that would call
for a reexamination and if he was found to be able to hold a full-
time job he could be reinstated in the Foreign Service. I think
that is a good provision. If a man is able to hold a full-time job,
obviously he ought not to be retired for disability, it would seem to
me.
Mr. HENDERSON. May I say that since 1946 when this particular
disability provision was incorporated in the Foreign Service legisla-
tion, we have had only 30 cases of Foreign Service officers who have
been retired for disability.
Mr. FARBSTEIN. Mr. Henderson, there is a question here: Is there
any reason why the Foreign Service retirement system should not
be merged with the civil service retirement system?
Have you answered that question while I was away?
Mr. HENDERSON. Yes, sir; we have an answer on that.
Mr. HAYS. We have submitted all these questions in writing.
They are going to submit answers. It is perfectly all right to ask it
at this point.
Mr. FARBSTEIN. It seems a singularly appropriate question in view
of our discussion this morning.
Mr. HENDERSON. May I read a short statement on this matter?
[Reading:]
HISTORICAL GROUNDS FOR A SEPARATE RETIREMENT SYSTEM
Consular and diplomatic personnel of the State Department were among the
employees not covered by the provisions of the Civil Service Retirement Act in
1920. Congress, in the Rogers Act of 1924 provided for the establishment of
a separate Foreign Service retirement system to be administered by the Secretary
of State.
Limited to Foreign Service officers it required higher contributions and pro-
vided more liberal benefits than the civil service retirement system. By 1941,
through several amendments, the system became fairly comprehensive. In the
Foreign Service Act of 1946 the system was further modified to make it an
effective instrument of personnel policy. It was utilized to complement the
promotion and selection-out system which was found elsewhere only in the
uniformed services.
The rationale for special treatment of Foreign Service officers was the need of
a special career service composed of personnel scattered all over the world working
and living in foreign countries, sometimes under unhealthy and hardship condi-
tions. The Foreign Service retirement system developed historically, therefore,
as a separate system designed to serve a unique purpose.
PRESENT GROUNDS FOR CONTINUING A SEPARATE FUND
It may be argued that subsequent to the maturation of the Foreign Service
retirement and disability system in 1946 there has grown up within the civil
service another civilian employee retirement system serving the same purposes
as the Foreign Service retirement system. This is the retirement system appli-
.
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cable to investigative employees in the civil service, such as the FBI, Treasury
agents, and U.S. marshals. It started off in 1947 as an amendment to the Civil
Service Retirement Act to provide preferential benefits for special agents and
certain officials of the FBI because the FBI was a hazardous "young man's
service." The Civil Service Commission and the Bureau of the Budget both
argued that the provision was discriminatory when limited to the FBI. By
amendments in 1948 and 1949, the special treatment accorded FBI special agents
was extended to employees in other agencies performing similar duties.
This system, however, differs from the Foreign Service system in several
material respects, despite the similarity of its benefits. The first difference is
that the Foreign Service system is an integral part of the career framework of the
Foreign Service. It applies without question to every FSO; its benefits are
available at their option to Ambassadors with 20 years of service, and they will
be mandatorily applicable, if an amendment now proposed is adopted, to all
FSS employees of 10 years' service with the Department.
By contrast there is no certainty regarding which individuals in civil-service
employment are entitled to the benefits of the Section 1(d) of the Civil Service
Retirement Act. Although the section may be applied to all investigative
personnel and Federal firefighters, and although the Civil Service Commission has
obtained from the various agencies lists of the positions so categorized, no occupant
of any such position is entitled to the benefits concerned simply by such occupancy.
The employee must first have 20 years of service and be age 50 or above and re-
quest retirement under the provisions of this section. The determination of his
entitlement is made by the Civil Service Commission after the employee's request
has been approved by the agency employing him and his retirement under the
section is recommended by its head.
A second point of difference is that participants of the Foreign Service retire-
ment system represent a homogeneous group. They are all engaged in the same
occupation, face the same hazards, and share the same age norms by and large.
By contrast the "investigators" have little more than the name and the hazards
in common; they represent groups that differ one from another in occupation,
rank and age.
A third difference is that the Foreign Service system applies to a special class
of civil servant who is subject, like the personnel in the uniformed services, to
lorri periodic and frequent transfer anywhere in the world at the pleasure of the
department for which he works. Only a few of the investigators serve overseas,
and then only occasionally.
A fourth point of significance is that the voluntary requirement provisions of
the Foreign Service system are not automatic but depend upon the consent of the
Secretary of State. The Secretary is in a better position than the Civil Service
Commission to weigh the interests of the Service when considering the application
of a participant for voluntary retirement prior to the mandatory retirement age.
In other words, to state the matter briefly, the Foreign Service
retirement system is tailored to the needs of the Foreign Service.
The needs of the Foreign Service and the whole operation of the
Foreign Service are distinctly different from those of the civil service.
Mr. FARBsTEIN. Are you happy with it in the Department?
Mr. HENDERSON. Are we happy
Mr. PARBSTEIN. With the present system.
Mr. HENDERSON. We feel it is in need of improvement. That is
the reason we have presented these suggestions. We prefer to con-
tinue to have a separate system of our own. Our sister agencies,
like the USIA, also like our system.
Mr. FARDSTEIN. Would you venture to give an opinion as to whether
or not in view of the disqualifications of the Compensation Act you
still think that the present system is a more favorable one than it
would be under civil service?
Mr. HENDERSON. I think it is one more suitable to our needs than
is the civil service system. As far as the compensation factor is
concerned, that factor prevails in the civil service, too. The same
provision that we have here, connecting the Workmen's Compensation
'fuse
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Board with our retirement system, is to be found in the Civil Service
Act.
Mr. FARBSTEIN. It may well be that I am unaware of the conditions
of the civil service, and I probably am not, but am I to understand that
if a man is in civil service working on a ship, as a steamfitter, and he
is hurt as a result of a bolt falling on his head, and is rendered unable
to continue working as a steamfitter, do I understand you to say now
that that man could only receive compensation under the compensa-
tion law or annuity and could not receive both?
Mr. LYERLY. That would depend on the specific facts in the ease,
Mr. Congressman. Just reviewing briefly the provisions of the Em-
ployees' Compensation Act, there are under certain circumstances
certain exceptions, and I note this:
Provided that this subsection shall not apply to a master or a member
MT. FARBSTEIN. I am not talking about a member of a vessel. I
am talking of someone who is building a vessel, working in a shipyard
who is an employee of the Federal Government. That is what I am
talking about, not a man aboard the ship.
I am not certain, Mr. Henderson, because I frankly never practiced
that type of law, but instinctively it is my opinion that in the case
that I have just mentioned that individual would be entitled not alone
to his annuity or pension, or if he was killed his family would be
entitled thereto, but also would be entitled to a separate sum of money
from the death resulting therefrom under the compensation law.
That is my belief.
If that is so, then I say that your system in certain situations is not
as good as the civil service system and is unfair to the members who
are employed by the State Department.
I would suggest a check into that.
Mr. HENDERSON. We shall check that. I agree with you that if
the civil-service provisions are more favorable to members of the
civil service than the provisions that we have suggested are to the
Foreign Service, we should have our pertinent provisions changed.
I have been led to understand that they are practically identical, is
that correct, Mr. Woodyear?
(For further details, see p. 160.)
Mr. WOODYEAR. That is correct. I don't want to confuse your
question, Mr. Congressman, but you refer here to a steamfitter or
ship atter. That man would probably not be subject to civil-service
coverage; he would be under social security and a different set of
rules would prevail.
If you had a civil servant who was, let us say, a budget and fiscal
officer, and you had the same type of employee in the Foreign Service,
anything that happened to either one of them would be exactly the
same under civil service or Foreign Service. There is no distinction
made under our proposed amendments.
Mr. FARBSTEIN. You say then there is no employee in a shipyard
that is on civil service?
Mr. WOODYEAR. No, sir; I don't say that. I think there are prob-
ably clerical employees, timekeepers.
Mr. FARBSTEIN. Let's substitute the clerical employee who gets
hit by a bolt coming off a ship while it is being built. Substitute him
for the artisan.
Ilk
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Mr WOODYEAR. IIe would be treated in the same way.
Mr. PARBSTEIN. He would get no compensation?
Mr. WOODYEAR. If he got compensation or his widow got compen-
sation, she would not be entitled to a civil service ?
Mr. FARBSTEIN. I would appreciate checking on that also. That
does not seem right.
Mr. HENDERSON. We shall check that.
(For further details, see p. 160.)
Mr. BENTLEY. We have had a substantial amount of lateral entry
into the Foreign Service in the past few years. I notice in this bill
that you request an amendment to remove the numerical existing
My question would be, what effect, if any, has this?to use that
wonderful word "wristonization", accomplished and what is likely to
be accomplished if you remove this numerical limitation with regard
to the Foreign Service retirement and disability fund?
Mr. HENDERSON. Mr. Chairman, it isn't our intention to increase
to any great extent the number of lateral entries into the Foreign
Service Officer Corps. The fact is that out of the quota of 175 that
was given to us in 1955 for lateral entry, we have used only 38. So
we haven't been too profuse in the matter of lateral entry. In my
opinion we should probably have had a few more lateral entries, par-
ticularly in the case of specialties.
It isn't our intention to launch another integration program. The
lateral entry that you have in mind, I believe, is the integration process
during which we brought into the Officer Corps large numbers of
Staff and civil service officers.
Mr. HAYS. Do you still have these 137 slots that you haven't used
available?
Mr. HENDERSON. Yes.
Mr. HAYS. Why do you not want a numerical limitation on those?
I remember all the debate we went through in putting that in.
Mr. HENDERSON. This is partly a matter of principle. We could
continue to live for another year or two, I suppose, on the 137.
Mr. HAYS. If you have only used 38 in 5 years, it would seem to
me you would live a long time at that rate.
Mr. HENDERSON. I think we should increase somewhat the number
of lateral entries, but not to an extent that would imperil the career
features of the Foreign Service. Nevertheless, the remaining quota
of 137 would last for some time.
Mr. BENTLEY. The question actually wasn't the matter of numeri-
cal limitation at this time. The question was directed more to what
effect, if any, it had upon the retirement and disability fund.
Mr. HENDERSON. I don't think it would have any great effect on
the retirement disability fund. I would say that 90 percent of the
personnel who have come into the Foreign Service laterally during the
last 5 years had been paying into the civil service retirement fund
before their entry. They brought with them into our retirement funds
their deposits from the civil service retirement funds.
Mr. BENTLEY. Then, in other words, Mr. IIenderson, do you know
whether or not Congress will be asked for a new appropriation or is
it running on a self-sufficient basis at this time?
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Mr. HENDERsoN. The fund is not running on a self-sufficient basis
because the Federal Government hasn't been making the contribu-
tions regularly into the fund that it is supposed to have made.
Mr. BENTLEY. There is a period of years that I seem to recall that
no contributions were deemed to be necessary. Am I correct?
Mr. HENDERSON. No contributions were deemed necessary in order
to take care of the current payments, but if a large number of the
personnel in the Foreign Service should pass off the scene simul-
taneously, we might find ourselves bankrupt. Our fund does not
have the reserves to provide for a great many deaths or accidents.
We have a full statement with regard to the funds with us here.
Mr. WooDYEAR. We do, sir.
Mr. HAYS. Without objection that will be included in the record at
this point.
(The statement referred to is as follows:)
Balance sheet-Foreign Service retirement system, valuation at 4 percent, as of
Dec. 31, 1958
LIABILITIES (PRESENT VALUE)
Existing retired roll: 1
Service annuitants
$26,
287,
000
Disability annuitants
811,
000
Survivor annuitants
3,
228,
000
Prospective survivor annuitants
1,
698,
000
Prospective annuities to present active members: 1
Service annuitants
181,
629,
000
Disability annuitants
6,
845,
000
Prospective annuities to survivors of present active members: 1
Service annuitant survivors
11,
079,
000
Disability annuitant survivors
1,
647,
000
Aft
Death in service survivors
10,
150,
000
Prospective return of past contributions to present active members:
On death in service
234,
000
On withdrawal
315,
000
Prospective return of past voluntary contributions to present active
members
717,
000
Prospective return of future contributions to present active members:
On death in service
516,
000
On withdrawal
442,
000
Prospective lump sum and deferred annuity selection-out benefits to
present active members, classes 4-7
511,
000
Total
246,
109,
000
ASSETS (PRESENT VALUE)
Funds in hand
26,
071,
000
Prospective contributions by present active members (5 percent of
future payroll)
24,
762,
000
Prospective contributions by present active members for outside
service (0.19 percent of future payroll)
1,
040,
000
Prospective normal premiums by Government with respect to
present active members (15.69 percent of future payroll)
77,
703,
000
Unfunded liability
116,
533,
000
Total
246,
109,
000
Includes selection-out benefits, classes 1-3.
Mr. WOODYEAR. Could I add to your statement regarding the
necessity for funds during the period 1951-56? The Department
consistently requested an average of $2,500,000 contribution to the
fund and it was consistently denied by the Appropriations Committee.
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AMENDMENTS TO THE FOREIGN SERVICE ACT 195
It was not the Department's determination that there was no need.
As a result a very large liability has accumulated.
Mr. BENTLEY. Has that been
Mr. WOODYEA R. There have been small appropriations since 1956.
Mr. HENDERSON. In the last few years there have been appropria-
tions.
Mr. WOOD YEA R. But not in the amount we have requested. Ap-
proximately half, I believe. You will recall that in 1955, I believe,
or 1956 when we were discussing the bill which increased the annuities
of retired Foreign Service officers, there was a rather distorted picture
then. It appeared that the fund was almost balanced because several
million dollars had been paid in by lateral entrants bringing their funds
from the civil service. That has been offset by liabilities.
At the present date the unfunded liability is about $118 million in
our fund and several billion in the civil service fund.
Mrs. BOLTON. A small question on page 33, the last sentence:
The annuity of such widow or dependent widower shall commence on the date
following death of the participant and shall terminate upon death of the widow or
dependent widower, or upon the dependent widower's becoming capable of self-
support.
Is a widow not included in that last phrase? Should the widow con-
tinue to receive it even though she might have become self-supporting:
Mr. HENDERSON. Yes, she would. She may run a boarding house.
She would still be entitled
Mrs. BOLTON. And if she remarries, she is entitled to it?
Mr. HENDERSON. Yes.
Mr. HAYS. That will be all for today on the record.
(Whereupon, at 11:58 a.m., the subcommittee proceeded in executive
session.)
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AMENDMENTS TO THE FOREIGN SERVICE ACT
TUESDAY, FEBRUARY 16, 1960
HOUSE OF REPRESENTATIVES,
COMMITTEE ON FOREIGN AFFAIRS,
SUBCOMMITTEE ON STATE DEPARTMEN1
ORGANIZATION AND FOREIGN OPERATIOA,
Washington, D.C.
The subcommittee met at 10:40 a.m., in room G-3, U.S. Capitol,
Hon. Wayne L. Hays (chairman of the subcommittee) presiding.
Mr. HAYS. We are meeting again on this amendment to the Foreign
Service Act of 1946.
Presumably everybody has had a chance to look over the questions
that were submitted and the answers that were submitted in return
by the Department of State.
I wonder if you have any questions that are not completely clear
or any questions about their answers?
Mrs. BOLTON. I have been wondering, Mr. Chairman, how long it
has been that the 1946 act has been unsatisfactory or insufficient?
STATEMENT OF HON. LOY W. HENDERSON, DEPUTY UNDER
SECRETARY OF STATE FOR ADMINISTRATION
Mr. HENDERSON. I would say that the 1946 act was the greatest
advance as far as legislation is concerned with regard to the Foreign
Service since 1924. The results have not been unsatisfactory, but
the experience of 14 years has demonstrated that the present legislation
could be improved upon.
For the last 4 years we have been giving consideration to most of
the amendments contained in this bill and have felt that they should
be presented to the Congress at an appropriate time.
Mrs. BOLTON. You feel that the changes you are suggesting would
help matters very materially? I refer to such as that of the dropping
of certain classes, and so forth.
Mr. PIENDEasoN. We believe that the reclassification of the Foreign
Service Staff contained in this bill would increase the effectiveness of
the Staff.
Mrs. BOLTON. Did the "Wristonization" affect the Staff Corps?
May we have your evaluation of this?
Mr. HENDERSON. Yes. The Wristonization program provided that
all officer positions in the Staff Corps, except those of a highly technical
and specialized character, should become Foreign Service officer
positions. The Foreign Service Staff incumbents of those positions
were given an opportunity to become Foreign Service officers unless
they were found not to possess the appropriate qualifications. Most
of the Foreign Service Staff officers did become Foreign Service
197
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officers during the Wristonization program. But since they brought AIL
with them their jobs, the Staff Corps was left with very few officer
positions.
This reclassification, this rescheduling of classes will not produce a
great many Staff officer positions. There will still be relatively few
Staff personnel of officer rank.
Mrs. BOLTON. Will there be enough?
Mr. HENDERSON. Yes, the officer positions formerly held by Staff
officers are now for the most part held by young Foreign Service
officers. If a member of the Staff Corps reaches the ceiling of his
particular specialty in the Staff Corps, he can try either to acquire
skills that will allow him to go into another specialty which has higher
ceilings, or to apply for entry into the Foreign Service Officer Corps.
I think that I pointed out in previous testimony that Foreign
Service Staff personnel applying for admission into the Foreign Service
Officer Corps are given special credit for good performance and for
their work in the Staff Corps. They have, therefore, an advantage in
competition with people from the outside.
Mrs. BOLTON. In the rank of career ambassador in the Foreign
Service, how many do we have?
Mr. HENDERSON. At the present time there is one active career
ambassador left. Three officers who formerly held that rank have
retired for age.
Could I speak off the record a moment?
Mrs. BOLTON. Yes; indeed.
(Discussion off the record.)
Mrs. BOLTON. As a result of this reorganization does the Director
General actually and in fact administer the Foreign Service?
Mr. HENDERSON. No; he does not administer the Foreign Service
any more; although he did so from 1946 to 1949. The Foreign Service
is administered by the Assistant Secretary for Administration under
the supervision of the Deputy Under Secretary. The Director General
of the Foreign Service really acts as a staff assistant to the Deputy
Under Secretary for Administration. His office adjoins the latter 's
office. He is responsible for and in charge of examination procedures.
He has many other functions. For instance, he sits on the Foreign
Buildings Committee. He is the head of quite a number of committees
which seek improvements in the Foreign Service.
As the head of the committee that has to do with plans for Foreign
Service training he has great responsibility. In my absence he takes
over a certain number of my functions. He is not, however, what
might be called an executive officer of the Department.
Mrs. BOLTON. Isn't the term "Director General" somewhat of a
misnomer, implying things that he isn't?
Mr. HENDERSON. Yes; it might. A person might obtain from the
title a wrong idea about what his duties are. You will remember the
act of 1946 did give him executive powers. That act was amended in
about 1949, so that the executive functions of the Director General
passed over to the Secretary of State. The Secretary of State has
subsequently deputized various officers of the Department to perform
the functions which the act of 1946 originally provided should be
performed by the Director General of the Foreign Service.
Mrs. BOLTON. It seems to me it might be clearer if you really
call him what he is, or doesn't it make any difference?
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Mr. HENDERSON. I don't think it makes any real difference. It is
useful for him to have that title. He can, for instance, represent the
Department at various conferences with an effectiveness he would
not have if he were not Director General of the Foreign Service.
Furthermore, if at any time the position of Deputy Under Secretary
for Administration should be held by someone who hasn't had exper-
ience in the Foreign Service, the value of the Director General as his
staff assistant would be particularly significant because the Deputy
Under Secretary for Administration would depend on him heavily
for advice with regard to Foreign Service matters.
Mrs. BOLTON. That is very clear.
Mr. FARBSTEIN. Would you say, then, that the Director General
actually does the work of an executive secretary?
Mr. HENDERSON. No. He is a Staff officer; that is, he acts first
as the adviser, the right-hand adviser and consultant to the Deputy
Under Secretary for Administration. There is hardly a move we
make connected with the Foreign Service with regard to which he is
not consulted.
In the second place, he is respon*,iblQ for preparing the examinations
and handling the eiefiliiina.tiofis for admission into the Foreign Service.
Mr. FARBSTEIN. Let me interrupt, Mr. Henderson. To classify or
parallel it with a business organization, you have a president who is
the director; you have an executive secretary who does the actual
work who is called an executive secretary because he runs things
under the policy of the president.
Would you say that this man, the Director General, has work
that is parallel with an executive secretary that I have just described?
Mr. HENDERSON. No. He doesn't have any executive authority.
The orders pertaining to the administration of the Service don't
pass through him and he doesn't carry them out. The orders are
carried out by the area of administration which is under the Assistant
Secretary for Administration. I would like to stress that the Director
General is selected with great care from the most competent senior
officers of the Service, since his wisdom and experience play an
important role in the formulation of Foreign Service policies.
Mr. FARBSTEIN. Thank you.
Mr. HENDERSON. Have I made myself clear, Mr. Farbstein?
Mr. FARBSTEIN. Yes.
Mr. HAYS. Mrs. Kelly.
Mrs. KELLY. No questions.
Mr. HAYS. Judge Saund.
Mr. SAUND. No questions.
Mr. HAYS. Mr. Bowles.
Mr. BOWLES. No questions.
Mr. HAYS. Could you tell me without too much trouble how many
employees the Department of State had in 1950 or 1946 or some date
about 10 or 12 years ago?
. Mr. HENDERSON. I am sorry. I don't have them here.
Mr. HAYS. Do you know how many employees you have today?
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STATEMENT OF AARON BROWN, DEPUTY ASSISTANT SECRETARY
OF STATE FOR PERSONNEL
Mr. BROWN. About 22,000, Mr. Chairman, including alien em-
ployees overseas.
Mr. HENDERSON. Could you explain this table, please?
STATEMENT OF WILLIAM E. WOODYEAR, DEPUTY CHIEF, PER-
SONNEL PROJECTS STAFF, DEPARTMENT OF STATE
Mr. WOODYEAR. The total number of full time employees at the
present time is 22,766. Of these, 4,951 are American domestic
employees.
Mr. HAYS. That is how many you have here in Washington?
MT. WOODYEAR. That is the number in the United States, exclud-
ing, of course, the Foreign Service people assigned to this country.
Mr. HENDERSON. This would include our passport offices and other
offices in the United States outside of Washington, such as our mission
to the United Nations in New York.
Mr. WOODYEAR. American Foreign Service personnel number
8,155 and foreign national employees 9,660.
Mr. Tays. You have no figures on what you had, say, in 1950?
Mr. WOODYEAR. We could supply those, Mr Chairman.
(The information requested is as follows:)
Department of State?Summary of employment, Dec. 31, 1950
Category of employees
American domestic employees 2
American Foreign Service employees
Foreign national employees
Total
Continental United States
Washington
6, 253
592
I Overseas
Outside
Washington
All areas
2, 274
14
8,003
8,244
8,541
8,595
8,244
6, 845
2,274
16,261
25,380
1 Includes Hawaii.
2 Includes departmental, IBWC, and USUN employees in Washington.
Mr. HAYS. Would you have any idea of how much of an increase
there has been in the last 10 years?
Mr. HENDERSON. I would say, Mr. Chairman, there has been an
increase on a comparative basis because these figures include not only
personnel whose salaries are budgeted for by the Department of State,
but personnel who while on the Department's payroll are budgeted
for by other agencies of the Government.
I am referring to personnel engaged in what we call administrative
support. We have several thousand employees who provide admin-
istrative support for the foreign representatives abroad of other
agencies, such as USIA, ICA, and so forth. Since the personnel of
some of these agencies have increased in number since 1950, there are
a larger number of persons engaged in giving administrative support
at present than there were in 1950. Of the 22,760 personnel on the
payroll of the Department only about 14,000 are regular employees
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of the Department of State whose salaries are paid through the De-
partment of State budget. 44i
I think that that number is not much in excess of the number
employed by the Department in 1950.
Mr. HAYS. You say USIA and ICA have increased since 1950.
My guess is that ICA got less money last year than it got in 1950 and
my guess is it is going to be considerably less this year.
Why would the number of employees increase?
MT. HENDERSON. In 1950 the so-called point 4 operations were just
starting. There were no technical assistance missions of any size.
The number of employees in ICA increases along with the increase
of funds for technical assistance. I am sure that much more is being
spent on technical assistance now than was being spent in 1950.
For instance, an appropriation of $10 million for economic aid
might require the services of only four or five persons. An appropria-
tion of a similar amount for technical assistance might require the
services of a thousand employees.
Mr. HAYS. The thing that I am interested in is, Would you care to
comment on whether or not the adoption of these amendments will
tend to facilitate the increase of the number of employees in the State
Department? Where does this all stop?
Mr. IIENDERSON. No, sir; I don't believe that the incorporation of
the suggested amendments in the Foreign Service Act would tend to
increase the number of employees of the State Department or of our
Foreign Service.
Mr. FARBSTEIN. To what degree will it increase the budget?
Mr. HENDERSON. We have those figures available. We have esti-
mated that the total would amount to $1,188,411; I think our present
"ftivi budget is about $240 million.
STATEMENT OF HON. LANE DWINELL, ASSISTANT SECRETARY OF
STATE FOR ADMINISTRATION
Mr. DWINELL. The figure you were using, sir, is a subtotal.
MT. HENDERSON. You are quite right; the total would be $1,817,290.
Of this amount the reclassification of the Staff employees assigned to
new classes and so forth would cost, we estimate, about $217,025;
hazardous duty differential for diplomatic couriers might cost us
about $35,700.
The biggest item would be for the housing allowance for personnel
assigned temporarily to Washington, which would be about $1,422,666
minus the saving which we would effect by abolishing what we call the
Washington differential. This would mean a net cost of $1,188,411.
Then if we would put into effect the language-training program
which is foreseen by this amendment, the cost for the next 5 years
would be an additional $251,331 a .year. This would represent the
salaries and training costs of a certain number of officers whom we
would detail yearly to the study of hard languages in order to enable
us to close the gaps which exist in the hard language area.
We estimate there would be a number of in-class promotions of Foreign
Service Staff officers which might cost about $20,500 annually. There
is a provision in the bill for granting a certain bonus to personnel who
learn difficult languages and who maintain their facilities in such
languages. Those bonuses might cost as much as $256,000 annually;
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Mr. HAYS. Could I go back to this number of employees?
How many people did you say you had, departmental employees in
the United States at the moment?
Mr. BROWN. In the United States, 4,951 departmental employees.
Mr. HAYS. You have in the United States and abroad how many?
Mr. BROWN. 22,766.
Mr. HAYS. According to this report on personnel strength in 1954
you had 22,250 total, but you had more according to this in the United
States than
Mr. BROWN. In addition to the 4,951 which I mentioned, we have
in the United States 1,883 Foreign Service employees serving in the
United States.
Mr. HAYS. I am talking about grand total, Foreign Service and
departmental employees both.
Mr. BROWN. The grand total of all employees in the State Depart-
ment in the United States is 6,834.
Mr. HAYS. In other words, you had 5,737, according to this, 6 years
ago. You have increased over a thousand in 6 years.
Do you foresee that this kind of increase will continue indefinitely
and, if so, where is the next building to be built?
Mr. HENDERSON. There have been Some increases. If you look at
the figures for 1952 and 1953 you will find that 1954 was the low year.
Furthermore, in 1954 we had relatively few embasssies in Africa.
Since 1954 our embassies in Africa have been multiplying.
I think we have been compelled to open some 30 or 40 new consular
offices since 1954 as well as 10 or 12 new embassies.
As new areas of the world move toward independence, they look
toward us to establish closer relations with them. I believe that the
Congress agrees with the executive branch of the Department that it
is in the national interest to expand our relations with these areas
developing in the direction of independence. This year alone we are
asking for 11 new consular offices.
Mr. HAYS. The thing that bothers me, Mr. Secretary, is a ques-
tion of whether the left hand knows what the right hand is doing.
I will give you an illustration of something that happened to me
about a week ago. A college friend of my wife's had written some 2
or 3 weeks ago that she was coming into town to a social workers'
conference and she hoped to see us.
We have an unlisted phone number and my wife sent it out to her
and had gotten worried if it had gotten to her. I had my secretary
call the Department of Health, Education, and Welfare and she said,
"I understand there is a conference of social workers somewhere in
town. It is under your sponsorship and I would like to find out where
it is so I can get in touch with one of the participants."
I talked to about six people down there personally and none of
them knew anything about it. They promised they would find out
about it. After several hours, they called back and said to their
certain knowledge there was no conference in town and, if so, it wasn't
under their sponsorship. My wife's friend later called the office and
I said, "Where are you and who is sponsoring your conference?"
And she said, "The Department of Health, Education, and Welfare."
I said, "How many people are at this conference?"
She said, "About 200 from all over the United States."
? They had a conference and apparently no one knew they had it.
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This is what happens when something gets so big. I don't know if
they found out about the conference. I had had enough of them by
that time.
I have had the same experience with your organization on a smaller
scale. You talk to about 10 different people and that is why I fre-
quently bother you because I think it is better to start at the top.
Mr. HENDERSON. I share your experiences. Every now and then
I find that a conference has been held under the auspices of the De-
partment of State of which I was not aware
Mr. HAYS. Somebody in the Department of State ought to be able
to find out about it. There ought to be a clearinghouse where you
can get this information or does the left hand know what the right
hand is doing?
Mr. HENDERSON. Our public-relations area is acquainted with most
conferences of a domestic nature.
Mr. HAYS. Suppose we have problems with country "X" and there
are certain decisions made about this. Who makes those decisions
ultimately?
Does the Secretary or is it someone down in the Department that
we never hoar about?
Mr. HENDERSON. That depends on the type and importance of the
decision. We have general policies that have been determined by
the Secretary of State or by the President, himself, with the advice of
the National Security Council. The subordinate officers in the De-
partment only make policy decisions of a more specific nature. They
must be sure, however, that their decisions fall in the framework of
the general policies that have been laid down at top levels.
If there is any doubt as to which general policy should govern
-.ftwe if some decisions might affect several general policies?or if there is a
new development that might possibly justify a review of some general
policy, subordinate officers refer matters calling for policy decisions to
their superiors, the problem may go to the Secretary or even to the
National Security Council.
I would say that at least nine-tenths of policy decisions which
are made in the Department fall within the framework of existing
policies.
Mr. HAYS. Have you had a chance to read Mr. Thayer's book on
diplomacy?
Mr. HENDERSON. No; I regret that I have not been able to do SQ.
Mr. HAYS. I haven't read all of it. He takes the first few chapters
of his work, the first sections, the operations of the American
Embassy in Lebanon during the crisis out there. He seems to indicate,
at least I got from it, that there was considerable conflict in decisions.
The Navy was making decisions on the one hand and the Depart-
ment of State on the other, and they weren't always the same decision.
We are having a similar situation at the moment about the Navy
policing the Suez Canal for Mr. Nasser. Who made this decision?
Mr. HENDERSON. I am not acquainted with this matter.
Mr. HAYS. You must be acquainted with it. There have been all
sorts of editorials. Somebody in the Department of State ought to be
aware of the fact that the American Navy has taken the position that
any ship that calls in an Israeli port that has been chartered by the
Israelis and so on can't haul
Mr. HENDERSON. I am sorry I know nothing of this problem.
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Mr. HAYS. I wonder who we can get up here to tell us where the
decisions are made?
Mr. HENDERSON. A decision affecting a matter of this kind would
customarily be made in the Bureau of Near Eastern and South Asian
Affairs. It might have been discussed at higher levels if the Navy
was involved. It might have been referred to one of the Under
Secretaries or to the Secretary.
Mr. HAYS. I have heard that the State Department is unhappy
with this but they seem not to be able to do anything about it. This
is not official, but what people have told me.
Mr. HENDERSON. Ordinarily I could answer this question. Un-
fortunately I have not been able during the last 3 weeks to attend
many of our staff meetings.
Mr. HAYS. Could somebody on your staff--you have a good many
people here this morning?could someone make inquiry and find out
who we could call up here that could give us those answers?
Mr. HENDERSON. We shall try to find out.
Mr. HAYS. This committee is directly engaged with policy of the
State Department. If the Navy is doing things contrary to policy
of the State Department, I would like to know about it.
If the State Department concurs in this policy, I would like to find
out who made that decision.
Mr. HENDERSON. We shall be glad to try to get this information
for you.
Mr. HAYS. It is pertinent to this hearing and this legislation be-
cause this committee is engaged in a maneuver now of giving the
Department even broader powers than they have by this series of
amendments. I would like to be satisfied in my own mind that the
chain of command and the decisions are operating in the normal way
and there is some attempt on the part of the State Department to
at least carry out the desires and policy of the Congress.
I am convinced that if this committee hadn't taken action the
Panamanian flag would be flying in the Canal Zone right at the mo-
ment, which would be contrary to almost the unanimous wishes of
the Congress.
There were only 12 people who voted the other way. Just how
responsive--maybe this is not a fair question?let's ask this off the
record.
(Discussion off the record.)
Mr. HAYS. On the record.
Mrs. BOLTON. We have had the Wriston report 4 years. Do you
feel it has been a soul-satisfying experience in the State Department?
Mr. HENDERSON. The implementation of this program has not been
easy. A program of this kind means the changing of the life plans
of a large number of persons. In the Department there were a great
many civil service personnel who never contemplated that they would
be called upon to live anywhere except in Washington. As a result
of the Wriston program, many of them decided to go into the Foreign
Service; they realized that if they did not do so their careers would
be stunted.
The carrying out of this program meant also that a great many
Foreign Service officers who had thought that they would spend at
least 80 percent of their career serving abroad will now spend a much
higher percentage of their time in Washington.
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Mrs. BOLTON. All in all, it is not so satisfactory?
Mr. HENDERSON. No; I would not say that. Although it has
4111Pe caused some heartburnings and given rise to some dissatisfaction, the
operation in my opinion was necessary. The unhappiness and the
dislocation are temporary phenomena. The scars are healing rapidly.
Personnel are gradually adjusting themselves to the new situation.
I am convinced that the result will be a stronger Department of State
and a more effective Foreign Service.
Mrs. BOLTON. That is the point; isn't it?
MT. HENDERSON. Yes. It has been a painful operation but in my
opinion a necessary and useful one.
I want to make it clear that I had nothing to do with the decision
to carry out that program. This was made while I was serving
abroad. I was brought in after the program had been launched and
was given the task of carrying it out. This I have tried conscientiously
to do.
Mrs. BOLTON. What has been the result of the lateral entries?
Have they had a tendency to disrupt the corps?
Mr. HENDERSON. When you speak of lateral entry, I suppose you
are not referring to the entry into the Foreign Service Officer Corps
of persons at intermediate or senior levels. Since 1955 there have
been only about 38 lateral entries into the Foreign Service Officer
Corps. But we have brought in more officers through the Foreign
Service Reserve officer route; that is, a number of officers in addition
to the 38 have been appointed Reserve officers and some after 3 or 4
years in the Reserve, have become Foreign Service officers. But not
enough personnel have been brought into the Service at levels above
class 8 to impair in the slightest the career basis of the Service.
Mr. HAYS. You have used only 38 lateral entry slots that we gave
you. Why do you want an unlimited number of them?
Why do you want the limitation taken off?
MT. HENDERSON. It is primarily a matter of principle.
Mr. HAYs. What is the principle? You don't want Congress to
have any reins on it at all or what principle is involved?
MT. HENDERSON. NO. The principle is that we feel that it would
be to the benefit of the Service for the Department to be able from
time to time to recruit into it officers, particularly specialists, at
levels higher than class 8.
We would like to feel that Congress trusts us to carry out a lateral
entry program without putting on a limit. If the present limit is
maintained we may be compelled to come to you within a few years
to ask for a lifting of limits.
Could I say something off the record?
Mr. HAYS. I would like to keep this on the record as much as
possible. I remember very distinctly when all the argument about
whether the lateral entry should be wide open, whether you should
have 400 or 100.
Finally, in order to get the thing moving, we agreed upon the num-
ber, which was what? 175 as I recall it, Mr. Vorys objected to an
unlimited number.
His contention, which I shared, was that you come back at a later
date and tell us how it worked and we would take another look at it.
Now, you say you have used 38. Two questions occur. Why did
you use only 38? If that is all that you found necessary to have
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enter laterally, why can't you get along with the 175 of which you
have 130-odd left indefinitely?
Mr. HENDERSON. We have used only 38 because we were hesitant
to do very much in the way of lateral entry until we could digest the
integratees coming in through the Wriston program. You recall
that as a result of the Wriston program we more than doubled, almost
trebled the number of Foreign Service officers. The digestion of so
many new officers has required time even though the operation was
of a transferral nature and did not involve a total increase in per-
sonnel. We have been slow, therefore in adding to our problems by
taking in an appreciable number of lateral entries.
Furthermore, as I have already pointed out, we have preferred in
general to use the route of the Foreign Service Reserve officer in
bringing people into the Service from outside the State Department
rather than the route of lateral entry. The Reserve officer route
means a person is brought in for 3 or 4 years on a temporary basis.
After he has satisfied us that he has the appropriate qualifications, he
may then be commissioned as a Foreign Service officer.
Mr. HAYS. I assume, although there are some new members on the
committee, this 175 quota applied to people brought in from the
outside, not people transferred from the Staff to the Foreign Service
and so on.
Mr. HENDERSON. The 175 was the ceiling placed upon the number
of persons who could be brought into the Service laterally who were
not in the employ of the Department on March 1, 1955.
Mr. HAYS. I don't wish to take more of your time, Mrs. Bolton.
You may have as much time as you want.
I want to point out that not only did we have the Foreign Service
Act of 1946, but we had the amendments of 1955. Now we are
coming back with 50-odd more amendments in 1960.
The question, of course, is I suppose about 1963 or 1964 you will
be back for another series.
Mr. HENDERSON. I have an idea that within 4 or 5 years more
amendments will be requested. Certain changes in the situation are
almost sure to take place during the years which will 'give rise to new
problems which in turn will cause us to ask for new amendments.
I would think the amendments which are in the bill should take
care of us for the 3 or 4 years.
Mr. HAYS. That is a little bit of encouragement.
Mrs. KELLY, On the question of lateral entry, there was originally
a time limitation. I think my amendment extended the time.
Mr. HENDERSON. There was no time limitation on the 175. There
was a time limitation on the integration.
Mrs. KELLY. Is that time limitation up soon?
Mr. HAYS. The 175 had no limitation. The Wristonization had a
limitation.
Mr. HENDERSON. I have forgotten the details. I don't believe
there was a time limitation. I believe that we said we hoped within
the next 2 years
Mrs. KELLY. I extended it to 5 years. Is that completed?
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STATEMENT OF J. EDWARD LYERLY, DEPUTY ASSISTANT LEGAL
ADVISER FOR ADMINISTRATION AND FOREIGN SERVICE, DE-
PARTMENT OF STATE
Mr. LYERLY. I think there was a time limitation on the initial
group.
Mrs. KELLY. Of 1,250?
Mr. LYERLY. No; the first 500. But then when the act was
amended to authorize a further 1,250, no time limitation was set.
Mrs. BOLTON. We had some discussion at one time on the diffi-
culties you were having with some substandard officers. There was
a section 633 that provided for the selection out of substandard officers.
Has that removed all of them?
Do you feel you have practically no substandard officers? What
about your selection out? Is it working?
Mr. IIENDER,soN. We have been giving more attention, particularly
during the last 2 years, to the problem of selection out.
If we are to have a top-flight service, we shall be compelled con-
tinuously to prove it. We shall always find a certain number of
officers who should be selected out. Some of these officers should be
considered as casualties of the Service. Some of them may have been
quite effective at sometime, but for various reasons have gradually
lost their effectiveness and are unable to row their weight any more.
These officers should be selected out.
We try to do this in as humane a way as possible. The fact that
some officers who have been in the Service a good many years and
who have been valuable in the past would not be entitled to a pension
if selected out, gives us pause.
If a man has been in the Service say 17 years; is 45 years of age;
has done good work in the past; and is now substandard, it is a rather
cruel thing to select him out without a pension--merely to give him a
lump sum and to let him go. Such an officer may have children in
school. He may find it difficult to obtain work elsewhere at that age,
particularly since he may have spent many years abroad.
We have some problems of this kind. The fact is that I have been
unwilling to agree to the selection out of officers merely because they
are somewhat substandard if they are over 40 years of age and have
had 15 or more years of Government service unless they are entitled
to a pension.
As you know, if an officer has had 20 years of service and is over
50 years of age, he can retire voluntarily on an annuity. Furthermore,
officers in classes 1, 2, and 3, regardless of age, may receive a pension
if selected out. Officers in the classes below 3 who are entitled to a
pension usually retire voluntarily when they find themselves facing
selection out. How many were selected out last year, Mr. Brown?
Mr. BROWN. Last year, Mrs. Bolton, we separated through selection
out, 40 Foreign Service officers of various classes. There were some
younger officers who were young enough to make an adjustment
quickly to some other walk of life. They were not entitled to an
annuity. The older officers were entitled to an annuity.
Mrs. BOLTON. Thank you very much.
One other thing. We had also in some of our discussions some years
ago?
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Mr. HENDERSON. Pardon me. If an officer is not only substandard,
but also a real liability to the Service, we select him out regardless.
Mrs. BOLTON. I assumed that. You had something you were going
to say off the record a few minutes ago. Do you remember what it
was?
Mr. HENDERSON. It had to do with lateral entry.
Mrs. BOLTON. IS it something that we should know?
Mr. HENDERSON. This will be off the record.
(Discussion off the record.)
Mrs. BOLTON. This question seems in a way trivial, but as I have
gone down the years with the whole problem of wives and family, I
am hoping very much that there will be a way found by which wives
can be given a broader as well as a more detailed briefing in prepara-
tion for foreign posts, and that the families may find it helpful to have
a more thorough physical and emotional examination. Would this
not save a, few heartaches later on?
Mr. HAYS. Off the record.
(Discussion off the record.)
Mr. HAYS. Judge Saund, I believe you had a question.
Mr. SAE-ND. Mr. Secretary, you said that it was your new policy
to give incentives to employees with knowledge of foreign languages;
you stated it will cost the Department $156,000. How far will $160,000
go in terms of individuals? How many people will be benefited by
that? just a rough guess.
Mr. HENDERSON. As a rough guess, I would say it would be about
$600 a person.
Mr. WOODYEAR. It would average about $600 a person.
Mr. SAUND. 200 people or something like that?
Mr. HENDERSON. Yes.
Mr. SAUND. Then you say that it will cost about $250,000 for the
training program in foreign languages.
Mr. Secretary, if I recall correctly, we put in $8 or $9 million in
1 year's budget to train officials for the ICA in foreign languages.
Do you remember that, Mr. Chairman, 2 years ago?
Mr. HAYS. $8 million.
Mr. SAUND. Yes. How many individuals did it help to train in
some good foreign language?
Mr. HENDERSON. You mean how many individuals with this
250,000
Mr. SAUND. Yes.
Mr. HENDERSON. This is over a period of 5 years. It would be over
a million dollars.
Mr. HAYS. $1,250,000.
Mr. SAUND. That isn't too much money.
Mr. HENDERSON. This is in addition to what we are spending now.
Mr. BROWN. We have in the hard languages about 100 or 120 a
year.
Mr. SAUND. I think you will agree with me on this: I believe the
knowledge of the foreign language is becoming more and more
important. I live in Imperial County. I know, 10 years ago, a
Mexican could not get a job anywhere in the city or in a store. Now
the big stores, chain stores and the banks have found it advantageous
for them to hire Spaniards. There is not an establishment where a
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Mexican does not have a better chance than an American boy or girl
because of his knowledge of the Spanish language. I believe that all
you can do to assist, it will be appreciated by me at least, to imple-
ment this bonus to people who have knowledge of the foreign
languages; give them an incentive. You can't take charge of all of the
training jobs. It has to be done in the schools and colleges. If an
incentive is there, if the State Department makes it known that they
will prefer candidates with foreign languages, it will help a lot.
Mr. HENDERSON. As I have already indicated, WC give a bonus of
5 percent on examinations to anyone taking the entrance examinations
who can pass the foreign-language test. We have been giving con-
sideration to requiring a useful knowledge of a foreign language as a
prerequisite to entering the Service.
Mrs. Bolton knows of this discussion that we have had at the
Institute on this. We haven't made a decision. The fact is that our
public school system is so deficient in the teaching of foreign languages
that we have a fear that if we demand that a person pass an oral and
written foreign-language examination before lie can enter the Service
the products of our public school system will be discriminated against.
Mr. SAUND. Mr. Secretary, I don't mean to say that because you
can't make any requirements going into effect today when you don't
have the material to draw from. You know the sentiment of this
committee?we added the $8 million in a few minutes. No one was
opposed. We passed the Defense Education Act and Congress allowed
large sums of money in order to facilitate the schools and colleges to
increase their foreign-language departments.
I wish you would make it known a little bit more clearly to the
people that there will be an incentive for young people to acquire
foreign languages, and the State Department will welcome them in
their ranks.
Mr. HENDERSON. I would like to point out in this connection that,
one of our problems will be to get the appropriations for this.
Mr. SA UND. You mean for this $250,000?
Mr. HENDERSON. Yes. We have asked for an increase in our
appropriations this year for training in hard languages. I don't
know what will happen to our request. The increase which we foresee
if the bill is passed would be over what we are asking for this year.
We are asking for an increase of about how much in the 1961 appro-
priations?
Mr. DWINELL. We are asking in hard languages $400,000.
Mr. HENDERSON. We really mean business in this.
Mrs. BOLTON. If the gentleman will yield, I think one of the things
that the Government can help all of us in is to insist in the proper
teaching of the English language in the schools. You get so many
who can't write reports. They don't know how to write the English
language. It is a very shocking situation.
IIAys. I don't want to get political, but the President says we
can't have any Federal interference in education.
Mrs. BOLTON. That isn't the way it is done at all.
Mr. HAYS. I don't know how--
Mrs. BOLTON. The Federal won't help it. It is the attitude of the
schools. We have several schools in Cleveland which have turned
about-face. They are teaching French, Latin, and German. Years
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back they stopped it but they have begun because the people have
insisted on it. The schools can do it if they just see the point to it.
Mr. HAYS. I might tell you, Mrs. Bolton, that the schools in
Cleveland?my brother-in-law is superintendent in Rocky River ?
are not representative of all Ohio. I have seen some of the equipment
they have to play around with, and down in my county they have only
one-tenth of that. Every time I go to his school I feel upset about it,
because of the fact that those children have so many advantages which
so many other children in the great State of Ohio, which is supposed
to be one of the wealthiest, don't have.
I have to get down to the floor to put some resolutions through. I
would like to have one more meeting of this committee at which time
everybody will have their final questions; we will wind up the ques-
tions at that point and will try to get this bill out. When that will be,
because of the hearings on mutual security, it is difficult to say. What
days next week do they have?
Mr. WESTPHAL. Tuesday, Wednesday, and Thursday.
Mr. HAYS. Suppose we leave it open and try to have it some after-
noon next week or perhaps tomorrow afternoon.
Mr. HENDERSON. Would you mind, Mr. Chairman, if I suggested
it might be next week? I dislike introducing a personal matter, but
I am going to the hospital tonight.
Mr. HAYS. We will make it at your convenience.
Mr. HENDERSON. Sometime next week.
I would like to be here.
Mrs. BOLTON. May they be good to you in the hospital.
Mr. HAYS. Without objection, the committee will stand adjourned
subject to the call of the chairman sometime next week.
(Whereupon, at 12 noon, the subcommittee was adjourned, to
reconvene at the call of the chairman.)
FOREIGN SERVICE OFFICER POSITIONS IN THE DEPARTMENT OF STATE,
(DECEMBER 1959)
Background: Basic reasons for the program integrating certain
categories of civil service officers in the Department into the Foreign
Service Officer Corps.
Among the basic reasons for the integration program in the Department were
the following:
. The conviction that the work both of the Department and of Foreign
Service officers abroad would be more effective if officers concerned with the
conduct of foreign affairs in the Department would have the benefit of ex-
perience in the foreign field and if officers on duty abroad would receive the
experience and discipline obtainable from service in the Department.
2. The realization that the Foreign Service was becoming "a service in
exile:" that so long as most of the positions in the Department relating to
the conduct of foreign affairs were manned by permanent civil service officers
there was insufficient opportunity for members of the Forei-m Service Officer
Corps to have the benefit of a departmental assignment with the result that
there was a danger that over the years they would lose touch with their own
country.
3. The belief that the flexibility which would result from the integration
program would facilitate the administration of the Department and of the
Foreign Service, would contribute to the maintenance of a freshness of ap-
proach to problems in the Department, and would tend to deepen the knowl-
edge and background of officers in the field.
4. The conclusion that the unification of the foreign affairs operations of
the Department of State under a single personnel system (a) would permit
the infusion into the Foreign Service of a high de,z.ree of specialization in
other than the general practice of diplomacy thereby strengthening the
Oft
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Department and the Foreign Service in meeting the responsibilities of the
modern-day conduct of foreign affairs, and (b) would result in the expansion
of the base from which needed talents could be developed.
The following comments might be made with regard to these four basic reasons:
1. Advantages to be derived from a Foreign Service Officer Corps with extensive
experience both in the Department and in the foreign field.?Experience over many
years has demonstrated that departmental officers have a better understanding
of the problems of our missions and consular offices if they themselves have had
Foreign Service posts abroad. Officers in the Department who have served
abroad are in a better position than they would be without such experience to
judge whether or not instructions which they prepare for the field are practical
from the poin t of view of execution. Too frequently a departmental officer who
has not himself operated in the foreign field is inclined to approach a problem
from the point of view of theory rather than from that of practicability. Further-
more, prior service abroad enables officers in the Department to have a better
appreciation of the circumstances under which officers must work at foreign
posts and the difficulties with which they are confronted. Such service certainly
gives a departmental officer a more comprehensive picture of the problems and
possibilities of the area itself.
Conversely, experience has demonstrated that Foreign Service officers who have
not served one or more tours in the Department of State are likely to be handi-
capped vis-a-vis officers serving side by side with those who have had such experi-
ence. Service in the Department gives a Foreign Service officer a better grasp
of the basis of our various foreign policies. It helps him to understand the kind of
information which is most useful to the Department and the type of action in
given circumstances which the Department would expect of him. It may also
provide rigorous training in the art of drafting documents used in international
exchanges and in the preparation of reports to the Department. Furthermore,
the knowledge of the organization and operations, not only of the Department but
also of other agencies of the Government dealing with foreign affairs, which an
officer derives from a tour of duty in the Department enables him when serving
abroad to be more responsive to the needs of the Department and other interested
agencies. Above all, a tour in the Department helps an officer to keep in tune
with the spirit of the American people and in touch with American trends.
2. The danger of the Foreign Service becoming "a service in exile."?Prior to the
outbreak of the Second World War, the Department was manned almost entirely
by:
(a) Presidential appointees some of whom came from private life and some
of whom were Foreign Service officers.
(b) Foreign Service officers who were detailed for periods of from 2 to 4
years in various areas of the Department, particularly in those now known as
the geographic bureaus, and those concerned with the administration of the
Foreign Service and in the direction of consular activities. Foreign Service
officers were also frequently detailed as assistants to the senior officers of the
Department.
(c) Civil service personnel who for the most part were clerical personnel
or officers engaged in administrative activities.
(d) Officers engaged in substantive and administrative activities who had
no permanent status and who served at the discretion of the Secretary.
During the middle forties, most of the officers of the Department who previously
had had no permanent status were brought into the civil service. As civil service
officers they gained permanence. Many of them hoped for a career in the Depart-
ment. As the years went by, these officers gradually began to climb a depart-
mental career ladder. When a Foreign Service officer upon completion of his tour
would go to the field, it was natural that the civil service officer below him should
desire to fill the vacancy rather than to see it filled by another Foreign Service
officer detailed from the field. It too frequently happened that if another Foreign
Service officer should be assigned to the position, the civil service officer in his
disappointment would cherish feelings of resentment against a system which
seemed to block his rapid promotion. Sooner or later, however, if he had ability
he would move up into the coveted position. Since he was a permanent fixture in
the Department, he usually continued to occupy a position assigned to him until
he was able to move to one still further up. Little by little, therefore, the key
positions in the Department began to be frozen into the civil service and Foreign
Service officers were beginning to have less and less opportunity of being detailed
to departmental positions of responsibility. Efforts to bring about greater inter-
change between the Department and the field did not meet with marked success
because Foreign Service officers were inclined to resist the appointment into the
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Service of civil officers above their heads just as civil service officers in the Depart-
ment had a tendency to resist the appointment to the Department of Foreign
Service officers above them.
3. The advantages of the flexibility in the administration of the Department and
of the Foreign Service as a result of integration.?Prior to integration, there were
many officers in the Department who were admirably fitted for positions in the
field and whose appointment to such positions would have been in the national
interest and also would have contributed to their own development. Similarly,
there were many Foreign Service officers in the field who were well-fitted to hold
certain positions in the Department and whose assignment to such positions would
have strengthened the Department. So long, however, as one Service manned
the Department and another Service the foreign field, the lack of flexibility
frequently prevented appointments which should have been made.
The concept of the Foreign Service Officer Corps is that a member of that
Corps must be prepared to serve at any time in any place in such capacity as the
Secretary of State may determine. The Corps, therefore, is completely flexible.
The civil service officers in the Department, on the other hand, are attached to
their jobs. Their salary and rank depend upon the positions which they hold and
do not adhere to them personally as in the case of Foreign Service officers. Prior to
integration, therefore, there was not the flexibility in the personnel administration
of the Department of the kind which a Government agency dealing with foreign
affairs should have. The superior flexibility of the Foreign Service Officer Corps
was one of the reasons why the decision was made for the integration to be made
into it instead of into the civil service.
4. The infusion into the Foreign Service of specialists and the expansion of the
base from which needed talents can be developed.?It was not expected, of course,
that the urgent need for specialists could be completely provided for by those
lodged in the departmental service in Washington who were to be integrated,
although this was a useful source for obtaining immediately at least part of the
skills required within the Foreign Service for its oversea establishment. The
continuing problem of recruiting and retaining additional specialists will be
discussed later.
During recent years as the United States has played an increasingly important
role in foreign affairs and as the responsibilities resting on the Department of
State and on the Foreign Service have become heavier and more complex, the
need of a higher degree of specialization in the Department and Foreign Service
has become greater and greater. A number of efforts have been made to meet
this need but, thus far, they have not been entirely successful. It was hoped,
for instance, that the Foreign Service Staff Corps, established in 1946, would
assist in supplying the specialists required in the administrative field. This hope,
however, failed to materialize partly because the administrative specialists
developed in the Staff Corps became dissatisfied with their status. Many of them
took the position that although they had great responsibilities, they were being
treated as a second-rate service. Their dissatisfaction and agitation tended to
undermine the unity of the Foreign Service as a whole. Furthermore, experience
has shown that junior Foreign Service officers needed administrative experience
if they were eventually to hold key Foreign Service positions in the Department
or abroad, and that so long as administrative activities were concentrated in the
Foreign Service Staff Corps they were not obtaining this experience.
Efforts to develop area specialists in the Service have been somewhat more
successful, but there is still much to be done in this direction. In spite of the fact,
for instance, that for over 30 years the Department has periodically been giving
training to officers in the languages and customs of the Near and Middle East,
it is still short of senior officers with the language and other eualifications which
our chiefs of mission in that area should have. There continues also to be a
shortage of officers with specialist area oualifi cations to man senior posts in the
Far East, south Asia and Africa. On the other hand, the Department has a
considerable reservoir of officers qualified to hold positions at all levels in the area
of the American Republics.
It is in what might be called "functional specialization" that the needs of the
Department and Foreign Service are the most acute. There has been, for instance,
for many years a chronic shortage of officers highly skilled in international eco-
nomic and financial problems. This is partly due to the fact that an artificial
bureaucratic wall has long existed between the Foreign Service and the economic
area of the Department. There was, unfortunately, a tendency on the part of
civil service officers who had a couired skills in the economic area of the Depart-
ment to look toward eventual employment in private enterprise, in universities,
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or in foundations for their future careers rather than toward the Foreign Service.
The Foreign Service, therefore, did not fully benefit from the experience acquired
in the economic areas of the Department.
Th.e integration of many of the positions in the economic area into the Foreign
Service and the departure of officers holding those positions to the foreign field
have created particularly difficult problems in that area. There were relatively
few officers in the Foreign Service who have had an opportunity to obtain experi-
ence in the economic area of the Department and, therefore, it has been particu-
larly difficult to find cualified replacements for the integrated officers.
A somewhat similar situation existed in the area of intelligence and research.
Although a few Foreign Service officers in past years have been detailed from time
to time to intelligence and research, that area had been manned for the most part
by civil service officers drawn from various institutions of learning. A tradition
had been developed during the years that research in the field of foreign affairs
was a type of activity so specialized that Foreign Service officers were not oualified
to engage in it. This tradition was widely accepted even though many Foreign
Service officers had engaged in extensive research while attending graduate schools
prior to their entry into the Service.
I. RECOMMENDATIONS OF THE PUBLIC COMMITTEE ON PERSONNEL
In 1954, the Secretary of State, realizing that there were basic weaknesses in the
personnel structure of the Department and Foreign Service, established a Public
Committee on Personnel "for the purpose of making recommendations concerning
the measures necessary to strengthen the effectiveness of the professional service
to a standard consistent with the vastly increasing responsibilities in the field of
foreign policy which have devolved upon the President and the Secretary."
Members of this Committee, which is usually referred to as the "Wriston Com-
mittee," are listed in appendix 1..
In its report to the Secretary, the Public Committee on Personnel made two
fundamental recommendations, the first of which was:
"To integrate the personnel of the Department of State and of the Foreign
Service, where their official functions converge, into a single administrative sys-
tem, thus putting an end to the institutional separateness of these main functioning
arms of U.S. diplomacy."
This recommendation was approved by the Secretary in June of 1954, and is
the basis for what has become known as the integration program. This program
reouired that certain positions in the Department and in the field be designated as
"Foreign Service officer positions" to be filled, with but a few temporary excep-
tions, only by Foreign Service officers.
The Committee supported its recommendation with an analysis of the personnel
system that then existed and with a reasoned proposal for putting it into effect.
These are set forth in the Committee's report entitled, "Toward a Stronger Foreign
Service." Pertinent highlights of the report are excerpted in appendix II.
II. CONTENT OF THE INTEGRATION PROGRAM
A. Amalgamation of four categories of officers
In brief, the integration program provided for the integration of civil service
personnel holding positions in the Department concerned with the conduct of
foreign relations, Foreign Service officers, Foreign Service staff officers (FSS's),
and Foreign Service Reserve officers (FSR's) into a single Foreign Service Officer
Corps, every member of which should be prepared to serve either at home or
abroad in any position to which the Secretary of State might see fit to assign him.
The actual integration was accomplished by designating particular positions in the
Department and abroad as FSO positions and by facilitating the entry of the
officers occupying those positions into the Foreign Service Officer Corps. In the
main, therefore, the occupants of such designated positions brought themselves,
together with their skills and their positions, into the Foreign Service Officer Corps.
Although as a result of the integration, the number of Foreign Service officers was
almost tripled, so also was almost tripled the number of positions which such
officers were to be called upon to man.
B. Designation of positions
The designation of FSO positions was by no means automatic; criteria had to be
established and iudgment in their application exercised. Some positions occupied
by GS personnel in the Department and by FSS personnel abroad were obvious
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designations as Foreign Service officer positions. It was equally apparent that
other positions occupied by FSS personnel abroad and, on a much larger scale, by
GS personnel in the Department, should not normally be filled by Foreign Service
officers. But there was a large number of in-between positions, both at home and
abroad, the proper classification of which was not so clearly indicated.
The Public Committee, in its report, set forth its belief that the functions and
responsibilities of the personnel in the Foreign Service (both FSO and FSS) and
of the personnel in the Department converged generally at and above the GS-7
level, although it recognized that there would be exceptions. It also developed
certain criteria for the determination of appropriate personnel categories. All
officer positions which were primarily concerned with (1) foreign affairs or (2) the
executive management of or administrative responsibility for the overseas opera-
tions of the Department and the Foreign Service, for which there was inter-
changeability between the United States and abroad, were to be designated. The
remaining American positions abroad, including secretarial, stenographic, clerical,
custodial, and lower or middle-grade technical positions, were to be designated
FSS positions. All other positions in the Department were to be designated for
civil service occupancy.
Criteria for designation as drawn up by the Public Committee and approved by
the Secretary in his directive II-A-I of 1954 are attached as appendix III.
In this directive, the Secretary requested that a review be made of all positions
under the jurisdiction of the Department, both in the -United States and abroad,
and that those positions be specifically identified which could be staffed eventually
by Foreign Service officers. This designation was necessary if the extent of the
integration program were to be determined and an idea was to be obtained of
the future size and coverage of the FSO category. It, therefore, could provide
a basis for determining recruitment needs, for planning career development of
officers, and for the operation of other personnel management programs.
The Secretary further directed that the "criteria for determination of appro-
priate personnel categories" which had been adopted by the Public Committee
be used as the basic guide in designating positions. Particularly significant as
indicative of the intent of the Public Committee and of the Secretary were the
following items in the directive:
(a) "The Public Committee has determined that the application of these
criteria will result in the designation of approximately 1,440 departmental
positions, 23 positions in the -United States delegation to the United Na-
tions, * *
(b) "* * * Interpretations * * * should not be unduly restrictive but
should be directed toward the objective of staffing as many officer-type
positions involved in foreign affairs as practical by the Foreign Service
Officer Corps."
Following the Secretary's adoption of the committee's recommendations, a list
of about 1,500 proposed position designations, approximately the same as the
committee had estimated, was circulated among all areas of the Department for
review. The bureaus generally recommended additions, and their recommenda-
tions led to a reexamination of similar positions, with the result that more positions
than anticipated became designated, especially in the administrative field. In
some areas, however, particularly those dealing with passports and visas, desig-
nations did not come up to expectations. The total positions actually designated
approximated the number contained in the committee's recommendation, although
there were certain differences in their distribution.
Summary statistical information relating to designated positions is attached as
appendix IV. Appendix TV-A compares designated and nondesignated positions
by major organizational unit, as of August 1, 1954, and August 31, 1959. Ap-
pendix IV-B indicates the incumbency of designated positions by officer category,
by major organization unit, as of August 31, 1958.
III. THE RAPID EXECUTION OF THE INTEGRATION PROGRAM
The Secretary approved the recommendations of his Public Committee on
Personnel (the Wriston Committee) that civil service officers holding certain
positions in the Department, Foreign Service Staff Officers and Foreign Service
Reserve Officers be integrated into the Foreign Service Officer Corps together
with their positions as rapidly as possible. The target period set for the comple-
tion of this program was 2 years. It was furthermore directed that every effort
be made to send civil service officers to posts abroad as soon as possible after
integration and to replace them by Foreign Service officers from the field.
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The program as approved by the Secretary was to be carried out by several
stages so far as the integration of civil service officers into the Foreign Service was
concerned. These stages were as follows:
1. The designation of positions in the Department to be occupied in the
future by Foreign Service officers. Such positions technically were called
"Dual service positions" although it is more accurate to employ the more
commonly used term of "Foreign Service officer positions" in referring to
them.
2. The commissioning as Foreign Service officers of civil service officers
holding designated positions provided: (a) such civil service officers were
willing to become Foreign Service officers, and (b) they were found to possess
the requisite qualifications.
3. The dispatch as soon as feasible of the newly appointed Foreign Service
officers to posts abroad for foreign experience and their replacement by
Foreign Service officers from the field.
4. The gradual transfer of civil service officers holding designated Foreign
Service positions who did not desire to become Foreign Service officers or
who were not found eligible for the Foreign Service to positions in the Depart-
ment which remained in the civil service category or to positions in other
governmental agencies.
5. The pursuance of a general policy of filling in the future all vacancies
in designated positions in the Department by Foreign Service officers, or,
where such officers were not available, by Foreign Service Reserve officers.
1. The designation of positions to be held in the future by Foreign Service officers.?
The task of designating positions to be held in the future by Foreign Service officers
was carried out for the most part with great rapidity during the summer and fall of
1954. A task force was assigned to this work and there were considerable ex-
changes of views between this force and the various bureaus and offices of the
Department. Subsequent to 1954, the task of designating positions has been
limited to certain alterations in designation based on experience and to the
designation of newly created positions. It might be pointed out in this connection
that in some areas of the Department the civil service holders of certain positions
who were anxious to take advantage of an opportunity to become Foreign Service
officers made every effort to convince their superiors and the task force that the
positions which they held should be designated as Foreign Service positions. On
the other hand, certain civil service officers who did not desire to become Foreign
Service officers, or who did not feel themselves to be qualified for appointment as
Foreign Service officers, were inclined to argue that the positions which they held
did not fall under criteria which would justify designation as Foreign Service
positions. This human approach toward the problem added somewhat to the
difficulties connected with the work of designation.
2. The work of commissioning as Foreign Service officers civil service officers
holding positions designated to be occupied in the future by Foreign Service officers.?
The task of commissioning and bringing into the Foreign Service the civil service
officers who in 1954 were holding positions which had been designated as those
to be manned in the future by Foreign Service officers was fraught with a number
of understandable difficulties. Some of the civil service officers liked their work
in the Department and preferred life in Washington. They did not relish the
idea of becoming Foreign Service officers subject to transfer to any place in the
world at the discretion of the Secretary of State. Others had doubts regarding
their qualifications for service abroad. Still others had reasons of health or
family which made them hesitant to accept positions in the Foreign Service.
Some who applied for appointment as Foreign Service officers were not able to
satisfy the boards which passed upon them that they had the requisite qualifica-
tions. Consequently, several hundred civil service officers holding Foreign
Service positions in the Department remained in their present positions and did
not enter the Foreign Service. On the other hand, hundreds of them were
delighted at the opportunity to become Foreign Service officers, applied for entry
into the Foreign Service, and were duly commissioned.
There were furthermore a quite large number of civil service officers, who, while
not enthusiastic at the idea of leaving Washington and going abroad as Foreign
Service officers, nevertheless accepted commissions in the Foreign Service because
they felt that following the completion of the integration program the careers of
most civil service officers remaining in the Department were likely to be limited.
The majority of the civil service officers who entered the Foreign Service are now
pleased after several years abroad that they did so. A number of them, however,
have not been thus far able to adjust themselves to Foreign Service activities and
life.
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There was also a considerable impact upon the Foreign Service as a result of
the apPointment of so many civil service officers as Foreign Service officers.
Many Foreign Service officers had entered the Foreign Service only after taking
rigorous examinations, had moved slowly over the years up the highly competitive
Foreign Service career ladder, and had earned their promotions by service in
unheathful climates and in isolated posts. Some of them were inclined to resent
the appointment to classes above them of civil service officers from the Department
who had not been subjected to severe examinations; who in some instances had
been fewer years than they in the Government service; and who freuPently were
younger than they. Furthermore some Foreign Service officers took the position
that they had entered the Foreign Service to serve their country abroad- -not to
serve in the State Department in Washington. These officers disliked the
prospect of being called upon in the future to spend a considerable portion of
their careers in the Department.
In this connection, it might be pointed out that the integration program was
more than a merely temporary organizational adjustment. It called for a pro-
found change in the thinking of many "old line" Foreign Service officers. After
a lapse of 5 years, there is still a tendency among certain of these officers to
consider that "regular Foreign Service work" is limited to activities carried on
by chiefs of diplomatic mission, counselors, diplomatic secretaries, consuls general,
consuls, vice consuls, etc., and not to relish assignments to other work. Never-
theless, it is believed that in general the members of the Foreign Service Officer
Corps are beginning to understand that the work in the Department connected
with the conduct of foreign affairs is "regular Foreign Service work."
3. The transfer to the foreign field of those former civil service officers who were
given Foreign Service officer commissions and their replacement by Foreign Service
officers from the field.?In conformity with the views expressed by the Secretary's
Public Committee, and approved by the Secretary, the Department pursued a
policy of sending abroad the newly appointed Foreign Service officers as rapidly
as conditions would permit and of detailing to the Department Foreign Service
officers to replace them. During the latter part of 1954 and during the years
1955, 1956, and 1957 hundreds of these newly commissioned officers were assigned
to posts abroad. It was only natural that so many shifts of personnel in so short
a period to tasks with which they were not familiar should place a heavy burden
on their colleagues in the Department and in the field and to an extent should
handicap temporarily the functioning of the offices to which they were assigned.
A number of offices in the Department and of otir diplomatic and consular offices
abroad registered complaints that the personnel being assigned to them did not
have the requisite qualifications. As time went on and the newly appointed
officers began to adjust themselves to their new jobs and surroundings, the volume
of these complaints steadily diminished and with a few exceptions, the dislocation
incident to the drastic execution of the integration program has tended to disap-
pear. The Foreign Service Institute was called upon to assist in preparing former
departmental officers for work abroad and most of these officers by their enthusi-
asm and determination to make good on the job have won the admiration and
confidence of the so-called old line officers.
The Foreign Service officers assigned to the Department to engage in certain
activities with which the Foreign Service in the past has had little contact, found
it difficult at times to adjust themselves to the new situation. This was par-
ticularly true with regard to the more technical positions in the economic and re-
search areas of the Department. The experiences encountered in these offices
will be touched upon in other sections of this study.
The question might be raised as to why the transfers to the field of the newly
commissioned Foreign Service officers were carried out so rapidly. Why could
not this have been done over a longer period of years so that the impact upon the
Department and the Foreign Service offices abroad would not have been so
marked?
The answer is that the Secretary's Public Committee, after examining what had
happened in past years, was convinced that unless the program was carried out on
what might be called a "crash basis" it would never be carried out. There was a
feeling that as time went on, the opposition to the program would solidify to such
an extent that those charged with implementing it would become disheartened and
eventually abandon it. The Committee and the Department, therefore, took the
position that regardless of inconvenience and dislocations, it was preferable to
carry out the program quickly and then to build on the foundations thus preparing
a stronger and more effective State Department and Foreign Service.
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AMENDMENTS TO THE FOREIGN SERVICE ACT 217
4. The gradual shifting to other work of civil service officers holding Foreign Service
officer positions who failed to become Foreign Service officers.?The Department has
not completely solved as yet the problem of civil service officers in the Department
who for some reason or other have not become Foreign Service officers and who
continue to hold positions designated for occupancy by Foreign Service officers.
The Secretary of State's Public Committee had this to say with respect to the
disposition of these civil service officers: "Where departmental officers presently
holding 'Foreign Service' positions are unwilling or unqualified to transfer, the
recommendation is that in due course they be moved either into non-Foreign
Service posts or be assisted in finding other employment. Every effort should be
made to complete the process within 3 years."
In order to facilitate the transfer of these civil service officers to non-Foreign
Service positions in the Department, opportunities were given to civil service
officers holding non-Foreign Service positions voluntarily to apply for commis-
sions as Foreign Service officers. It was the thought that the vacancies which
would be created by the entry of these civil service officers into the Foreign Service
could be filled by civil service officers holding Foreign Service positions. This
hoped-for solution, however, was not in general successful. Most of the civil
service officers who continued to occupy designated positions liked their work
and did not wish to be transferred to nondesignated positions. Others were so
valuable in their Foreign Service positions that their superiors objected to their
transfer. The Department also was not successful in finding employment in
other agencies for these Civil Service officers. This was because many of these
officers preferred to remain in the Department even though their careers seemed
to be curtailed by the integration program and because some of them were so
valuable that their superiors urged them to stay. The central administration
of the Department on its part did not desire to bring pressure on these officers
to leave the Department because first, many of them were valuable officers who
had worked faithfully and effectively in the Department for many years and it
did not seem fair to try to push them out; and secondly, they had developed
skills which were valuable to the Department. It is believed that eventually
some of these officers will go into the Foreign Service and that what remains of
the problem will be solved by attrition. Nevertheless, many of these civil service
officers understandably resent the effect which the integration program has had
upon their chances of moving up a career ladder. They feel that they should
be promoted to vacancies in Foreign Service positions above them if they possess
the appropriate qualifications. A relatively small number continue to oppose the
whole concept of the integration program and cherish the hope that eventually
the program will be abandoned.
The Department has continued to pursue a general policy determined upon
when the integration program was inauguarated not to promote civil service
officers holding Foreign Service positions to higher Foreign Service positions.
The abandonment of this policy would tend to undermine a program believed
to be for the ultimate benefit of the Department and of the Foreign Service.
Nevertheless, the Department attempts to treat these officers with every consid-
eration and to make the maximum use of their frequently most valuable services.
5. The pursuance of a general policy in the future of filling vacancies in designated
positions in the Department with Foreign Service officers?or where such officers are
not available?with Foreign Service Reserve officers.--In keeping with the recom-
mendations of the Secretary's Public Committee on Personnel, the Department
has been following the general policy of filling vacancies which occur in Foreign
Service positions with Foreign Service officers, or if no Foreign Service officers with
necessary qualifications are available, with personnel brought in from outside the
Department who are prepared, if called upon, to serve abroad. The personnel
thus brought in are designated as Foreign Service Reserve officers. In only a
few instances where no Foreign Service officers or qualified personnel outside the
Department have been available, civil service officers have been promoted to such
positions. It is hoped that within a few years every designated Foreign Service
position within the Department will be held by an officer with Foreign Service
status who is prepared to go on short notice to any part of the world where his
services might be best used.
A Reserve officer is in essence a temporary Foreign Service officer without a
commission. His appointment is of a limited nature. The concept is that he
holds the position assigned to him as a Foreign Service officer until his term has
expired, until a Foreign Service officer becomes available to take over, or until
he himself becomes a Foreign Service officer after a number of years of service
after having been found qualified by the Foreign Service Board of Examiners.
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218 AMENDMENTS TO THE FOREIGN SERVICE ACT
Certain types of specialized positions are filled from time to time with Foreign
Service Reserve officers some of whom eventually become regular Foreign Serv-
ice officers.
IV. DEDESIGNATION OF FOREIGN SERVICE POSITIONS
Within a few months after the initial designation in 1954 of Foreign Service
officer positions in the Department, requests began to come in from certain areas
of the Department for changes in designation.
An examination of these requests indicates that some of them arose because of
the concern of the chiefs of bureaus and offices at losing the services in a rather
short period of time of such a large number of experienced departmental officers.
The policy of the Department in pushing the newly appointed Foreign Service
officers into the foreign field on an urgent basis and of replacing them by Foreign
Service officers not experienced in departmental work contributed to certain dis-
locations and gave rise to second thoughts regarding the designation of a number
of positions.
This was particularly true with respect to areas which were not accustomed
to making use of Foreign Service officers. In some instances, no Foreign Service
officer from the field was immediately available to fill the vacancy created by
the transfer abroad of a former civil service officer. In various areas, the number
of vacancies grew to such an extent that they seriously handicapped operations.
In some areas, also, in which there were many positions of a specialized character
left vacant by the transfer of the incumbents, their Foreign Service officer suc-
cessors were not able immediately to do all that was expected of them. In a few
offices where there was particularly sharp opposition to the acceptance of Foreign
Service officers, vacancies continued for a long period because of the reluctance
of the top personnel in these offices to agree to accept the Foreign Service officers
offered them. Even Foreign Service officers possessing qualifications of a character
which should have enabled them in a short period to acquire the necessary more
detailed technical skills were sometimes rejected.
On the other hand, some of the requests for dedesignation were clearly justified.
There were quite a number of instances in which it was found that the task force
had made errors in judgment in designating as Foreign Service positions jobs
which experience subsequently demonstrated should have remained as civil
service positions. Some of these jobs were of a technical character which could be
satisfactorily filled only by officers with years of experience in a highly specialized
field; other positions required backgrounds which could not ordinarily be supplied
by the Foreign Service. In some cases, the task force has been persuaded by the
occupants of these positions who were anxious to get into the Foreign Service
that their positions met the criteria established for Foreign Service positions.
It was only after these occupants had obtained their Foreign Service officer com-
missions and gone to posts abroad that the errors were discovered.
The criteria initially established for the designation of positions have continued
to be the basis for positions and for the numerous reviews of designation decisions.
During the 1954-59 period, some 284 positions have been changed from Foreign
Service to non-Foreign Service. The majority of the dedesignation actions (about
240) were taken in the 2-year period immediately following the inception of the
integration program. During the same 5-year period, a number of additional
positions, including newly created positions, have been designated as Foreign
Service positions. At the present time, therefore, the total number of such
designated positions is somewhat greater than it was in 1954 (see appendix IVa).
An examination of the positions which have been dedesignated shows that some
64 percent of them were in the areas of public affairs, economic affairs, intelligence,
and security (see app. Va and Vb). Approximately 23 percent of the de-
designated positions were of an administrative type which were determined to
be almost exclusively domestic in their orientation. About 6 percent of the
dedesignated positions were changed to non-Foreign Service positions because of a
particular need for continuity of occupancy, and another 6 percent because of
the need for professional specialization requiring specific academic qualifications.
These latter dedesignations were primarily in the areas of public affairs and
international organizations.
During the last 3 years only some 40 positions have been changed from Foreign
Service to non-Foreign Service in spite of the fact that there has been a continual
review of individual positions as well as group positions. After a period of flurry
and dislocation, the personnel situation in the Department seems, therefore, on the
road to stabilization.
The problems relating to dedesignation have not, however, been completely
resolved. The Department finds it necessary constantly to review various
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positions and at times whole areas of activities in order to make sure that individual
positions or categories of positions have been properly designated.
V. GENERAL PROBLEMS CONNECTED WITH THE INTEGRATION PROGRAM
Most of the problems connected with the integration of so many departmental
civil service officers into the Foreign Service are not entirely new to the Department
or to the Foreign Service. The Department has been struggling with some of the
for many years. The integration program, however, has served to bring them to
the fore. Among the general problems that might be mentioned are the following:
1. The continuing need for a higher degree of specialization.
2. The balance between continuity of service and flexibility in the making
of assignments.
3. Length of tour of duty and policy with respect to assignment.
4. Recruitment in the light of the additional responsibilities of the Foreign
Service.
5. The future in the Department of civil service officers.
A. The continuing need for a higher degree of specialization
When the integration program was put into effect and the exodus of former
civil service officers from the Department to the field took place, the lack of
specialists in the Foreign Service became particularly apparent. This was not
entirely because the Department's efforts to develop specialists had not met
with the proper degree of success. It was in part due to the fact that many of
the specialists going into the Foreign Service from the Department insisted upon
being assigned to posts where they could have an opportunity to broaden their
qualifications rather than to practice their specialty.
Probably the chief barrier to the development of specialists in the Foreign
Service has been a feeling on the part of most Foreign Service officers that they
are more likely to achieve success in the Service if they can avoid specialization,
particularly functional specialization.
As a result of this feeling, relatively few able officers in the Service have shown
an inclination to engage in functional specialization. Those who developed into
competent functional specialists have too frequently taken advantage of the first
opportunity to go over into the more general fields.
It is clear that if the Foreign Service is to meet the responsibilities which have
been placed upon it, it, must be able to supply more area and functional specialists.
In order to encourage specialization, the Department is taking certain measures.
Among them are the following:
(a) Endeavoring to recruit at the bottom of the Service a larger proportion
of officers who would welcome specialization.
(b) Bringing laterally into the Service at various levels from the Foreign
Service Staff Corps, from other agencies of the Government, or from private
life, persons who have specialist qualifications of which the Service is in need
with the understanding that they will continue to serve in their specialty for
a number of years.
(c) Encouraging officers already in the Service to take up specialties by
convincing them that their promotional opportunities will be thereby en-
larged rather than restricted.
(d) Giving necessary training in the Foreign Service Institute and in
appropriate educational institutions in various specialties.
(e) Giving officers a series of assignments which will enable them to develop
specialties through experience.
(f) Maintaining an inventory of the special skills and potentialities of all
officers as a basis for ascertaining and for projecting duty and training
assignments.
The Department does not desire specialists to develop in such a manner that
they will become isolated from the mainstream of Foreign Service activities. It
does not believe that a specialist in the Foreign Service can function with maxi-
mum effectiveness unless he has an understanding of the general international
situation and of the broad problems of the Department and of the Foreign Service.
Just as a specialist in most fields of medicine should understand the functioning
of the whole human body as well as of the organs with respect to which he is
specializing, a highly qualified specialist of the Foreign Service must continue to
keep himself informed regarding international trends and problems. An admin-
istrator, or specialist in economic or cultural affairs, for instance, in recommending
policies or making decisions must constantly bear in mind certain factors of an
international political character.
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B. The balance between continuity and flexibility
The carrying out of the integration program has served to emphasize the prob-
lem of maintaining in the assignment of Foreign Service officers a balance between
continuity and flexibility. It is, of course, important that there be maintained
sufficient continuity of service in various areas to enable the officers on duty in
them to be kept informed regarding past- policies and developments. On the
other hand, if the factor of continuity is emphasized to such an extent that officers
are rarely transferred, the Foreign Service loses one of its most important assets?
that of flexibility. There is a danger that the officer who is permitted to perform
only one function for an extended period of time will fall into a bureaucratic rut
and will lose his perspective. ? It is believed, therefore, that in an organizational
unit as well as in a specialized position not only continuity of services but a fresh
outlook are important.
With respect to certain functions, posts, and positions, continuity may be
exceptionally important. It is difficult in each situation to gage the time when
continuity is likely to degenerate into staleness and when the advantages of a
fresh point of view may outweigh length of tour. Over a period of many years,
the Department has gained considerable experience in measuring the continuity
factor in the Foreign Service overseas where rotation after varying tours of duty
has long been the practice. It is only beginning to obtain this experience with
regard to certain areas in the Department. It has already learned, however, that
in some areas of the Department, as for instance, those which are represented on
the numerous interdepartmental committees, there is a need for considerable con-
tinuity if the officers in them are to possess the maximum effectiveness. liven
with respect to these activities, the Department finds that it must guard against
the likelihood that some officers may become stale or may lose their perspective
as a result of overlong service in one narrow position. These areas can, therefore,
also profit from a fresh approach, particularly that brought in by officers with
recent oversea experience. It has become clear, however, that the rotation should
take place in such a way that there will always be in areas of this kind a number
of officers with the necessary background.
In an effort to meet the problem of continuity, the Department has been ex-
tending the tours of duty of Foreign Service officers in the Department and has
been effecting the reassignment to the Department of officers who were integrated
into the Foreign Service from the civil service a number of years ago and have
since been serving abroad. Up to the present time, approximately 60 senior and
middle grade officers who were integrated into the Foreign Service in the early
days of the integration program and have spent from 2 to 5 years abroad have
been reassigned to the Department to provide continuity while other officers go
abroad. For the most part, these officers have been assigned to functional spe-
cialties similar to those in which they were engaged prior to integration. In some
instances, however, they have not been reassigned to the bureaus from which they
integrated.
It is the intention of the Department to continue to reassign integrated officers
from time to time to departmental positions in accordance with the needs of the
Service. It is felt that these officers offer the advantages both of continuity and
of a fresh approach. They bring with them long and valuable knowledge of de-
partmental operations enhanced by the perspective gained by service abroad.
Some of these officers may well spend most of their careers in Washington rather
than abroad since they may have qualifications which enable them to serve more
effectively in the United States than overseas.
The Department has no intention of trying to achieve a balance between
departmental and oversea service with respect to each officer. It realizes that
some officers are more useful to the Government while in Washington whereas
others are more valuable in the field. Nevertheless, it does intend to make sure
that no officer serves in the field for such a protracted period that he loses a feeling
of close contact with the Department and that no officer serves so long in the De-
partment that he is in danger of overlooking the problems of the foreign field.
A total of 644 integrated officers have been assigned abroad from the designated
positions during the period from the inception of the program to September 30,
1959. As of November 30, 25 integrated officers have yet to be assigned to a
foreign post of whom 9 are definitely scheduled for departure to the field during
the next 12 months. As of August 31, 1959, there were 363 civil service officers
still assigned to designated positions. Some bureaus have relatively few of these
officers, whereas others have large numbers. Even though the integration pro-
gram has terminated, civil service officers holding designated positions are still
free to apply for integration into the Foreign Service Officer Corps under the
provisions of the continuing lateral entry program (app. VI).
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AMENDMENTS TO THE FOREIGN SERVICE ACT 221
C. Length of tour of duty and assignment policies
The Secretary's Public Committee included among its recommendations one to
the effect that so far as possible a general policy of rotation be established which
would permit an officer to serve 6 years in the field for every 4 in the Department.
This recommendation was based on the estimate that 40 percent of the Foreign
Service officer positions would, in the future, be in Washington. Although this
recommendation is borne in mind by the personnel areas of the Department,
it is nevertheless not strictly followed. In practice it has been found necessary
to maintain a high degree of flexibility in the matter of rotation of personnel
between the Department and the field. The effective staffing of certain areas
of the Department, as for example, the economic area, requires a higher degree
of continuity than do most positions in the foreign posts or in the geographic
bureaus.
For several years the Department has been making efforts to lengthen the tours
of duty in foreign posts. At present the normal tour of duty in a post abroad?
other than an unhealthful or hardship post?is considered to be 4 years. Further-
more, if it should be determined that a post needs the services of an officer for a
longer period and that it would not handicap the development of the officer to
remain longer, the tour can be extended beyond the 4 years. The normal tour
in a hardship or unhealthful post is normally 2 or 3 years although it also can be
extended if it is determined that the extension would be in the public interest.
The normal tour in the Department is now considered to be 4 years. It can,
however, in case the need for continuity is great, be extended up to 8 years. It
is the intention of the Department, so far as practicable, to tailor the length of
the tour to the needs of the area, bearing in mind the effect which a longer tour
might have upon the development of the officer involved.
The length of tour of junior officers who have recently entered the Service is
as a matter of practice shorter than that of the more senior officers. Their tours
usually average about 2 years. The reason for the shorter tour is that it is con-
sidered desirable for an officer while still fresh in the Service to have a variety of
experiences under several chiefs.
D. Recruitment in the light of the additional responsibilities of the Foreign Service
As a result of the integration program the Department has found it advisable
to effect certain changes in its recruitment procedures and it is studying the
desirability of making still further changes. It does not lack for a large supply
of candidates for class 8 officers. The Department's concern arises not from the
number of candidates but from what seems to be the rather narrow interests of
those who pass the examinations. It is, therefore, making efforts to emphasize
in its publications, statements, and college recruitment operations the fact that
the Foreign Service officer of the future must be prepared to engage in widely
diversified and specialized activities. We hope that as a result of these efforts
we shall be able to attract young people interested in all of the various functions
of the present-day Foreign Service. We should obtain the kind of officers we need
from the more than 10,000 who have applied to take the Foreign Service officer
examinations to be held on December 5, 1959. During the fiscal year ending
June 30, 1960, the Department plans to appoint between 150 and 175 new Foreign
Service officers of class 8.
Thus far, in spite of its efforts, the Department has found among the new
recruits too few who show enthusiam for developing functional specialities.
It is possible that eventually the Department will decide that it is necessary to
bring in more specialists at the levels of classes 5, 6, and 7 through the Reserve
officer mechanism and to depend to a less extent for specialists upon officers who
enter the Service in class 8 as a result of the regular examinations, The Depart-
ment has already embarked upon the recruitment of Reserve officers with specialist
qualifications at various levels since it cannot wait for young men starting at the
bottom of the Service to develop specialities. For example, it plans to appoint
during the present fiscal year about 80 Foreign Ser vice Reserve officers to meet
needs in such functions as economics, administration (personnel, budget and
finance, management), labor relations, science, minerals, geography, and medicine.
E. The future of civil service officers in the Department
One of the most difficult problems which the carrying out of the integration
program has served to emphasize is that of the career future of civil service officers
in the Department. This problem relates to officers who hold positions which
are designated as civil service positions as well as to those whose positions have
been designated as Foreign Service officer positions.
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AMENDMENTS TO THE FOREIGN SERVICE ACT
Both categories of civil service officers feel quite understandably that their
opportunities for advancement in the Department have been curtailed as a
result of the integration program. Prior to the carrying out of that program there
was a variety of positions in the Department to which they might have had an
opportunity to be promoted. As a result of that program, however, many of these
positions are no longer open to civil service personnel. It is true that the civil
service officers who were occupying positions designated as Foreign Service posi-
tions in 1954 may continue to hold such positions but they have very little or no
opportunity for promotion except within areas which are not primarily concerned
with the conduct of foreign affairs. Offices such as those of the Legal Adviser and
the Historical Division have not been seriously affected in view of their character
and of the specialized interests of the officers in them. However, civil service
officers in other areas which are clearly concerned with the conduct of foreign
affairs and which, therefore, have been included in the integration program have in
general suffered loss of morale.
The alternatives which face civil service officers holding Foreign Service posi-
tions are:
(a) To remain frozen in their present position;
(b) To be transferred to a civil service position in the Department;
(c) To be transferred elsewhere in the Government;
(d) To leave the Government service;
(e) To enter the Foreign Service Officer Corps.
Most of these officers who are still in the Department do not at present desire
to enter the Foreign Service Officer Corps. Many of them like what they are
doing and do not want a change. It seems likely, therefore, that some of these
officers will continue to hold their present positions in the hope that eventually
the policy of integration will be abandoned and that what are now Foreign Service
positions will be opened to them. Civil service officers holding civil service
positions can, of course, continue to advance within the limits of the civil service
positions available. Since, however, the main stream of the Department's
work is connected with the conduct of foreign affairs, a career in areas which are
not concerned with foreign affairs is likely to be somewhat narrow in spite of the
fact that supergrade and C positions were not subject to designation and can
be filled by either civil service or Foreign Service officers.
In view of the limited opportunities for advancement of civil service officers,
the Department is reluctant to designate or to dedesignate positions as civil
service positions unless such positions clearly do not fall under the criteria es-
tablished for Foreign Service positions. Its reluctance is based on the fact that
every ambitious civil service officer in the Department with the exception of those
serving in a few highly specialized areas is likely to become a morale problem
when he reaches a position where future advancement becomes difficult for one
who is not a Foreign Service officer.
The Department, therefore, has been willing to dedesignate very few positions
concerned with the conduct of foreign affairs on the grounds of the advantages
of continuity. The designation of a position as "civil service" in order to assure
continuity is not an answer to the problem. If the civil service occupant of
that position has ambitions, he is almost certain, after a number of years, to
overlook the fact that his role is to provide an element of continuity and to insist
that some position above him be dedesignated or created so that he can be pro-
moted. The dedesignation or creation of positions in order to provide a career
ladder for civil service personnel would of course be contrary to the concept that
it is a responsibility of the Foreign Service to man the officer positions in the
Department connected with the conduct of foreign affairs.
The Department is trying to alleviate the problem of civil service officers in
the Department by:
(a) Continuing to treat with consideration civil service officers who are
at present frozen in Foreign Service officer positions;
(b) Assisting civil service officers who are dissatisfied with their oppor-
tunities for advancement in the Department and who wish to stay with the
Government to find positions in other agencies of the Government;
(c) Emphasizing to all candidates for civil service positions in the Depart-
ment the fact that their advancement in the Department is likely to be
limited unless at a given point they would be able and willing to enter the
Foreign Service;
(d) Pursuing a liberal policy in accepting civil service officers of the
Department who possess the appropriate qualifications into the Foreign
Service Officer Corps. Liberality does not go so far, however, as to encourage
persons to seek departmental positions as shortcuts into the Foreign Service.
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VI. THE EFFECTS OF INTEGRATION ON SPECIFIC AREAS OF THE DEPARTMENT
The Senate Foreign Relations Committee in Senate Report 880 on S. 2633
referred to the impact of the integration program on certain offices of the Depart-
ment and asked for the Department's comments with respect to these specific
offices in the light of statements that have been made to the effect that the inte-
gration program "has gone too far" in such areas. Among the offices mentioned
were:
1. The Policy Planning Staff (S/P).
2. Bureau of Intelligence and Research (INR).
3. International Education Exchange Service (IES).
The committee also invited comment on other offices of the Department. The
comments requested follow, including comments on the Bureau of Economic
Affairs.
A. The Policy Planning Staff (SIP)
Although the Policy Planning Staff is one of the smallest offices in the Depart-
ment, it nevertheless plays so important a role that considerable attention is
given to its personnel problems. Its primary function is to advise and assist the
Secretary in the evaluation of the adequacy of current foreign policy, in the formu-
lation of long-range policy, and in the coordination of activities within the Depart-
ment. All of the officer positions of the Policy Planning Staff fall under schedule
C. Therefore, none of them have been 'designated as Foreign Service officer
positions. Since the creation of the Staff in 1947 its membership has been fairly
evenly divided between Foreign Service officers and non-Foreign Service officers.
It so happens that since the inception of the integration program in 1954, the
proportion of non-Foreign Service officers assigned to the Staff has been slightly
higher than it was previously. As of August 1959 there were 11 officers attached
to the Staff, including the Assistant Secretary, a Deputy Assistant Secretary, five
senior officers, and four other officers. Five were Foreign Service officers, including
the Deputy, one senior member, and three other members.
Experience over the years has convinced the Department that in general a
balance of this kind between Foreign Service and non-Foreign Service officers has
been sound. Continuity of service has proved its distinctive value in the Staff.
Much of this continuity has been supplied by the non-Foreign Service members,
some of whom have served for extended periods. The rotation of Foreign Service
officers approximately every 2 years has been explicitly requested by the present
Assistant Secretary since this rotation renders possible a steady influx of new
backgrounds and fresh points of view. There is, however, no rigid rule that the
period of assignment of a Foreign Service officer to the Policy Planning Staff
should not be in excess of 2 years. When there is a special reason for the retention
of a Foreign Service officer for a longer period he is retained. It has been found,
however, that an experienced Foreign Service officer can be almost immediately
extremely useful in the planning work. In fact, some of the most valuable con-
tributions from members of the Staff have been made by Foreign Service officers
during their first year of assignment.
The Policy Planning Staff is a primary channel of liaison with the Joint Staff of
the Joint Chiefs of Staff, a body composed of members of the armed services who
are also rotated.
As a rule only officers of exceptional ability are assigned to the Policy Planning
Staff and these assignments are much sought after because of the experience to
be derived from them and of the prestige which adheres to them. The Foreign
Service officers at present attach ed to this staff stand high among officers of the
Foreign Service class from which they are drawn.
B. The Bureau of Intelligence and Research (I N R)
The task forces established by the public committee on personnel recommended
that 347 occupied officer positions in INR be designated as Foreign Service
officer positions and that 79 remain as nondesignated civil service positions. As
of August 1, 1954, some 343 positions were designated. The nondesignated
positions were concentrated mostly in the library and in the Office of Current
Intelligence Indications.
During the next 2 years, 124 of the positions initially designated as Foreign
Service officer positions were dedesignated as a result of surveys instituted by
the Department. Among the positions dedesignated, 70 were in the area of
language specialists; 2 were editors; 13 were coordinators in national intelligence
studies (INS); 11 were administrative officers; and 10 were external research
officers. Subsequently, three additional positions were dedesignated.
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The dedesignation of the positions in NIS was made because it was decided
that in view of their specialized nature and their close relationship to the intelli-
gence community in Washington they should remain in the civil service. The
positions in area language and external research were dedesignated because the
holders were required to possess highly technical qualifications not likely to be
found among Foreign Service officers. The dedesignated administrative positions
were exclusively departmental in the orientation.
In August 1954, Foreign Service officer positions approximated 75 percent of
the total INR officer positions. In August 1959 they constituted 53 percent.
The Department believes that this approximately 50-50 division of 'positions
in INR between Foreign Service officers and civil service officers is probably the
most effective division that can be made at this time. It provides the necessary
continuity tempered with oversea experience.
When the integration program was first being put into effect there was con-
siderable confusion in INR. Although many of the civil service officers holding
positions in that area welcomed the opportunity to go into the Foreign Service,
others preferred to remain in the Department and registered opposition to the
program on a variety of grounds. Some of the chiefs of division objected to
the exodus into the foreign field of so many of their personnel and were unhappy
at the idea that the replacements were to be Foreign Service officers. Some of
the Foreign Service officers assigned to INR assumed their new positions with
reluctance. INR had been partially isolated from the rest of the Department
and from the Foreign Service, so far as its personnel interchange was concerned,
for so many years that there was a feeling among some of the Foreign Service
officers assigned to the area that they were no longer in the Department.
Much of the opposition to the integration program has disappeared during the
last 5 years. Although several of the Foreign Service officers originally assigned
proved to be unsuited for the work, those subsequently detailed have for the
most part encountered little difficulty in adjusting themselves to their new duties.
In fact some of them have introduced fresh points of view and have tended to give
a more practical aspect to the studies assigned to them. Time has demonstrated
that a Foreign Service officer benefits from the training received in INR. They
return to the field of operations with a deeper insight into the problems with which
they are called upon to deal. Similarly officers returning to Intelligence and
Research after an assignment abroad bring with them a deeper understanding of
the reality of situations and are better equipped to pass judgments. In general,
Foreign Service officers are beginning to realize that an assignment to IN R fur-
nishes them with experience which is likely to make them more valuable to the
Service in future years.
When the integration program was first being put into effect too many of the
assignments of Foreign Service officers to INR were of short duration. The
Department's present policy, however, which was established over a year ago, now
provides for basic tours of 4 years and for an extension of this tour when necessary.
In spite of the progress which has been made, problems relating to integration
and designation of positions continue to arise in INR, These problems, however,
are being dealt with one by one as they arise, just as similar problems are being
treated in other areas of the Department, The Department is confident that as a
result of of the exchanges which take place between INR and the foreign field, the
intelligence and research work in the Department and the work of our offices
abroad are being strengthened.
C. International Educational Exchange Service (IES)
Broadly stated, the objective of the International Educational Exchange pro-
gram is to develop a climate of public opinion overseas in which the actions,
motives, and policies of the United States can be correctly interpreted. Given
such aims, there can be no doubt that the extension of the integration program to
an office responsible for educational and cultural exchange was correct and in
accordance with the approved criteria. The recent establishment by the Depart-
ment of the Bureau of International Cultural Relations, of which IES is a major
component, has served to emhpasize the fact that "cultural diplomacy," as a
supplement to the more traditional political and economic forms of diplomacy, has
become an active and highly important arm of U.S. foreign policy.
This fact and the important part played by IES in this type of international
operation has not yet been fully appreciated by some civil service and Foreign
Service officers. This is due to a variety of factors, among which may be cited:
(1) The fact that the IES program is by its very nature somewhat out of AI%
pattern when compared with other operations of the Department;
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(2) The fact that IES's goals, necessarily long range in nature, have not in
the past attracted the same degree of attention in the Department as other
more spectacular operations;
(3) The fact that few Foreign Service officers have been assigned to this
organization until comparatively recent times;
(4) The fact that TES's oversea operations are carried out primarily not
by Foreign Service personnel but by officers and employees of the U.S. Infor-
mation Agency?a unique circumstance which understandably puts a rather
special connotation on the integration program in the eyes of IES personnel;
and
(5) The fact that the integration program has lagged more in IES than in
most other areas of the Department. All of the 130 officer positions in IFS
were originally designated as FSO positions. Seven have since been dedesig-
nated and 10 new Foreign Service positions have been created. Of the 133
positions at present designated, 60 are still held by civil service personnel.
Antipathy to the integration program has been particularly forthright and vocal
in IES. The feeling that promotional opportunities for civil service officers are
limited by the program has been a depressant to morale, despite the fact that
many of these officers have been promoted in the last 5 years. It has been argued
at times that IES operations are so highly specialized that they cannot be ade-
quately performed by Foreign Service officers; that the technical nature of the
duties performed in IES necessitates more continuity than would be possible under
the rotational system of the Foreign Service.
Analysis of TES operations, relationships and procedures, however, does not
support the validity of these claims as broad generalizations. The undoubted
value of continuity in IES positions must be balanced against the risk that overly
narrow specialization may lead to staleness in performance and loss of perspective.
IES records indicate that its civil service officers have frequently moved to new
jobs in the past in connection with promotions and reorganizations. Whereas it
is asserted that Foreign Service tours of duty in IES average only 2 years, it is a
fact that those of other than the most junior Foreign Service officers have usually
extended to 3 years. Furthermore, it should be noted that under present depart-
mental policies, a tour of 4 years or even longer will be normal in the future.
Assertions concerning the technical nature of the work in IES have in many cases
been exaggerated and have given rise to serious misunderstandings. Many of the
procedures employed are involved and somewhat removed from the ordinary pat-
tern of Foreign Service experience, and much of the work is undoubtedly special-
ized. It is not, however, technical in the sense of being unfathomable to those
who have not had special training and long experience in it. In fact, most officer
jobs in TES can be learned within a reasonable time by carefully selected Foreign
Service officers who are accustomed to adjusting rapidly to new types of work
and to making the necessary contacts.
Some Foreign Service officers assigned to IES have initially felt that they were
perhaps being sidetracked because of the relative isolation of IES and the lack
of field positions in which they might continue to work on the educational ex-
change program. Almost without exception, however, when these officers have
familiarized themselves with their new duties, they have become sincerely in-
terested in their jobs and have contributed fresh views which have enhanced the
program.
The personnel situation in IES is somewhat complicated by the fact that some
28 Foreign Service officers of class 8 are currently assigned to 08-7 and GS-9
positions in IES which have turned out to be clerical in nature. A good deal of the
criticism of the integration program in IES has been based erroneously on the
assignment of these officers whose tour of duty is limited to 18 months, who are
not familiar with either the organization or the operations of the Department,
and who as yet have had no field experience. The problem in relation to this
particular group is really one of classification of the positions they occupy rather
than the inappropriateness of the integration program. Action to remedy this
situation is under study.
? It is the view of the Department that many of the IES positions should continue
to be designated as Foreign ?Service positions under the established criteria.
Foreign Service officers can and do make valuable contributions to the Depart-
ment's educational exchange program because of their familiarity with cultural
and social backgrounds of foreign peoples and the conditions abread.
A team of highly qualified Foreign Service inspectors have been making a
thorough study of IES for the purpose of ascertaining what changes in' organization
or shifts in personnel, if any, might serve to strengthen it. Their findings should
be helpful to the Department in connection with its efforts to strengthen this area,
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The Department is also looking into the possibility of filling some of the desig-
nated positions in IES with USIA officers who have had cultural experience
abroad as well as that of detailing to USIA for cultural service abroad Foreign
Service officers, including some integrated officers, who have served in IES and
have displayed an interest and a talent in cultural and exchange of persons
operations.
D. Bureau of Economic Affairs (E)
Among the offices of the Department upon which the integration program has
had the most serious impamt is the Bureau of Economic Affairs. This was in
part due to the fact that this Bureau had become ingrown. For a number of years
there had been relatively few personnel changes in it. The majority of the officers
in the Bureau had had no experience abroad or in other areas of the Department.
A relatively large number of them had no desire to serve abroad and opposed the
idea of positions in the Bureau being occupied by Foreign Service officers. Some
of them, however, welcomed the opportunities offered by a Foreign Service career
for the broadening of their horizons and for advancement to higher positions?ad-
vancement which they could not hope to attain in the somewhat static confines
of the Bureau.
Another reason for the severity of the impact on this area was the shortage
among Foreign Service officers of economists possessing the qualifications needed
for some of the rather highly specialized positions which were being vacated.
Since some of the officers who accepted commissions in the Foreign Service were
anxious to engage in activities other than economic in order that they might
strengthen their general qualifications, their arrival in the field did not release
sufficient Foreign Service officers with economic backgrounds already in the field
to man all of the vacancies created in the E area. Furthermore, the reluctance
on the part of some of the divisions in the E area to accept the Foreign Service
officers offered to them resulted in various positions remaining unfilled for pro-
tracted periods. Difficulties in filling these vacancies with personnel brought
in from outside the Department and Foreign Service were increased at times
because the budgetary situation of the Department was so tight that it could
not afford to add to its payroll new personnel other than a minimum number of
Foreign Service officers of class 8 who had passed the Foreign Service examination.
There were not more than four or five Foreign Service officers in the E area at
the time of the inauguration of the integration program. At present, of the 17
officer positions in the area, 143 have been designated as Foreign Service officer
positions and 30 remain as civil service positions. Forty-six of the designated
positions, however, continue to be occupied by civil service personnel. In other
words, of the 173 officer positions in the area at present, 76 are occupied by civil
service personnel and 97 by Foreign Service personnel. It is quite understandable
that some of the 76 civil service officers in the E area, particularly those who are
occupying the designated positions, are not happy about the situation. Following
the inception of the integration program, a number of the officers in this area
have left the Department in order to accept positions in other agencies of the
Government or in private life since they considered that their opportunities for
advancement in the Department had become limited. Their departure added,
of course, to the problems of the E area.
The positions in the E area have been reviewed several times during the last
5 years in the light of changing conditions for the purpose of ascertaining whether
or not it would be in the public interest to change the designation of any of the
positions. As a result of these reviews some 12 positions have been changed from
Foreign Service officer to civil service. Other steps have been taken to enable
this area to meet the immediate problems connected with integration. For in-
stance, three civil service officers with long experience have been attached as a
Permanent Economic Advisory Staff to the Assistant Secretary for Economic
Affairs. A number of qualified persons outside the Department and Foreign
Service are being recruited as Foreign Service Reserve officers to fill vacancies
for which Foreign Service officers with the appropriate qualifications are not
available. An intensive effort is also being made to recruit junior Foreign Service
officers with economic backgrounds and to train in Qp0110/11iCS officers already in
the Service who possess high general qualifications but need systematic technical
training. At the present time, for instance, no less than 25 Foreign Service officers
are on detail in various universities for the study of va,rious branches of economics.
The problem of continuity is also an urgent one in this area. It is believed that
this problem can be solved by the retention of Foreign Service officers for longer
periods, by bringing in from the field Foreign Service officers who have had pre
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vious experience in the area; and by the retention of a certain number of civil
service officers who prefer to remain in the Department even though their careers
are likely to be restricted, rather than to enter the Foreign Service.
It is believed that if the Department makes it clear that it has no intention of
abandoning the integration program in the E area, the difficulties arising from in-
tegration will lessen and integration will cease to be a controversial issue. The
problem of changing designations in the light of experience and changing situa-
tions, however, will not entirely disappear.
SUMMARY
At the time the decision was made to undertake the integration program, the
top management of the Department was under no illusions as to what was in-
volved, and the full implications of the program became apparent to most Foreign
Service and departmental personnel during the year that followed. The program
4 was approached with the expectation that its accomplishment would be neither
painless nor rapid. Experience has demonstrated the realism of this approach.
Broadly speaking, the integration program created two groups of problems.
One group related to the operations of the Department, and the other to the
impact of the program on individuals.
Many of the operational problems faced by the Department in 1954 have been
solved. Adjustments, of course, have been and will continue to be necessary.
Further time will be required in some cases before the extent of these adjustments
will be clear. The assessment of the full effect of the policy of a 4-year tour of
duty in Washington as an answer to the continuity problem, for example, will
require at least another 2 years. The major remaining problem is that of assuring
that the full range of special skills and experience required in the Department and
overseas is adequately provided for within the new framework of the Foreign
Service. But even in this difficult area progress is being made through new
recruitment, training, assignment, and promotion policies.
The problems relating to specialization are not of a character which lend
themselves to rapid solution. The needs in the Service for specialists are con-
tinually changing as shifts take place in our policy approaches to the fluid inter-
national situation, Furthermore, changes in attitudes and predilections of the
members of the Foreign Service and the Department with regard to matters such
'gar, as specialization cannot be effected overnight. If during the years to come, the
Department is to meet the responsibilities placed upon it, it must continue to
give priority attention to the development of specialists within the Foreign Service.
Progress in meeting the problems which emerged from the impact of the pro-
gram on persons, both civil service and Foreign Service, has proved to be more
difficult of attainment than the meeting of operational problems.
Even after the lapse of 5 years there are still a number of Foreign Service and
civil service officers who do not accept the basic concept of the program. The
opposition of some officers arises from what they consider the effects of the pro-
gram will be on their own advancement and on their general career outlook.
The opposition of others, however, seems to flow from a conviction on their part
that integration is not the correct approach to ?the problems which integration
was supposed at least to ameliorate, It is believed, however, that the majority
of the officers in the Department and in the Foreign Service now recognize that
there was an urgent need for integration, accept it as one of the facts of life, and
regard it as no longer a live issue.
The question might well be raised as to why in connection with the carrying
out of the integration and other personnel programs the Department has not
adopted a firmer attitude in dealing with personnel. Why has it not disciplined
those who have endeavored to block the successful execution of these programs
or who have objected to being assigned to certain fields or tasks?
The answer is that Foreign Service and civil service officers in the Department
and the Foreign Service are for the most part men and women of high professionpl
attainments who have invested their careers and lives in the service of the Govern-
ment in the field of foreign affairs. They, therefore, feel that they have a legiti-
mate interest in any changes which might affect their life's work. It would servp
no useful purpose for the Department to treat these people as inanimate objects
who can be moved at will like pawns in a chess game. If the Department and thn
Foreign Service are to function with maximum effectiveness, their personnel must
be treated with consideration. They must feel that they have the respect of thq
Department, that their work is appreciated, and that their predilections and
views are not being entirely ignored.
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On the other hand, if the Department is to meet the responsibilities placed upon
it, its personnel both in Washington and in the field must have a sense of dedica-
tion, must be willing when called upon to sacrifice personal preferences for the
good of the Service, and should be prepared to accept in good grace decisions of
the Secretary of State with regard to organizational as well as substantive matters.
After 5 years of experience in dealing with the integration program, the Depart-
mentis convinced that-
1. The policy of integration, which was recommended not only by the Secre-
tary's Public Committee on Personnel but by all previous committees, including
the Hoover Commission, which have investigated the personnel problems of the
Department of State during recent years, are fundamentally sound; that unless
the Department is compelled to go through an additional series of reorganiza-
tions and to launch into new personnel programs, the adherence to this policy
will lead to a more stable, better coordinated, and more effective State Depart-
ment and Foreign Service.
2. The State Department should energetically, through recruiting, training,
and management continue to produce among Foreign Service officers and Foreign
Service Reserve officers, the specialists required to man all Foreign Service
positions.
3. To the maximum extent possible, Foreign Service officer positions in the
Department and in the Foreign Service should ultimately be filled by Foreign
Service officers and Foreign Service Reserve officers.
4. The Department should continue to treat with consideration its competent
civil service officers, including those who hold both Foreign Service and civil
service positions, and to make sure that they are afforded fair opportunities to
transfer into the Foreign Service at appropriate levels if they have the requisite
qualifications; if they desire to enter the Foreign Service; and if their transfer
would not appear to be contrary to the interest of the Government.
5. The Department should maintain a flexible attitude with regard to the
designation or dedesignation of Foreign Service officer positions and should not
hesitate to make changes in designation in case past experiences or the exigencies
of a given situation should make it appear that such changes would be in the
interest of the Government.
6. The Department should not hesitate to retard rotation of Foreign Service
officers in cases where it appears that continuity outweighs freshness of approach
or the need for specialists is more urgent than that for broader career development.
APPENDIXES
APPENDIX I. THE SECRETARY OF STATE'S PUBLIC COMMITTEE ON PERSONNEL
AS OF JUNE 1954
MEMBERS
Norman Armour, Foreign Service officer, retired, former Ambassador and Assist-
ant Secretary of State.
John A. McCone, president, the Joshua Heady Corp., Los Angeles, and former
Under Secretary of the Air Force.
Robert D. Murphy, ex officio member, Deputy Under Secretary of State.
Morehead Patterson, chairman and president of American Machine & Foundry
Co., New York.
Donald S. Russell, president of the University of South Carolina and former
Assistant Secretary of State.
Charles E. Saltzman, partner, Goldman Sacks & Co., New York City, and former
Assistant Secretary of State.
John Hay Whitney, Vice Chairman of the Committee, former Ambassador, pros-
sently president, J. H. Whitney Foundation, New York.
Henry M. Wriston, Chairman of the Committee, president emeritus, Brown
University, executive director, the American Assembly.
CONSULTANTS TO THE COMMITTEE
Walter J. Donnelly, Foreign Service officer, retired, former Ambassador and
High Commissioner.
Charles J. V. Murphy, board of editors, Fortune magazine.
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APPENDIX II. EXCERPTS FROM "TOWARD A STRONGER FOREIGN SERVICE"
(Report of the Secretary's Public Committee on Personnel, June 1954)
SECTION I?MORALE AND PUBLIC CONFIDENCE
"Foreign policy will be dynamic or inert, steadfast or aimless, in proportion
to the character and unity of those who serve it. U.S. foreign policy has entered
upon a period of trial of unprecedented endurance and complexity. That policy
will in large measure stand or fall according to whether the relative handful of
men and women charged with its execution are able to work effectively and in
concert toward the agreed ends."
"The work of diplomacy requires intimate knowledge of the political customs,
governmental forms, and cultural patterns of people who may work, think, and
worship in a manner quite different from our own. Understanding in these
complex matters cannot be acquired overnight. It must be the product, not
alone of specialized training, but of continuous and disciplined growth through
experience, study, social contact, and perceptive observation. Diplomacy has
become serious, urgent, and arduous business."
SECTION 2?A SHRINKING BASE
"The Foreign Service Officer Corps needs to expand. If it is to get on with
its job it must begin its expansion at once. Not only is the Service far too small
for the tasks devolving upon it; it is also critically deficient in various technical
specialties?notably economic, labor, agriculture, commercial promotion, area
language, and administrative--that have become indispensable to the successful
practice of diplomacy in its vastly broadened, mid-20th century meaning."
"The overriding requirement for an effective foreign policy is a rapid broadening
of its personnel base. The wider the base the more talent the Department of
State and the Foreign Service will eventually be able to draw upon for reinforcing
their senior personnel at the highest levels of dipolmacy."
SECTION 3. THE ADMINISTRATIVE SITUATION
"They (the two separate personnel systems of the Department, one of which?
Nut? the Foreign Service?has three subsystems) have given rise to a sense of separate-
ness where there should be a pervading sense of oneness. And this separateness
has indisputably hampered the State Department in the conduct of its business,
most seriously in the restraints it has laid upon the free interchange of skills and
experience between the home and foreign organizations."
"It has been a serious mistake to keep so much of the Foreign Service orbiting
overseas so long. Men immersed continuously in other societies inevitably tend
to lose touch with the circumstances and attitudes that shape national policy at
home. Their outlook, their judgment of changing factors of national concern,
and finally their sense of urgency in matters affecting the national interest cannot
escape being altered."
"The committee is strongly of the opinion that this comparative isolation in
4 official exile of the Foreign Service should be lifted as rapidly as possible. To
keep their knowledge of American life steadily refreshed, Foreign Service officers
should be brought home for duty regularly, if possible after every 6 years of duty
abroad.
"Such a policy should produce a double dividend. It would bring Foreign
Service officers back into the policymaking machinery, and it would give them a
more intimate understahding of the forces underlying the development of national
policy. Equally, their regular injection into the Department's domestic processes
should have a leavening influence upon foreign policy as it evolves."
"The relatively few desks presently occupied by Foreign Service officers within
the Department fall short by a wide margin of supplying sufficient scope for ade-
quate rotation between the home and foreign fields. If the Foreign Service is to
establish its roots more firmly at home, more positions must obviously be opened
up within the Department.
"However, broadening the domestic base of the Foreign Service is orb, one of
the changes that should and must he made in the present administrative structure.
A breach must be made simultaneously in the artificial boundaries which through
custom have walled off the departmental service. Many technical skills now
lodged in jobs in Washington are urgently needed for a more versatile diplomacy
overseas. Making room for the Foreign Service in tho Washington establish-
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ment will tend to release these now-anchored skills, but not unless the Foreign.
Service in turn makes room for the counterflow from the Department."
"The revolutionary change in the position of the United States, with the con-
sequent expansion of its personnel needs for the fulfillment of its international
mission, has placed a premium upon individuals with a high degree of specializa-
tion in economics, commercial promotion, agricultural knowledge, labor com-
petence fiscal practice, certain branches of the law, and the languages and cultures
of important areas of the world, many of which have only recently engaged the
close interest of American diplomacy and strategy. The Foreign Service has
been almost indifferent to these specialties; it has been loath to make room for?
them in its ranks; and, indeed, in some rsspects, there has actually been some
retrogression in its recognition of specialisms.
"If the Department's management of the Foreign Service is fully to meet the-
demands of present conditions, there must be a fundamental reorientation in both
its thinking and structure. It must, in the process of reesta,hltshing itself more
firmly in the context of American domestic policy and thinking, also open its ranks
to a large number of people with a high degree of specialization in other than the
general practice of diplomacy."
SECTION 5-AN INTEGRATED SERVICE
Since 1924, the idea of ending the separateness of the Foreign Service has been
reviewed by diverse, competent groups. All have agreed that:
"Above a certain level a single personnel system should cover all departmental
and Foreign Service personnel insofar as that is at all practicable."
"The proposed integration can best be accomplished by three actions:
"Action one: Formal confirmation of those positions in the Department's
domestic organization, the incumbents of which should have both foreign and
domestic experience. These positions should be redesignated as 'Foreign Service'
positions to distinguish them from other departmental jobs in which foreign
experience is not necessary and which, therefore, logically should continue to be
staffed from the civil service.
"Action two: Establishment of qualifications standards to require foreign
experience for the positions thus designated?this action to be taken in coopera-
tion with the Civil Service Commission.
"Action three: Within the limits of feasibility incorporate the incumbents of the
newly designated 'Foreign Service' positions into the Foreign Service and install-
an effective system of rotation."
"The committee's analysis indicates that, as against the 119 Foreign Service-
officers now assigned to departmental positions, there are upward of 1,440 posi-
tions in the Department in Washington, plus a score or more in the U.S. delegation
to the United Nations, which it seems agreed in the Department should be filled
by, Foreign Service officers.
'The committee estimates there are at least 2,250 permanent oversea positions
of officer rank which should be manned by Foreign Service officers.
"Thus the total number of positions to be earmarked for the Foreign Service
would be on the order of 3,700. If, however, proper allowance is made for officers
on leave or in training or awaiting assignment, the total complement would be
about 3,900?about three times the present strength."
"The plan contemplates that the bulk of the clerical, custodial, and administra-
tive personnel of less than officer rank customarily attached to headquarters would
continue under the civil service. No useful purpose would be served by seeking
to absorb these latter categories into the Foreign Service_ The Department-
would also retain certain officers whose duties do not require service abroad."
"The Reserve should be retained as provided by statute and should be used
primarily as means for bringing into the Service on a temporary basis specialists
to deal with unique problems."
"The Foreign Service Staff category should henceforth be used solely for the-
employment of technical, clerical, and custodial personnel of lower than officer
rank."
SECTION 10-WITH ONE VOICE
"Until the Department is organized to speak with one voice by the integration
of the services at home and abroad, and until there is firm, stable, and energetic
administration, morale will not show marked improvement. It is to, these ends
that the gravamen of the committee's report is directed."
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AMENDMENTS TO THE FOREIGN SERVICE ACT
-4
231
APPENDIX III
Memorandum for: Deputy Under Secretary for Administration.
Subject:, Designation of Foreign Service positions.
Pursuant to the Public Committee's recommendations, you are requested to
conduct immediately a review of all positions under the jurisdiction of the Depart-
ment both here and abroad, and to determine promptly which departmental
positions should be filled from civil service rolls and which Foreign Service category
should be used in staffing those positions to be filled from Foreign Service rolls.
The "Criteria for Determination of Appropriate Personnel Categories" adopted
by the Committee (enclosed herewith) will serve as your basic guide in making
these identifications. The Public Committee has determined that the application
of these criteria will result in the designation of approximately 1,440 departmental
positions, 23 positions in the U.S. delegation to the United Nations, and about
2,250 oversea positions for staffing by the FSO Corps. Clarifying interpretations
of or revisions in these criteria developed by you in their Rpplication to specific
positions should not be unduly restrictive but should be directed toward the objec-
tive of staffing as many officer type positions involved in foreign affairs as practical
by the Foreign Service Officer Corps. Provision should be made for appropriate
review and revision of designations on a continuing basis.
To the extent necessary, please work with the Civil Service Commission in
developing solutions to problems relating to the designation and staffing of depart-
mental Foreign Service positions. Also, please explore the extent to which revised
legislation may be necessary to establish this program on a permanent basis, and
assure the development of such legislation.
Other related instructions being simultaneously transmitted by you will outline
the procedures by which present incumbents?such as civil service, Reserve or
Staff officers?will be encouraged to transfer to the Foreign Service officer category
as quickly as possible if their positions are among those designated for staffing on
a Foreign Service basis.
JOIIN FOSTER DULLS.
Enclosure: As stated.
CRITERIA FOR DETERMINA.TION OF APPROPRIATE PERSONNEL CATEGORIES
A. FOREIGN SERVICE OFFICERS
All positions in the United States and at Foreign Service posts abroad will be
designated for staffing from the Foreign Service Officer category if they are:
1. Middle-grade or senior positions for which a need and reasonable
opportunity exists for interchangeability between the United States and
abroad in the same or closely related fields of activity; and junior level posi-
tions which logically lead to such middle-grade or senior positions; and, are
2. Concerned with:
(a) The conduct, observation, or analysis of foreign affairs, including
the specialized aspects thereof;
(b) The relations between the U.S. Government and the interests
and welfare of U.S. citizens abroad; or between the U.S. Government
and foreign nationals; or,
(c) The executive management of or administrative responsibility
for the oversea operations of the Department and the Foreign Service
(but not including clerical tasks).
D. FOREIGN SERVICE STAFF
All American positions at Foreign Service posts abroad not falling into the FSO
(or FSR) category will be designated for the Staff Corps. These will include
secretarial, stenographic, clerical, custodial, and lower or middle-grade technical
positions. Staff Corps employees may be assigned?normally on a limited basis?
to the Department for training or in positions directly relating to their regular
duties abroad.
C. FOREIGN SERVICE RESERVE
The Foreign Service Reserve Corps will continue as now provided by statute.
It has been recommended, however, that existing legislation be amended to
permit the lateral entry of any qualified Government employee (including those
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232 AMENDMENTS TO THE FOREIGN SERVICE ACT
outside the Department of State and the Foreign Service) with total Government
service of 4 years-3 years, if over 31 years of age. The reserve category will
then be maintained for the appointment of temporary specialists; as a transitory
vehicle for the appointment of departmental and staff personnel before they
enter the FSO category; and to accommodate those who lack the required years
of service for lateral entry.
D. CIVIL SERVICE EMPLOYEES
All positions in the United States not designated for staffing by the Foreign
Service will be filled by civil service employees.
Included in the civil service category will be those positions which require a
particular knowledge of the techniques and procedures involved in the conduct of
departmental business at home, and those in which continuity of performance is
of overriding importance. Civil service staffing is thus to be considered for highly
specialized departmental positions for which Foreign Service experience or inter-
changeability is not indicated.
Some of these positions may also be filled, however, by Foreign Service per-
sonnel who require "headquarters" experience or "re-Americanization" that
cannot otherwise be provided through normal rotation in positions regularly
earmarked for Foreign Service staffing.
Departmental positions in the clerical, stenographic, and custodial fields will
be filled by civil service employees.
APPENDIX IV?A
Summary by area (officer-type positions)
Area
Proposal
FSO posi-
tions
Aug. 1,
1954 1
Aug. 31,
1959 3
Non-FSO positions
Dedesig-
nations
Proposal
Aug. 31,
1959 3
62
36
37
97
16
92
4
PSI
4
13
29
16
46
L
61
69
H
3
11
AF
37
2
NEA
83
83
73
2
1
ARA
51
55
69
8
4
EUR
159
142
131
1
12
4
FE
68
64
79
5
1
P
4 177
69
28
4 53
82
47
CU
1 130
173
35
7
IES
130
133
10
7
Other
40
25
E
104
113
193
27
30
12
10
77
86
81
27
36
10
USUN
23
16
15
15
INR
347
343
267
79
239
127
SCA
229
8
8
106
12
1
SY
58
22
135
26
SCS
32
18
3
2
MC
10
9
4
1
VO
23
45
10
2
PPT
6
108
ORM
14
9
A'
36
35
32
17
70
i
OPR
33
31
24
'171
235
1
013
10
23
24
67
11
OF
25
24
30
,
PER
27
48
78
106
142
11
Total
1,464
1,410
1,523
750
1453
284
1 Occupied positions only.
Budgeted positions.
3 Consolidated.
Includes LES.
IES.
Excludes 126 service-type positions.
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APPENDIX IV?B
Summary by area, occupancy of officer?Type positions (GS-7 and above)
?
Area
?
FSO
positions
as of Aug.
31, 1959
Incumbents
Non-FSO
positions
as of Aug.
31, 1959
Incumbents
F90
FSR
FSS
CS
Va-
cancy
FSO
PSR
FSS
CS
Va-
cancy
9 1
97
57
5
1
12
22
92
20
1
64
7
FSI
29
20
1
5
3
46
1
1
36
8
L
69
68
1
II
11
2
9
AF
37
30
2
3
2
2
1
1
NEA
73
52
2
7
12
2
2
ARA
69
52
11
6
8
4
1
2
1
EUR
134
101
1
3 1
18
13
12
2
10
FE
79
66
2
7
4
5
2
2
1
P
28
12
3
34
8
1
82
2
1
75
3
CU
173
66
4
412
75
16
35
1
32
2
E
143
72
8
1
46
16
30
3
25
2
10
81
46
7
3
13
12
36
4
32
15
5
3
5
2
15
1
13
1
INR
267
156
15
5
58
33
230
8
2
218
11
SCA
8
7
1
12
1
11
sy
22
10
2
7
3
135
1
1
128
5
SCS
18
8
9
1
3
3
MC
9
1
1
6
1
4
4
VO
45
14
28
3
10
9
1
PPT
108
102
6
ORM
14
4
1
1
7
1
0
2
7
A'.32
21
1
4
6
70
5
4
59
2
OPR
24
13
3
1
4
3
235
1
6
223
5
OB
24
11
1
10
2
11
1
9
1
OF
24
10
1
10
3
30
1
29
PER
78
62
5
5
10
142
1
138
2
Total__
1,521
896
61
32
363
176
1,413
65
4
15
1,309
60
1 Consol dated.
21 from USIA.
3 4 from USIA.
11 from USIA.
APPENDIX V?A
Dedesignation summary?Kinds of positions and basis for action
Basis for &designation
Highly tech-
Professional
Need for
nical knowl-
specializa-
Unique pro-
Kinds of positions
Exclusively
continuity
edges and
tion with
gram with
Total
departmental
and diffi-
abilities
extremely
inherent
in
culty in fill-
required?
high ma-
administra-
orientation
ing from
lack of
demic quail-
tive
Foreign
Service
counterparts
overseas
fication
require-
ments
problems
010 Information special-
ist
17
17
080 Security Adininis-
- trator
1
1
130 Foreign affairs
12
7
19
131 International rela-
tions
2
2
132 Intelligence research
116
116
170 Historians
17
17
201 Personnel officer
?4
4
212 Placement officer
2
2
221 Position classifier_
2
2
301 General administra-
tive and clerical_ _
55
2
25
2
84
341 Administrative as-
sistant
1
1
560 Budget administra-
tion
9
2
11
1710 Educationist
1
1
2001 General supply ad -
?
ministration ?
2
2
2020 Purchasing agent
1
1
2132 Passenger traffic
r
4
4
Total
64
17
183
18
2
284
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APPENDIX V-B
Dedesignation summary?By areas and basis for action
Basis for &designation
Highly tech-
Professional
Need for
nical knowl-
specializa-
Unique pro-
Areas
Exclusively
continuity
edges and
tion with
gram with
Total
departmental
and dim-
abilities
extremely
inherent
in
culty in fill-
required?
high sea-
administra-
orientation
big from
lack of
demic quail-
tive
Foreign
Service
counterparts
overseas
fication
require-
ments
problems
S
P.A
to NOW to 00 0,0,0, 0, ol=?
4
NEA
1
ARA
2
4
RUB
1
1
4
FE
1
P
7
17
17
47
CU
1
2
1
7
E
7
12
IO
4
10
INR
116
127
SCA
1
BY
2
16
26
SCS
2
MC
1
VO
2
A
4
2
7
OPE
10
13
OB
1
1
3
OF
2
PER
9
10
Total
64
17
183
18
2
284
APPENDIX VI
[Foreign Service Circular No. 265, March 19, 1959]
Subject: Written and Oral Examination for Appointment as Foreign Service
Officer Above Class 8.
1. Purpose of this Circular
This circular supersedes Foreign Service Circular No. 237 and amends the
previous technical requirements for lateral appointment as Foreign Service officer
to reflect a basic change of policy pursuant to which employees of the Mpartment
of State, its Foreign Service Reserve, or its Foreign Service Staff, may count
service performed in a responsible position in any Federal Government agency,
including the Armed Forces, for the purpose of complying with the statutory prior
service requirement, whether such service was performed prior to March 1, 1955,
or after that date. Aside from the amendments necessary to effect this change,
this circular provides the same information as that set forth in Foreign Service
Circular No. 237 with respect to the Department's continuing program for the
lateral appointment of Foreign Service officers under section 517 of the Foreign
Service Act of 1946, as amended, and informs personnel appointed by the Secretary
of State and under his administrative direction, of the eligibility requirements
and related data. The continuing lateral entry program is not an extension of
the integration program which was terminated on August 1, 1956.
2. Purpose of the Continuing Lateral Entry Program
It is the purpose of the continuing lateral entry program to permit the Depart-
ment:
a. To obtain the services of outstanding persons whose qualifications are
such that they can be expected to make a valuable contribution to the effec-
tiveness of the Foreign Service, when such services are determined to be
needed;
b. To obtain the services of persons who possess the requisite knowledge
or experience to enable the Foreign Service to perform specialized work of a
continuing nature, when such services cannot be obtained through officers in
the Service; and
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c. To provide an opportunity for Foreign Service Staff and departmental
employees with the requisite abilities and qualifications to be appointed as
Foreign Service officers whenever there is a manifest need therefor.
:8. Lateral Entry to be Determined on the Basis of Need
The lateral entry program contemplates that appointments will be made only
when a definite need for additional Foreign Service officer is established. On the
assumption that there will be no significant increase in the size of the Foreign
Service officer category in the near future, and in consideration of the fact that
the integration program has been completed, it is expected that the need for
lateral appointments will not be large during the next few years.
4. Who May Apply
4.1 Foreign Service Reserve and Staff personnel, and departmental personnel
who were appointed by the Secretary of State and are under his administrative
direction, and other persons as authorized by section 517 of the Foreign Service
Act of 1946, as amended, may file application for examination, subject to the
requirements set forth in item 5 of this circular.
4.2 Foreign Service Reserve and Staff personnel, and departmental personnel,
who were appointed by the Secretary of State after March 1, 1955, and whose
applications for examination were rejected under Foreign Service Circular No. 237
solely on the ground that they had completed less than 3 or 4 years of responsible
service in the Department of State or its Foreign Service, or both, may reapply
under this circular if at the time of application they shall have completed 3 years
(4 years if under age 31) of service in a responsible position in a Federal Govern-
ment agency, or agencies, including the Armed Forces of the United States.
? 5. Technical Requirements
5.1 All applicants must have been citizens of the United States for at least 10
years on the date of application and, if married, the spouse must be a citizen of
the United States as of the same date.
5.2 On the date of application all applicants must be at least 28 years of age
and must have attained an age equivalent at least to the average age, as of the
preceding July 1, of the youngest 20 percent of the class for which considered.
5.3 On the date of application, the age of any applicant in relation to his total
Federal Service must permit him to serve the U.S. Government for at least 15
years before age 60; including at least 7 years as a Foreign Service officer.
5.4 All applicants must have completed at least 3 years of service (4 years
if under age 31) in a position of responsibility in a Federal Government agency,
or agencies. Such prior service must have been performed within an 8-year
period next preceding the date of application, except that in the case of a Reserve
-officer whose appointment is not charged to the statutory quota the period of
prior service must have been performed continuously and immediately preceding
-his appointment as a Foreign Service officer. For the purpose of this paragraph,
a position of responsibility in the Foreign Service Reserve, the Foreign Service
-Staff, or the Departmeht of State, which is under the administrative direction of
the Secretary of State, is defined as a GS, FSR, or FSS position above GS-8,
FSR-8, or FSS-12, respectively. A position of responsibility in a Federal Govern-
ment agency which is not under the administrative direction of the Secretary of
State, or a position in the Armed Forces of the United States, is defined as a
position classified at GS-9, or above or its equivalent, with duties and respon-
sibilities in any case which were similar or reasonably related to those of a Foreign
Service officer in terms of knowledge, skills, and abilities.
5.5 In support of the career principle of the Foreign Service, there will be no
lateral entry above class 2 unless the applicant (1) has previously served as a
Foreign Service officer of class 1 or as a career minister' or (2) is serving, at the
time of application, under an appointment by the Secretary of State as a Foreign
Service Reserve officer of class 1 and has served continuously in that capacity for
2 years out of a 4-year period of service in the Foreign Service Reserve.
,6. Legal Limitations on the Number of Appointments
Under section 517 of the Foreign Service Act of 1946, as amended, a total of
.not more than 175 persons may be appointed who were not employed on March 1,
1955, in the Department, of State, including Foreign Service Reserve and Foreign
Service Stafi personnel, and who have not completed the required period of prior
service in the Department or the Service, or both. This means that the number
-of persons appointed from other agencies of the Government, and the number of
persons appointed from the Department of State and its Foreign Service who
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were employed therein after March 1, 1955 (except those who have completed the
required 3- or 4-year period of service as Reserve officers), is limited by existing
legislation to an aggregate total of 175.
7. General qualification Requirements
The Board of Examiners for the Foreign Service will examine applicants to
determine (a) whether their personal and professional qualifications compare
favorably with the officers in the class for which they are being considered;
(b) whether they are suited to meet the needs for which examined; and (c) whether
their appointment will serve to strengthen the Foreign Service. Applicants must
satisfy the Board of Examiners of their competence and representational capacity,
their willingness to work in any field, and of their potential for growth in the
Foreign Service. It is particularly important that the Board be convinced of
the willingness of specialists to continue to serve in the area of their specialization.
8. The Examination
8.1 General. The examination for appointment will consist of three parts,
namely, written, oral, and physical.
8.2 The Written Examination. The written examination will be based on the
broad field of the applicant's competence and will be designed to enable the Board
of Examiners to judge his ability to organize his thoughts and to express them
clearly and concisely in correct English. An applicant may be requested to sup-
plement this part by presenting to the Board samples of his written work, pub-
lished or unpublished.
8.3 The Oral Examination. Each oral examination will be given by a panel of
Deputy Examiners and will be conducted in the light of all available information
concerning the applicant.
8.4 The Physical Examination. Applicants who pass the oral and written ex-
aminations will be given a physical examination prior to the time of certification
for appointment. The applicant's physical condition will be evaluated in rela-
tion to his age. No applicant will be appointed who is found to be disqualified
for worldwide duty unless based upon the recommendation of the Board of Ex-
aminers for the Foreign Service, a waiver of the requirement for medical clear-
ance is made in accordance with the provisions of 1 FSM IV 687.3.
8.5 Language Qualification. It is desirable that an applicant have a knowledge
of a foreign language; and those possessing such knowledge will be given an oppor-
tunity to demonstrate that fact. Language qualifications will be one of the fac-
tors to be taken into consideration by the Examiners.
9. Selection for Examination
The Board of Examiners may schedule examinations from time to time as the
needs of the Service may require. All valid applications on file at the time an
examination is scheduled will be considered by the Board of Examiners, which
will then determine which applicants are to be examined. No applicant will be
considered to have a right to examination in the absence of designation for such
by the Board. If an applicant is not called for examination within 2-years of the
date of his application or if he is not certified for appointment to the Office of
Personnel as a successful candidate following his examination, his candidacy will
be considered terminated. lie may, however, reapply by filing a new application.
10. Certification for Appointment
After the completion of the examination of designated candidates for a given
area of competence or specialization and class level, successful candidates will be
certified to the Office of Personnel for appointment. The number of candidates
certified will no t exceed the requirements of the Service in any category or class.
The certification of any candidate for appointment will be made only upon the
completion of a satisfactory security investigation in his case.
11. Findings of Panels of Deputy Examiners
Determinations of duly constituted panels of Deputy Examiners are final, un-
less modified by specific action by the Board of Examiners for the Foreign Service.
12. How to Apply
Applicants should complete one copy of Standard Form 57 (Application for
Federal Employment), and one copy of Form DSP-34 (Supplement to Standard
Form 57) and forward them to the Board of Examiners for the Foreign Service,
Washington, D.C. Incomplete applications will be returned to the applicant.
Applications will be accepted at any time until further notice.
4
Oft,
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AMENDMENTS TO THE FOREIGN SERVICE ACT 237
13. Foreign Service Manual Amendment
The Foreign Service Manual will be amended to incorporate applicable provi-
sions of this circular.
STATEMENT ON SECTION 16(C)
In undertaking to discuss section 16(c) which would provide for a housing allow-
ance for Foreign Service personnel assigned to duty in the United States between
foreign tours of duty, I would like to make it clear that this proposal was not
contained in the original bill suggested by the Secretary of State to the Congress.
It has not had the approval of the administration. In fact, under date of January
25, 1960, the Director of the Bureau of the Budget addressed a communication
to the Secretary of State in which he referred to questions concerning this pro-
vision which had been raised by Bureau of the Budget stair during recent budget
hearings. He commented in the letter that, "No convincing justification has been
brought to the attention of the Bureau and, accordingly, the Bureau at this time
would be unable to recommend favorable action."
Among the pertinent questions raised by the Bureau in its letter to the Secretary
are the following:
1. Why should Foreign Service personnel be entitled to receive a housing allow-
ance of this kind when personnel of other agencies who are stationed overseas
from time to time, or personnel of agencies who are required to move about fre-
quently in the United States do not receive such an allowance?
2. Is the legislation intended to compensate for specific expenses of relocation
in Washington or for service in Washington per se?
3. Is the real problem which this proposal undertakes to remedy hardship
inherent to service in Washington or does it arise from the loss of special benefits
enjoyed overseas?
Before undertaking to ansiever these questions, I should like to discuss briefly
this proposal to provide financial assistance to Foreign Service personnel which
will offset, in part, their excessive cost of housing while on assignment in the
United States. This is a matter to which the Department of State has given
considerable attention. Foreign Service personnel are required by the nature of
their duties to travel frequently from place to place for indeterminate periods
at the convenience of the Government. Home ownership or rental for them while
assigned to duty in the United States is both temporary and costly.
Numerous elements enter into the higher housing costs for members of the
Foreign Service who, as a mobile corps, are subject to frequent assignment
changes. Some of these elements are obvious, such as the inability of these
people to buy a home over a long period of time. Most home purchases for them
are abortive and as transient buyers they acquire little or no enitity and may be
forced to 801 at unreasonably low prices when departing for another post. Other
high cost elements, while not so obvious, are nevertheless real. For example,
Foreign Service personnel are often provided with furnished or partly furnished
quarters. At other posts they are provided with a housing allowance with which
to rent living quarters and must supply complete furnishings. Consequently,
household furnishings which they own may be surplus at some posts and needed
at others. Such furnishings not used during assignments abroad may be stored
at Government expense. If it becomes necessary for these people to rent fur-
nished quarters while on assignment in the United States, they must bear the
expense of storage.
Studies made by the Department reveal that most Foreign Service personnel
while on assignments of 2 to 4 years in the United States are compelled to spend
excessive amounts of their salary for housing. Consequently, most such per-
sonnel, although realizing how important it is that they serve from time to time
in the Department, are reluctant to serve in Washington because of the financial
sacrifices involved.
With respect to the, questions which have been raised by the Bureau of the
Budget, it should be pointed out that the Department of State is not in a position
to judge whether or not personnel of other Government agencies should be en-
titled to receive allowances of this kind. It is known that military service
personnel and personnel of the Public Health Service who work under conditions
similar to those of the Foreign Service receive housing allowances regardless of
whether they are serving in the United States or abroad.
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238 AMENDMENTS TO THE FOREIGN SERVICE ACT
Appro
Personnel of USIA and ICA who are employed under the provisions of the.
Foreign Service Act of 1946, as amended, would, of course, be eligible for the
benefits of this section, if enacted.
The Department does not consider that this legislation is intended to compen-
sate for specific expenses of relocation in Washington or for service in Washington
per se. Neither is it intended to remedy a hardship inherent to service in Wash?
ington or arising from the loss of special benefits enjoyed overseas. This proposal
would inak.e it possible for Foreign Service personnel to serve in the United States
without being subjected to excessive financial hardship resulting from housing.
costs. If enacted section 16(e) would authorize an allowance that would defray
only one-half of the cost of housing for these people when they are assigned to
Washington. Even if this section should become law, therefore, Foreign Service.
officers assigned to Washington from the field would encounter certain financial
problems. Nevertheless, these problems would be more manageable than they
are now. Practically everyone connected with the administration of the Service-
has recognized how helpful such an allowance would be, but the matter came up
in concrete form only in connection with discussions of the hardship which the
elimination of differential payments would impose upon certain Foreign Service
officers on duty in the Department of State.
STATEMENT ON SECTIONS 33 AN!) 51
In connection with the letter which the Department received from the Director
of the Bureau of the Budget under date of January 25, 1960, 1 should also like.
to point out that the proposed revision of section 33 relating to financial benefits
for certain staff officers who would be retired early under the provisions of that
section were made subsequent to the passage of the bill by the Senate and have not
had the approval of the administration.
Similarly, although the original conversion table contained in section 51 was,
approved by the Bureau of the Budget, the proposed change in this section which
will provide for a more orderly conversion of staff officers and employees to the
new class and salary schedule was not cleared with the administration due to,
lack of time.
COMMITTEE ON FOREIGN AFFAIRS,
HOUSE OF REPRESENTATIVES,
Washington, D.C., February 0, 1960.
Hon. JOSEPH CAMPBELL,
Comptroller General of the United States,
Washington, D.C.
DEAR Mn. CAMPBELL: The Subcommittee on State Department Organization
and Foreign Operations has started hearings on S. 2633, a bill to amend the
Foreign Service Act of 1946, as amended. I am enclosing a copy of the bill.
It would be helpful to the subcommittee to have you forward to me any com-
ments you may have on particular sections of this measure.
Sincerely yours,
WAYNE L. HAYS,
Chairman, Subcommittee on State Department Organization and Foreign
Operations.
COMPTROLLER GENERAL OF THE UNITED STATES,
Washington, D.C., February 9, 1960.
Hon. WAYNE L. HAYS,
Chairman, Subcommittee on State Department Organization and Foreign Operations,
Committee on Foreign Affairs, House of Representatives.
DEAR Mn. CHAIRMAN: Your letter of February 2, 1960, acknowledged that
date, requests such comments as we may have upon particular sections of S. 2633,
a bill to amend the Foreign Service Act of 1946, as amended.
We offer the following comments for the consideration of your committee.
Section 16(c), page 11: This section would amend section 571 of the Foreign
Service Act of 1946, as amended (22 U.S.C. 961), to grant a salary differential
varying between 8 and 13 percent, depending upon dependency status, to Foreign
Service officers and employees while assigned to duty in the United States between
assignments abroad and also to Foreign Service officers of class 7 or 8 while assigned
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to duty in the continental United States prior to their assignment abroad. The
section places no limit upon the length of time such differential may be paid; and,
under subsection (a) of section 571, an assignment in the United States between
assignments abroad may be continued for as long as 8 years. Moreover, this
salary differential appears to be payable in addition to the home service transfer
allowance payable under section 252 of the Standardized Regulations, issued by
the Department of State in inplementation of section 901(2) (ii) of the Foreign
Service Act of 1946, as amended (22 U.S.C. 1131). The home service transfer
allowance is an allowance for extraordinary and necessary expenses incident to
the establishment of a residence at a post within the continental United States
between assignment to posts abroad and, therefore, is similar in purpose to the
salary differential which would be granted by section 571, as amended, by this
section (sec. 16(c) of the bill). We suggest that consideration be given to placing
a reasonable limitation upon the length of time that a salary differential may be
continued under the authority of section 571, as amended by this section, and
that the necessity for granting a double benefit be carefully examined with a view
to eliminating one or the other or to modifying one or the other so that they
would not be payable concurrently.
Section 19, page 13, and section 30, page 20: Section 19 would amend section 625
of the Foreign Service Act of 1946, as amended (22 U.S.C. 995), to again permit
step increases in the salary of Foreign Service officers and reserve officers, based
upon especially meritorious service, and section 30 of the bill would amend section
642 of that act (22 U.S.C. 1017), to provide authority for the granting of similar
step increases to Foreign Service Staff officers and employees.
The authority granted the Secretary of State under section 625 of the Foreign
Service Act of 1946, was superseded by the Government Employees Incentive
Awards Act (68 Stat. 1112), which authorized payment of cash awards under the
conditions set forth therein in lieu of the granting of step increases as rewards for
meritorious service. The congressional policy in enacting that act appears in
Senate Report No 1992, 83d Congress, on H.R. 2263 and the conference report on
such bill appearing on pages 3825 and 3873, respectively, of the United States
Code, Congressional and Administrative News, volume 3. It is not apparent why
Foreign Service personnel should be placed under a different meritorious awards
system from that applicable generally to Government personnel. However, if it
be decided as a matter of policy that Foreign Service personnel should be awarded
additional step increases for especially meritorious service, we then would recom-
mend that consideration be given to the prescribing of standards in the bill govern-
ing the number and frequency of granting such meritorious increases. Similarly,
in subsection (b) of section 642 of the Foreign Service Act, which would be added
by section 30 of the bill, we note that no limitation has been prescribed governing
the frequency of the granting additional salary increases authorized by such
subsection.
Section 33(b), page 22: While the equities may be deemed to justify the granting
of as much as 1 year's salary to certain employees who are mandatorily retired
under this subsection, we urge your committee to give careful consideration to the
effect that the enactment of this provision may have as a precedent. Other
employees throughout the Government are retired mandatorily who have rela-
tively short periods of service creditable for retirement purposes and their annui-
ties also may be insufficient to satisfy their financial requirements.
Section 49, page 46: This provision of the bill would authorize the transporta-
tion of motor vehicles or replacements thereof. The term "motor vehicles" could,
in its broadest sense' apply to motorboats. We assume, however, that in view of
the explanation of the section appearing on page 14 of Senate Report No. 880,
September 2, 1959, it was intended to cover only land vehicles. It may be that
your committee would want to further clarify the term "motor vehicles," either
in the bill itself, or in your report upon the bill.
The present provisions of the section would permit shipments of replacement
motor vehicles without any limitation as to the number that could be shipped
at Government expense or the period within which such shipments could be made.
Since it is not unusual for Foreign Service personnel to sell their American-made
automobiles in foreign countries at substantial profit, it appears that failure to
limit the number of motor vehicles which may be shipped as replacements could
lead to abuse. In that connection compare the comments in our letter of March
31, 1959, B-115138, to chairman, Committee on Post Office and Civil Service,
House of Representatives, concerning sections 332 and 333 of H.R. 5007. Those
comments are published on page 42 of House Report No. 902, dated August 14,
Noir 1959, upon H.R. 7758. We note that that bill as reported by the Post Office and
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Civil Service Committee and as passed the House of Representatives contains
limitations on the number of replacement vehicles that may be transported at
Government expense
Sincerely yours,
JOSEPH CAMPBELL,
Comptroller General of the United States.
STATE DEPARTMENT COMMENT ON LETTER OF COMPTROLLER GENERAL
CONCERNING S. 2633
The Comptroller General in his letter to the chairman, dated February 9, 1960,
commented on four sections of S. 2633.
With respect to section 16(c), which provides for a housing allowance for Foreign
Service personnel assigned to the United States between assignments abroad, the
Comptroller General recommends that a limit be placed on the length of thne such
an allowance may be continued.
Although a Foreign Service officer could be assigned to the United States for
as long as 8 years, as the Comptroller General suggests, this would happen only
in a most unusual case. In fact it has not happened up to date. Normally,
junior officers serve 2 years in this country; others serve 4 years. In any event,
a limitation would tend to defeat the purpose of the provision, since assignments
are not made for a stated period of time. Foreign Service personnel assigned to a
position in this country serve in that position, as they do at an overseas post, at
the convenience of the Department. Neither the personnel so assigned, nor the
Department can project the length of an assignment with any accuracy. Needs
of the Service vary, often with astonishing speed, and Foreign Service personnel
must necessarily regard themselves as transients at all times. Accordingly,
Foreign Service personnel assigned to this country have no basis for making long-
term housing arrangements. Further, there are representational responsibilities
which come with assignment to duty in the United States irrespective of the length
of assignment.
The Comptroller General also suggests that this section provides a double
benefit in view of the existing home service transfer allowance. This is not the
case. A transfer allowance is provided for Foreign Service personnel assigned
to any post to help meet the special, one-time cost of relocation. Insofar as
Washington is concerned, it is limited under present appropriations to hotel
room cost for up to 1 month on first return to the United States, and, in the case of
about one-third of the transferees (who came here from a different climatic zone),
a transfer allowance payment ranging from $75 to $175, depending on size of
family.
With regard to section 19, to authorize in-class increases for meritorious service,
the Comptroller General questions whether the Foreign Service should be under a
meritorious awards system different from that generally applicable to Government
personnel, and suggests, if the authority is provided it should be accompanied by a
prescription of standards governing the number of frequency of such meritorious
increases.
The Department is convinced that the cash awards provided for by the Incentive
Awards Act are not as appropriate as in-class increases for officers of the Foreign
Service. Frequently the needs of the Service require an officer to serve for pro-
tracted periods of time in positions classified one or more levels above their per-
sonal rank. In many such cases officers have distinguished themselves in the
performance of their duties and the Department believes that an in-class promo-
tion is more acceptable than a cash award would be. Further, there are a number
of unusual and difficult foreign languages which owing to their uniqueness are not
offered by the Foreign Service Institute on a formal training basis; however,
officers on their own initiative undertake the study of and become proficient in
such languages. The Department believes that the award of a meritorious
in-class increase for such accomplishment better serves the Government because
it provides a continuing and more desirable incentive for the undertaking of such
voluntary and specialized study.
Insofar as the frequency of meritorious increases is concerned, the Department
would prefer not to have statutory restrictions, even though more than one
in-class increase would be most unusual. A restriction, for example, would
prevent the Department from granting a deserved increase to an officer not
yet eligible for promotion who had served with distinction in a position several
grades above his class and also recognizing the officer's achievement in under-
taking and attaining proficiency on his own in a difficult foreign language.
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From the record of stewardship during the time the? Department previously
had this authority, it is clear that the Department will safeguard the authority
in the best interests of the Government.
In connection with section 33(b), relating to the granting of gratuities to certain
employees who are mandatorily retired under this provision' the Comptroller
General suggests that consideration be given ?to the effect that the enactment of
this provision may have as a precedent. The Department has already suggested
the modification of this section to provide for a graduated scale of gratuity
payments.
, Finally, the Comptroller General has raised two questions regarding section 49'
Which authorizes the replacement of motor vehicles. The Department has no
intention of interpreting this provision to include motorboats, and has so stated
to this committee. As to the matter of a limitation on the transportation of
replacement motor vehicles, the Department believes that regulations to be
Issued governing such transportation will provide effective control. In view of
climatic and other conditions overseas, a rigid replacement schedule is neither
realistic nor practical.
COMMITTEE ON FOREIGN AFFAIRS,
HOUSE OF REPRESENTATIVES,
Washington, D.C., February 22, 1960.
Hon. Loy' W. HENDERSON,
Deputy Under Secretary of State for Administration,
Department, of State, Washington, D.C.
DEAR Mn. SECRETARY: There is considerable interest On the part of some
'Members of the House and also of the Senate regarding the part of S. 2633 that
deals with a 'small number of Foreign Service Reserve officers who formerly
Were Staff officers. This is contained in section 28 of the bill.
I think my subcommittee should have a complete story on this entire matter
in order that we may make a proper determination of their situation. Will you
therefore prepare for the subcommittee's information a report on who these
individuals are (I am not interested in their names but in their status), the
conditions under which they were transferred from Staff to Reserve status,
what the Department's plan is toward their retention, and all other pertinent
information.
I hope that you are well on the way to recovery.
Sincerely yours,
WAYNE L. HAYS,
Chairman, Subcommittee on State Department Organization and Foreign
Operations.
DEPARTMENT OE STATE,
Washington, February 29, 1960.
Hon. WAYNE L. HAYS,
? Chairman, Subcommittee on State Department, Organization and Foreign Operations,
? Committee on Foreign Affairs, House of Representatives.
DEAR MR. HAYS: In response to your letter of February 22, I am glad to enclose
a report on the conditions and considerations bearing on the acquisition of Foreign
Service Reserve officer status by the 45 former staff officers referred to in section 28
of S. 2633. I believe this report will provide the information you desire. I shall,
however, be pleased to discuss any aspects of it with you or your subcommittee.
. The program under which these officers were given Foreign Service Reserve
officer appointments was designed to provide every benefit possible for older
Staff officers. As pointed out in the report, the Department took exceptional
precautions to protect their interests. Although a few of these officers seem to
have become concerned about their status since making their election, the Depart-
ment has no intention of changing the conditions of their appointment and has so
gone on record both in the Senate hearings and in hearings before your subcom-
mittee on S. 2633.
I appreciate your expression of concern over my recent illness. Fortunately
it was brief.
Sincerely yours,
LOY W. HENDERSON,
Deputy Under Secretary for Administration.
Enclosure: Report on Reserve officer status.
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DEPARTMENT OF STATE, SPECIAL FOREIGN SERVICE 13,B_BERVE OFFICER
APPOINTMENTS
BACKGROUND
The announced objectives of the Secretary's 1954 personnel integration
(Wriston) program contemplated the discontinuance of the Foreign Service Staff
(FSS) officer category with the conclusion of the program, except for a few highly
specialized functions. Accordingly, it provided for (1) the transfer of oversea
officer functions and FSS personnel of equivalent rank to the Foreign Service
Officer Corps, and (2) ceilings on future promotions consis ,ent with the continuing
function of the Staff Corps.
Over 900 FSS personnel (80 percent) of equivalent officer rank, under age 59V2,
were integrated as Foreign Service officers. The residual ;gaup consisted of about
300 unintegrated FSS personnel, the majority being senior FSS officers who
(1) did not wish to become Foreign Service officers or wve age 60 and older, or
(2) were in continuing FSS specialized occupational categories.
Partly to meet skill shortages in the Foreign Service Officer Corps and partly
to deal with FSS personnel as liberally and fairly as possi 31e during the transition
period, unintegrated FSS officers and other junior persowiel continued to be used
to staff Foreign Service officer positions and to be promoted on the basis of merit
above the established FSS functional ceilings. When the Foreign Service Officer
Corps attained its numerical strength, the Department could no longer justify,
either legally or administratively, promotions above the FSS functional ceilings.
ALTERNATIVE COURSES OF ACTION OPEN TO FS;S PERSONNEL
The FSS personnel program, announced March 28, 1958, invoked promotion
ceilings and simultaneously provided another opporturety for those serving in
Foreign Service officer positions to acquire officer status under liberal conditions
and on a strictly voluntary basis. They could elect to--
1. Apply for lateral appointment as a Foreign Scrvice officer if they had
completed 5 years of service and were under age 59.
2. Apply for a Foreign Service Reserve officer at pointment, if under age
69, subject to the following time limitations, whichever was the shortest:
(a) Mandatory retirement under the civil se-vice retirement system;
(b) Mandatory retirement under the Foreigi Service retirement sys-
tem as proposed in S. 2633; or,
(c) The maximum tenure as a Foreign Service Reserve officer permis-
sible by law.
3. Retain their FSS status without further elms promotions but with
longevity pay as proposed in S. 2633, if enacted.
Younger officers electing either alternative 2 or 3 would be eligible for lateral
entry consideration, subject to the future skill needs of the Foreign Service
Officer Corps.
In other words, FSS officers were given every alternativ 3 course of action possible
within legal and administrative feasibility. Additionally, the closing date for
Reserve officer applications allowed time for those who were disqualified or dis-
approved for lateral entry under this program to apply for Reserve appointments
if they so desired. Exceptional precautions were taken to insure full under-
standing of the conditions of the Reserve appointments and to protect the interests
of those who accepted such appointments.
The advantages and disadvantages of Reserve status; application, review, offer
and acceptance of appointment offer procedures; dm ation and conditions of
appointment, and all entitlements relating to extension, promotion, lateral entry,
reinstatement, and reduction-in-force were detailed in c, Foreign Service circular
which has the force of regulation.
Summarized, it may be said the advantages accruing io those electing to accept
Reserve officer appointments would include:
1. Improvement in status.
2. Additional periodic in-class pay increases for I hose at the maxImum for
the FSS class.
3. Eligibility to compete for one or more class pr)motions, depending upon
duration of appointment.
4. Increased life insurance benefits, retirement benefits, post differential
pay if assigned to a hardship post, and lump-sum leave payments. 41111A
5. Protection of earned retirement annuity bene its under the civil service
system in excess of the 35-year creditable service limitation of the Foreign
Service system.
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The disadvantages in the case of employees age 55 and older would be earlier
retirement if for any reason the proposed mandatory participation of FSS per-
sonnel in the Foreign Service retirement system failed to be enacted; whereas in
the case of the younger officers it would be the 5-year limitation on appointments.
In the latter instance, this would be offset in some measure by eligibility for con-
sideration for lateral entry to the FSO corps prior to the expiration of the Reserve
appointment.
STATUS OF FORMER FSS OFFICERS WHO ACCEPTED FSR APPOINTMENTS
Under this special program, 45 FSS officer applicants were offered and accepted
Reserve appointments. Other applicants who were found to benefit by retaining
FSS status and being retired under the proposed gradual mandatory provisions
.of S. 2633 were so counseled.
An analysis of this group reveals that of the 44 Reserve officers (one death),
.all but 4 are now in the 59- to 69-year-age bracket. In accordance with pertinent
regulations, their appointments will be extended to coincide with the effective date
of their mandatory retirement under either the civil service retirement system,
or under the gradual schedule contained in S. 2633-65 percent at ages 64 to 70
and the remainder, about equally divided, at ages 63 and 62 if the latter legislation
is enacted. (The average age of FSS personnel retiring over the past 7 years has
been 65 years.) Of this group, 73 percent will have completed 35 to 48 years of
creditable (unverified) retirement service; the remainder 12 to 34 years.
? Further, 83 percent of the officers have received a vice consular, consular, or
secretarial commission, or a combination of the latter two, as appropriate,
which has improved their status in the Foreign Service.
Time-in-class promotion eligibility for Reserve officers is 2 years. All members
of this group, therefore, will be eligible for class promotion consideration either
this year (1960) or next.
Based upon the assumption that the mandatory Foreign Service retirement
provisions of S. 2633 become effective July 1, 1961, the bulk of these Reserve
officers without benefit of any class-to-class promotions, will receive prior to the
expiration of their appointments $630 upward to $2,797 more in basic salary than
they would have received had they retained their FSS status. This does not
include additional financial benefits such as increased retirement annuities by
reason of higher 5-year average salary, creditable service in excess of the Foreign
Service 35-year limitation, post differential pay, and lump-sum leave payments.
There is attached a copy of the letter extending the appointment.
AUGUST 10, 1959.
American Embassy, London.
DEAR : In my letter of January 12, 1959, offering you appointment as
a Foreign Service Reserve officer, I stated that the termination date of June 30,
1960, would be extended if there should be a delay in the enactment of proposed
amendments to the Foreign Service Act. That date was set on the assumption
that legislative action would be completed before the end of June 1959.
I have just been informed that no action will be taken during this session of
Congress on the amendments to the Foreign Service Act proposed by the Depart-
ment and by several Members of Congress. Further hearings will be delayed until
Congress reconvenes in January 1960. As a consequence, the Department will
extend your Foreign Service Reserve appointment for about 9 months or longer,
depending upon action by Congress on amendments to the act.
A new "Notice of Personnel Action" to effect this extension will not be issued
until next April or May when, it is hoped, a firm date can be established. I do
want you to know, in the meantime, that there will be an extension in the termi-
nation date of your appointment. This will enable you to make your personal
plans accordingly. Since no formal action is being taken at this time, you may wish
to give a copy of this letter to your principal officer or to the administrative officer
at your post in order that he, too' may know of the Department's plans for your
continued service beyond June 1960.
I am glad that the Foreign Service will be able to have, for somewhat longer,
the benefit of the experience that you have gained during many years in the
Service. My very best wishes to you.
Sincerely yours,
WALLACE W. STUART,
Chief, Personnel Operations Division,.
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SECTION 2?AMENDING SEC. 41l
Conversion cost of Foreign Service staft employees to .10-class FSS schedule under
suggested change in S. 2683 conversion table
Present
class
Pres-
ent
step
Amount
of adjust-
meat
Number
of cm-
ployees
as of Dec.
31, 1959
Total
cost
Present
class
Pres.
ent
step
Amount
of adjust-
ment
Number
of em-
ployees
as of Dec.
31, 1959
Total
cost
FSS-1
?
?
t4,4D 44,,, OR t?O OO 14> CC CO CO cl.c. Co CI to co oc. OOOfl
$150
14
0 0 0 0 0 0 = 0 0 0 0 0 ,0 0 0 0 0 0 0 0 CD 0 0 0 0 0 0 0 0 0 0 0 3-D 0 0 0 0 0 0 0
o A= . C00133144-..40,043CC000 cO Icc. OC Cn 0 Ol cO vc, C, ct: tc- C., Ol OW, Ol 0 Lc- 0 0 CD , Ol .1, 0 CC
.. CO CO C?1 . Ot SO .. ,... 01 -3' 0 C0 01 0 &CD 03 DV -&1' 0- 04 ?4 ,44, . 344, ,0 ,,,, ,/, 01 . ,-. . 0 0 . CO
1 ,D.
FS 8-9
S
$100
54
$5, 400
150
11
115
32
3,680
170
2
1
130
61
7,930
200
. t
145
45
6,525
220
't
355
37
13, 135
255
6
565
45
25,425
?
. 55
4
FOS-10
125
66
9,250
65
2
130
87
11,310
70
1
145
71
10,295
80
3
160
73
11,680
F35-3
110
5
100
117
11,700
115
5
40
83
3,320
125
5
5
185
79
14, 615
130
2
FES-11______
50
83
4, 150
145
3
t
45
79
3,555
F8S-4
110
61
35
89
3, 115
120
3
4
30
68
2,040
125
2
20
133
2,660
135
5
,
10
236
2,360
145
4
1
0
217
FSS-5
190
7
FSS-12______
i
75
56
4, 200
200
1
C
60
20
1,200
210
2
8
55
32
1,760
150
5
4
45
65
2,925
80
3
a
40
145
5,800
20
6
2
30
327
9,810
FSS-6
45
8
1
20
339
6,780
35
2
FSS-13
7
70
13
910
25
5
6
60
7
420
5
4
5
55
3
165
220
6
4
45
12
540
210
3
3
40
14
560
1?SS-7
75
19
2
30
101
3, 030
60
5
1
20
246
4,920
45
6
FSS-14______
7
45
35
3
6
90
25
4
5
30
10
9
4
70
FSS-8
32
3
2
15
55
1
15
10
25
14
25
1
200
40
26
FSS-16
1
625
1
625
55
20
Total.
3,451
217,025
65
26
Average adjustment .)er employee
63
INTERNATIONAL COOPERATION ADMINIS1 RATION
5
$150
1
$150
F09-10_-__-
5
$145
11
GO
moo .
4- 41' . .
14J ex, 0 CO . C., cic. 0 . tO 0 CO GO -41 O. CO CO CC 01 tO CO 0 0 0
0 0 0 0 0 0 C 0 0 0 0 C. 0 C,1 0 0 0 0 C. 0 0 0 0 0 C.
FSS-2
4
55
1
55
4
160
10
FSS-3
5
110
3
330
3 100
7
4
115
1
115
2 40
8
3
125
4
500
1 185
12
1
145
1
145
FSS-11
7 50
29
FSS-4
4
120
1
120
6 45
9
2
135
2
270
5 35
26
F89-5
5
200
1
200
4 30
23
4
210
2
420
3 20
24
3
150
5
? 750
2 10
14
2
80
3
240
1
56
FSS-6
4
25
4
100
FSS-12
7 75
17
3
5
5
25
6 60
8
1
210
5
1,050
5 55
9
FSS-7
5
60
1
60
4 45
20
3
35
2
70
3
40
. 28
2
25
1
25
2
30
86
1
10
1
10
1
20
115
FSS-8
4
25
1
25
F89-13
7
70
2
2
55
3
165
6
60
2
1
65
1
65
5
55
2
F95-9
6
100
8
800
4
45
2
5
115
9
1,035
3
40
4
4
130
6
780
2
30
11
3
145
10
1,450
1
20
31
2
355
9
3,195
679
39, 245
1
565
7
3, 955
Total
F08-10
7
125
8
1,050
Average adjustment In r employee
58
6
130
7
910
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131721A0004(3620005-9
Conversion cost of Foreign Service staff employees to 10-class ASS schedule under
suggested change in S. 2633 conversion table?Continued
U.S. INFORMATION AGENCY
Present
class
Pres-
ent
step
Amount
of adjust-
ment
Number
of em-
ployees
as of Dec.
31, 1959
Total
cost
Present
class
Pres-
cut
step
Amount
of adjust-
ment
Number
of ern-
ployees
as of Dec.
31, 1959
Total
cost
F55-1
5
$150
0, 6-1 CO F-1 w?,. C4 CO 0 0 0,, ,11,- C/C C/3 0 E. CO C1,1, 0 CO N 0000 1-1 10 CO
CO C, CO 47A CO to toO toO 00 to 10 1-1 F-1 01. COO toO CO JO to CO O to CO 0 N 0 000 N CO 1.-.1
$4,650
1,200
3,740
3,000
440
13, 260
1,760
1, 950
1,010
560
2,640
3, 220
2,710
3,640
0,231
3, 300
4,410
5,000
4, 455
4,495
2,850
3,000 1
6,510
6, 150
3,360
640
900
065
750
160
7,480
8870
900
480
270
945
275
380
10
225
0 0- 0 0 0 .cH 01 ,-.1.,1' C- C-
,-, 0.1 ?-.1 1=1 CC 01 01 , 0
CO
r4'
. . . Ti CO . , r?-? . v. , v.
COO) I. CID. , COO) , 0- 0 0 0 C0 cl r. 0- 0 0 ,c, cc 01 , 0- 0 .0 ..0 CO CO . n 0 0 , cr, CO ,
, 0
. ,
1 ' 0
1
E.
co
I 1 .
i ....,
1 *
Eh ,
ch
cn En on on
cn cn on on cn cn
F7,4 i-4- -F, P, 4+ PR
360
4
150
935
a
170
1,300
2
200
400
1
220
230
FSS-2
5
255
780
4
55
1,450
3
65
3, 195
2
70
7,910
1
80
250
PBS-3
5
110
4
115
580
3
125
060
2
130
600
1
145
360
FSS-4
5
110
5.020
4
120
250
3
125
45
2
135
175
1
145
90
PBS-5
6
190
100
5
200
00
4
210
3
150
75
2
80
60
1
20
55
FSS-6
6
45
180
5
35
200
4
25
60
3
5
440
2
220
1
210
F55-7
6
75
5
60
4
45
40
3
35
120
2
25
340
1
10
144, 635
FSS-8
6
5
10
114
4
25
Number of
Average
Department or agency
employees
Total cost
amounts of
as of Dec.
adjustments
31, 1959
State
3,451
$217, 025
$63
USIA
1,207
144, 635
114
ICA
679
39, 245
58
Total
5,397
400,905
74
50S64-60- -17
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Approved For Release 1999/08/27 : CIA-RDP78-03721A000400020005-9
wow'
AMENDMENTS TO THE FOREIGN SERVICE ACT
THURSDAY, JUNE 2, 1960
HOUSE OF REPRESENTATIVES,
COMMITTEE ON FOREIGN AFFAIRS,
SUBCOMMITTEE ON STATE DEPARTMENT
ORGANIZATION AND FOREIGN OPERATIONS,
Washington, D.C.
The subcommittee met at 10:45 a.m., in room G-3, U.S. Capitol,
Hon. Wayne L. Hays (chairman of the subcommittee) presiding.
Mr. HAYS. The committee will come to order.
We meet this morning to give further consideration to Foreign
Service legislation which is in Senate bill 2633. We had, as you
recall, some months ago or some weeks ago, rather extensive hearings
on this. This hearing this morning with Mr. Henderson, Mr. Wood-
year, Mr. Lyerly, Mr. Southworth, and Mr. Stuart, is to tie up any
loose ends so that the committee can decide what to do with this
bill if it is going to do anything. The time is getting short.
Do you want to make a statement?
STATEMENT OF HON. LOY W. HENDERSON, DEPUTY UNDER
SECRETARY OF STATE FOR ADMINISTRATION
Mr. HENDERSON. I would like to make two fairly brief statements,
suggesting changes which I think might be helpful. If you don't
mind, I would like to read them. I have given a copy to the reporter.
It has come to my attention, Mr. Chairman, that there has been
some concern on the part of this committee over the status of a group
of approximately 45 former Staff officers who were. given an oppor-
tunity to become Foreign Service Reserve officers in 1958. At the
time these officers elected Reserve appointments, it was understood
that these limited appointments would not expire until the date the
officers would have been man datorily retired for age had they re-
mained Foreign Service Staff officers and been subject to the provisions
of amended section 803 of the Foreign Service Act. You will recall
that section 803 provides that any Foreign Service Staff officer or
employee who has had 10 years of service with the Foreign Service
will become a participant in the Foreign Service retirement and
disability system, effective 1 year after the passage of S. 2633.
In view of the committee's concern, the Department since the last
hearing has taken steps to insure the continuation of these officers
in Reserve officer status for a full tour of 5 years, unless they reach
70 years of age or are found to be subject to separation for misconduct
under section 637.
In order to provide equitable treatment for all Staff employees as
well as for this small group, a similar extension with respect to the
247
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mandatory retirement of Staff officers and employees who will become
participants in the Foreign Service retirement system is desirable.
With those objectives in mind, we are suggesting that section 58 of
S. 2633 be amended to provide that section 8O3()(2) of the act with
respect to mandatory retirement for age become effective 3 years after
the effective date of this act, rather than 1 year as is now proposed.
This proposed extension of the mandatory retirement date will
make unnecessary the lump-sum separation payments from the
retirement fund now proposed in section 803()(3). The Depart-
ment, therefore, suggests that this subsection be ieleted.
I would like to submit for the record a draft of the proposed change.
I shall not take up your time by reading the draft of the change.
When I was in Paris last week I had conferences with some of the
officers who belong to the group of 45 former Staff officers?now Re-
serve officers?who had been worried about what might happen to
them in case this bill should become law. We r3ached a very satis-
factory arrangement. Some of them, I understand, have since
written to the Members of Congress with whom they had previously
corresponded, saying they were pleased with our plans with respect
to them.
Our plans provide that these Reserve officers will stay on for their
full 5 years unless they reach the age of 70 beforehand or unless there
is some malfeasance or misconduct on their part. They have already
been Reserve officers for 2 years. They will th3refore have an ex-
tension of 3 years regardless of whether this bill becomes law or not.
Furthermore, in order to make more equitat le the situation of
those who continue to be Staff employees, we are proposing that this
bill will not become effective, so far as their retir ?anent is concerned,
for a period of 3 years after it goes generally into force.
This would mean that no Staff employee woulc be retired because
of this bill for at least 3 years. Then the retirements will be staggered.
it will be about 6 years before a Staff employee will be retired at
the age of 60. I think this alleviates the situ ttion of the senior
members of the Staff Corps who have been concerned at being faced
immediately with unplanned for retirement.
That is one statement. The other statemer t has to do with
section 16(c) of S. 2633 providing for housing all iwance for Foreign
Service personnel on duty in Washington.
Mr. Chairman, in previous testimony I have 3tated that section
16(c), which would provide for a housing allowance for Foreign
Service personnel assigned to duty in the United States between
foreign tours of duty, had not received the approval of the Budget
Bureau and that the Director of the Bureau of the Budget has in-
formed the Secretary of State in writing that he was unable at this
time to recommend favorable action on the propo ial.
In more recent conversations which we have had with responsible
officers of the Bureau of the Budget, they have made it clear that they
continue to be opposed to the inclusion in legislation enacted at this
time of a provision establishing housing allowances for Foreign Service
officers on duty in the United States. They talc the position that
they should have an opportunity to give such a provision further
study before legislative action is taken with respe3t to it.
In view of the position taken by the Bureau of the Budget, which is
the spokesman for the executive branch of the Government in matters
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IRDIP78110372ATA00040620005-9
nf this kind, I feel it to be my duty to suggest that this committee
give consideration to the elimination of section 16(c) of S. 2633.
At the same time, I feel it also to be my duty to emphasize the fact
that the financial difficulties encountered by Foreign Service personnel
without private means while on tours in Washington represent a
serious problem for the Department and for the Foreign Service, and
to express the hope that in the not too distant future means can be
found to alleviate this situation.
Mr. HAYS. I might say to you, Mr. Secretary, as far as I am con-
cerned, if that section comes out I am not even interested in bringing
the bill to the floor. That is one piece of the bill that I am especially
for, that I think has special merit and ought to be passed. As far as
I am concerned, the fact that the Bureau of the Budget is against
it is all the more reason I am for it.
MTS. BOLTON. I am right with you.
Mr. HENDERSON. Mr. Chairman, I have already in previous hear-
ings expressed some views about this subsection. It is now my duty
to, present the views of the Budget Bureau to this committee.
Mrs. BOLTON. It is absolutely imperative.
Mr. HAYs. Are there any questions on either Mr. Henderson's two
statements or any other loose ends of the bill?
Mr. HENDERSON. C0111.d I make one more minor suggestion which
is really in the way of an editorial change? That has to do with
section 632.
Mrs. BOLTON. What page is it on in that book?
Mr. HENDERSON. Page 40 in the brochure put out by the Senate.
That section, you will notice, provides for the retirement of Foreign
Service officers who are not career ambassadors or career ministers.
I would appreciate it, in view of the fact that the Staff Corps is
coming under the Foreign Service retirement system if the words
"Foreign Service officer" here could be changed to "any participant in
the Foreign Service Retirement and Disability System."
This provision would thus include Foreign Service Staff employees
also. We feel that the Secretary should be in a position to determine
also that it would be in the public interest to extend the service of a
staff employee who has reached retirement age for a period not to
exceed 5 years. At the present time the bill provides that the Secre-
tary may in the public interest extend the service of a Foreign
Service officer who reaches the retirement age of 60 for a period of
not to exceed 5 years. We have no such provision for the extension
of the service of Staff employees.
Since the Staff employee is now going to be under the Foreign
Service umbrella so far as retirement is concerned, it seems only fair
he should be included in this provision. If the Secretary should
,determine that it would be in the public interest to keep a staff
employee beyond the age of 60, he would be able to retain his services
for an additional period.
Mrs. BOLTON. Would you give me those words again?
Mr. HENDERSON. "Any participant in the Foreign Service Retire-
ment and Disability System." Instead of, "any Foreign Service
officer," the title would read "participants in the Foreign Service
Retirement and Disability System who are not career ambassadors
.anUcareer ministers."
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In the last sentence, "such officers' service," simuld read "such ass
employee's service."
This is a minor change which was overlooked d pring the drafting of
the legislation.
Mr. FARBSTEIN. Would Mr. Henderson give ire the significance of
the disputatious portion of page 10 of the bill, that section (c), section,
16(c) that the chairman suggested he wants?
Mr. HAYS. Mr. Farbstein, if I may say, what that paragraph does,
is set up a quarters allowance for Foreign Service officers who are
reassigned to the United States for periods of duty, just the same as
people in the Pentagon get the quarters allowance not only when they
are out on a base, overseas, but here in Washington.
The reason I am personally interested in it, the Senate passed it, and
the Bureau of the Budget doesn't want it, but the reason I am inter-
ested in it is especially these lower ranking people, when they have
been assigned to a foreign post and have this quirters allowance and
are sent back to Washington for a couple of years where the costs are.
much higher, rent-wise and otherwise, than in the foreign post, and
they have two or three children, they can't make onds meet.
Mr. FARBSTEIN. The Budget wants to deny thcm this allowance
Mr. HAYS. Yes, and I want to give it to them.
Mr. FARBSTEIN. I will go along with you, Mr. Chairman.
MTS. BOLTON. It is very important.
Mrs. KELLY. Mr. Chairman, may I ask, is the:?e any other agency
of Government where this is comparable?
Mr. HAYS. To my knowledge, the Armed Forees. There may be
others, if the Secretary or the staff would like to speak to it.
Mr. HENDERSON. The uniformed forces and also the Public Health
Service, I believe.
Mrs. KELLY. Are they reimbursed for their quarters if returned to,
the United States?
Mr. HENDERSON. They are.
Mrs. KELLY. It is ridiculous not to have the Sit: ne status across the'
board and in all agencies of Government.
Mr. HENDERSON. Their allowances are not qui be the same as pro-
posed here but they are for quarters.
Mrs. KELLY. I wanted to know if there is a precedent across the
board.
Mr. ZABLOCKI. Mr. Chairman, has the Bureau of the Budget given
any reason for their position?
Mr. HENDERSON. I gave the substance of a lettcr from the Director
of the Budget in the early part of these hearings which contained
certain questions. I would say offhand that amorig the reasons given
by members of the Bureau are the following:
1. They have a fear that such a provision might set a precedent
which would cause other civilian services to ask for quarters allow-
ances in the United States.
2. They take the position that this might be considered as a kind of
salary increase for officers in the United States; aiwarently no salary
increases are programed at the present time.
3. They would like to look this over and stue y it further before
deciding whether it is a good thing or not. We took the position
originally with the Bureau of the Budget that the Foreign Service
was somewhat different from most civilian services. It was more like
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the military service because it was a completely mobile corps. The
officers and personnel could be assigned anywhere at any time. There-
fore, they could not arrange to have permanent homes.
While in Washington they are not in the position of members of
other civilian services who could expect to be here quite some length
of time. They never knew when they would receive a transfer.
Therefore, housing was more expensive for them. They could not
settle down and have their little houses and gardens and make their
plans for the future like members of most civilian services.
Mrs. BOLTON. It is a very real hardship that I think we have no
right to impose on them.
MT. HENDERSON. I could read you the letter from the Bureau of
the Budget if you like for me to take time to do so.
MT. ZABLOCKI. No, I will read it.
My next question is why the Department reversed its original
position.
Mr. HENDERSON. This provision for a housing allowance in Wash-
ington was not in the original bill drafted in the Department. It was
added by the Senate. During the discussion before members of the
Foreign Relations Committee, it became clear that the elimination as
provided in this bill of the salary differentials which many Foreign
Service Officers in the Department have been receiving would increase
their financial difficulties. Out of this discussion developed the prob-
lem of the lack of housing allowances for officers in Washington. The
Senate took this matter seriously and added this provision to the bill.
At that time we considered it a very good provision. The Depart-
ment of State felt its adoption would help in meeting one of its most
serious problems. It is a serious problem when so many Foreign Serv-
ice personnel find themselves in debt after a tour in Washington.
MTS. BOLTON. It is terrible.
Mr. HENDERSON. It makes it difficult to assign officers to the De-
partment. Unless they have private means they dread such an assign-
ment because it represents financial hardship. Since the Bureau of the
Budget had not passed on this provision we submitted it to it for ap-
proval. The Bureau of the Budget wrote a letter?you will find the
letter in the record?indicating that it could not support such a pro-
vision. The Bureau of the Budget has subsequently informed us
informally that in its opinion the provision should be deleted.
It seemed to me that it was incumbent upon me as a representative
of the State Department to give this committee the views of the Bureau
of the Budget and to suggest that the committee give consideration to
eliminating this provision.
Mr. ZABLOCKI. To further clarify then, Mr. Secretary, you merely
gave the views of the Bureau of the Budget, but the Department has
not changed its position on the desirability of the provision remaining
in the legislation?
Mr. HAYS. Do you want to answer that question off the record?
Mr. ZABLOCKI. I believe we better have it on the record. The
opponents of the bill will point out and say the Department changed
its mind. Therefore why does the committee insist?
Mr. HENDERSON. The Department has changed its mind about
supporting this passage because it cannot support this provision if the
Bureau of the Budget is opposed to it.
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Mr. ZABLOCKI. I don't quite follow you, M Secretary. Why
must the Department be subservient to the Bureau of the Budget?
Mr. HAYS. It is the rule of the administration.
Mr. HENDERSON. The executive department.
Mrs. BOLTON. And has been for a long time.
Mr. HENDERSON. No department or agency of the Government is
supposed to support any legislation unless that legislation has received
the approval of the Bureau of the Budget. Yherefore, we can't
support this particular paragraph.
MT. FARBSTEIN. I would like
Mr. ZABLOCKI. I would like to say that is the bost argument for the
committee to support it.
Mr. HAYS. That has been my position all along.
Mr. FARBSTEIN. I notice under the terms of this amendment there
is to be an increase going from 8 to 13 percent differential, depending
upon the size of the family to assist in defraying the cost of quarters
in the continental United States.
Will you please state for the record what the cost generally is,
percentagewise, of an individual's salary when he is outside the
continental United States, using $10,000 as a base'
Mr. HENDERSON. The cost of the housing abroad?
MT. FARBSTEIN. Yes.
MT. HENDERSON. I haven't the figures in front of me, but off-
hand
Mrs. KELLY. Mr. Chairman.
Mr. FARBSTEIN. I use $10,000 as a base salary.
Mr. HENDERSON. From about 10 to 25 percent
Mr. FARBSTEIN. Therefore, when a request is iaade here solely for
10 to 13 percent, it would appear offhand that it is inadequate, and
that therefore the only suggestion hereunder is that a portion of the
expense that normally would be allotted to the Foreign Service of-
ficer is remitted by virtue of this legislation?
Mr. HENDERSON. Yes; it was our idea that about half of the housing
expense would be paid for by the employee and the other half would
be paid by the Government
Mr. FARBSTEIN. Under the circumstances, I think one could be very
critical of the Department to go along supporting this legislation.
Mrs. BOLTON. May I speak to that a moment?
MTS. HAYS. Yes.
Mrs. BOLTON. As I understand it, the Departmmt is not permitted
to do it unless the Budget supports it?
Mr. FARBSTEIN. I can be critical of them just ti e same.
Mrs. BOLTON. I don't think so. I think we c in uphold what we
know is their need.
MT. HENDERSON. There is a danger of a veto of the bill if it contains
a provision opposed by the Bureau of the Budget. Whether the
President would actually veto this, I don't know. Since the Bureau
of the Budget has indicated its lack of support, that danger exists
Mr. HAYS. I don't care in the slightest whethei he does or doesn't.
Our mission is to pass the legislation as we think it ought to be and
his is to either sign it or not as he feels like. That is his responsibility.
I don't care whether he vetoes it, signs it, throws it in a wastebasket
or takes it to Augusta and stuffs it in a golf hole.
OP%
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k.
Mr. ZABLocKi. I would like the record to show that the Secretary
did his best to have the section deleted. We regret, however, to dis-
agree with him.
Mr. HAYS. The record can show that and it can show my views.
As long as we have a Congress of the United States which is supposed
to make the laws, that I am getting a little sick of having a super-
congress which is responsible to nobody, which is a bunch of faceless
men who set themselves up above the elected representatives of the
people.
Mrs. KELLY. Could I ask the gentleman from Wisconsin if he is
representing viewpoints of the Department
Mr. HAYS. The gentleman from Wisconsin can say anything he
wants to.
Mr. HENDERSON, The Bureau of the Budget has been quite helpful
to us in regard to this bill. It has gone along with us in practically
every provision of the bill. Therefore, I wouldn't want to have any-
thing in the record to indicate that, as far as the Department is con-
cerned, we are not gratified at the cooperation shown us by the Bureau
of the Budget. 'With respect to this particular section, however, the
Bureau of the Budget is not willing to go along.
Mr. HAYS. Any other questions?
If there are no more questions of the Secretary, I am constrained
to excuse him and we will start marking up this bill.
MT. HENDERSON. Thank you. I would like to say how much I
appreciate the time that members of this committee have expended
on this bill. My appreciation is the greater because I know how
pressed the committee is. This bill is very important to the Depart-
me t for a number of reasons. I might mention, for instance, the
problem of the Foreign Service Institute. We will run into a great
deal of trouble there unless this bill is passed and becomes law by
the 1st of July. We shall have difficulty employing tutors for certain
foreign languages, since there is no provision in law at the present
time allowing us to employ aliens, and Americans with the necessary
qualifications are not available. There are other provisions of ex-
treme urgency.
Mr. HAYS. Mr. Secretary, I appreciate that. I might say to you
that as far as I am concerned I am. going to try to move this bill up
and out, depending upon the wishes of the committee.
I have a NATO steering committee meeting in Bonn next Friday
and Saturday. If we don't get this bill disposed of before then,
I am going to stay home from that until we get?
Mr. HENDERSON. We are grateful for your interest.
Mr. HAYS, We will get a decision on it if we can in the next week.
MT. HENDERSON. Would you like to have some Of OUT people wait
outside?
Mr. HAYS. Dr. Westphal thinks it would be advisable.
(Whereupon, at 11:15 a.m., the subcommittee proceeded to further
business.)
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INDEX
("Discussion" refers to questioning of witnesses; "Explanation" refers to ma-
Aerial submitted by the executive branch, Section numbers refer to the Foreign
Service Act of 1946, as amended)
Page
Cost of proposed bill 174
Henderson, Hon. Loy, opening statement of 85-92
Title IV-Categories and salaries of personnel:
Section 415 Foreign Service Staff officers and employees:
Amendments 2, 18
Discussion 95-102, 104, 107, 197, 201
Explanation 19, 77, 79, 85, 119-121, 168, 169, 244, 245
Temporary provisions 15, 16, 75, 92 78,
416-Salaries at which Foreign Service Staff officers and em-
ployees may be appointed:
Amendments 2, 20
Discussion 108
Explanation 20, 87, 121
Section 417-Salaries of alien clerks and employees:
Amendments 2, 21
Explanation 21, 121
,Section 431-Chiefs of Mission:
Amendments 2, 21
Discussion 110
Explanation 22, 121
Section 441-Classification of positions in the Foreign Service and in
the Deparment:
Amendments 2, 22
Discussion 110-114
Explanation 23, 121-125
Section 442-Administrative establishment of new groups of positions
for Foreign Service Staff officers and employees: Repeal of 17, 20
Section 444-Classification of positions of alien,clerks and employees:
Amendments 3, 23
Explanation 23, 89, 125
,Section 446---Exemption from the application of the Classification
Act:
Amendments 3, 24
Discussion 201
Explanation 24, 89, 125
'Title V-Appointments and assignments:
.Section 500-Policy (new) 3, 25
Explanation 25, 126
Section 516-Admission to class 8:
Amendments 3, 25
Explanation 26, 87, 126
Section 517-Admission to classes 1 to 7, inclusive:
Amendments 3, 26
Discussion 193, 205
Explanation 27, 127
Section 520-Reinstatement and recall of Foreign Service officers:
Amendments 3, 27
Explanation 28, 87, 127
Section 525--Active duty: Repeal of 17
Section 528-Reinstatement of Reserve officers:
Amendments 4, 28
Explanation 29, 128
255
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Title V-Appointments and assignments-Continued
Section 531-Appointments: Page
Amendments 4, 29, 30
Discussion 91
Explanation 29, 30, 90, 128
Section 532-Assignments and transfers:
Amendments 4, 30
Explanation 31, 128
Section 571-Assignments to any Government agency:
Amendments 4, 31, 34
Discussion _ 201, 248,250
Explanation 33, 34;87, 88, 129-131, 237, 238, 240
Section 575-Assignments to foreign governments:
Amendments 5 34
Explanation 34, 131
Section 576-Assignments to international organizations: Repeal of__ 17
Section 577-Assignment or detail to the United States n3t to affect
personnel ceilings: Repeal of 17
Section 578-Foreign-language knowledge prerequisite to assignment
(new) 5, 35
Discussion 201
Explanation 35, 36, 91, 132
Title VI-Personnel administration:
Section 625-In-class promotions of Foreign Service officers and
Reserve officers:
Amendments 5, 36
Explanation
Section 626-Relationship between promotions and fun3tional
geographic area specialization (new)
Explanation
Part D, amendment to heading
36, 87, 133
and
5, 37
37, 88, 134
5, 37
Section 631-Foreign Service officers who are career mini,ters:
Amendments 5, 37
Explanation 37, 134
Section 632-Foreign Service officers who are not career ministers:
Amendments_ 6, 38, 249
Discussion_ 249
Explanation 38, 89, 134
Section 634--Selection-out benefits:
Amendments 6, 39
Discussion 207
Explanation ,40, 134
Section 635-Foreign Service officers retired from class 8:
Amendments 6, 40
Explanation 40, 135
Section 636--Voluntary retirement:
Amendments 6, 40
Discussion 207
Explanation 40, 135
Section 637--Separation for unsatisfactory performance of duty:
AmendmentsI )
6 41 43
Discussion 102, 103
Explanation 43, 45, 88, 91,135-138
Section 638--Separation for misconduct or malfeasance:
Amendments 7, 46
Explanation 46, 91, 138, 241
Section 641--Class promotion of Staff personnel:
Amendments 7, 47
Discussion 102
Explanation 47, 139, 140
Section 642--In-class promotions of Staff officers and employees:
Amendments 7, 47, 48
Explanation 48, 49, 140, 240
Section 651-For unsatisfactory performance of duty: Repeal of _ _ _ 17
Section 652--For misconduct or malfeasance: Repeal of 17
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Title VII-The Foreign Service Institute:
Section 701-Establishment of the Institute: Page
Amendments 7, 49
Discussion 201, 208
Explanation 49, 88, 141
Section 704-Appointment, assignment, and detail to the Institute:
Amendments 7, 50
Discussion 201, 208
Explanation 50, 88, 141-146
Title VIII-The Foreign Service retirement and disability system, gen-
eral
146-153
Section 803-Participants
190
Amendments
8, 51, 53, 178
Discussion
177, 197, 248
Explanation 52-54,
88,
91,
154-156,
238,
239, 241, 243
Section 804-Annuitants:
Amendments
8, 54
Explanation
55, 156
Section 811-Compulsory contributions:
Amendments 8, 55
Explanation 56, 89, 156-158
Section 821-Computation of annuities:
Amendments 9, 56
Discussion 179-181
Explanation 58
Section 831-Retirement for disability or incapacity-physical exami-
nation-recovery:
Amendments 10, 59
Discussion 180-182, 189, 191
Explanation 61, 159-161
Internal Revenue Code amendment 16
Section 832-Death in service:
Amendments 11, 62
Discussion 195
Explanation
63, 161
Section 834-Discontinued service retirement (new)
11, 63
Explanation 64, 161
Section 841-Disposition of contributions and interest in excess of
benefits received:
Amendments 12, 64
Explanation
65, 162
Section 851-Computation of length of service:
Amendments 12, 65
Explanation 66, 162
Section 852-Prior service credit:
Amendments 12, 66
Explanation 68' 162
Section 855-Recomputation of annuities of certain former partici-
pants (new) 13, 68
Explanation 68, 163
Part II, amendment to heading
13, 69
Section 871-Officers reinstated in the Service:
Amendments
13, 14, 69
Explanation
69, 70, 163
Section 872-Reemployment (new)
14, 70
Discussion
89
Explanation
71,
89, 162
Section 881-Voluntary contributions:
Amendments
14, 71
Explanation
72, 164
Title TX-Allowances and benefits:
Section 912-Loan of household equipment:
Amendments
14, 72
Explanation
72,
89,
164, 165
Section 913-Automobiles:
Amendments
14, 73
Explanation
73,
89,
165-167
Public Law 885, 84th Congress, amendment
16,
79,
169-171
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Title X?Miscellaneous:
Section 1021?Gifts:
Amendments
Explanation
Miscellaneous amendments
Page-
15, 73
75, 168
17, 83, 84
Explanation
83, 89, 173
Amendments to other laws:
Act of August 1, 1956:
Amendments_
16, 79-81
Explanation
80-81, 169-171
Act of June 26, 1884
17, 82, 172'
Foreign Service Buildings Act
17, 82
Explanation
83
Internal Revenue Code
16, 17, 81
Discussion
90
Explanation
82, 89-90, 172:
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