TO ALL COMMISSION EMPLOYEES FROM JOHN W. MACY, JR.

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-00065A000200020010-6
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 96
• Document Creation Date: December 12, 2016
• Document Release Date: June 7, 2002
• Sequence Number: 10
• Publication Date: August 18, 1954
• Content Type: MEMO

Approved Fo~2Ve2'1 11(2Ii/CIA8MPTOO M0020010-6
WASHINGTON 25, D. C.
August 18, 1954
TO: ALL COMMISSION EMPLOYEES
FROM: John W. Macy, Jr.
As you may know, the President recently signed into law the Federal Employees
Group Life Insurance Act of 1954 (Public Law 598). This law, which is part of the
President's program for Federal employees, makes available to you life insurance at
a very reasonable cost and without a medical examination.
I know you will want to know more about this insurance and so I am sending to you
in this memorandum a list of answers to questions about it.
Within the next week or so, you will be asked to decide whether you want to take
advantage of this benefit. The information in this memorandum will help you in making
this decision and will also help you to answer questions concerning the insurance which
others may ask you.
General Answers to Questions on Group Life Insurance
Plan for Federal Civilian Employees
Q. What are the principal features of the new group life insurance plan for Federal
employees?
A. Here are the highlights of the plan:
- With few exceptions, all Federal civilian employees will be eligible to partici-
pate.
- The plan will provide for low-cost life insurance without a medical examination
and with payment of double indemnity for accidental death and payment for acci-
dental loss of eyesight or one or more limbs (dismemberment).
- Eligible employees will be automatically covered unless they specifically state
in writing that they do not want the insurance.
- The cost will be shared by employees and the Government. The employee will pay
25 cents per $1,000 of insurance each biweekly pay period, until he reaches
age 65, after which he will pay nothing. If he is paid on other than a bi-
weekly basis, the cost will be proportionate. (See Insurance Schedule on page
6.) The Government will help to pay the cost of this insurance by contributing
half as much as the employee.
- Each employee who participates will be insured for an amount approximating his
annual salary to the nearest upper thousand. For example, an employee earning
$3,200 per year will be insured for $4,000. An employee earning more than
$4,000 but not over $5,000'will be insured for $5,000, and so on.
- Employees 65 years of age or older will be insured free, but in reduced amounts.
A proved For ReI arse 200'2107/12' : CIA-RDP79 0065 000200020010-6
- Employee who re re wi con inue o be covere by a lli a insurance provisions
without cost to them - but their coverage will be reduced.
 Approved For lease 2002/07/12 : CIA-RDP79-000600200020010-6
- 2 -
Participation
Q. Who will be eligible to participate in this program?
A. All'Federal civilian employees in the executive, legislative, and
judicial branches and employees of the District of Columbia Government
will be eligible to participate except: (1) non-citizens stationed
overseas, (2) employees serving in certain corporations under the
supervision of the Farm.Credit Administration, and (3) employees ex-
cluded by the Civil Service Commission (after consultation with
agencies) because of conditions of employment, such as seasonal, inter-
mittent, or part-time employment.
Q. Will employees in hazardous occupations be excluded?
A. An employee will not be excluded solely on the grounds that he is
engaged in a hazardous occupation.
Q. Will Members of Congress be eligible?
A. Yes -- Members of Congress, cabinet officers, judges --all will be
eligible.
Q. Will there be any bar to participation because of physical condition,
age, or sex?
A. No. However, if an employee declines insurance, and later wants to
participate, he will have to wait one year and then produce evidence
of insurability -- through a medical examination. Also, when an
employee declines to participate, he will not be eligible for insur-
ance after he has reached the age of 50 years.
If both man and wife are employed by the Government, will both be
eligible?
A. Yes.
Q. What about employees who participate, quit the Government, and later
return?
A. They will be eligible to participate upon their return just as though
they had not been previously employed.
Q. What must an employee do to participate in the program?
A. Nothing. Eligible employees will be covered automatically, unless
they state in writing that they do not want to be covered under the
plan.
Q. What about employees who are insured under group insurance policies
through their unions or associations?
A. Employees can participate in this program and continue the insurance
purchased through unions and associations.
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved ForJease 2002/07/12: CIA-RDP79-00060200020010-6
-3-
I,
Q. Are employees who retired prior to the enactment of this program
eligible?
Q. When will coverage terminate?
A. The insurance is discontinued on separation from service or 12 months
after salary stops, whichever occurs first. However, the life insur-
ance provisions are continued if an employee retires under any Fed-
eral retirement system on an immediate annuity, either for disability.
or after at least 15 years of civilian service.
Q. Then employees who quit the Government will lose their coverage?
A. That is correct. However, the life insurance will continue in effect
for 31 days during which they have the right to purchase an individ-
ual life insurance policy at standard rates from insurance companies
approved by the Government. No medical examination will be required.
Q. What amount of insurance will the employee who leaves the Government
be able to purchase under this provision?
A. The same amount of his coverage while employed by the Government, or
any lesser amount.
Q. Will this right of purchase allow an employee to buy a policy which
will give him all the benefits of his Government insurance, such as
double payment for accidental death, payment for accidental loss of
limbs, etc.?
A. No. The right of purchase will be for the life insurance only,
without double indemnity or dismemberment-protection.
Amount of Insurance
Q. For what amount will an employee be insured?
A. At_ages below 65 years, the insurance will be an amount that approxi-
mates his annual salary to the nearest-upper thousand. If he makes
more than $2,000 a year, he will be insured for $3,000. If he makes
more than $3,000 a year, he will be insured for $4,000, and so on.
(See Insurance Schedule on page 6.) If he is 65 years old or more,
the face amount of his insurance will be reduced by 2 percent for
each month after his 65th birthday anniversary until a reduction of
75 percent 'is reached. The remaining 25 percent will stay in effect.
Q. Will an employee be able to carry less insurance than the amount to
which he will be entitled?
A. No, he must carry the full amount or none.
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved For lease 2002/07/12: CIA-RDP79-000500200020010-6
- 4 -
Q. Will the amount of insurance to which an employee will be entitled
change with his annual rate of salary?
A. Yes, if the changes in the employee's annual rate of salary are suf-
ficiently great. For example, if an employee earns $3,200 when he
enters the program, he is entitled to $4,000 worth of insurance. If
his salary goes over $4,000 but not beyond $5,000, he will be en-
titled to $5,000 worth of insurance; if it drops to $3,000 or below
but not to $2,000, he will be entitled to $3,000 worth of insurance.
The changes in coverage and salary deductions will become effective
in the pay period in which the employee's salary rate changes.
Q. When will this insurance be paid out to the employee or his survivor(s)?
A. Upon death of the employee, the survivor(s) will be paid the face
amount of the insurance. If the death is accidental, twice the face
amount of the insurance will be paid. If the employee suffers acci-
dental loss of one hand, one foot, or the sight of one eye, he will
be paid one-half of the face amount. The total face amount will be
payable to the employee for the loss of two or more such members or
for the loss of sight of both eyes.
Q. Must an employee name a beneficiary?
A. No. Most employees will not find it necessary to designate a benefi-
ciary. For those who do not, life insurance and accidental death
benefits are payable in the following order of precedence: (1) widow
or widower, (2) children, (3) parents, (4) estate, and (5) next of
kin.
Payment for Insurance
Q. How will an employee pay for this insurance?
A. The cost to the employee will be deducted automatically from his pay
check each pay period. (See Insurance Schedule on page 6.)
Q. Will an employee be able to withdraw the money he has paid in at any
time?
A. No. His salary deductions will pay for his day-to-day insurance
protection.
Q. If an employee is 65 years or older when the program goes into effect,
will deductions for insurance be made from his salary?
A. No. He will receive the insurance without cost to himself.
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved Fo lease 2002/07/12 CIA-RDP79-0006 00200020010-6
-5
Q, Will an employee pay.for his insurance after he retires?
A. No. The life insurance will be free after retirement on an immediate
annuity under any Federal retirement system, either for disability or
after 15 years of civilian service. The double indemnity and dis-
memberment (loss of limb or eyesight) protection will stop. .
Q. What will be the total cost to the Government?
A. It is estimated that the Government's cost will be about $22,750,000
per year, assuming that at least 75 percent of the eligible employees
decide to participate.
Q. Is it possible that the cost of insurance for employees might increase?
A. It would require a change in the law to increase the employee's rate
of payment. ,
Q. Will an employee be able to cancel this insurance later?
A. Yes, at any time.
Q. When will this plan go into effect?
A. It is hoped that coverage of Commission employees will begin with the
pay period which starts on August 29, 1954.
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved For
4 ease 2002/07/12 : CIA-RDP79-000600200020010-6
- 6 -
I N S U R A N C E S C H E D U L E
If Annual
Amount
Amount of Deductions per Pay Period
Basic
of
ce
I
WeejQ
Bi-Weekly
Semi-Monthly
Monthly
Salary
nsuran
j
Is Not More Than $10,000
$1,000
$ .13
$ .25
$ .27
$ 1
08
000
2
2,000
.25
.50
.54
.
,
3,OOO
3,000
.38
.75
.81
1.63
4,000
4,000
.50
1.00
1.08
2.17
n
5,000
5,000
.63
1.25
1.35
2.71
6,000
6,000
.75
1.50
1.63
3.23
7,000
7,000
.88
1.75
1.90
3.79
8,000
8,000
1.00
2.00
2.17
4.33
9,000
9,000
1.13
2.25
2.44
4.88
10,000
10,000
1.25
2.50
2.71
5.42
11,000
11,000
1.38
2.75
2.98
5.96
n
000
12
12,000
1.50
3.00
3.25
6.50
.
13000
13,000
1.63
3.25
3.52
7.04
14,E
14,000
1.75
3.50
3.79
7.58
15,000
15,000
1.88
3.75
4.06
8.13
16,000
16,000
2.00
4.00
4.33
8.67
17,E
17,000
2.13
4.25
4.60
9.21
18 000
,
18,000
2.25
4.50
4.88
9.75
n
000
19,
19,000
2.38
4.75
5.15
10:29
Is above
19,000
20,000
2.50
5.00
5.42
10.83
h~bt,~g~~l jig
+3~102~.1d G J
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved For Release 2002/07/12 : CIA-RDP70065A000200020010-6
Calendar No.2011
83D CONGRESS j SENATE J REPORT
2d Session j No. 1992
GOVERNMENT EMPLOYEES FRINGE BENEFITS ACT
OF 1954
Mr. CARLSON, from the Committee on Post Office and Civil Service,
submitted the following
'REPORT
The Committee on Post Office and Civil Service, to whom was re-
ferred the bill (H. R. 2263) to authorize the Postmaster General to
readjust the compensation of holders of contracts for the performance
of mail-messenger service, having considered the same, report favor-
ably thereon with amendments and recommend that the bill, as amend-
ed, do pass.
STATEMENT
The Senate Post Office and. Civil.Service Committee, in the interest
of expediting fringe benefit legislation for Federal employees, Iunani-
mously voted to strike all after the enacting clause of H. R. 2263 and
insert an amendment which appears in italic type in the bill as re-
ported.
The provisions of the bill as reported are substantially the same. as
contained in S. 2665 which passed the Senate on April 28; 1954, and S.
3681 which passed the Senate on July 8, 1954, except that certain tech-
nical and clarifying amendments, and certain other amendments here-
after discussed, have been added .to the bill as reported.
The bill, as reported, contains the following major provisions:
1. An increase in the number of positions in grades GS-16, GS-17,
and GS-18 authorized under the Classification Act of 1949 from the
present 400 to 550, designating that there shall not be more than 400
positions in grade 16 of the general schedule, not more than 115, posi-
tions in grade 17 and not more than 35 positions in grade 18.
2. Provides longevity salary step increases for employees in grades
11 through 15. These longevity steps are in the same amount as the
present within-grade promotion steps except that for GS-15, which
has within-grade promotion steps of $250 each, each longevity step
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 increase will be $200. No employee in grades GS-11 through GS-15
may count past service for more than one longevity- step increase
under this bill.
3. Authorizes the Commission to use one of the within-grade
salary steps as the minimum rate for any class of Classification Act
jobs in an area whenever it is found a sufficient number of qualified
eligibles cannot be secured at the existing minimum rate of grade and
that such increase will secure sufficient eligibles.
4. Abolishes the crafts, protective, and custodial schedule of the
Classification Act of 1949, as amended, and provides that such em-
ployees under this schedule be transferred to a local prevailing-wage
rate system, or the general schedule of the Classification Act.
5. Modernizes and simplifies the overtime and premium compensa-
tion laws relating to Federal employees, including overtime compensa-
tion at 1%2 times the regular rate of basic compensation not in excess
of the top salary. grade for GS-9 or the regular straight-time rate,
whichever is greater; night differential at the rate of 10 percent of the
regular rate of basic compensation; holiday pay (not overtime) at a
rate equal to the regular pay in addition to such regular pay; standby
time at appropriate rates determined by department heads with the
approval of the Civil Service Commission (except for fire fighters)
not in excess of 25 percent of the regular rate of basic compensation
for GS-9; and extra pay at rates up to 15 percent of base pay for
GS-9 for employees (such as criminal investigators and certain others)
whose hours of duty cannot be controlled administratively and who
must perform substantial quantities of irregular, overtime, or night
duty. Fire fighters will receive the premium compensation benefits,
but are not restricted by the 25-percent minimum. No premium
pay may apply to raise the compensation of an individual to more than
the maximum scheduled rate of GS-15.
6. Establishes a uniform and progressive Government employees
incentive awards program which consolidates and codifies existing
laws and places the responsibility and direction of such program under
the Civil Service Commission.
7. Authorization for annual appropriations to provide a uniform
allowance of a maximum of $100 'annually for those employees in the
Federal Government and the government of the District of Columbia
required to wear uniforms.
8. Provides for the lump-sum payment of current accrued annual
or vacation leave to the survivors of a deceased employee.
9. Provides low-cost group life insurance to Federal employees' 'in
sums approximating their annual salaries.
10. A repeal of present law which restricts the number of permanent
appointments, promotions, and transfers in the Federal service.
Estimated costs
Positions in GS-16, GS-17, and GS-18------------------------- $260'000
Longevity step increases------------------------ 1, 585, 000
Transfer of CPC employees-------------------- _____________ 36, 513, 000
Premium pay provisions--------------------------------------- 32,500,000
Group insurance --------------------------------------------- allowances-------------- - 22;.750,:000
----------------------------- ?0000,000
Approved For heleas$ 20G /t rE1G~F f ~b eft 00QaqQ9 0A 6oF 1954
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved or Release 2002/07/12 : CIA-RDP79-0QQ65A01 200020010-6
GOVERNMENT EMPLOYEEkT~*RINGE BENEFITS ACT OF 1954 3'
SUMMARY
The fringe benefits provided by this bill incorporate a substantial
and important part of the administration's progressive personnel
program. The provisions contained therein are the result of a careful
analysis and a comprehensive review of the combined recommenda-
tions submitted to the committee in the form of extensive public
hearings, committee studies, agency reports, and consultations with
employee organizations.
The committee believes that the enactment of this bill will eliminate
many of the existing inequities and greatly improve the personnel
operations of the Federal Government. Therefore, the Senate Post
Office and Civil Service Committee unanimously agreed to favorably
report the bill to the Senate as amended in the committee.
EXPLANATION OF THE PROVISIONS OF THE BILL AS AMENDED BY THE
COMMITTEE
Nuinber of positions in grades 16, 17, and 18 of the general schedule
Section 101. This section relates to the number of positions au-
thorized in grades 16, 17, and 18 of the general schedule of the
Classification Act.
Subsection (a) of section 101 increases the number of positions
authorized in grades 16, 17, and 18 of the general schedule (GS) from
400, now provided in the Classification Act, to 550. The additional
150 positions are apportioned among these grades in approximately
the same ratio as currently provided in the Classification Act for the
400 such positions.
The total of 550 positions, specifically, are distributed as follows:
Not more than 400 positions in GS-16; not more than 115 positions in
.GS-17; and not more than 35 positions in GS-18.
This section continues the provisions of the present law requiring (1)
that positions may be placed in grades GS-16 or GS-17 only by action
of, or with prior approval of, the Civil Service Commission, and (2)
that positions may be placed in or removed from grade GS-18 only
by. the President upon recommendations of the Civil Service Com-
mission.
This section also provides that the positions of senior specialists in
the Legislative Reference Service of the Library of Congress may be
in addition to the 550 positions authorized to be placed in GS-16,
GS-17, and GS-18.
Subsection (b) of section 101 assures that the amendment made by
the preceding subsection (a) shall not affect positions allocated to
grades GS-16, GS-17, and GS-18 pursuant to provisions of law (other
than the Classification Act of 1949, as amended) and reorganization
plans in effect prior to the effective date of this section.
Longevity step increases
Section 102. This section relates to longevity step increases.
Subsection (a) (1) amends subsection (a) of section 703 of the Classi-
fication Act. The new language provides that, if an employee who
has earned credit toward the required 3-year longevity period at the
maximum rate or a longevity rate of his grade is changed to the
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 0020MW `CT' OF 1954
maximum or a longevity rate of a lower grade, the credit earned in
the higher grade shall apply toward a longevity step increase in the
lower grade. For example, an employee at the top scheduled rate
of grade GS-9, with 2 years' service toward a longevity increase, is
reassigned to a grade GS-7 position and placed at the top scheduled
rate of grade GS-7. Under the provisions of subsection (a) (1) of sec-
tion 102, he retains the 2 years' credit toward a longevity step increase
in grade GS-7. Under present law, he has to begin his 3-year lon-
gevity period over again when he is reduced to grade GS-7.
Subsection (a) (2) amends section 703 (b) (1) of the Classification
Act by authorizing longevity step increases for employees in grades
11 to 1.5 inclusive of the general schedule. Present law limits such
increases to grades 1 through 10 of the general schedule and to all
grades of the crafts, protective, and custodial schedule.
Subsection (b) of section 102 provides that these amendments will
be effective at the beginning of the first pay period following the date
of enactment of the bill.
Section 103. Subsection (a) amends section 704 of the Classification
Act. It provides that, in the case of employees in grades 11 to 15
inclusive of the general schedule, not to exceed 3 years of service
performed immediately prior to the effective date of the amendment
at or above the maximum scheduled rates for their respective grades
shall be counted toward longevity step increases. For grade GS-15,
which has within-grade salary steps of $250, longevity step increases
are limited to $200.
Subsection (b) of section 103 provides that this amendment will be
effective at the beginning of the first pay period following the date
of enactment of the bill.
Recruitment above the minimum rate of the class
Section 104. This section amends section 803 of the Classification
Act. It relates to the recruitment of employees at salary rates above
the statutory minimum rate for a class of positions when authorized,
under certain conditions, by the Civil Service Commission. Under
present law, each original appointment to any position under the
Classification Act must be at the minimum per annum rate of the grade
in which such position is classified.
Subsection (a) of the new section 803 of the Classification Act
authorizes the Civil Service Commission to establish one of the within-
grade salarystep rates above the statutory minimum rate of the appro-
priate grade for any class of position as the minimum or entrance rate
for such class of positions to be effective in any area or location wherein
the Commission finds: (1) That a sufficient number of qualified eligibles
for such class of positions cannot be secured at the existing minimum
rate for such class, and (2) that there is a possibility of securing a
sufficient number of such eligibles by so increasing the minimum rate
for such class of positions. -
Subsection (b) of section 803 of the Classification Act of 1949, as
amended herein, authorizes the Civil Service Commission to revise,
from time to time, such higher minimum rates as it may establish
under subsection (a). Such rates or any revisions thereof established
under subsection (a) have the force and effect of law.
Subsection (c) of the amended section 803 provides that any increase
in rate of basic compensation under this section shall not be regarded
as an "equivalent increase" in compensation within the meaning of
-Approved For
(Releaset200QMTJMn 4 OO
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 GOVERNMENT E NN'~ T~I~d E ZUUr/irI/ fL !WA-R6P79 65A
section 701 (a) of the Classification Act (which relates to within-
grade step increases).
Exclusion from Classification Act of 1949 of crafts, trades, and labor
positions and application of prevailing wage policy to such positions
Section 105. Subsection (a) amends paragraph 7 of section 202 of
the Classification Act. It removes from the coverage of that act
employees in trades or crafts, or in unskilled, semiskilled, or skilled
manual-labor occupations the duties of which involve the maintenance
and operation of public buildings and associated equipment or the
performance of work in scientific or engineering laboratories as aids
to scientists or engineers, and other employees including foremen and
supervisors in positions having trades, crafts, or laboring experience
and knowledge as the paramount requirement. This section provides
that the compensation of these employees shall be fixed and adjusted
from. time to time as nearly as is consistent with the public interest iii,
accordance with prevailing rates. Where, in the opinion of the em-
ploying agency and the Civil Service Commission, it is impracticable .
to so. fix the rates because of the small number of these employees in
any given area, the rates of compensation for such employees in that
particular area shall be fixed, at rates of compensation prescribed
in the Classification Act of 1949 for positions of equivalent difficulty
or responsibility. The effective date of this section is set forth in
section 110 (a) of the bill.
Subsection (b) will permit the Architect of the Capitol to compen-
sate. employees in crafts and labor occupations, now in the crafts,
protective, and custodial schedule, on the basis of prevailing wage
rates.
Transfer of certain positions from the crafts, protective, and custodial
schedule to the general schedule .
Section 106. This section relates to the placement in the general
schedule of those CPC positions "which are not excluded from the
Classification Act by section 105.
Subsection (a) of section 106 directs the conversion from the crafts,
protective, and custodial schedule to the general schedule of those
employees and positions which do not go to the prevailing wage system.
It also, converts the existing CPC grades into corresponding grades of
the general schedule. Positions covered by this section in grades
CPC-1, 2, and 3 are to be converted to grade GS-1 and such positions
in grades CPC-4, 5, 6, 7, 8, 9, and 10 are to be converted to grades
GS-2, 3, 4, 5, 6, 7, and 8, respectively. No conversion may be made
prior to the first day of the second pay period beginning after the date
of enactment nor later than the start of the first pay period beginning
more than 6 months after such enactment date.
. Subsection (b) of section 106 prescribes the specific rules for initially
adjusting the basic compensation rates of employees in the crafts,
protective, and custodial schedule who are placed in general schedule
grades. The rules are as follows:
(1) Each employee paid at a rate of basic compensation in the
crafts, protective, and custodial schedule which is less than the minimum
scheduled rate of the grade, in the general schedule in which his position
is placed, shall have his compensation increased to such minimum
rate;
Approved For Release 2002/07/12 : CIA-RDP79-00065A000200020010-6
 Approved FPr Release 2002/07/12: CIA-RDP79-00
A000200020010-6
6 GOVERNMENT EMPLOYEES FR
j BENEFITS ACT OF 1954
(2) Each employee paid at a rate of basic compensation in the
crafts, protective, and custodial schedule which is equal to one of the
scheduled or longevity rates of the grade in the general schedule
in which his position is placed, shall be paid at such scheduled or
longevity rate;
(3) Each employee paid at a rate of basic compensation in the
crafts, protective, and custodial schedule which is at a rate between 2
scheduled or 2 longevity rates, or between a scheduled rate and a
longevity rate, of the grade in the general schedule in which his position
is placed, shall be paid compensation at the higher of such 2 rates;
(4) Each employee paid at a rate of basic compensation in the
crafts, protective, and custodial schedule which is in excess of the
maximum longevity rate of the grade in the general schedule in which
his position is placed, shall continue to be paid basic compensation
without any change in rate until he either leaves such position or is
entitled to receive basic compensation at a higher rate by reason of
the operation of the Classification Act of 1949, as amended; but when
such position becomes vacant the rate of basic compensation of any
subsequent appointee shall be fixed in accordance with the Classificaion
Act of 1949, as amended.
Subsection (c) provides that the conversion to the grades of the
general schedule under this section, and the initial adjustments in
compensation, shall not be construed to be transfers or promotion
within the meaning of section 802 (b) of the Classification Act and
regulations issued thereunder.
Abolishments of crafts, protective, and custodial schedule
Sections 107, 108, and 109 abolish the crafts, protective, and. cus-
todial schedule and make necessary revisions in the language of the
Classification Act to effect that action. Section 107 provides for the
continuation of the general schedule of basic compensation and deletes
reference to the crafts, protective, and custodial schedule.
Section 108 deletes the grade-level definitions of the crafts, pro-
tective, and custodial schedule.
. Section 109 deletes the crafts, protective, and custodial schedule of
basic compensation and incidental references thereto.
Section 110 relates to effective dates of sections 105, 107, 108, and
109 of title I.
Subsection (a) provides that section 105 (the conversion of employ-
ees and positions to prevailing wage rate basis) shall be effective on
the date or dates specified by the bead of a department but not earlier
than the beginning of the second pay period following enactment
nor later than the start of the first pay period- beginning more than
12 months after the enactment date.
Subsection (b) provides that, with respect to employees and posi-
tions in a given department, the crafts, protective, and custodial
schedule shall be abolished effective upon the completion of the con-
version of employees and positions to prevailing wage rate basis (sec.
105 and the conversion of the remaining employees and positions to
the General Schedule (sec. 106)) but, in any event, not later than the
first day of the first pay period beginning more than 12 months after
the date of enactment of the act.
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved For Release 2002/07/12 : CIA-RDP79-00065A0tD200020010-6
GOVERNMENT EMPLOYE FRINGE BENEFITS ACT OF 1954 7
Miscellaneous provisions
Sections 111 and 112 delete certain obsolete rules relating to the
adjustment of salaries to the original pay scales of the Classification
Act of 1949. One necessary section, a broad savings clause, is retained
and changes are made in references thereto elsewhere in the act.
Section 113 authorizes the Commission to issue regulations for the
administration of title I of the bill.
Section 114 is a general overall salary-saving provision. It provides
that nothing in the title shall be construed to reduce the existing rate
of basic compensation of any present employee, when, for example,
he is changed from one schedule to another or from a scheduled rate
of pay to a prevailing-rate basis, or by reason of any other provision
of this title. When he vacates his position, the compensation of any
subsequent appointee to it will be fixed in accordance with the regular
scale of pay applicable to such position.
Section 115 provides that the term "department" shall have the
same meaning in title I as when used in the Classification Act of 1949,
as amended.
TITLE 11-AMENDMENTS TO THE FEDERAL EMPLOYEES PAY ACT OF 1945,
AS AMENDED
Section 201 of the bill provides that title II may be cited as the
"Federal Employees Pay Act Amendments of 1954."
Coverage
Section 202 of the bill makes the coverage of the new title IV added
by the bill to the Federal Employees Pay Act of 1945, as amended,
the same as the coverage of the other premium-pay provisions.of that
act. Section 202. also repeals an obsolete subsection (subset. -(b) of
sec. 101) of the Federal Employees Pay Act of 1945, as amended.
Compensation for overtime work
Section 203 of the bill amends section 201 of the Federal Employees
Pay Act of 1945, as amended. The amended section provides over-
time pay at a time-and-one-half rate for employees whose basic salaries
do not exceed the maximum scheduled rate of grade GS-9, now $5,810
per annum. For employees above that salary level such section 201,
as amended, provides overtime pay at a rate equivalent to time-and-
one-half at such maximum scheduled rate of grade GS-9, or at their
respective rates of basic compensation, whichever is greater. The
present provisions of section 201 of the act provide a time-and-one-
half rate of overtime pay for employees whose basic salaries are less
than $2,980 per annum and a diminishing scale of overtime pay for
employees whose basic salaries are $2,980 or more per annum.
Section 204 of the bill amends the compensatory time off provisions
of section 202 (a) of the Federal Employees Pay Act of 1945, as
amended. A new provision gives agency heads the authority, which
they do not now have, to require employees at salaries above the
maximum scheduled rate of grade GS-9 to take compensatory time
off instead of receiving overtime pay for irregular or occasional over-
time duty. The amendment made by section 204 also continues
existing authority for granting compensatory time off, at the request
of an employee, in place of pay for irregular or occasional overtime
`work. In both instances, the time off so provided will compensate
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved
Fdr Relipse Qt/ J Q 7s9(5M2AQQ1 61954
the employee for an equal amount of time spent by him in irregular
or occasional overtime work-
Call-back- overtime and time in travel status
Section 205, subsection (a), redesignates section 203 of the Federal
Employee Pay Act as section 205.
Subsection (b) adds two new sections, 203 and 204. New section
203 provides a minimum of 2 hours' pay at the overtime rate for any
employee called back to perform unscheduled overtime work after he
has gone home or on one of his days off duty. New section 204 enacts
into law.principles now established by decisions of the Comptroller
General relating to time in a travel status away from the official duty
station of an officer or employee. Such time in a travel status is
treated as hours of employment only when (a) within the officer's or
employee's regularly scheduled work-week, including regularly sched-
uled overtime, or (b) the travel involves the performance of work
while traveling, or is carried out under arduous conditions having the
effect of making it inseparable from work.
Compensation for night and holiday work
Section 206 amends the night-differential-pay provisions of section
301 of the Federal Employees Pay Act. The present 10 percent rate
of night differential for regularly scheduled work between 6 p. m. and.
6 a. in. remains the same. New provisions allow an employee whose
regular tour of duty includes night work to be paid night differential
for his regular night-work hours when he is excused from work because
of a holiday, and for periods of leave with pay during any pay period
in which such leave totals less than 8 hours. At present employees
receive night differential only for the hours, they actually work. This
section also authorizes agencies to change the night differential period
at overseas posts to the extent required to avoid paying night differ-
ential during hours than are customary hours of business in the locality.
Section 207 amends the holiday pay provisions of section 302 of the
Federal Employees Pay Act. It continues the existing provision for
extra pay at the straight-time rate, in addition to the regular rate, for
work on a holiday within an employee's 40-hour basic workweek. It.
adds a new provision guaranteeing a minimum of 2 hours' pay at the
holiday rate for any employee required to work on a holiday. It also
states explicitly the present policy under the Federal Employees Pay.
Act, that overtime work on Sundays and holidays is compensated at
the same rates as overtime work on other days.
Special provisions for certain types of work
Section 208, subsection (a), adds a new title IV to the Federal
Employees Pay Act. Subparagraph (a) (1) of section 401 of the new
title authorizes additional annual pay at rates up to 25 percent of base
pay rates, in lieu of all overtime, night, and holiday pay, for employees
performing standby duty and having longer than ordinary periods of
duty.
Subparagraph (a) (2) of section 401 of the new title authorizes addi-
tional annual pay at rates up to 15 percent of base pay rates, in lieu of
other pay for irregular or unscheduled overtime duty and for night and
holiday duty, for employees whose hours of duty cannot be controlled
administratively and who are required to. perform substantial amounts
of irregular overtime and night and holiday duty, with the employee
generally being responsible for recognizing, without supervision, cir-
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved EEL Release 2002/07/12 : CIA-RDP79-OOQ&SAOOt 00020010-6
GOVERNMENT EMPLOY FRINGE BENEFITS ACT OF 1954 900
cumstances which require him to remain on duty. These employees
would receive other overtime pay, computed in the usual manner, for
regularly scheduled overtime work, officially ordered or approved.
This subparagraph is specifically directed at those investigators of
criminal activities whose positions meet all the conditions specified.
It would permit similar payments to employees in other type's of
positions in which all the same conditions are present in an equivalent
degree.
Additional annual pay under the new title is subject to approval of
the Civil Service Commission and is computed on only such part of
an employee's base pay as does not exceed the maximum scheduled
rate of grade GS-9.
Subparagraph (b) of section 401 of the new title provides that the
new title shall not apply to firefighters, who will continue to be paid
for overtime, night, and holiday duty under other provisions of the
Federal Employees Pay Act.
Subsection (b) prevents the new title from decreasing the existing
aggregate rate of compensation of any present employee.
Limitation on premium compensation
Section 209 fixes the maximum scheduled rate of grade GS-15, now
$11,800 per annum, as the ceiling rate of aggregate pay beyond which
no premium compensation will be paid for overtime, night, or holiday
work. This replaces the present ceiling rate of $10,330 in the Federal
Employees Pay Act, a former maximum scheduled rate of the corre
sponding grade CAF-15.
Work schedules
Section 210 adds new provisions on scheduling tours of duty to sec-
tion 604 (a) of the Federal Employees Pay Act. Except where an
agency would be seriously handicapped in carrying out its function or
costs would be substantially increased, the new provisions would
require tours of duty to be scheduled at least a week in advance; the
basic workweek of 40 hours to be scheduled on 5 days, Monday through
Friday if possible, and the 2 days outside the basic workweek to be
consecutive; the same working hours on each day in the basic work-
week; a basic nonovertime workday not in excess of 8 hours;-basic
workweeks not to be altered because of the occurrence of holidays; and
daily tours not to be split by offduty periods of more than 1 hour.
Existing mandatory scheduling provisions of the Federal Employees
Pay Act would continue in effect. These provisions require agencies
to establish a basic workweek of 40 hours on not more than 6 of any 7
consecutive days.
TITLE III-GOVERNMENT EMPLOYEES' INCENTIVE AWARDS
Section 301 establishes a short title, the "Government Employees'
Incentive Awards Act."
Section 302 states that the awards program under this title shall
be carried out under regulations and instructions issued by the United
States Civil Service Commission. It further provides that the Com-
mission shall report the results of the program annually to the Presi-
dent for transmittal to the Congress.
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 1 10 r mr nrrn. - _-__
Section 303 defines the term "department." This section will
place all Federal departments and agencies except the Tennessee
Valley Authority under the provisions of this title.
Section 304 (a) authorizes the head of each department to pay
cash awards to and incur necessary expenses for the honorary recog-
nition of civilian officers and employees of the Government in the
following circumstances:
1. When such officers or employees have contributed to the effi-
ciency, economy, or other improvement of Government operations
by their suggestions, inventions, superior accomplishments or other
personal efforts; or
2. When they have performed special acts or services in the public
interest in connection with or.related to their official employment.
Section 304 (b) authorizes the President to pay cash awards to
and incur necessary expenses for the honorary recognition of civilian
officers and employees of the Government in addition to departmental
awards authorized in section 304 (a) in circumstances where such
additional awards or recognition are determined by the President to
be warranted.
Section 304 (c) provides that awards authorized in section 304 (a)
and 304 (b) may be paid even though the official or employee has died
or been separated from the service, provided that the suggestion or
other contribution on which the award is based was made while he
was in the Government's employ.
Section 304 (d) provides that a cash award under this section shall
be in addition to regular compensation of the officer or employee.
It also is designed to protect the United States from a claim of any
kind which might arise from the acceptance of a cash award by any
employee, former employee, or his heirs or assigns. It should be
understood that the inclusion of this subsection in the title in no
way implies the existence of a claim against the United States in
any case in which the award is not accepted or in which the recipient
later deems it insufficient. This carries forward the language in
existing law to be found in section 14 of the act entitled "An act
to authorize certain administrative expenses in the Government
service, and for other purposes" approved August 2, 1946, which
section is repealed in section 305 hereinafter.
Section 304 (e) authorizes departments to pay cash awards and ex-
penses for honorary recognition from their general appropriations.
In addition, it will permit two or more departments which have bene-
fited from a single suggestion or other contribution to share in the cost
of the award granted therefor. The President will determine the
proportionate amount that each benefiting department will contribute
in the case of those awards he authorizes, and the head of each
department will determine the amount of the awards he authorizes.
Section 304 (f) states that due weight shall be given to awards made
under this title in considering employees for promotion.
Section 305 repeals all existing laws governing incentive-awards
programs. Section 702 of the Classification Act of 1949, which au-
thorizes within-grade salary step increases for superior accomplishment
is among the laws repealed in this section.
Section 306 establishes the effective date of this title as 90 days
after its enactment. This will give departments time to revise their
awards programs in compliance with the provisions of this title.
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approve or Release 2002/07/12: CIA-RDP79- 065A
GOVERNMENT EMPLOYE FRINGE BENEFITS ACT OF 1954 11
Section 401 establishes a short title, the "Federal Employees
Uniform Allowance Act."
Section 402 authorizes the annual appropriation of funds to Govern-
ment agencies in amounts up to $100 multiplied by the estimated
number of agency employees (1) who are required by existing regula-
tion or by law to wear a prescribed uniform while on duty and (2) who
are not furnished with the required uniform. Under rules issued by
the Bureau of the Budget the agency head would have to pay out of
these funds not more than $100 per year, as prescribed by agency
regulations, to each such employee for purchase and upkeep of uni-
forms. Any amounts allowed for the same purpose under other law
or regulation would be deducted from any allowance paid under this
title.
Section 403 provides that allowances paid under this title shall not
be considered as pay salary or compensation within the meaning of
the Civil Service Retirement Act of May 29, 1930, as amended, or as
wages within the meaning of section 209 of the Social Security Act,
as amended, or subchapter A or D of chapter 9 of the Internal
Revenue Code, as amended.
Section 404 authorizes and directs the Director of the Bureau of the
Budget to issue necessary rules and regulations for the administration
of this title.
Section 501 of this act amends section 2 of the act of August 3, 1950,
as amended by section 5 of the act of July 2, 1953, which provides, in
part, for the lump-sum payment for all accumulated annual leave to
survivors of deceased officers and employees in an amount equal to
the compensation that the decedent would have received if he had
remained in the service until the expiration of the period of such
annual leave. Payment may be made for current accrued leave only
where the total does not exceed 30 days. Section 501 so amends this
provision to permit current accrued annual leave to be added to the
accumulated leave and be paid in a lump-sum payment even though
the total leave equals or exceeds the 30-day maximum.
Section 502 repeals section 6 of the act of July 2, 1953 which directed
departmental heads to take action for the reduction of accumulated
annual leave credited to officers and employees, which was in excess of
amounts allowable under the applicable provisions of section 203 of the
Annual and Sick Leave Act of 1951, as amended.
TITLE VI-GROUP INSURANCE
Under section 602 of the bill, the group insurance program author-
ized thereunder would cover nearly all civilian employees of the
executive, legislative, and judicial branches of the United States
Government. The Commission could, by regulation and after con-
sultation with agency heads, exclude persons whose coverage would be
administratively*impracticable, such as short-term, seasonal, or inter-
mittent employees; no exclusion could be effected solely on the
hazardous nature of employment. Noncitizen employees with
permanent duty station outside a State or the District of Columbia,
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
For Rel asObMVff ' :Fti*=IP79,
and employees of certain corporations under the supervision of the
Farm Credit Administration would be excluded from coverage.
As outlined in section 603, each covered employee would be insured
for a sum equal to his annual compensation raised to the next higher
multiple of $1,000, with a maximum of $20,000 in any case. If death
occurs by accidental means, the amount of insurance would be
doubled. Dismemberment insurance is also provided. The amount
of insurance would be reduced (without reduction in premium) by
2 percent a month after the individual attains age 65, subject to a
maximum reduction of 75 percent.
Section 604 sets up an order of precedence for paying the insurance
upon death. This is the same order as contained in the Civil Service
Retirement Act for lump-sum death payments and as established by
the act of August 3, 1950, for payment of accrued leave, etc., upon
death as follows:
1. Designated beneficiary.
2. Widow or widower.
3. Children.
4. Parents.
5. Estate.
6. Next of kin.
Under section 605, an employee may elect not to be insured, but
in the absence of such election the insurance is automatic. As his
share of premium cost for all 3 types of insurance, there will be with-
held from each covered employee's salary an amount not exceeding
25 cents biweekly for each $1,000 of life insurance. The Government
will contribute an amount not exceeding. one-half the sum withheld
from the employee. These employee and Government contributions
will be deposited in a special fund in the United States Treasury,
which fund will be available for premium payments to insurance
companies and for administrative expenses. -
Section 606 would terminate the insurance generally upon an
employee's separation from service; the separated employee would then
be privileged to purchase an individual policy at the standard premium
rate. However, if the employee is separated for retirement on
immediate annuity with at least 15 years' civilian service or for
disability retirement, the life insurance only would continue without
further cost to him, subject to reduction after age 65 provided in
section 3.
The Commission is authorized by section 607 to purchase, from one
or more companies meeting specified qualifications, a policy or policies
to provide the proposed insurance benefits. The company or com-
panies selected would be. required to reinsure portions.of the total
insurance with other companies which elect to participate. The
formula for apportioning reinsurance would be related to each com-
pany's group life insurance already in force but with a weighting to
benefit the smaller companies.
Section 608 deals with the premium rates to be charged by the
companies, which would be determined by the Commission on a basis
consistent with the lowest rates charged large employers for such
insurance. Subsequent readjustments would be made if found neces-
sary by experience. Annual reports, accounting for all income and
expenses under the policies, would be made by the companies. Any
excess of premium income over mortality and other claim charges and
 GovERNMEAPpEgved F 'Release 2002/07/12: CIA-RDP79-00 A00T0020010-6
OYE FRINGE BENEFITS ACT OF 1954 13
expense and risk charges will be held as an interest-bearing contin-
gency reserve, for use in meeting future charges or for eventual return
to the Treasury fund.
As provided in section 609, each insured employee would receive a
certificate setting forth benefits to which he and his beneficiary may
be. entitled, and other related information.
Under section 610, the Commission will act to protect the rights of
separated or retired employees now insured through nonprofit asso-
ciations. of Federal employees. Such insured persons would be pro-
tected at their present premium rates for life insurance granted prior
to January 1, 1954, provided the association terminates all its life-
insurance agreements and turns over assets sufficient, if possible, to
cover the liabilities involved. Should any such insured separated or
retired employee become reemployed in a position in which he would
be eligible to insurance as provided by this act, he shall be permitted
to elect to have such insurance canceled, and thenceforth to be insured
under this act, but he shall not have both.
The Commission would, under section 611, promulgate necessary
regulations to administer the program.
Section 612 would establish an Advisory Council on Group Insur-
ance to review operations and advise the. Commission on policy mat-
ters. The Chairman of the Commission would appoint a committee
of five insured employees to advise regarding matters of concern to
employees under the" program.
Annual reports by the Commission to Congress are required by
section 613.
Section 614 would clarify the rights of claimants who may wish to
make the United States a party to a court action involving a claim
under the program. This section would extend the jurisdiction of
United States district courts above the $10,000 limitation now in
effect.
The Commission will, under section 615, establish an effective date
for the insurance and for contributions.
TITLE .VII-MISCELLANEOUS PROVISIONS
Section 701 amends section 2 (b) of the Performance Rating Act
of 1950 by exempting the Central Intelligence Agency therefrom.
Subsection (b) thereunder repeals section 9 of the Central Intelligence
Agency Act of 1949, as amended, which authorizes the Director of
the Central Intelligence Agency to establish not more than 3 positions
in the professional and scientific field in such agency with compen-
sation at rates (subject to Civil Service Commission approval) of not
less than $13,100 nor more than $15,000 per annum. Such pro-
vision is no longer needed because of subsequent legislation.
Section 702 repeals section 1310, Supplemental Appropriation Act,
1952 (Public Law 253, 82d Cong.), as amended (commonly known as
the Whitten amendment), which places certain restrictions on Govern-
ment personnel operations.
Effective date
Section .211 provides that title II shall become effective at the
beginning of the first pay period which begins more than 60 days after
date of enactment.
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved or Ras
h ( ? t %PS7PRi
6. M9T 0011"- 5 4
Attached hereto are agency reports received on S. 2665 and S. 3507;
the provisions of which are embodied in this bill.
UNITED STATES CIVIL SERVICE COMMISSION,
Washington, D. C., February 19, 1954.
Hon. FRANK CARLSON,
Chairman, Post Office and Civil Service Committee,
United States Senate.
DEAR SENATOR CARLSON: As requested in your letter of January 12, 1954, we,
are submitting our views and comments on S. 2665, a bill to amend the Classifica-
tion Act of 1949, as amended, and the Federal Employees Pay Act of 1945, as
amended, and for other purposes.
Title I of the bill includes the following changes in the Classification Act of 1949,
as amended: (1) abolishes the crafts, protective, and custodial schedule of the act,
moves the crafts, trades, manual labor, and other similar positions now in this
schedule to a local prevailing wage rate system and transfers all remaining positions
now paid under the CPC schedule to the general schedule of the Classification
Act; (2) increases the number of positions authorized in grades GS-16, 17, and 18
to 700 and within this ceiling of 700, removes the limitations on the number of
positions allowed at each of these grades; (3) provides for longevity increases for
employees serving in positions at grades GS-11 to GS-15; and (4) authorizes the
Civil Service Commission to make temporary adjustments of minimum pay rates
in order to recruit and retain needed personnel.
The Civil Service Commission favors these proposals in title I. Our specific
comments on each proposal are presented below under appropriate headings.
(a) Abolition of CPC schedule
Section 102 (a) would remove maintenance workers in crafts, trades, manual
labor, and other similar positions from the crafts, protective, and custodial sched-
ule of the Classification Act of 1949, and pay them on a local prevailing rate basis.
Section 103 would transfer all remaining positions in the CPC schedule to specified
corresponding grades of the general schedule. Section 104 (b) would establish a
time limit for these transfers, and would provide that until such transfer is effected
the compensation received by these employees shall be at rates presently pre-
scribed by the Classification Act of 1949, as amended.
There are now approximately 116,000 positions in the CPC schedule. Approx-
imately 69,000 of these are maintenance jobs in crafts, trades, and manual labor.
Over 750,000 similar Government crafts and labor positions in production and
construction work are paid on the basis of local prevailing wage rates. This
means that employees having similar qualifications, performing similar duties,
appointed from the same civil-service lists, and many times working side by side
are paid at different rates. The proposed legislation is necessary to eli-ninate this
pay inequity. This action is also necessary to place the Federal Government in
a better competitive position with private industry in the recruitment and reten-:
tion of blue-collar workers.
Moving the approximately 69,000 crafts and labor positions to a local prevailing,
rate basis would leave approximately 47,000 positions in the CPC schedule. The
proposed legislation would transfer these 47,000 jobs (consisting of such occupa-
tions as guards, messengers, and fire fighters) to the general schedule of the
Classification Act of 1949. This would simplify the pay structure of the. Classi-
fication Act. The number of grades under this act would be reduced from 28 to 18.
We estimate that the total cost of placing the approximately 69,000. of the
present CPC schedule jobs on a prevailing-wage basis and transferring the other
47,000 to the GS schedule would be approximately $36,500,000 on an annual
basis under current conditions.
We recommend two changes in language to make clear the intent of the pro-
visions concerned. We propose the following clarifying language as a substitute
for the last proviso in section 102 (a), page 2, lines 15 to 23, of the bill: "Provided
further, That whenever the Civil Service Commission concurs in the opinion of the
employing agency that in any given area the number of such employees is so few
as to make prevailing-rate determinations impracticable, such employee or em-:
ployees shall be subject to the provisions of the Classification Act of 1949, as,
amended, which are applicable to positions of equivalent difficulty or respon-
sibility."
sibility."
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved For Release 2002/07/12: CIA-RDP79-00065A( 200020010-6
GOVERNMENT EMPLOYE FRINGE BENEFITS ACT OF 1954 15
This change in language would make clear that when such employees were not
paid on a local prevailing rate basis, they would be subject to all the provisions
of the Classification Act of 1949, as amended, rather than merely paid in accord-
ance with the pay rates of that section. This would assure that the employees
affected by the provisions of section 102 (a) of S. 2665 would be treated in the
same manner as other employees covered by the provisions of the Classification
Act of 1949.
The second language change we suggest applies to section 104 (b) to make clear
that the positions now in the CPC schedule would continue until the transfer to
the general schedule and the wage board system is completed:
"With respect to employees and positions to which sections 102 (a) and 103
of this title apply, the provisions of the Classification Act of 1949, as amended, and
any provisions of law and regulations controlling pay adjustments which were in
effect on the date of enactment of this act, shall continue in effect for any such
employee or position until compensation shall have been fixed in accordance with
the provisions of this title."
(b) Increase in the nuniber of positions authorized in grades GS-16, 17, and 18
Saction 102 (b). would authorize 700 positions in grades GS-16, GS-17, and
GS-18, without limitation as to the number of positions at each of these grades.
The present conditions in the Classification Act of 1949 requiring the approval of
the Civil Sarvice Commission of positions placed in grades GS-16 and GS-17 and
requiring the approval of the President of positions placed in GS-18, would
continue.
The Classification Act of 1949 specifically provides a ceiling of 400 on the
number of positions that may be authorized at grades GS-16, 17, and 18. The
act provides for 25 positions at GS-18, 75 at GS-17, and 300 at GS-16. We are
in accord with the provisions of section 102 (b) of S. 2665 to raise the ceiling to
700 and to eliminate all limitations on numbers allowed at each of these grades.
At present, 465 positions in grades GS-16, 17, and 18 have been authorized
in addition to. those specifically provided by the Classification Act. These are
authorized for given agencies and programs through the Defense Production Act
and various reorganization plans and appropriation acts. These positions are
provided to meet particular special needs. and would not be affected by the
proposed general legislation.
An increase in the number of positions at grades GS-16, 17, and 18 is necessary
in the interests of Government program requirements, sound and equitable pay
administration, and accurate position classification. The Civil Service Com-
mission recently asked for agency estimates of their need for positions at these
grades. Approximately 700 additional positions were requested by the Federal
agencies involved. Initial Commission review indicates that at least 300 of.the
requested positions warrant classification above grade GS-15 on the basis of their
duties and responsibilities. .
Almost'half of the requested additional positions are in the fields of engineering
and scientific research; many others include the heads of important administra-
tive organizations, or are key Government positions in such fields as law, account-
ing, statistics, and economics. The provision of appropriate pay rates for these
positions, would help place the Government in a fair competitive position with
private employers for shortage skills, and assist in the retention of top-level.
personnel.
None of the 300 positions which warrant classification above grade GS-15 can
be placed in the correct grade because of the present Classification Act ceiling.
Thus the present ceiling actually is contrary to the policy of equal pay for sub-
stantially equal work expressed by Congress in the Classification Act. This
creates serious pay inequities among employees, some of whom receive considerably
less pay than their work assignments call for.
The limitation on numbers of positions at each grade over GS-15 also hampers
effective administration and correct classification of jobs. For example, although
a position warrants classification at grade GS-18 it may be impossible to place it
in that grade because the quota for grade GS-18 positions is filled. As a result the .
position must be placed in grade GS-17, or even GS-16, depending on the availa-
bility of spaces in these grades. Under this proposal, the Civil Service Commission
would continue to maintain close control on the number of positions at each
grade through' prior review and approval of every classification action .above
grade GS-15.
We estimate that the salary cost of placing 300 additional positions in grades
above GS-15 would approximate $550,000 a year.
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 obVER+'~X~1~~TS'AC'S> Ri 79 pp0
(b) Call-back overtime pay
Section 202 (d) of this title would guarantee a minimum of 2 hours' pay at the
overtime rate for any employee called in for overtime work on a nonwork day or
during off-duty hours. This would be generally consistent with industry practice,
and would protect employees from being called in for assignments of such short
duration that pay for only time on duty would be grossly inadequate compensation-
for the inconvenience. The Commission endorses this provision.
(c) Time in travel status
Section 202 (d) of this title would provide that time spent in a travel status
away from the official-duty station of any officer or employee shall be considered
as hours of employment only when (a) within the days and hours of such officer's
or employee's regularly scheduled workweek, including regularly scheduled over-
time, or (b) the travel involves the performance of work. while traveling or is
carried out under arduous conditions. This section would enact into law the
principles currently expressed in rulings of the Comptroller General on overtime of
employees in a travel status. The Commission endorses this provision.
(d) Pay for nightwork
Section .202 (e) would permit employees whose regular tour of duty includes-.
nightwork to be paid night differential for periods of absence With pay during:
such hours due to holidays, and for periods of leave F ith pay totaling less than 8'
hours during any pay period. At present employees receive,night differential.
only for hours actually worked. This provision would eliminate. administrative
costs occasioned by the excessive paperwork necessary to make the many minor
payroll changes required by the existing statute.
Section 202 (e) also would permit agencies to change the .night' differential
period at overseas posts to the extent necessary to permit conformance. with,
customary local hours of business without paying night differential.. For example,
customary local hours of business in a tropical country may extend to 8 p. in., to'
take advantage of the cooler hours of the day: In this case, under the provisions.
of this section, agencies could limit the night differential period to hours after,
8 U. m.
The Commission favors the proposals contained in section,202 (e).
(e) Compensation for 'holiday work
Section 202 (f) of the title would provide that additional pay for holiday work
would be at the same rate as the regular overtime rate .which is one and one-half
times the employee's basic compensation, and establishes a minimum compensa-
tion of 2 hours for such holiday work. The Commission does not favor the pro-
vision increasing the aggregate compensation for holiday work until such, time as
a study is made on the possible policy and cost impact of such an increase on those
employees who are not covered by the Federal Employee Pay Act.
We do, however; favor the provision establishing a minimum of 2 hours' com-
pensation for work performed on holidays. Such compensation would be at -the.
present rate of holiday pay, and would be consistent with the minimum guaranty.
of 2 hours' pay for overtime work performed on a nonwork day or_during off-duty
hours contained in section 202 of this title.
The following substitute amendment is suggested, which would continue the
present rate of holiday.pay, establish a 2-hour minimum at the present rate, and,
change: the language to conform with language used to describe premium pay nn
other sections of the title:
"(f) Section. 302 of the Federal Employees Pay Act of 1945, as amended, is
amended to read as follows:
" `SEC. 302. (a) All work not' exceeding eight hours, which is not overtime
work as defined in section 201 of this Act and which is performed on a holiday.
designated by Federal statute or Executive order, shall be compensated at the
rate of basic compensation of the officer or employee performing such?work'on a
holiday plus premium compensation at a rate equal to such officer's or employee's
rate of basic compensation. Any officer or employee who is required to perform
any work on such a holiday shall be compensated for at least 'two hours of such-
work, and any such premium compensation due under the provisions of this
section shall be in addition to any premium compensation which may be due for
the same work under the provisions of section 301 of this Act providing. premium
compensation for ni
htwo
k
g
r
.
" `(b) Overtime work, as defined in section 201 of this Act, on Sundays and
such holidays shall be compensated in accordance with the provisions of such
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved?or Rea~l/~2~T~B~6~~~(b?IOl'g54
(f) Special provisions for certain kinds of work
Section 202 (g) of the title would provide that employees with long tours of
standby duty may receive additional annual pay at rates up to 25 percent of their
base pay rate. Like overtime pay for other employees; the additional annual pay
would be computed on only the first $5,810 of an employee's basic salary rate and
would be subject to the ceiling of the top of GS-15 (presently $11,800) on aggre-
gate pay. The additional annual pay would take the place of all other overtime,
night, and holiday pay. Because they would already be on duty for 48 or more
hours a week, as a rule, these employees would not be affected by any extension of
the Federal workweek.
Also, section 202 (g) would provide additional annual pay, not in excess of 15
percent of base pay rates, for employees whose hours of work are not subject to the
usual administrative control and whose duties require substantial amounts of
unscheduled overtime, night, and holiday work. To maintain consistency with
other overtime compensation, the additional annual pay would be computed on
only the first $5,810 of any employee's basic salary rate and would be subject
to the ceiling of the top GS-15 (presently $11,800) on aggregate pay. The
additional annual pay for such employees would take the place of other pay for
unscheduled overtime work and for night and holiday duty. These employees,
in addition, would receive overtime pay on the same basis as other employees
when the workweek is extended, for example, to 48 hours.
The two special types of Federal employment covered by this section do not
fit well within the standard overtime-pay provisions. Some employees, such as
firefighters, are on duty for long periods but are in a standby status for much of
their time on duty, at their stations ready to answer any calls but not performing
actual work. Hours of work of certain other employees, such as investigators of
criminal activities, cannot be controlled administratively in the usual way. Such
assignments as trailing suspected criminals require substantial amounts of tin-
scheduled overtime work and night and holiday duty. While the Federal Em-
ployees Pay Act presently includes these two groups under its hourly premium
pay provisions, serious administrative problems have been caused by the large
amount of irregular overtime or standby duty required of these employees.
The Commission supports the proposals in section 202 (g). Additional com-
pensation on an annual basis for these two groups would be easy to administer,
fair to the Government, and equitable for the employees covered. The latter
would be especially true for those investigators whose peculiar working conditions
now frequently require substantial amounts of overtime work without any pay
at all, and for those employees who are required to perform a large amount of
standby duty.
(g) Limitation on premium compensation
Section 202 (h) increases the ceiling on base pay plus overtime pay from the
present amount of $10,330 (the previous top of GS-15) to the top rate of GS-15
(at present $11,800). The proposed ceiling would then conform with" the ceiling
used for such other purposes as the proposed extension of longevity rates and
rates for Government experts and consultants.
(h) Tours of duty
Section 202 (i) would include a statutory statement of policies on work schedules
of employees covered by the act. The policies expressed would be followed except
where an agency would be seriously handicapped in carrying out its functions or
costs would be substantially increased. The statement would require weekly
tours of duty to be scheduled in advance; on 5 days of the week; Monday through
Friday if possible; the 2 days off to be consecutive; the same working hours each
day; workdays not in excess of 8 hours; that the basic workweek not be shifted to
avoid holidays; and that work schedules not include split shifts with a break of
more than 1 hour.
It is recognized that some Government activities, such as operation of hospitals,
weather services, and airways communications and flight control, require Sunday
duty. Others, such as construction inspection, which are necessarily synchro-
nized with hours of contractors or other business establishments, may require more
than 8 hours of work on some days, and cannot always be scheduled in advance.
In these and similar circumstances, the Government should be permitted to sched-
ule unusual tours of duty for employees whenever operating requirements do not
permit normal work schedules; without being penalized by having to pay premium
pay rates solely because of the deviation from the usual tours of duty. However,
we believe also that employees should be assured that they will not be assigned
to undesirable tours of duty unnecessarily. The proposed section will accomplish
this objective and is favored by the Commission.
Approved For Release 2002/07/12 : CIA-RDP79-00065A000200020010-6
 GOVERNMENT EM1 LpOYEEIING`e$ENEI10Cfi7t219'JAR,QP7
TITLE III
Title III of S. 2665, which establishes a new "Government Employees' Incentive
Awards Act," consolidates all authorities for all type sof awards, places direction
of the governmentwide incentive awards program with the Civil Service Com-
mission, and provides for other improvements in the Government's incentive
awards systems. The Civil Service Commission strongly favors the enactment of
this proposed legislation which should make possible even greater benefits in sav-
ings and improved operations-than have resulted from the awards programs now
in operation.
.By consolidating existing laws authorizing incentive awards, S. 2665 would
simplify administration of a coordinated governmentwide program. The bill
would also remove another obstacle to effective management by making the Civil
Service Commission responsible for direction of the entire Government's incentive
awards program. At present, this responsibility is diffused. We agree that the
Civil Service Commission is the logical agency to administer the program which is
primarily a personnel management function.
S. 2665 would expand the coverage of the awards program. At present for
example, employees paid under wage board authority and under the Postal Pay
Act are not eligible for awards authorized under the Classification Act of 1949.
We endorse the provisions to make awards available to all employees. We.also
agree with the provision for making awards on the basis of governmentwide
savings and on savings in an agency other than the one in which the award winner
is employed.
We concur with the provisions of S. 2665 to remove present statutory limits on
total agency suggestion awards and individual awards.. These statutory limits
have the undesirable.effect of restricting the number and dollar value of awards
which can be made for worthwhile suggestions.
- We strongly endorse the provisions for Presidential awards in section 304 (b)
of S. 2665. This would provide a valuable incentive to improved employee
performance and would increase public understanding of the work of the Federal
service.
S. 2665 would eliminate salary increase awards and authorize cash awards in
their stead. This is a desirable change which would avoid the inequities now
resulting from awards scaled according to base pay rate rather than according to
achievement.
Elimination of salary increase awards requires repeal of all of title X of the
Classification Act except the first selection. This section deals only with. the
Government's management improvement program and does not mention awards.
To reflect this fact, we recommend that the heading of title X be amended to
eliminate the words "and awards."
S. 2665 would correct inequities in present statutory authorities covering
awards for inventions. These authorities apply to different employee groups,
and do not afford uniform treatment. In some cases private relief bills have been
used to provide rewards for employee inventors. Under S. , 2665, inventions
would be covered under a governmentwide incentive awards program.
The proposed legislation would provide comprehensive authority for invention
awards throughout the Federal civilian service. Under the bill, the Tennessee
Valley Authority, like other agencies, would not need its present invention
awards authority. To repeal this remaining separate authorization in the inter-
ests of complete and clean-cut consolidation of incentive awards law, we recom-
mend that section 305 of the bill be amended by the addition of a paragraph to
read as follows:
"(h) The second proviso clause in section 5 (i) of the Act of May 18, 1933
(16 U. S. C. 831d (i))."
'To correct an apparent typographical error, we recommend that the letter "s"
be striken from the word "heads" in line 12 on page 20 of the bill.
TITLE IV
Title IV of the bill, cited as the "Federal Employees Uniform Allowance Act,"
provides for an allowance for uniforms to civilian employees of the United States
who are required to wear uniforms in the performance of their duties. The
Commission does not favor this proposal at the present time. A study by the
Bureau of the Budget in 1951 indicated that 270,000 civilian employees were
required to wear uniforms. Since the allowance for the purchase and mainte-
nance of uniforms would be an amount up to $100 per annum, the annual cost
of :this bill would be substantial. Weighing the benefits to be derived from this
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved for ReWse 62 11H :t'fAL ?9V_65AN6 0M%=954'
legislation against the President's policy of curtailing expenditures wherever
possible, we do not recommend such legislation at this time.
Title V of S. 2665 would repeal section 1310 of the Supplemental Appropriation
Act, 1952 (Public Law 253, 82d Cong.), as amended by section 1302 of the Third
Supplemental Appropriation Act, 1952 (Public Law 375; 82d Cong.). The
present legislation places a number of restrictions on personnel actions. within
and outside the competitive civil service for the duration of the emergency pro-
claimed by the President on December 16, 1950. The ' Commission strongly
endorses the action proposed in title V of S. 2665.
We believe that the specific and precise requirements presently spelled out in
section 1310 of the Supplemental Appropriation Act, 1952, as amended, have
brought about an unfortunate rigidity in Federal per management. This
rigidity has resulted in red tape and complexity, increased the cost of personnel
management, and created inequities for many employees in the Federal service.
Although the original provisions of this legislation have been amended twice,
new problems have always arisen as a result of the amendments. Other problems
in the original provisions have not been taken care of by the amendments. The
Commission has made every effort to administer this personnel legislation in as.
practicable a manner as possible. However,-it has not always been able to allow
that flexibility in personnel management which might seem to. be in the best
interests of the service and in accord with the intent of Congress because of the
precise language used in the legislation.
In summary, our views are that an attempt to spell out precisely by legislation
the administrative steps to be taken in.the field of emergency personnel manage-
ment has not been successful; and that the greatest need in this emergency
situation is to provide the President with the flexibility necessary to meet the
overall objectives of Congress by administratively adapting personnel procedures
to changing circumstances.
The Bureau of the Budget has advised us that it has no objection to the sub-
mission of this report.
By direction of. the Commission:
Sincerely yours,
JOHN W. MACY, Jr.
(For and in absence of Philip Young, Chairman).
EXECUTIVE OFFICE OF THE PRESIDENT,
BUREAU- OF THE BUDGET,
Hon. Washington, D. C., February 19, 1954.
FRANK CARLSON,
Chairman, Committee on Post Office and Civil Service,
United States Senate, Washington,. D. C.
My' DEAR' MR. CHAIRMAN: This will acknowledge receipt of your letterof
January 19, 1954, requesting the views of this Office with respect to S. 2665, a
bill to amend the Classification Act of 1949, as amended, and the Federal
Employees Pay Act of 1945, as amended and for other purposes.
Title I of S. 2665 would amend the Classification Act of 1949, as amended:
(1) To provide for compensation on a prevailing locality rate basis of certain
crafts, protective, and custodial positions now subject to the act; (2) to.consolidate
the remaining positions of the crafts, protective, and custodial- schedule of the
act with those of the general schedule; (3) to increase from 400 to `700 thei number
of. positions authorized to be placed in grades. GS-16, 17, and 18, and to remove
the restriction on the number of positions which may be placed in each of these
grades; (4) to l\ermit establishment of entrance rates higher than the minimum
rate of the grade for positions in shortage categories; and (5) to authorize longevity
step increases in grades GS-11 through GS-15. This Office favors the objectives
sought by the provisions of title I.
Title II of the hill would amend the Federal Employees Pay Act of 1945, as
amended, to revise the overtime, night, and holiday pay provisions of the act and
to add new provisions with respect to premium pay for standby service and for
irregular and unscheduled overtime duty. This Office generally favors the
objectives of tit'e II. Establishment of a uniform premium pay plan including
full time-and-one-half overtime rate for employees in all Classification Act grades
through the maximum of GS-9 would be desirable.. It is the view of the Bureau
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved Release 2002/07/12 : CIA-RDP79-0
.GOVERNMENT EMPLOYEE {'FRINGE BENEFITS ACT OF 1954 21
of the Budget that this premium pay-plan should ultimately control premium
pay for all employees whose base pay is established under the Classification Act.
As to holiday pay, establishment of a premium pay rate that would result in the
payment of 2i days pay for 1 day's work performed on a holiday is not endorsed.
We recommend, in lieu of this provision in S. 2665, approval by the committee
of language which the Civil Service Commission is submitting for your consider-
ation.
Title III would establish a new incentive awards program on a government-
wide basis, with responsibility for administration centered in the Civil Service
Commission,-by consolidating into one basic statute existing awards authorizations
contained in the Classification Act and in several individual agency authorities.
,This office favors the objectives of title III.
Title IV, cited as the Federal Employees Uniform Allowance Act, proposes a
cash allowance of $100 for each employee required by law or regulation to wear
a uniform in the performance of official duty, under regulations prescribed by
the Director of the Bureau of the Budget. This office recommends against favor-
able consideration of this and other similar pending proposals at this time.
Title V of the bill proposes the repeal of the current restriction on appointments
and promotion contained in section 1310 of the Supplemental Appropriations
Act, 1952. This office favors such repeal.
Sincerely yours,
ROWLAND HUGHES, Acting Director.
DEPARTMENT OF AGRICULTURE,
.Hon. FRANK CARLSON, Washington, D. C., March 2, 1964.
Chairman, Committee on Post Office and Civil Service,
United States Senate.
DEAR SENATOR CARLSON: This is in reply to your request of January 12, 1954,
that the Department express its views on S. 2665, a bill to amend the Classification
Act of 1949, as amended, and the Federal Employees Pay Act of 1945, as amended,
.and for other purposes.
TITLE I
The important provisions of title I, which is to be cited as the Classification Act
Amendments of 1954, are-
(1) Those abolishing the CPC schedule and establishing the General
schedule (GS) as the single basic pay scales of the Classification Act;
(2) Those which will have the effect of transferring building and mainte-
nance jobs to the prevailing.rate system;
(3) ;The provisions.increasing the number of Positions that may be placed
in the" so-called supergrades, GS-16, 17, and 18, from 400 to 700;
(4) Those raising the limit for longevity step-increases from GS-10 to
GS-15; and,
(5) Those which will authorize the Civil Service-Commission to establish
a rate above the minimum of the grade as the in-hiring rate in areas or loca-
tions where the difficulty of finding a sufficient number of qualified eligibles
without doing so may justify such action.
'The Department favors establishment of a single pay scale as proposed in the bill.
Such a scale should be administered so as to permit as few exceptions as possible.
At the same time, in view of the large number of other similar jobs already being
paid in accordance with local prevailing rates, we would not object to the amend-
ment under which building and maintenance jobs now under the CPC schedule
would be transferred to the prevailing rate system. An estimated total of 1,500
full-time jobs at over 400 locations would be affected in this Department. We
believe that eventually, some solution will have to be found for the problems that
constantly arise over discrepancies in Classification Act rates for administrative
personnel as compared with prevailing rates for blue-collar workers at locations
:where the two work in close proximity. This problem is intensified as coverage
of the prevailing rate system is extended. If the proposed transfer of additional
jobs to that system is approved, then we trust that a proviso like the one at the
end of section 102 (a) .of the bill will be retained so that it will be possible thereafter
to fix Classification Act rates administratively for trades and labor jobs in those
areas where they exist in such small numbers as to make prevailing rate determi-
nations impracticable.
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved~For Release 2002/07/12 :CIA- ff %#l i 5 >r21g90A iQ1~-f 954
G GOVERNMENT EMPL t
We endorse an increase in the number of s.upergrade positions allowed for the
Government as a whole. The present allocation to the Department is consider-,
ably below existing needs.
The remaining provisions of title I appear to be desirable as steps to improve
the Federal pay structure and assure proper and efficient administration of
basic rates.
TITLE II
Title II,of the bill would raise the limit under which true time and one-half for
overtime is paid from the present $2,980 per annum to the maximum rate of grade
GS-9 (currently $5,810 per annum). It is recommended that this change be
approved since it will help correct the situation under which employees in GS-7
and above now receive more for straight time than they do for overtime, and
GS-4 secretaries receive more for straight time than supervisors in GS-12 and
above receive for overtime.
With respect to the provision of title II that would enable heads of departments
and agencies to require employees receiving more than the maximum scheduled
rate of GS-9 to take compensatory time off, rather than cash payments, for ir-
regular or occasional overtime work, a small amendment might be desirable.
This provision is written to indicate that such employees shall be compensated
"with not more than an equal amount of compensatory time off." Under such
language it is possible that less than equal compensatory time off could be granted.
It is recommended that the language be changed to read "with an equal but not
greater amount of compensatory time off".to assure that such lieu time off will
be granted on an hour-for-hour basis.
Under this title, the premium for worked holidays would be fixed to correspond
to overtime pay so that employees would receive straight time and in addition the
regular overtime premium if required to work on any such day. This change
would give employees paid $8,560 or under more pay for worked holidays, and
those paid over $8,560 slightly less pay, than they receive at the double-time rate
under existing law. We suggest, in lieu of this provision, that the committee
approve language which the Civil Service Commission is submitting for your
consideration.
This title also states the conditions under which time in a travel status is com-
pensable, guarantees a minimum of 2 hours' overtime pay for callback overtime,
and permits some time other than .6 p. m. and. 6-a. in.. to be designated as the
beginning and ending of night tours of duty under certain conditions outside the
District of Columbia and the 48 States. We feel that the first of these amend-
ments, which would clarify the question of how much time spent in a travel status
is compensable, should be approved. The minimum guaranty on callback over-
time is a provision which this Department has recommended before. It is desir-
able to have such a provision in areas where, as in New York, employees may spend
more :time on the way to and returning. from the place where the overtime work is
to be performed than they will be required to spend on the work itself at such
'place. The amendment in regard to the designation of night tours covers situa-
tions with which. this Department has had little if any experience, but we see no
reason why the greater discretion that would be allowed under the proposed
language should not be granted.
A further amendment under this title would change the provisions governing
night pay differential with a view to enabling employees assigned to night work
to be paid the 10 percent differential during absence on a holiday, provided the
holiday was otherwise "with pay," and to receive the differential during periods
of leave with pay up to 8 hours at night. It is our understanding that this change
would bring Government practice into line with general industrial. and commercial
practice relative to night pay for the periods in question. Its approval also, is,
therefore, recommended.
TITLE III
Title III repeals present laws dealing with incentive awards and substitutes a
single authority for two major types of recognition, namely, honor and cash
awards. Responsibility for issuing regulations is placed in the Civil Service
Commission.
The effect of these changes is desirable since it assures uniformity in the' appli=
cation of the law to all employees, and uniformity in incentive awards and in the
regulations governing the issuance of such awards. '. 1
It is not. clear whether it is intended; under the provisions of the bill, to authorize
the granting of length-of-service awards for longevity as is presently done under
authority of Public Law 600, dated August 2, 1946. This Department has found
the
cia
pu
cle
thi
fol
an
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 GOVERNMENT LAIIMXE ~IiINGEIBEIQE TS2A~T/0 '1135/4 Zed 79-0006
that the granting of such awards recognizing long and faithful service is appre-
ciated by employees and represents an important additional incentive to effective
public service. Accordingly, it is recommended that the bill or legislative history
clearly indicate an intention to authorize length-of-service awards. To accomplish
this by amending the bill, we recommend, on page 19, line 8, the addition of the
following sentence: "Honorary recognition may also be given to civilian officers
and employees of the Government for long service."
If the committee prefers to reflect its intention in. the legislative history, we
recommend that the following statement appear in the committee report:
"The committee recognizes that under existing authority which this bill repeals,
Government agencies are granting awards for length of service. It is the intention
of the committee that this practice may continue under this bill."
Title IV of the bill refers to only two groups of employees. One is the fire
fighters and other classes of workers who are required to remain in a standby
status for a substantial amount of their time on duty; the other group includes
employees performing substantial amounts. of unscheduled overtime, night, and
holiday work where the hours of duty cannot be controlled administratively.
The bill would authorize differentials tip to 25 percent of base pay for the first
group and up to 15 percent of the second. We believe this would provide a
workable system which could be administered on the basis of regulations issued
by the Civil Service Commission, or by the agencies with Commission approval.
Other provisions contained in title IV would preclude payment for overtime,
night, or holiday work to employees whose basic or aggregate rate of pay would
exceed the maximum scheduled rate of GS-15. The existing limitation is $10,330.
Raising the limitation to the maximum indicated would place it approximately
a grade higher than it is at present and would have the advantage of tying in to
an actual rate, which the $10,330 under existing law fails to do.
This title also provides for a uniform allowance annually of $100 to defray the
expenses of acquisition and upkeep of prescribed uniforms. The provision is
.desirable since employees who are required to wear uniforms frequently are at a
financial disadvantage in relation to other employees who do not have to bear
such cost personally. However, in view. of the President's desire to limit expend-
itures wherever possible, we do not recommend enactment of this provision at
this time.
TITLE V
Repeal of section 1310 of the Supplemental Appropriation Act, 1952, as pro-
vided for in title V would be helpful in the recruitment and retention of desirable
.personnel. Inability to offer permanent appointment for most positions and
restrictions on promotion have acted to deter prospective applicants from seeking
Government employment.
The Bureau of. the .Budget advises that there is no objection to the submission
of this report. .
COMPTROLLER GENERAL OF THE UNITED STATES,
Washington, D. C., January 29, 1954.
Hon. FRANK CARLSON, - - -
Chairman, Post Office and Civil Service Committee,
United States Senate.
MY DEAR MR. CHAIRMAN: Reference is made to your letter of January 12, 1954,
acknowledged by telephone January 15, enclosing a copy of S. 2665, 83d Congress,
2d session, and requesting my views andcomments with respect thereto.
The bill contemplates certain amendments to the Classification Act of 1949, as
amended, the Federal Employees Pay Act of 1945, 'as`amended, and other legisla-
tion concerning matters which on the whole have been the subject of official and
unofficial consideration throughout the Government over aperiod of several years.
It is believed that, aside from its beneficial character from the viewpoint of em-
ployees, the bill provides for substantial improvements in Government adminis-
tration. The bill, as drafted, reflects a careful study by the author, both as to the
substance and form. It is recommended, however, that consideration be given
to modifying the language of the proposed amendment of section 302 (a) of the
 Approved for ReJRasQ 1Q1Stl s7r%.
'"'SEIV'E~'1*f q?9001P7&54
Federal Employees Pay Act of 1945, as amended (p. 13, line 20 of the bill), to
require as a condition to entitlement to holiday compensation that work performed
on holidays be authorized or approved as in the case of overtime work.
Also, there are some matters which I would like to bring: to your attention for
consideration in connection with the bill. In construing the language of sections
203 and 603 (b) of the Federal Employees Pay Act of 1945, as amended, this
Office felt impelled by the clear language of the latter section to rule in 26
Comptroller, General 658, and again in Office decision of June 19, 1951, B-102754,
to the Secretary of the Navy, that wage board employees compensated on a
monthly or per. annum basis-as distinguished from a per .diem or per hour
'basis-are subject to the limitation of $10,000 (later increased to $10,330)
prescribed by section 603 (b) of the act. That rule recently was reaffirmed in
Office decision published in 33 Comptroller General 53. The departments and
agencies employing large groups of wage board employees have expressed con-
cern about the result of this ruling, in that in so-ne instances per diem or per
hourly wage board employees who perform overtime services receive co-pen-
sation in excess of supervisory per annum or monthly wage board employees
who work the same overtime hours, but are prevented from receiving compen-
sation for any pay period at a rate in excess of $10,330 per annum by virtue of
the limitation previously referred to. Of course that limitation would be raised
to $11,800 by this bill, but the same situation might prevail in the future. If it
be determined to eliminate this apparent inequity it could be accomplished by
adding a-iother sentence to the amendment to section 603 of the Federal Em-
ployees Pav Actr of 1945, as amended,. appearing on pages 16 and 17 of the bill,
to read as follows:
"This section shall not apply to employees whose basic rate of. compensation is
fixed on an annual or monthly basis and adjusted from time to time by wage
boards or similar administrative authority serving the same purpose."
Section 703 of the Classification Act of 1949, authorizing longevity step increases
requires, among other qualifying conditions, 3 years of continuous service without
change of grade or rate of basic compensation. In the current program of de-
creasing the level of Government employment, it is a necessary, incident that
numerous employees be demoted in grade. It not infrequently happens that,
at the time of demotion, an employee has served 1 or more years in the maximum
scheduled step or one of the longevity steps of his higher grade. - Under existing
law credit for such service is lost because of the change of grade or -rate of basic
compensation incident to the demotion of the employee, if he be placed. in the
maximum scheduled step or a longevity step of the lower grade, must again begin
to serve the required 3-year period before he qualifies for a longevity step increase
in the lower grade. It is not too evident that the provisions of existing law in
that respect are consistent with the purpose and intent of the Congress in provid-
ing for longevity benefits. It is suggested' that you may wish to have this situa-
tion corrected by the present bill. '
Another situation which it is deemed pertinent to invite to the attention of the
committee concerns the practice in some of- the departments and agencies of re-
quiring certain specialized employees to remain in a standby status at their homes
instead of their place of work. It is understood that this practice originated in
order to avoid the additional cost of keeping employees on the job to repair and
maintain complicated electronic equipment and paying them overtime compen-
sation since they might be needed only for a short period of time during a par-
ticular shift. If called back to duty such employees now are paid overtime com-
pensation only for the period actually worked and if not called receive no compen-
sation whatsoever. The employees apparently have objected to this arrange-
ment and while the provision in the bill for a minimum of 2 hours of overtime
compensation for employees called back to duty will help to alleviate the situa-
tion, it may be the committee would desire to recommend that some form of
compensation-preferably to be authorized in the discretion of the agency-
be provided for employees who are requested to remain in a standby status at
home which could be similar to that now contained on pages 14 and 15 of the bill
with reference to employees remaining in a standby status within the confines
of their official stations.
Sincerely yours,
LINDSAY C. WARREN,
Comptroller General of the United States.
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved For Release 2002/07/12: CIA-RDP79-00065A 200020010-6
GOVERNMENT, EMPLOYE'RINGE BENEFITS ACT OF 1954 25
OFFICE OF THE ASSISTANT SECRETARY OF DEFENSE,
LEGISLATIVE AND PUBLIC AFFAIRS,
Washington, D. C., February 24, 1954.
Hon. FRANK CARLSON,
Chairman, Committee on Post Office and Civil Service,
DEAR MR. CHAIRMAN: This is in response to the request for the views of the
Department of Defense on S. 2665, a bill to amend the Classification Act of 1949,
as amended, and the Federal Employees Pay Act of 1945, as amended, and for
other purposes.
The Department of. Def e-strongly. urges the enactment of S. 2665. The
major features of S. 2665 long have been advocated by the Department of Defense-
as necessary to eliminate. many existing difficult administrative problems, inade-
quacies in premium compensation, and a confused system of incentive awards.
Title I, section 102, amending section 202 (7) of the Classification Act of 1949,
as .amended, and title I, section 103, are considered of major importance to the
Department of Defense. Section 102 would exempt from the Classification Act
of 1949 certain employees in the crafts, trades, and other positions, and require
that such employees be paid, where appropriate, in accordance with prevailing
rates. Title I, section 103, would abolish the crafts, protective, and custodial
schedule in the Classification Act and transfer to the general schedule those em-
ployees and positions now under the CPC schedule which are not exempted from
the Classification Act by this legislation. Both these provisions are strongly sup-
ported by the Department of Defense and our views concerning the necessity for
this legislation are fully set forth in a letter to you dated January 13, 1954, in
support of S. 2302, a bill which is substantially similar to title I, sections 102 and
103 of S. 2665.
By way of technical comment it is believed that the second proviso to para-
graph (7), section 205 of the Classification Act (beginning at line 15, p. 2 of S.
2665), should contain a statement to indicate that employees paid thereunder will
be considered to be employees subject to the Classification Act for all purposes.
This can-be accomplished by adding -the following language at, the 'end. of, the pro-
viso at line 23, page 2.of-S. 2665: "and in such cases the employees affected 'shall
for all purposes be considered a];heing subject to.the Classification Act of 1949."
With reference to page 3, paragraph (c) of the proposed amendment to"section
505 of the Classification Act, it is this Department's opinion that grades GS-16,
17, and 18 are a regular part of the general schedule to which positions are allocated
in accordance with the allocating factors and principles set forth in the Classifica-
tion Act of 1949. It is, therefore, inconsistent with the principles of that act to
establish an arbitrary ceiling on the number of positions which may be placed in
these grades, regardless of the number of positions which proper classification
would require be placed in these grades. For this reason; we should like to see
all reference to a ceiling on grades 16, 17, and 18 eliminated. If, however, it is
considered necessary that some -special .control should be placed on the number
of positions an GS-16; 17, and 18, -it is urged that this control be .placed in the
Pre ident, and that be.be authorized.to.establish_ an appropriate 'ceiling based
upon a survey of theneeds.Qf t.heFederal Government for such positions. This
procedure would permit;the:.:establishment of realistic ceilings, which could be
changed from. time totime.to meet-changing requirements of the service, and
would make unnecessaryyrpjuests:to the Congress for special legislation author-
izing additional supergradea:almost as soon as a statutory ceiling is established.
With respect to the Statutory. ceiling of 700 positions proposed in section 505 (c),
it is assumed that this number would be in addition to the number of such positions
now authorized .by. special.legislation. In other words, it is assumed that the
figure of 700 represents a proposed- increase by 300 of the present figure of 400
contained in this section of-the Classification Act, and that these 700 positions
would. not include any now authorized by special legislation, such as section 806,
Public Law 207, 83d Congress, which provides authority for 180 positions in the
Department of Defense, Any contrary interpretation would result in a decrease
in the number of grade 16, 17, and 18 positions now existing, since this number
is estimated to be around 900. To assure that the proposed revision of section
505 (c) has the effect of increasing rather than decreasing the number of these
positions in the Federal service, it is suggested that the words "under authority
of this section" be inserted after "time" in line 10 on page 3. -
With regard to-the amendment of section 604 of the Classification Act contained
on page 4, it is recommended' that the word "may" on line 19 be changed to
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 NFFITS ACT OF 1954
Approved k r Relggse(MftW : &- A 9F&5 f1e&5 00200020010-6
"shall' to leave no question as to the intent of.Congress and to be consistent
with section 106., page 9 of S. 2665.
The proposed amendment of section 703 (b) (1) contained on page 5 of S. 2665,
making employees holding positions no to and including GS-15 eligible for lon-
gevity step increases, is recommended for enactment since there appears to be no
valid reason for denying employees above GS-10 longevity increases. It is
suggested, however, that section 703 (a) also be amended so that the present
phrase "without change of grade or rate of basic compensation" be deleted and
the following substituted: "without an equivalent increase in compensation from
any cause." This change is recommended to correct what is probably an inad-
vertent inequity as regards employees who suffer a change to lower grade. Under
the present wording of section 703 (a) an employee who is changed to a lower
grade is prevented from receiving a longevity step increase if otherwise eligible
until he has served for 3 years at the maximum of the lower grade. It is under-
stood why an employee should serve an additional 3-year period after he has
received an increase in compensation but it does not appear logical that this
requirement should apply to a change to lower grade which, in many cases, in-
volves a'lower rate of pay.
The amendments to section 803 contained on page 6 represent a most desirable
?change'in the Classification Act by providing for some flexibility in the in-hiring
rates when tight labor market conditions make adjustments in those rates neces-
=sary. Section 801 of the Classification Act reads "All new appointments shall
be %made at the minimum rate of the appropriate grade." This requirement
makes it extremely difficult for the Government to compete with private industry
in certain geographical areas in obtaining occupational specialties which are in
short supply. This condition, for example, exists at the present time in the case
of engineering aids, dental technicians, tabulating equipment operators, and
-draftsmen.
The salaries paid by the Government to employees in these positions compare
favorably, in general, with the nationwide average salary. In some localities,
however, prevailing rates are somewhat higher than the-minimum rates established
for these positions under the Classification Act. Pursuant to the proposed
legislation, the Civil Service Commission in such instances could raise the minimum
rates to higher step rates in these grades until the entrance rates are in accord with
prevailing local rates. This would permit the Government to compete on fairly
equal terms for the services of qualified personnel.
The principle incorporated in this proposal has been successfully employed by
the Army and Air Force for a number of years in administering wages for personnel
-not subject to the Classification Act. Under the latter system, a procedure exists
whereby installations may seek the approval of in-hiring rates above the minimum
:established in -regular locality wage schedules when these installations experience
-serious difficulty in recruiting personnel for specific ungraded jobs because the
:authorized rates for these positions are not in keeping with the prevailing wage
rates in the locality. The number of cases-approved for in-hiring above the mini-
mum under this procedure has not averaged. more than a fraction of 1 percent
of all ungraded positions within the two Departments.. However, it should be
noted that compensation schedules for ungraded positions are based upon pre-
vailing wage rates determined by periodic locality wage surveys as opposed to the
nationwide pay schedule for Classification Act positions. This serves to mini-
mize the number of cases which warrant rates above the minimum.
. The Hoover Commission, in recommendation No. 17' of its report on personnel
management, recognized the need for greater flexibility in the Federal pay struc-
ture and recommended that the hiring rate for any kind of work in any grade
should be adjusted so as to meet current employment trends.
World War II demonstrated the result, of an inflexible system which would
not permit reasonable adjustments to meet competitive wage rates in certain
local recruiting areas where a shortage existed in particular occupational special-
ties. Due to personnel losses attributable to more favorable job opportunities
in private industry, supervisors were continually faced with serious difficulty in
securing and retaining competent trained personnel.
Precedent exists for this legislation in section 8, War Overtime Pay Act of 1943
(57 Stat. 77), which authorized adjustments where disparity in alinement existed
between the wage rates of supervisors occupying Classification Act positions and
wage board employees under their supervision.
The authority granted by section 803 to the Civil Service Commission to
establish rates above the minimum should be sufficiently flexible so that in a
given area only those installations desiring to raise their in-hiring rates will be
required to do so. In most circumstances the shortage of personnel requiring a
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 0VERNME ;r'lrg r es ~ 4~ /~ : q r P7 910dM A00
raise in the in-hiring rate will be general throughout an area. In some areas,
however, situations may arise where an installation; because it is located away
from transportation facilities or because of other reasons, has difficulty in at-
tracting qualified personnel and may need to raise its in-hiring rates while those
more favorably located may not wish to do so. We assume that the wording of
section 803 (a) does provide for this flexibility. In the event, however, section
.803 (a) is not so interpreted it is recommended that the wording be revised.
Title II, "Premium Compensation" contains very desirable amendments to the
Federal Employees Pay Act of 1945 and will serve to bring Federal pay practices
with regard to premium compensation for work in excess of 40 hours, call-back
overtime, and night and holiday work, more in line with the treatment accorded
employees in private industry The Department of Defense urges the enactment
,of these provisions with the following recommended modifications:
1. The Department of Defense is opposed to that portion of the proposed
amendment of section 302 of the Federal Employees Pay Act of 1945, as amended,
starting on line 20, page 13, through the word "Act" on line 6, page 14. This
amendment would increase the present double-time payments for holiday work to
23z times the rate of basic compensation for those employees whose rate of basic
compensation does not exceed the maximum scheduled rate for GS-9. The
Department of Defense considers that the present double-time rate is adequate
compensation for work on holidays and that the proposal to increase this com-
pensation is both unnecessary and costly. Accordingly, it is recommended that
the proposed amendments to section 302 be revised so as to provide for not more
than double time for nonovertime work on a holiday.
2. With regard to the proposed amendment to section 604 of the Federal
Employees Pay Act of 1945, the phrase "except where he determines such organ-
ization would be seriously handicapped in carrying out its functions or that costs
would be substantially increased". contained on page 17, lines 15 through 17, is
not considered to be a 'sufficiently broad description of the exceptions to the normal
tour of duty which may be necessary in the military departments. It is believed
that exceptions to a normal tour of duty are warranted not only when they consti-
tute a serious handicap in.carrying out an assigned function or when a substantial
increase in costs is involved but also under other circumstances. For example,
in some foreign countries in order to operate an office or installation in a manner
consistent with local customs it is necessary to establish tours of duty that are
normal for that country. For example, the normal tour of duty in Spain is from
9 a. in. to 1 p. in. and 4 p. in. to 7 p. m., with a 2-hour break in working hours.
Accordingly, it is suggested, that the phrase quoted above be deleted and the
following substituted: "except where he determines that deviations are necessary
in order to carry out the functions of his organization efficiently and economically."
Title III, "Government employees' incentive awards," pages 18-21 of S. 2665
is highly desirable and necessary legislation. The principal difficulty with incen-
tive awards in the Federal Government is that there are too many complex and
-conflicting programs, with ' some . applicable only to employees subject to the
Classification Act and not to wage board employees, with differing limitations on
the amounts of awards which may be made, and with, irrational and inadequate
scales of awards.. The inadequacies and inconsistencies of the present system of
awards, it is believed, are correctly set forth in Senate Report 2101, 82d Congress.
Title III of S. 2665 would fully correct the existing inadequacies and consolidate
into one logical act an incentive awards program for the Federal Government.
It eliminates the present split responsibility between the Civil Service Commission
and the Bureau of the Budget and logically fixes responsibility upon the Civil
Service Commission for supervision of the program. The Department of Defense
strongly urges the enactment of this title but suggests the following modifications:
1. On line 12; page 18, insert after the word "issued" the.phrase "after con-
sultation with the departments." Inclusion of this language will assure that the
departments will have an opportunity to participate in the development of the
regulations which will govern the operation of incentive-award programs.
2. On line 17, page 18, insert after the words "executive department," the
words "military department" to assure that there will be no statutory limitations
placed upon the authority of the heads of military departments to pay cash awards
and develop and administer incentive-award programs.
. Title IV, "Uniform allowances," would provide an allowance of up to $100
per annum, for civilian employees of the United States who are required to wear
uniforms in the performance of their duties. Weighing the benefits to be derived
from this legislation against the President's policy of curtailing expenditures
wherever possible, the Department of Defense does not recommend such legislation
at this time.
Approved For Release 2002/07/12 : CIA-RDP79-00065A000200020010-6
 Approved Fdr Relit Se -~> ~9 f ~4 iQQ$ $1 X 1954
Title V; repealing section 1310 of the Stippleniental Appropriation Act, 1052' is
considered by the Department of Defense to be One of the most important features
of S. 2665. The purposes for which the Whitten amendment was'enacted have
largely been'served now that the period of rapid expansion of the Federal Govern-
ment is over and it would appear appropriate. for the' Congress to repeal this pro-
vision at this time. The Whitten amendment has caused and continues to cause
serious administrative problems. It is believed that Senate Document 30,
83d Congress, "Analysis of the Whitten Amendment," describes in detail the ad-
ministrative problems and inequities which arise out of that provision of law.
Particularly burdensome has been the substitution in the Whitten amendment of
time-in-grade requirements for basic qualifications and the establishment of
arbitrary quotas for permanent promotions.
To date the Department of Defense has not found it feasible to make any per-
manent promotions in the Department of Defense within the limits currently
authorized in the Whitten amendment. This decision not to make permanent
promotions has stemmed from three basic factors:
1. Only a relatively small percentage of the employees in the Department of
Defense eligible for permanent promotions could be given permanent promotions
and in some grades few or no promotions at all could be authorized.
2. The administration of a program which would. provide for permanent promo-
tions for that relatively small percentage of employees eligible would be extremely
complex and costly to operate because of the need to establish and maintain a
complicated worldwide quota control system, because of'the huge number of
installations and employees involved, and because of the geographical dispersion
of the installations which comprise the military departments.
3. Any program which could be devised to make permanent promotions would
be arbitrary in nature, unfair to large numbers of employees both within installa-
tions and between installations, and could cause widespread. employee concern
and unrest.
The basic inequity to which employees of the Department of Defense are
subjected cannot be corrected by a quota system of permanent promotions.
This inequity arises out of the fact that the Whitten amendment holds back the
career employees of the Department from obtaining permanent promotions and
at the same time encourages permanent transfers to the Department of Defense
of employees from other agencies, the placement of separated career employees
in permanent grades in the Department, and probational appointments of certain
categories of employees. These actions all combine to limit the opportunities
of career employees in the Department of Defense for permanent promotions to
such an extent that repeal of the Whitten amendment appears to be the only
means for fairly resolving the problem.
The Department of Defense considers title V of major importance to sound
administration and equitable treatment of employees and strongly urges its
enactment.
The Bureau of the Budget has indicated that it has no objection to the submis-
sion of this report.
Sincerely yours,
RICHARD A. .BUDDEKE
(For the Assistant Secretary).
GENERAL SERVICES ADMINISTRATION,
Washington, D. C., March 5, 1954.
Hon. FRANK CARLSON,
Chairman, Committee on Post Ofldce and -Civil Service,
United States Senate, Washington, D. C.
DEAR SENATOR CARLSON: The following is submitted in response to your
letter of January 19, 1954, by which you requested our views and comments on
S. 2665, to amend the Classification Act of 1949, as amended, and the Federal
Employees Pay Act of 1945, as amended, and for other purpose.-.
TITLE I-AMENDMENTS TO THE CLASSIFICATION. ACT OF 1949, AS AMENDED
This title provides for the elimination of the present CPO schedule of the
Classification Act of 1949, and .the fixing of the pay of trade, craft, and manual-
labor jobs engaged in buildings maintenance and operation in line with prevailing
rates. An option is provided to permit Classification Act rates,to be paid, subject
to approval of the Civil Service Commission, in those areas where the number
of jobs is so few as to make prevailing-rate determinations impractical. This
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 2: C GOVERNMENT AMPLOYE FRINRGEeBENE FTS/ACT1OF 1954 29'
option could be used for our jobs in isolated operations such as at some of the
border stations.
Title I also revises the limitation on the number of positions which may be
allocated to grades GS-18, GS-17, and GS-16. The limitation has been raised
from 400 to 700. Restrictions as to the numbers which may be allocated at each
grade level, within the overall quota of 700, have been omitted.
Further, title I extends the longevity pay increases of the Classification Act
to people in grades GS-11 through GS-15. It also authorizes the Civil Service
Commission to adjust minimum rates of grades to attract eligibles for vacancies
for which qualified personnel could not otherwise he obtained. The General
Services kdministration favors the enactment of all provisions of title I.
Prevailing rates for trade, craft, and manual labor jobs
As indicated in my letter to you dated June 30, 1953, giving our views and
comments on S. 192, the payment of prevailing rates for trade, craft, and manual-
labor jobs engaged in buildings maintenance and operation, will eliminate the
severe inequities which now exist. There are now approximately 770,000 trade,
craft, and manual labor jobs in the Federal Government for which wages are
fixed in accordance with prevailing rates.
On the other hand, there are approximately 69,000 Federal jobs in trade, craft,
and manual-labor occupations, engaged in the maintenance and operation of
public buildings and associated equipment, the pay for which is currently required
to be fixed in accordance with the craft, protective, and custodial schedule of the
Classification Act of 1949. There are approximately 15,000 such jobs in the
GSA. Placing these jobs on a prevailing rate basis will enable their pay to be
fixed equitably with the much greater number of trade, craft, and manual-labor
jobs which are already being paid on this basis.
At the present, in some localities trade, craft, and manual-labor workers; under
the CPC schedule of the Classification Act, are receiving less than local prevailing
rates while other Federal workers having comparable duties receive prevailing
rates. This discrimination is not only unjust and impairs employee morale and
productivity, but it is also confusing to private industry and the general public.
The present inequity between CPC and prevailing rates in many localities also
creates other difficulties in the buildings management operations carried on
throughout the country by the Public Buildings Service of the GSA. Well
qualified, skilled mechanics are not attracted to Federal employment in localities
where the jobs for which they are needed are paid less than prevailing rates. The
placing of all our trade and craft jobs on prevailing rates would materially aid us
in the recruitment and retention of well-qualified employees.
In its survey of 42 GSA-operated public buildings, the National Association of
Building Owners and Managers made the following comments and recommenda-
tion:
"PBS is required by law to pay the same wages throughout the country, without
regard to local wage rates. As a result in many cities Government wages are
higher than those paid by commercial buildings, while in a few they are less.
Generally the Government pays more for unskilled labor, such as janitors and
elevator operators, that includes over 60 percent of PBS employees. For skilled
labor, such as engineers and tradesmen, the Government wages are low and as a
result PBS has difficulty securing good people in these classifications.
"Because of the Government policy of paying the same wages throughout the
country -a matter of law which could only be changed by congressional action -
PBS pays in these 42 buildings $3,100,000 per year in excess wages over local
market prices. While it might not be possible or desirable to reduce wages of-
present employees BMA urges the advisability of a more realistic determination of
wage schedules so that replacements and new employees can be hired in line with
local employment conditions."
Enclosed is a copy of the report of the National Association of Building Owners
& Managers. The information quoted above appears on pages 11 and 18 of the
report.
There are several ways by which we think title I of S. 2665 should be strength-
ened. First we believe that section 105 should be expanded to include a clear
authorization to the Civil Service Commission for the development and adminis-
tration of a system which woula assure federalwide coordination and consistency
in the fixing of wage rates for trade, craft, and manual-labor occupations. Such
a system would provide uniform policies and procedures for the evaluation of
jobs, coordination in the conduct of locality wage surveys, consistency in the anal-
ysis and interpretation of wage data, and the promulgation of locality wage
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved
Re%se Gr0 2112J1Q~ WfE7s9F~ JMQpsQ~R1 6l 954
schedules applicable to all Federal jobs in a community having comparable duties
and responsibilities.
Based on past experience with trade, craft, and manual-labor jobs already paid
on a prevailing rate basih, unless an overall system is prescribed and developed,
different agencies in the same locality will have different wage administration
procedures affecting the same kinds of jobs, and different wage rates for such
jobs will result. This situation would cause the benefits which title I of S. 2665
has been designed to produce to be materially diminished.
There is another way in which we feel that the benefits which title I of S. 2665
was designed to produce could be greatly enhanced. This would be accomplished
by adding a provision for the fixing of wages for trade, craft, and manual-labor
employees in the postal field service, who are engaged in buildings maintenance
and operation, on the basis of prevailing rates like that provided for employees of
this and other agencies who have comparable duties and responsibilities.
At the present, postal field service employees engaged in the maintenance and
operation of post office buildings are fixed by Public Law 134, 79th Congress, as
amended. Public Law 134, as amended, provides more liberal salaries for many
types of buildings operation and maintenance employees in the postal field service
than are now provided for similar workers in this and other agencies who are paid
under the CPC schedules of the Classification Act.
Placing CPC employees on a prevailing-rate basis, without a similar provision
for like employees in the postal field service, would only serve to intensify and
complicate the present pay disparities between the two groups. We see no reason
why locality wage schedules applicable to GSA carpenters, electricians, and
laborers engaged in the maintenance and operation of buildings should not also
apply to postal workers having similar duties.
We suggest that section 106 of title I of S. 2665, which saves the existing com-
pensation of CPC people being placed on prevailing rates, so long as they continue
to occupy the same position, be broadened to specify that compensation includes
the present night differential rate now being received by such employees under the
Federal Employees Pay Act of 1945, as amended. If this is not done, it is possible
that a night differential set for a particular job in line with prevailing industry
practice, would be less than the employees now receive.
GS-18, GS-17, and GS-16 positions
We believe that, although the need for providing compensation for Federal
officials commensurate with that paid executives in private industry has long been
recognized as a matter of critical importance to the obtaining of the best talent
possible for the conduct of the Government's affairs, there is much that must be
done to implement this recognition in terms of actually making higher salaries
available.
S. 2665, in raising the limitation on the number of positions which may be
allocated to grades 18, 17, and 16 from 400 to 700, is a move in the direction of
making such higher salaries available and' one which we believe will redound to
the betterment of the Federal service generally.
The omission of any restrictions within the overall quota of 700, as to the
number of positions which may be allocated at each of the three levels is also
highly desirable. _ Grade-level quotas, such as thos imposed by the existing law,
cause inequities in the evaluation and grading of GS-18, GS-17, and GS-16
positions.
At the present, two positions -of equal difficulty, responsibility, and importance
may, because of the restrictions, have to be placed in different grade levels. A
position that clearly warrants GS-17-may have to be allocated to GS-16 because
of lack of GS-17 spaces. Without such restrictions it will be possible to classify
GS-18, GS-17, and GS-16 positions more.in line with the principle of equal pay
for equal work.
There are a number of positions in the GSA which we strongly believe are
allocable to GS-18, GS-17, and GS-16 which cannot now be correctly placed in
these grades under the present Classification Act quota. This has resulted in
some inequities in the allocation of our key positions which S. 2665, may make it
possible to adjust.
Longevity increases for grades GS-11 through GS-15
Section 102 (g) of title I of S. 2665 extends longevity benefits to employees in
grades GS-10 through GS-15. We favor this provision as we feel that increases
for people who perform long, efficient, and faithful service in these grades should
be entitled to the same rewards for such service as are presently provided for those
in the lower grades.
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved F -Release 2002/07/12: CIA-RDP79-00
GOVERNMENT EMPLOL6 FRINGE BENEFITS ACT OF 1954 31
Adjustment of minimum rates of grades
Authorizing the Commission to adjust the minimum rates of grades to attract
qualified eligibles for positions which could not otherwise be filled, as provided by
section 102 (j), will enable the Federal Government to obtain and retain qualified
people without distorting the system provided by the Classification Act for the
evaluation and grading of positions in terms of their relative difficulty, responsi-
bility, and importance.
TITLE II-PREMIUM COMPENSATION
We have noted that title II of S. 2665, on all matters in which the GSA is
concerned, contains provisions in line with the recommendations of the joint
report of the Bureau of the Budget and the Civil Service Commission which was
submitted to the Senate Post Office and Civil Service Committee early in August
of 1951. In this respect, title II also incorporates the provisions on premium
compensation which were included in S. 354 of the 82d Congress as favorably
reported upon with amendments by the Senate Post Office and Civil Service
Committee.
Our review of the Budget Bureau-Civil Service Commission report, and of
Senate Report No. 843 of the 82d Congress, indicates that the present provisions
of S. 2665 are based upon comprehensive study of premium-pay problems through-
out the Federal service and of premium-pay practices in State and municipal
government and private industry. In view of this and in consideration of our
own experience, we feel that the enactment of title II will provide greater equity
in payment of premium compensation to Federal employees, as well as alleviate
a number of problems currently involved in the administration of the Federal
Employees Pay Act of 1945, as amended.
TITLE III-GOVERNMENT EMPLOYEES' INCENTIVE AWARDS
We concur in the provisions of title III of S. 2665 to the extent it provides for
a unification of the present several incentives programs into one system and the
repeal of existing legislation. The providing of cash awards in lieu of superior
accomplishment pay increases now authorized by section 702 of the Classification
Act of 1949, as amended, is a more equitable method of compensating Govern-
ment employees at all levels who, by their suggestions, inventions, or superior
accomplishments, contribute to the improvement of Government operations.
The title also provides, however, that regulations and instructions governing
department awards be issued by the United States Civil Service Commission.
This provision is similar to one included in previously proposed legislation intro-
duced as Senate bill S. 3492 of the 82d Congress. In a letter dated September 22,
1952, commenting on that bill, this Administration replied as follows:
"We feel that the incentive awards program should in no way be separated
from the goals of economical and efficient operation in the executive branch of
the Government. By relating Federal incentive awards activities with the pro-
grams and responsibilities of the Civil Service Commission, as recommended
in the report and as proposed by the bill, considerable of the potential worth of
the awards program in assisting in the improvement of management in the re-
spective departments may not be realized. The great value of incentives in im-
proving employee morale, in developing a more alert working force, and in leading
to safer working conditions, is fully recognized by this Administration. The
incentives program, however, should be identified as neither a personnel nor a
budgetary stimulant. For this reason, we advocate the omission of any provi.
Sion in the proposed legislation which would place responsibility for the opera-
tion of the program in either the Civil Service Commission or the Bureau of the
Budget. We feel that the location of the program should be left to the adminis-
trative decision of the President and that this should be so provided in the legis-
lation."
Experience during the. past year has shown that the GSA incentive awards
system is becoming more and more an effective management improvement tool.
We would not want to see any change made that might weaken this effectiveness.
TITLE IV-UNIFORM ALLOWANCES
The GSA has authority to purchase, repair, and clean uniforms for civilian
employees of the GSA who are required by law or regulation to wear uniform
clothing. It has been our practice to provide such clothing and upkeep by con-
tract. In Washington, D. C., where the workload justifies, a number of tailors
are employed for fitting and repairing.
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 G0V4kW1PACV Aa~tom~[~b&-T"&~t-0006.5AO002000
executive level, the organizational location of such a responsibility is subject
to question. The incentive-awards program has a relationship to the general
personnel program of the Government, but it is more importantly an integral
part of the management improvement effort. Government and industry have
found that a major stimulation to increased efficiency, economies in operation
and better management is some system of financial and honorary recognition
of the contributions of individual employees. Since responsibility for the general
management improvement program is lodged in the Bureau of the Budget, we
feel that the incentive-awards phase should also be centered there. This Depart-
merit has organized its program on this basis and feels that the executive level
organization should follow a similar pattern. If this course is followed, we would
like to see a strengthening of this function in the Bureau of the Budget to bring
about an improvement of results governmentwide.
With the suggestions as noted above, the Department of the Interior recom-
mends in favor of this proposed legislation. The Bureau of the Budget has
advised that there is no objection to the presentation of this report to your
committee.
Sincerely yours, D. OTIS BEASLEY,
Administrative Assistant Secretary of the Interior.
DEPARTMENT OF JUSTICE,
OFFICE OF THE DEPUTY hington, ATTORNEY February 25, 1954.
Hon. FRANE CARLSON,
Chairman, Committee on Post Office and Civil Service,
United States Senate, Washington, D. C.
DEAR SENATOR: This is in response to your request for the views of the Depart=
amended,
merit of Justice relative to bill (S. 2665) to amend the 1949, as amended, and thetFederal Employees Pay Act of 1945, as Classification
and for other purposes.
The bill would abolish the crafts-protective-custodial classification and sub-
stitute therefor the prevailing-wage methods payment of compensation for some
employees now included under CPC while other employees under such classifi-
cation would be transferred to general schedule classification. Also, the bill
would include a number of beneficial provisions such as longevity salary increases
for employees in grades up to and including GS-15; so-called true. overtime
rates up to grade GS-9; premium pay of 2Y times the usual rate for holiday
work; premium compensation for irregular overtime, nightwork, and for standby
services; a single incentive awards system; allowances of not to exceed $100 per
annum to employees required to wear uniforms for the acquisition and upkeep
of such uniforms; and repeal of the so-called Whitten amendment (sec. 1310 of
the Supplemental Appropriation Act of 1952, as amended (5 U. S. C. 43 note))
requiring temporary appointments and placing limitations on promotions..
The, Department of Justice is, generally, in accord with the purposes of the
bill. There are certain provisions of the measure, however, which might be
clarified.
In section 202 (c) of the bill (p. 11) relating to compensation for overtime
work, it is suggested that the word "ordered" be inserted before the word "over-
time" in lines 12 and 17 so as to make clear this is not voluntary irregular ' or
occasional overtime.
Section 202 (e) of the bill (pp. 12, 13), authorizing compensation for night and
holiday work, provides that the section shall not operate to modify the provisions
of the act of July 1, 1944, or any other law authorizing additional compensation
for night work. No such exception appears in section 202 (b) of the bill, which
relates to overtime work generally. The payment of extra compensation for
inspectional services by employees of the Immigration and Naturalization Service
of this Department is established by the act of March 2, 1931 (5 U. S. C. 342c and
342d). The existing Federal Employees Pay Act of 1945, as amended, in section
601 (5 U. S. C. 941) contains specific language to the effect that its provisions shall
not operate to prevent payment for overtime services or extra pay in accordance
with the act of March 2, 1931. The latter is not specifically repealed or amended
by the bill now under consideration. It is assumed therefore that the provisions
t l of March 2, 1931. However fortthe~ akeiofeclarity, it compensation, etc.,
of the bill under the ac
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 4 GOVERNMENT EMP O
Approved For Release 2002/07/12 : CIA- P A 0 ''054
-advisable to include specific language in section 202 (b) of the bill to obviate any
=possible conflict between the bill and the terms of the act of March 2, 1931.
Section 402 of the bill (pp. 21, 22), relating to uniform allowances, provides that
not to exceed $100 per annum shall be paid for defraying the expenses of "acquisi-.
tion and upkeep" of such uniforms. As now worded, the allowance for upkeep
could be used only in conjunction with private acquisition of uniforms and would
not cover those cases in which uniforms are furnished at Government expense. In
order to cover all cases requiring upkeep of uniforms it is suggested that the word
"and" in line 5 on page 22 be changed to "or."
The Bureau of the Budget has advised that while there is no objection to the
submission of this report, it invited particular attention to its recommendation
against favorable consideration at this time of title IV of the bill and other pending
proposals like title IV.
Sincerely,
WILLIAM P. ROGERS,
Deputy Attorney General.
UNITED STATES DEPARTMENT OF LABOR,
OFFICE OF THE SECRETARY,
Washington, D. C., February 25, 1954.
Chairman, Post Office andvCivil Service Committee,
United States Senate, Washington 25, D. C.
DEAR
requ requesting my comments on S. 2665, na bill to amend the Classification 2Act 1954,
1949, as amended, and the Federal Employees Pay Act of 1945, as amended, and
for other purposes.
The proposed legislation would augment the pay benefits of employees of the
Federal Government by (1) increasing, from $2,980 per annum to $5,810 per
annum, the maximum rate on which time and one-half the regular hourly rate
of pay for Federal employees for hours worked in excess of their regularly scheduled
hours of employment can be computed; and (2) increasing premium compensation.
for work performed on specified holidays. It would also increase the number of
supergrade positions-GS-16, 17, and 18-from 400 to 700, strengthen the incen-tive fi at ioawnards to program, cde the 1e throustep-increase provisions f the gh GS-15, abolish the-schedule s for
crafts, protective and custodial workers. (transferring some of these employees to
the general schedule but excluding the majority from the application of the
Classification Act and making them subject to wage determinations on a prevailing
rate basis) and repeal section 1310 of the Supplemental Appropriation Act of
1952, the so-called Whitten rider. The proposed amendments are designed to
liberalize existing personnel practices and procedures in order that the benefits of
Federal employees may be made more equitable and the pay structure more nearly
consistent.with practices in private industry.
I am.wholeheartedly in favor of the general objectives of S. 2665 and recognize
the worthwhileness of effecting needed improvements in the civil service laws. However
ieve that the roosal would be in the reports of the Chairman of the Civil Service Commission candthe Dirrector
of the Bureau of the Budget.
I
The Bu the enactment advises 5thatt tthasa no eobjectiontodiscussed
of this report.
submission
Yours very truly,
JAMES P. MITCHELL, Secretary of Labor.
OFFICE OF THE POSTMASTER GENERAL,
Washington 25, D. C., February 24, 1954.
Chairman, Committee on Post Office and Civil Service,
DEAR MR. CHAIRMAN: Reference is made tonited States Senate.
S. 2665, a bill to amend the Classification Act ofo1949, se amended, andt the
Federal Employees Pay Act of 1945, as amended, and for other purposes.
Title I of this bill amends the Classification Act of 1949.
Approved For Release 2002/07/12 : CIA-RDP79=00065A000200020010-6
 GOVW06V@Q (
alb, i 1Tb. TRffP~Y5600igA(90200JL010-6
(1) By converting positions in the crafts, protective, and custodial schedule to
the general schedule under the Classification Act of 1949, and adjusts the rates
of pay of the positions so converted;
(2) Increases from 400 to 700 the number of positions authorized to be placed
in grades GS-16, 17, and 18, and removes the restriction on the number of
positions which may be placed in each of these grades;
(3) Permits the establishment of entrance rates higher than the minimum rate
of the grade for positions in shortage categories; and
(4) Authorizes longevity step increases in grades GS-11 through GS-15.
The Post Office Department supports the enactment of title I of this bill but
wishes to point out that the portion of the title which permits hiring at higher;
than the minimum entrance rates for positions in shortage categories may result
in employee relations problems among those employed at the present rates.
Title II of this bill amends the Federal Employees Pay Act of 1945 by revising
the overtime, night, and holiday pay provisions, and adding new provisions pro-
viding premium pay for standby service and for irregular and unscheduled over-
time duty. The Department is in accord with most of the objectives of this title,
but is opposed to the provision for holiday pay. This provision runs counter to
general practices in industry by providing double time and one-half pay for em-
ployees who are regularly scheduled to work on holidays instead of the usual
double time. The holiday pay provision further would set up an inequity by
paying employees for whom holiday work is not overtime at the same rate as
those for whom the holiday work is also overtime work. The Department also
questions the payment of overtime to employees who, because of the nature of
their positions, can control their own overtime. Many employees in and above
GS grade 9 are in such positions and would become eligible for premium pay for
overtime under the provisions of this title.
Title III of this bill establishes a new "Government Employees Incentive
Awards Act." It consolidates all the laws for all types of awards and places
direction of the governmentwide incentive awards program within the Civil
Service Commission. The Department supports title III of this bill: It- is
assumed that the executive departments of the Government will have maximum
flexibility in administering such programs.
Title IV of this bill proposes a cash allowance of $100 for each employee required,
by law or regulation to wear a uniform in the performance of official duty.. The.'
regulations with respect to this allowance are to be prescribed by the Director of
the Bureau of the Budget. The Post Office Department does not favor this pros
posal at the present time. The overriding consideration in reaching this conclusion
is the cost to the Department. It is estimated that there are about 133,000
employees in the Department who would be affected by this provision. There
have been several estimates of the cost of uniforms, depending upon the regulation
prescribed by the head of the agency, but it is estimated the cost per uniform would
be about $100 per annum. Using this unit-cost estimate the annual cost to the
Post Office Department for all employees required to wear uniforms would be
about $13,300,000.
Title V of this bill would repeal section 1310 of the Supplemental Appropriation
Act, 1952, (Public Law 253, 82d Cong.) as amended. The Post Office Depart-
ment strongly endorses title V of this bill. -
The Whitten amendment has been a materially adverse factor in field' hiring
and in keeping down turnover. In view of the steady but regular growth of; the
Post Office, reflecting the basic growth in the American economy, there is no
reason for the application of such a restriction to this. Department. Relief from
this restriction will'enable the Department to move toward.its objective of regu~
larizing employment and tenure by converting many substitutes and indenfinites
to full-time employment with civil-service status. Such action will make possible
material savings through providing secure employment to thousands of clerks and
carriers, thus reducing turnover and enabling us to increase skills and productivity
through the use of experienced employees. There are approximately 70,000
employees now performing full-time work who in part because of the Whitten
amendment cannot be given regular appointments.
The Bureau of the Budget has advised that there would be no objection to.the
submission of this report to the committee.
C. R. Hoox, Jr.,
Acting Postmaster General.
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved for 4
DEPARTMENT OF STATES,
Washington, February 24, 1954.
Hon. FRANK CARLSON,
Chairman, Committee on Post Office and Civil Service
United States Senate
MY DEAR SENATOR CARLSON: Reference is made to your letter of January 12,
1954, requesting the views and comments of the Department of State on S. 2665,
to amend the Classification Act of 1949, as amended, and the Federal Employees
Pay Act of 1945, as amended, and for other purposes.
The Department endorses all the provisions of S. 2665. It does recommend,
however, that the language be amended in section 202 (a) (p. 11) to clarify the
intent that compensatory time in lieu of payment for overtime work be granted
on a straight hour-for-hour basis.
The Department has been informed by the Bureau of the Budget that, there is
no objection to the submission of this report.
Sincerely yours,
THRUSTON B. MORTON,
Assistant Secretary
(For the Secretary of State).
TREASURY DEPARTMENT,
Washington, D. C., March 5, 1954.
lion. FRANK.CARLSON,
Chairman, Committee on Post Office and Civil Service,
Lnited States Senate, Washington, D. C.
MY DEAR MR. CHAIRMAN: Further reference is made to your letter of January
12, 1954, requesting a statement of this Department's views on S. 2665, to amend
the Classification Act of 1949, as amended, and the Federal Employees Pay Act
of 1945, as amended, and for other purposes.
The proposed legislation would make several important amendments in "both
the Classification Act of 1949 and the Federal Employees Pay Act of 1945.
In general, the Treasury Department endorses the provisions of S. 2665 and it
supports the position of the Civil Service Commission on the bill as set forth in
the letter to your committee from the Chairman of the Civil Service Commission.
There is attached a memorandum which sets forth in detail the Treasury Depart-
ment's comments on S. 2665.
The Department has been advised by the Bureau of the Budget that.thereis no
objection to the submission of this report to your committee.
Very truly' yours,
M. B. FOiSOM,
Acting Secretary of the Treasury.
-MEMORANDUM TO ACCOMPANY. REPORT ON S. 2665
TITLEI
The Treasury Department endorses:
(1) The extension of the prevailing wage rate principle to crafts and related
jobs now under the Classification Act, thereby placing all crafte and related jobs
in one pay category;
(2) The elimination of present restrictions on the number, of: positions which
may be placed in each level of GS-16, 17, and 18-
(3) The increase from 400 to 700 of the number of supergrades authorized by
the Classification Act of 1949;
(4) The extension of longevity increases to employees above GS-10; and
(5) The authorization to the Civil Service Commission to make temporary
adjustments of minimum pay rates to recruit and retain needed personnel.
TITLE II
The Treasury Department endorses:
(1) The payment of overtime compensation, at 1344 times regular. rate, to em-
ployees in all grades up to and including GS-15, providing the maximum over-
time rate for all grades where concerned will be the. maximum rate for GS-9;
(2) The payment of minimum compensation for call-back overtime as 2 hours
pay;
(3) The principle of paying employees in a travel status only for their regularly
scheduled workweek, which may include regularly scheduled overtime; providing,
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved For Relgse 2002/07/12: CIA-RDP79-00065A0
GOVERNMENT EMPLOYEES FRINGE BENEFITS ACT OF 1954 37
they may also be paid for traveling time outside of these regularly scheduled
hours if they are required to perform
done under arduous conditions; work while traveling, or if the traveling is
(4) The principle of granting operating departments authority, within specified
limitations, to determine nightwork hours in light of prevailing conditions at
locations outside the United States;
(5) The payment of minimum compensation for 2 hours pay for any work on a
holiday ; -
(6) The.payment of additional compensation, in lieu of overtime night and
holiday pay, to employees with long tours of standby duty, at rates up to 25
percent of base pay rates not exceeding the maximum rate of GS-9;
(7) The payment for irregular and unscheduled overtime and holiday work of
additional compensation not in excess of 15 percent of rates not exceeding the
maximum rate of GS-9 to employees whose hours are not subject to usual admin-
istrati e control and whose duties require substantial amounts of unscheduled
overtime, night and holiday pay; and
(8) The principle of limiting total pay of Classification Act employees in GS- 15
and below to regular pay plus premium pay not in excess of the maximum rate of
GS-15 and the principle of denying premium pay to employees in GS-16, 17 and
18.
TITLE III
The Treasury Department endorses the payment of incentive awards and be-
lieves that this consolidation of laws, with the improvements and simplifications
added, will help facilitate the awards program.
TITLE V
The Treasury Department endorses the repeal of the so-called Whitten amend-
ment.
EXECUTIVE OFFICE OF THE PRESIDENT,
BUREAU OF THE BUDGET,
Hon. FRANK CARLSON, Washington 25, D. C.; June 4, 1954.
Chairman, Committee on Post Office and Civil Service, . -
United States Senate, Washington 25, D. C.
MY DEAR MR. CHAIRMAN: Reference is made to your request of May 25, 1954,
for the views of this Office with respect to S. 3507, a bill to authorize the Civil
Service Commission to make available group life insurance for civilian officers
and employees in the Federal service, and for other purposes.
This bill would provide each eligible. civilian employee of the legislative, execu-
tive, and judicial branches who desires such protection with an amount of group
life insurance approximating his annual salary but not in any case to exceed
$20,000.. In the event of accidental death'this protection would be doubled, and
in the event of dismemberment, payments would be made in accordance with
schedules to be set up by the Civil Service Commission.: Employees leaving the
Government would be able to convert their life insurance to individual policies
at standard -rates and without medical examination. Employees retiring -on
immediate annuity such as disability after 15 years' service would continue their
full life insurance to age 65 without further cost to them. After age 65 the
insurance amount for each employee and annuitant would be reduced to an ulti=
mate amount equal to 25 percent of the full insurance.
The cost of the insurance would be shared by the Government and the parr
ticipating employees on a payroll deduction basis. The premium per thousand
would be not to exceed a biweekly rate of 25 cents from the employee, and not
to exceed one-half the employee rate from the Government.
The Civil Service Commission is authorized to purchase, without regard to
section 3709 of the Revised Statutes, group life, accidental death, and dis-
memberment insurance from 1 or more life insurance companies licensed in
all 48 States and in the District of Columbia provided. the employee group life
insurance in force in each company is equal to at least 1 percent of the total
employee group life insurance in force in the United States in all life insurance
companies. The Commission is also authorized to arrange for reinsurance in
accordance with a. specified formula. Experience under the policy is to be
reviewed annually and premiums adjusted as necessary.
The Commission is also authorized to arrange for assumption of existing life
insurance agreements with retired or separated members of any nonprofit Federal
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved for Release 2002/07/12: CIA-RDP79-0 5A000200020010-6
38 GOVERNMENT EMPLOYEES FRINGE BENEFITS ACT. OF 1954
employee's association which terminates life insurance agreements with all its
members within 1 year, and transfers appropriate assets to the Government.
It is believed that the provision of employee group life insurance on a voluntary
basis for Federal employees is a desirable move in applying the best practices
of progressive private, employers to the Government service.
The Bureau of the Budget recommends favorable consideration of S. 3507 by
your committee to carry out the President's recommendation of May 19, 1954,
that employee group life insurance be made available to Federal employees.
COMPTROLLER GENERAL OF THE UNITED STATES,
Washington 25, D. C., June 21, 1954.
Hon. FRANK CARLSON,
Chairman, Committee on Post Office and Civil Service,
United States Senate.
DEAR MR. CHAIRMAN: Reference is made to your letter of May 25, 1954,.
acknowledged by telephone May 26, requesting the views and comments of the
General Accounting Office pertaining to S. 3507, 83d Congress, 2d session, entitled
"A bill to authorize the Civil Service Commission to make available group life
insurance for civilian officers and employees in the Federal service, and for other
purposes."
Various suggestions were made by the General Accounting Office to the Bureau
of the Budget on a draft of this bill and representatives of the General Accounting
Office thereafter participated with representatives of that Bureau and other
agencies in revising the draft bill. Most all of the suggestions of this Office were.
adopted in the, preparation of the final draft, with which S. 3507. appears .to' be
identical. It is believed that S. 3507 will carry out the intent of the present.
administration: to provide group life insurance for civilian officers and employees
in the Federal service.
Whether. the Federal Government should make available group life insurance
for its civilian officers and employees is a matter of policy, primarily for deter-
mination by the Congress and one on which _I do not feel required to express a,
view.
Five copies of this report are furnished, as requested.
Sincerely,
FRANK H. WEITZEL,
Acting Comptroller General of the United States.
DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE,
Washington 25, June 10, 1954.
Hon. FRANK CARLSON,
Chairman, , Committee on Post Office and Civil Service,
United States Senate.
DEAR MR. CHAIRMAN: This letter is in response to your request of May 26, 1954,
for a report on. S. 3507, a bill to authorize the Civil Service Commission to make
available group. life insurance for civilian officers, and employees in the. Federal
service, and for other purposes.
This bill is designed to carry out, recommendations made in the President's
message of May 19, 1954, to the Congress proposing a program of `contributory
group life insurance for Federal civilian employees (H. Doe. No. 398, 83d Cong.).
(The bill would include, in addition to regular group-life'insurance, 'group' acci-
dental-death insurance and dismemberment insurance.)
The principle of making group life and group accidental-death and dismember-
ment insurance available to employees, which enables. employees to obtain this.
'type of protection at relatively low cost and, in some cases, when they would not
'be able to obtain individual insurance at all, is one which has been "widely adopted
by private industry. We believe that adoption of this principle- by' the Federal
Government would add a substantial element- in the establishment of a well-
rounded personnel program for the Federal career system, would enhance employee
morale, would tend to reduce excessive employee turnover, and.would have.the,
virtue . of giving employees some survivorship protection during the qualifying
period under the civil service retirement system.
., .Inasmuch as the bill would be administered by the Civil Service Commission,
we have not undertaken to submit in this report a technical' analysis of the bill.
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 G6VEi.,4 4,Pr e_d F SRelas 2002/0ITSIACT OF 19DP7~~O 5A00 00020010-6
F FRINGE
We assume that such an analysis is being submitted by the Civil Service Commis-
sion in its report on the bill and in its testimony.
However, there are two points to which we should like to invite your committee's
attention.
Section 2 (b) of the bill provides that it shall not "apply to commissioned
officers and enlisted personnel on active duty in or with the Army, Navy, Air
Force, Marine Corps, or Coast Guard of the United States, who have indemnity
coverage under the Servicemen's Indemnity Act of 1951 (65 Stat. 33)." How-
ever, the Servicemen's Indemnity Act also provides for coverage under that act
for "commissioned officers of the Public Health Service while entitled to full
military benefits as provided in section 212 (a)" of the Public Health Service Act
(42 U. S. C. 213) and in certain cases also for commissioned officers of the Coast
and Geodetic Survey. While commissioned officers of the Public Health Service,
when on detail to one of the armed services mentioned in the present bill, might be
considered as on active duty "with" one of such services, they can also become
entitled to full military benefits under section 212 of the Public Health Service
Act, and hence to coverage under the Servicemen's Indemnity Act of 1951, with.
respect to service at certain other times. Since the bill does not exclude them, such
officers, when entitled to full military benefits, would thus be authorized protection
under both insurarnce progams. We assume that this was not contemplated. .
Moreover, the Servicemen's Indemnity Act provides, among other things, that
it shall apply to a person called to active duty in one of the Armed Forces for a,
period. exceeding 30 days and shall continue to apply to such a person for a period
of 120 days after his separation or release from active duty. Under this provision,
a civil-s.ervice employee immediately returning to his civil-service position after a
tour of active duty with one of the Armed Forces would have insurance coverage
under both the proposed bill and the Servicemen's. Indemnity Act for a period of
120 days. We assume that this double protection is not contemplated.
If your committee should decide to amend the bill in order to preclude such
overlapments of life-insurance protection, we should be pleased, in cooperatio(i
with the Civil Service Commission and other agencies concerned, to furnish
technical assistance for that purpose if the committee should so desire.
- We wholeheartedly endorse the objectives of the bill, and recommend favorable
consideration of the bill, together with such amendments as may appear desirable
in the light of the above comments.
The Bureau of the Budget advises that it perceives no objection to the submis-
sion of this report to your committee and that it recommends favorable consider-
ation of the bill.
Sincerely yours,
NELSON A. ROCKEFELLER,
Acting Secretary.
OFFICE OF, THE POSTMASTER GENERAL,
Hon. FRANK CARLSON, Washington,. D. C., June 6, 1954.
Chairman, Committee on Post Office and Civil Service,
- ' United Stales Senate.
DEAR MR. CHAIRMAN: Reference is made to your request for a report on S..
3507, a bill to authorize the Civil Service Commission to make available group
life insurance for civilian officers and employees in the Federal service, and for
other purposes. -
The installation of a group-insurance plan in the Federal service will meet a
long-felt need. Private industry for many years has successfully utilized group-
insurance to provide increased security for regular employees and to-improve the
standing of industrial employment in the eyes of prospective applicants. This.
bill and other forward-looking legislation which provide attractive conditions of
employment in the civil service are in the best interests of the Federal Govern-
ment as an employer.
. Generally, the proposed bill adequately covers the administrative requirements
for a successful system of group insurance. It is desired, however, to make specific
comments with reference to certain provisions for purposes of clarification and to
invite attention to.certain points for consideration. For convenience these com-
ments are arranged in the order of the numbered sections of the bill.
Section 2 (a) provides that all officers and employees of the executive, judicial,.
and legislative branches of the Government shall come within the purview of
this act at such time and under such conditions of eligibility as the Civil Service-
Commission may by regulation prescribe. Regulations excluding employees on.
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved or Release 2002/07/12 ClA-RDP79-0Q"fk 5A000200020010-6
40 GOVERNMENT EMPLOYEES FRIN `-`BENEFITS ACT OF 1954
the basis of the nature and type of employment or conditions pertaining thereto
may be made only after consultation with the head of the employing authority
concerned. It is assumed that this exclusion will be applied to temporary em-
ployees such as temporary substitutes who are employed for short periods of
duty and whose post office employment is only incidental to their main source of
income. These employees have been excluded in computing the estimated cost
to this Department which would result from the enactment of this measure.
The proviso in section 2 (a), requiring consultation with the head of the
-employing agency before the promulgation of regulations excluding employees, is
regarded by this Department as a worthwhile provision to assure that employees
engaged in the same duties as other employees covered, on a regular tour of duty,
and otherwise eligible under the provisions of the act, will not be excluded solely
because of the civil-service authority under which they were appointed. This
proviso will also be the means for the establishment of the practice, already in
wide use in private industry, of having employees acquire eligibility for group
insurance only after the completion of a reasonable minimum period of satisfactory
service. Each of the foregoing features is considered to be important, respectively,
as a factor in maintaining good employee morale, and as a means of avoiding
excessive administrative costs.
Section 5 (a) provides that there shall be withheld from each salary payment
the employee's share of the cost of his insurance at a rate not to exceed 25 cents
biweekly for each $1,000 of his group life insurance. In the absence of adminis-
trative procedure for making these collections, it is difficult to estimate the cost.
However, it is believed that postal expenditures will be increased at least $100,000
'annually to comply with' this section.
Section 5 (b) of this measure provides that there shall be contributed from the
appropriation which is used for payment of his salary a sum not to exceed one-half
of the amount withheld from the employee under this section. Based on the
assumption that 75 percent of eligible postal employees would participate in the
group-insurance plan at the maximum amount for which they would be eligible
under the schedule in section 3 (a), and that the maximum rate of 12'/a cents per
thousand be determined by the Commission, it is estimated that the annual
increase ; in postal expenditures under this provision would amount to approxi-
mately $5,700,000.
The favorable low rate to the employee and the provisions for continuing the
insurance after retirement from the Federal service make the proposed plan very
attractive and should result in maximum participation. The added cost to this
Department would be a proper charge to postal expenditures. As suggested
hereinbefore, the results of the inauguration of the insurance plan provided for
in this proposal would be beneficial both to the employees and to the Federal
Government.
This Department has no objection.to,the enactment of this bill.
The Bureau of the Budget has advised that there would be no objection to the
submission of this report to the committee.
Sincerely yours,
CHARLES R. HOOK, Jr.,
Deputy Postmaster General.
DEPARTMENT OF THE TREASURY,
Washington, June 8, 1954.
Hon FRANK CARLSON,
Chairman, Committee on Post Office and Civil Service,
United States Senate, Washington, D. C.
DEAR MR. CHAIRMAN: Reference is made to -your letter of May 25 requesting.
our views on S. 3507, a bill to authorize the Civil Service Commission to make
available group life insurance for civilian officers and employees in the Federal
service, and for other purposes.
The Treasury Department favors enactment of the proposed legislation to carry
out the plan, recommended by the President. in his :message of. -May-. ! 19, 1954.
Very truly yours,'
M. B. FOLSOM,
Acting Secretary of the Treasury.
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 GoVEI r &TVW e '? 012V SqA-RDP 00bt5A00200 20010-6
CHANGES IN EXISTING LAW
In compliance with subsection (4) of rule XXIX of the Standing
Rules of the Senate, changes in existing law made by the bill (joint
resolution) as reported, are shown as follows (existing law proposed
to be omitted is enclosed in black. brackets, newmatter is printed in
italics,.: existing lav,- in which no change is proposed is shown. in roman):
CLASSIFICATLDN_ ACT OF 1949, AS AMENDED
TITLE II-COVERAGE AND EXEMPTIONS
SEC. 202. This Act (except title XII) shall not apply to-
* * * * * *
(7) employees in recognized trades or crafts, or-other skilled mechanical
crafts, or in unskilled, semiskilled, or skilled manual-labor [occupations;,
(except such employees in positions to which the Classification Act of 1923;
as amended, now applies, the duties of which involve the maintenance and
operation of public buildings and associated equipment. or the performance
of work in. scientific or engineering laboratories, as aides to scientists or engi-
neers)] occupations, and other employees including foremen and, supervisors in.,
positions having trade, craft, or laboring experience. and knowledge as the para-
mount requirement, and employees in the Bureau of Engraving and Printing
the duties of whom are to perform or to direct manual or machine operations.
requiring special skill or experience, or to perform or direct the counting, .
examining, sorting, or other verification of the product of manual or machine .
[operations, whose compensation] operations: Provided, That the compensa-
tion of such employees shall be fixed and adjusted from time to time as nearly
as is consistent with the public interest in accordance with prevailing rates;
Provided further, That whenever the Civil Service Commission concurs in the
opinion of the employing agency that in any given area the number of such em- .
ployees is so few as to make prevailing rate determinations impracticable, such
employee or employees shall be subject to the provisions of the Classification Act
of 1949, as amended, which are applicable to positions of equivalent difficulty or
responsibility;
* * * * * * *
(c) [Sections 202 and] Section 202 (except paragraph 7 thereof) and section 203 .
shall not apply to the Office of the Architect of the Capitol.
[SEC. 505: (a) No position shall be placed in Grade 16 or 17 of the General ,
Schedule except by action of, or after prior approval by the Commission. At
any one time there shall not be more than three hundred positions in Grade 16'
of the General Schedule and not more than seventy-five positions in Grade 17 of
the General Schedule.
[(b) No position shall be placed in or removed from Grade 18 of the General
Schedule except by the President upon recommendation of the Commission,
There "shall not.be.more than twenty-five positions in such grade at any one time.]
.SEC. 505. (a) Ne position, shall. be placed in grade 16 or 17 of the General Schedule
except by action of, or after prior approval by, the Commission.
(b) No position shall be placed in or removed from grade 18 of the General Schedule
except by the President upon recommendation of the Commission.
(c) At any one time there shall not be more than four hundred positions in grade 16.
of the General Schedule, not more than one hundred and fifteen positions in grade 17
of the ( eneral Schedule, and not more than thirty- fi.,e positions in grade 18 of the ..
General Schedule.
(d) Positions that may be established tinder the proviso'of section 203 (b) (1) of
the Act of August 2, 1946 (60 Stat. 836), may be in addition to those authorize..i by
the foregoing provisions of this section. ' '
* * * * * * *
of
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approve
TITLE VI-BASIC COMPENSATION SCHEDULES
[SEC. 601. There are hereby established the following basic compensation
schedules for positions to which this Act applies.
[(1) A "General Schedule", the symbol for which shall be "GS", in lieu
of the professional and scientific service, the clerical, administrative, and
fiscal service, and the subprofessional service specified in section 13 of the
Classification Act of 1923, as amended; and
[(2) A "Crafts, Protective, and Custodial Schedule", the symbol for
which shall be "CPC", in lieu of the crafts, protective, and custodial service
specified in such section.]
SEC. 601. There is hereby established for positions to which this Act applies a
basic compensation. schedule to be known as the "General Schedule", the symbol for
which shall be "GS".
SEC. 602. [(a)] The General Schedule shall be divided into eighteen grades of
difficulty and responsibility of work, as follows:
GENERAL SCHEDULE
Grade GS-1 includes all. classes of positions the duties of which are to perform,
under immediate supervision, with little or no latitude for the exercise of inde-
pendent judgment, (1) the simplest routine work in office, business, or fiscal opera-
tions, or (2) elementary work of a subordinate technical character in a professional,
scientific, or technical field.
Grade GS-2 includes all classes of positions the duties of which are (1) to
perform,. under. immediate supervision,, with,. limited latitude for the exercise of
independent judgment; routine. work in office, business, or fiscal operations, or
comparable subordinate technical work of limited scope in a professional, scientific,
or technical field, requiring some training or experience; or (2) to perform other
work of equal importance, difficulty, and responsibility, and requiring comparable
qualifications.
Grade GS-3 includes all classes of positions the duties of which are (1) to per-
form, under immediate or general supervision, somewhat difficult and responsible
work in office, business, or fiscal operations, or comparable subordinate technical
work of limited scope in a professional, scientific, or technical field, requiring in
either case (A) some training or experience, (B) working knowledge of a special
subject matter, or (C) to some extent the exercise of independent judgment in
accordance with well-established policies, procedures, and techniques; or (2) to
perform other work of equal importance, difficulty, and responsibility, and
requiring comparable qualifications.
Grade GS-4 includes all classes of positions the duties of which are (1) to per-
form, under immediate or general supervision, moderately difficult and responsible
work in office, business, or fiscal operations, or comparable subordinate technical
work in a professional, scientific, or technical field, requiring in either case (A) a
moderate amount of training and minor supervisory or other experience, (B). good
working knowledge of a special subject matter or a limited field of office, labora-
tory, engineering, scientific, or other procedure and practice, and (C) the exercise
of independent judgment in accordance with well-established policies, procedures,
and techniques; or (2) to perform other work of equal importance, difficulty, and
responsibility, and requiring comparable qualifications.
Grade GS-5, includes all classes of positions the duties of which are (1) to
perform, under general supervision, difficult and responsible work in office,
business, or fiscal administration, or comparable subordinate technical work in
a professional, scientific, or technical field, requiring in either case, (A), considerable
training and supervisory or other experience,. (B) broad working knowledge of a
special subject matter or of office, laboratory, engineering, scientific, or other
procedure and practice, and (C) the exercise of independent judgment in a limited
field; (2) to perform, under immediate supervision, and with little opportunity
for the exercise of independent judgment, simple and elementary work requiring
professional, scientific, or technical training equivalent to that represented by
graduation from a college or university of recognized standing but requiring little
or no experience; or (3) to perform other work of equal importance, difficulty, and
responsibility, and requiring comparable qualifications.
Grade GS-6 includes all classes of positions the duties of which are (1) to
perform, under general supervision, difficult and responsible work in office,
business, or fiscal administration, or comparable subordinate technical work in a
professional, scientific, or technical field, requiring in either case (A) considerable
training and supervisory or other experience, (B) broad working knowledge of a
Approved For Release 2002/07/12 : CIA-RDP79-00065A000200020010-6
 GOV YtTd fM sW12 21 t21'fCWAROP78 0099A0 0002#10-6
special and complex subject matter, procedure, or practice, or of the principles of
the profession, art, or science involved, and (C) to a considerable extent the
exercise of independent judgment; or (2) to perform other work of equal impor=
tance, difficulty, and responsibility, and requiring comparable qualifications.
Grade GS-7 includes all classes of positions the duties of which are (1) to per-
form, under general supervision, work of considerable difficulty and responsibility
along special technical or supervisory lines in office, business, or fiscal adminis-
tration, or comparable subordinate technical work in a professional; scientific,
or technical field, requiring in either case (A) considerable specialized orsuper-
visory training and experience, (B) comprehensive working knowledge of a special
and complex subject matter, procedure, or practice, or of the principles' of the
profession, art, or science involved, and (C) to a considerable extent the exercise
of independent judgment; (2) under immediate or general supervision; to perform
somewhat difficult work requiring (A) professional, scientific, or technical training
equivalent to that represented by graduation from a college or university of
recognized standing, (B) previous experience, and (C) to a limited. extent, the
exercise of independent technical judgment; or (3) to perform other work of
equal importance, difficulty, and responsibility, and requiring comparable.-
qualifications.
Grade GS-8 includes all classes of positions the duties of which are (1) to per
form, under general supervision, very difficult and responsible work along special
technical or supervisory lines in office, business, or fiscal administration, requiring
(A) considerable specialized or supervisory training and experience, (B) compre-
hensive and thorough working knowledge of a specialized and complex subject
matter, procedure, or practice, or of The principles of The profession, art, or science
involved, and (C) to a considerable extent the exercise of independent judgment;:
or (2) to perform other work of equal importance, 'difficulty, and responsibility,
and requiring comparable qualifications.
Grade GS-9 includes all classes of positions the duties of which are (1) to'
perform, under general supervision, very difficult and responsible work along
special technical, supervisory, or administrative lines in office, business, or fiscal
administration, requiring (A) somewhat extended specialized training and consid
erable specialized, supervisory, or administrative experience which has demon-
strated capacity for sound independent work, (B) thorough and 'fundamental.
knowledge of a special and complex subject matter, or of the profession, art, or
science involved, and (C) considerable latitude for the exercise of independent
judgment; (2) with considerable latitude for the exercise of independent judgment,
to perform moderately difficult and responsible work, requiring (A) professional,:
scientific, or technical training equivalent to that represented by graduation from
a college ?.or? university of recognized standing; and (B) considerable -additional
professional, scientific, or technical training or experience which has demonstrated
capacity for sound independent work; or (3) to perform other work of equal im-
portance, difficulty, and responsibility, and requiring comparable qualifications.
Grade GS-10 includes all classes of positions the duties of which are (1) to'.
perform, under general supervision, highly difficult and responsible work along-.
special technical; supervisory, or administrative lines in office, business, or fiscal:
administration,, requiring (A) somewhat extended specialized, supervisory, or:-
administrative training and experience which has demonstrated capacity for sound.
independent work, (B) thorough and fundamental knowledge of a specialized and
complex subject matter, or of the profession, art, or science involved, and (C)'
considerable latitude for the exercise of independent judgment; or (2) to perform
other work of equal importance, difficulty, and responsibility, and requiring,
perform, under general administrative supervision and with wide latitude for
the exercise of independent judgment, work of marked difficulty and responsi-
bility along special technical, supervisory, or administrative lines in office, busi-
ness, or fiscal administration, requiring (A) extended specialized, supervisory,
or administrative training and experience which has demonstrated important
attainments and marked capacity for sound independent action or decision, and
(B) intimate grasp of a specialized and complex subject matter, or of the pro-
fession, art, or science involved, or of administrative work of marked difficulty;
(2) with wide latitude for the exercise of independent judgment, to perform.
responsible work of considerable difficulty requiring somewhat extended pro-
fessional, scientific, or technical training and experience which has demonstrated
important attainments and marked capacity for independent work: or (3) --to
perform other work of equal importance, difficulty, and responsibility, and-
requiring comparable qualifications.
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved
l r Re4gas%AMQXM2 i;1C>AeRR7
. Grade GS-12 includes all classes of positions the duties of which are (1) to.
perform, under, general administrative supervision, with wide latitude for the
exercise of independent judgment, work of a very high order of difficulty, and.
responsibility along special technical, supervisory, or administrative lines inj
office, business, or fiscal administration, requiring (A) extended specialized,
supervisory, or administrative training and experience which has demonstrated
leadership and attainments of a high order in specialized or,administrative work,
and (B) intimate grasp of a specialized and complex subject matter or of the
profession, art, or science, involved; (2) under general administrative supervision,
and with wide latitude for the exercise of . independent judgment, to. perform
professional, scie- tific, or technical work of marked. difficulty and responsibility
requiring extended professional, scientific, or technical training and experience
which has demonstrated leadership and attainments of a high order in profes-
sional, scientific, or technical research, practice, or administration; or (3) to:
perform other work of equal importance, difficulty, and responsibility, and.,
requiring comparable qualifications.
Grade GS-13 includes all classes of positions the duties of which are (1) to per-,
form, under administrative direction, with wide latitude for the exercise of inde-
pendent judgment, work of unusual difficulty and responsibility along, special
technical, supervisory, or administrative lines, requiring extended specialized,
supervisory, or administrative training and experience which has demonstrated'
leadership and marked attainments; (2) to serve as assistant head of a major
organization involving work of comparable level within a bureau; (3) to perform,.
under administrative direction, with wide latitude for the exercise of independent,
judgment, work of unusual difficulty and responsibility requiring extended pro-
fessional, scientific, or technical training and experience which has demonstrated.,
leadership and marked attaiziments,in professional, scientific, or technical research,.
practice, or administration; or (4) to perform other work. of equal importance,
difficulty, and responsibility, and requiring comparable qualifications.
Grade GS-14 includes all classes of positions the duties of which are (1) to per-
form, under general administrative direction, with wide latitude for the exercise
of independent judgment, work of exceptional difficulty and responsibility along.
special technical, supervisory, or administrative lines which has c'.enonstrrted
leadership and unusual attainments; (2) to serve as head of a major organization.,
within a bureau involving work of comparable level; (3) to plan and direct or to
plan and execute major professional, scientific, technical, administrative, fiscal,
or other specialized programs, requiring extended training and experience which
has demonstrated leadership and unusual attainments in professional, scientific,.
or technical research, practice, or administration, or in administrative, fiscal, or..
other specialized activities; or (4) to perform consulting or other professional,
scientific, technical, administrative, fiscal, or other specialized work _ of equal
importance difficulty, and responsibility, and requiring comparable qualifications-
Grade G4-15 includes all classes of positions the duties of which are (1) to per--
form, under general administrative direction, with very wide latitude for the
exercise of independent judgment, work of outstanding difficulty and responsibility
along special technical, supervisory, or administrative lines which has demon-
strated leadership and exceptional attainments; (2), to serve as head of a major
organization within a bureau involving work of comparable level;. (3) to plan and
direct or to plan and execute specialized programs of marked difficulty, responsi-
bility, and national significance, along professional, scientific, technical, adminis-
trative , fiscal, or other lines, requiring extended training and experience which has
demonstrated leadership and unusual attainments in professional, scientific, or
technical research, practice, or administration, or in administrative, fiscal, or
other specialized activities; or (4) to perform consulting or other professional,
scientific, technical, administrative, fiscal, or other specialized work of equal im-
portance; difficulty, and responsibility, and requiring comparable qualifications.
Grade GS-1'6 includes all classes of positions the duties of which are (1) to
perform, under general administrative direction, with unusual latitude for the
exercise of independent judgment, work of outstanding difficulty and responsi-
nility along special technical, supervisory, or administrative lines which has
demonstrated leadership and exceptional attainments; (2) to serve as the head of
a major organization invclving work of comparable level; (3) to plan and direct
or to plan and execute professional, scientific, technical, administrative, fiscal, or
other specialized programs of unusual difficulty, responsibility, and national sig-
nificance, requiring extended training and experience which has demonstrated
leadership and exceptional attainments in professional, scientific,. or technical
research, practice, or administration, or in administrative, fiscal, or other special-
ized activities; or (4) to perform consulting or. other professional, scientific, tech--
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 to
he
nd
in.
ed,
red
rk,
the
on,
rm
ity
Ice
es-
to:
nd.
,er-
Je-.,
:ial
ed,
ted'
or
zn,
:nt.
ro-
ted..
ch,.
ce,.
'er-
;ise-
Ing
ted
ion
to..
'al,
ch
ac'.
or
tal,
ual
~ns_
,er-
the
ity
on-.
.jor
nd
si-
Iis-
haa
or
or
ial,
m-
as.
to
he
si-
aas.
of
ect
or
d
W.
ial-
ch--
Approved For Releas
G ERNMENT EMPLOYE
e6~0
02/07/12 : CIA-RDP79-00065A(Q02p2001
FRINGE BENEFITS ACT OF 1954
nical,administrative, fiscal, or other specialized work of equal importance, diffi--
culty, and responsibility, and requiring comparable qualifications.
Grade GS-17 includes all classes of positions the duties of which are (1) to serve-
as the head of a bureau where the position, considering the kind and extent of-
the authorities and responsibilities vested in it, and the scope, complexity, and'
degree of difficulty of the activities carried on, is of a high order among the whole-
group of positions of heads of bureaus; (2) to plan and direct or to plan and execute
professional, scientific, technical, administrative, fiscal, or other specialized pro-
grams of exceptional difficulty, responsibility, and national significance, requiring;
extended training and experience which has demonstrated exceptional leadership,
and attainments in professional, scientific, or technical research, practice, or
administration, or in administrative, fiscal, or other specialized activities; or (3)
to perform consulting or other professional, scientific, technical, administrative,
fiscal, or other specialized work of equal importance, difficulty, and responsibility,
and requiring comparable qualifications.
. Grade GS-18 includes all classes of positions the duties of which are (1) to serve
as the head of a bureau where the position, considering the kind and extent of
the authorities and responsibilities vested in it, and the scope, complexity, and,
degree of difficulty of the activities carried on, is exceptional and outstanding
among the whole group of positions of heads of bureaus; (2) to plan and direct.
or to plan and execute frontier or unprecedented professional, scientific, technical,.
administrative, fiscal, or other specialized programs of outstanding difficulty,
responsibility, and national significance, requiring extended training and experi-
ence which has demonstrated outstanding leadership and attainments in pro-
fessional, scientific, or technical research, practice, or administration, or in
administrative, fiscal, or other specialized activities; or (3) to perform consulting
or other professional, scientific, technical, administrative, fiscal, or other special-
ized work of equal importance, difficulty, and responsibility, and requiring
comparable qualifications.
. [(b) The Crafts, Protective, and Custodial Schedule shall be divided into.
ten grades of difficulty and responsibility of work, as follows:
[CRAFTS, PROTECTIVE, AND CUSTODIAL SCHEDULE
[Grade. CPC-1 includes all classes of positions the duties of which are to.run
errands, to check parcels, or to perform other light manual tasks with little or no
responsibility.
[Grade CPC-2 includes all classes of positions the duties of which are to handle
desks, mail sacks, and other heavy objects, and to perform similar work ordinarily
required of unskilled laborers; to pass coal; to clean office rooms; to perform regular
messenger work with little responsibility; or to perform other work of equal,
difficulty and responsibility and requiring comparable qualifications.
[Grade CPC-3 includes all classes of positions the duties of which are to per-
form, under immediate supervision, custodial, or office labor work with some,
degree of, responsibility; to operate paper-cutting,. canceling, envelope-opening, or
envelope-sealing machines; to fire and keep up steam in low-pressure boilers used
for heating purposes, and to clean boilers and oil machinery and related apparatus;
to operate passenger automobiles or light-duty trucks; to pack goods for shipment;
to work as leader of a group of charwomen; to perform messenger work and de
light manual or office-labor tasks with some responsibility; to carry important
documents from one office to another, or attend the door and private office of a.
public officer; or to perform other work of equal difficulty and responsibility and.
requiring comparable qualifications.
[Grade CPC-4 includes all classes of positions the duties of which are to per-
form, under general supervision, custodial work of a responsible character; to,
guard office or storage buildings; to supervise and direct a force of unskilled
laborers;. to fire and to keep up steam in high-pressure boilers and to operate other
equipment used in connection with such boilers; to perform general, semimechan-
ical, new; or repair work requiring some skill with hand tools; to work as craft or
trade helper; to operate heavy-duty trucks, semitrailers, or tractor trailers; to.
operate a passenger automobile for a department head or officer of comparable
rank; to attend the door of a private office of a department head or of ljter of com-
parable rank;. or to perform other work of equal difficulty and responsibility and
requiring comparable qualifications.
[Grade CPC-5 includes all classes of positions the duties of which are to guard
property of .great value while in transit; to supervise the operation and mainte-
nance of a low-capacity heating plant and its auxiliary equipment; or to perform.
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved (or R%Wass 2002/07/12 : CIA-RDP79-0 5A000200020010-6
OVERNMENT EMPLOYEES FRIN f' BENEFITS ACT OF 1954
other work of equal difficulty and responsibility and requiring comparable quali-
fications.
[Grade CPC-6 includes all classes of positions the duties of which are to have
immediate direction of a detachment of building guards; to perform the work of a
skilled mechanic; to repair office appliances; or to perform other work of equal
difficulty and responsibility and requiring comparable qualifications.
[Grade CPC-7 includes all classes of positions the duties of which are to assist
in the general supervision of a force of building guards; to work as leader of a
group of skilled mechanics; or to perform other work of equal difficulty and
responsibility and requiring comparable qualifications.
[Grade CPC-8 includes all classes of positions the duties of which are to have
general supervision over a force of building guards; to supervise the operation of
a mechanical shop; to direct skilled mechanics and other employees engaged in
the operation and maintenance of equipment providing heating, ventilating, air
conditioning, power, and sanitation in one or more public buildings; or to perform
other work of equal difficulty and responsibility and requiring comparable quali-
fications.
[Grade CPC-9 includes all classes of positions the duties of which are to direct
supervisory and office assistants, mechanics, guards, elevator operators, laborers,
janitors, and other employees engaged in the custody, maintenance, and protection
of a public building; or to assist in the direction of such employees when engaged
in similar duties in a group of buildings; or to perform other work of equal difficulty
and responsibility and requiring comparable qualifications.
[Grade CPC-10 includes all classes of positions the duties of which are to
direct supervisory and office assistants, mechanics, guards, elevator operators,
laborers, janitors, and other employees engaged in the custody, maintenance,
and protection of a group of public buildings; or to perform other work of equal
difficulty and responsibility and requiring comparable qualifications.]
SEc. 603. [(a) Except as provided in subsection (c) (2), the rates of basic
compensation with respect to officers, employees, and positions to which this
Act applies shall be in accordance with the schedules of per annum rates., contained
in subsections (b) and (c) (1).] (a) The rates of basic compensation with-respect to
officers, employees, and positions to which this Act applies shall be in accordance with
the comvensation schedule contained in subsection (b).
(b) The compensation schedule for the General Schedule shall be as follows:
Grade
Per annum rates
05-1-------------------------------
08-2
$2,500
$2,580
$%660
$2,-740 $2,820
$2,900
$2
980
-------------------------------
08-3
2,750
2,830
2,910
2,990 3,070
3
150
,
3
230
-----------------------
GS-4
2,950
3,030
3,110
3,190 3,270
,
3,350
,
3
430
-------------------------------
OS-5
3,175
3,255
3,335
3,415 3,495
3,575
3
655
:
-------------------------------
G
3,410
3,535
3,660
3,785 3
910
4
035
,
4
160
SA -------------------------------
08-7
3,795
3,920
4,045
,
4,170 4,295
,
4
420
,
4
545
------------------------------
08-8
4,205
4,330
4,455
4,590 4,705
,
4
830
,
.4955
-------------------------------
Os-9
4,620
4,745
4,870
4,995. 5,120
,
5
245
5
370
-------------------------------
GS-10
5,060
5,185
5,310
5,435 5,560
,
5
685
,
5
810
------------------------------
05
11
5,500
5,625
5,750
5,875 .6
000
,
6
125
,
6
250
-
------------------------------
GS
5,940
6,140
6,340
,
6, 540 6
740
,
6
940
,
-12------------------------------
GS
7,010
7,240
7,440
,
7,640 7
840
,
8
040
-13------------------------------
0S
4
8,360
8,560
8,760
,
8,960 9
160
,
9
360
-1
------------------------------
0S
15
9,600
9,800
10,000
,
10,200
10
400
,
10
600
-
------------------------------
G
10,800
11,050
11,300
,
,
11,550 11
800
,
S-16------------------------------
0
12,000
12,200
12,400
,
12,600 - .12
800
S-17------------------------------
13,000
13,200
13,400
,
13
600 13
800
0S-18------------------------------
14,800
,
,
[(c) (1) The compensation schedule for the-Crafts, Protective, and Custodial
Schedule shall be as follows:
[Grade
Per annum rates
CPC-1 -----------------------------
CPC-2
$1,810
$1,870
$1,930
$1,990
$2,050
$2,110
$2
170
-----------------------------
CPC-3
2,420
2,490
2,560
2,630
2,700
2
770
,
2
840
------------------------
CPC-4
2,552
'
2,632
2,712
2,792
2
872
,
2
952
,
3
032
-----------------------------
CPC-5
2,750
2, 830
2,910
2,990
1
3,070
,
3
150
,
3
230
-----------------------------
CPC-6
2,974
3, 0.54
3,134
3,214
3,294
,
3, 374
,
3
454
-----------------------------
CPC-7
3,200
3,230
3,360
3,440
3,520
3,600
,
3
680
-----------------------------
CPC-8
3,435
3,535
3,635
3,735
3,835
3,935
,
4
035
------ -----------------------
CPC-9
3,740
3,865
3,990 ?
4,115
4,240
4,365
,
4
490
- -------------------------- -
CPC-10
4,150
4,275
4,400
4,525
4
650
4 775
,
4
900
----------------------------
4,565
4,690
4,815
4
940
,
5
065
5
190 `
.
,
,
,
,
5,315
[(2) Charwomen working part time shall be paid at the rate of $2
700 per
,
annum, and head charwomen working part time at the rate of $2,840 per annum.
Wh
enever
daily,
, o
thly
,
biweekl
y
r
mon
ate
such rate shall be computed
the app opr ate
l
annua
rate specified in subsection (b) or (c) by the method prescribed in s3etion
60
4 (d) of the Federal Employees Pay Act of 1945.]
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 GflVERNMpIrroved FOY e&s& BE/07/12 :ACTAOFDP59-0%(}65*b0200120010-6
EMPL
(c) Whenever payment is made on the basis of a daily, hourly, weekly, biweekly,
or monthly rate, such rate shall be computed from the appropriate annual rate specified
in subsection (b) by the method prescribed in section 604 (d) of the Federal Employees
Pay Act of 1945, as amended.
. [SEC. 604. (a) For the purpose of making initial adjustments to the classifica-
tion grades provided in this Act, positions which are required to be compensated
in accordance with this Act and which were immediately prior to the effective
date of this title in the professional and scientific service, the subprofessional
service, the clerical, administrative, and fiscal service, or the crafts, protective,
and custodial service of the Classification Act of 1923, as amended, are hereby
allocated to corresponding grades of the General Schedule or the Crafts, Protective,
snd Custodial Schedule as set forth below:
Service and grade of the Classification Act of 1923,
as amended
Corresponding new
grade
Profes-
sional and
Subpro-
Clerical,
adminis-
Crafts, pro-
tective
and
General
scientific
fessional
trative,
,
custodial
schedule
service
service
and fiscal
service
service
------------
1
------------
------------
GS-1
------------
2
------------
CS-1
------------
3
2
------------
GS-2
------------
4
3
------------
GS-3
5
4
------------
GS-4
6
5
------------
GS-5
----------
7
6
------------
GS-6
. 2
8
7
------------
CS-7
------------
8
------------
CS-8
------------
9
------------
CS-9
------------
10
------------
GS-10
------------
11
------------
GS-11
5
------------
12
------------
G5-12
6
------------
13
------------
GS-13
7
14
------------
GS-14
8
------------
15
------------
G5-15
------------
------------
------------
1
------------
------------
------------
2
------------
------------
------------
3
------------
------------
4
------------
------------
------------
------------
5
------------
------------
------------
------------
6
------------
------------
------------
------------
7
------------
------------
------------
------------
8
------------
------------
------------
------------
9
------------
------------
------------
------------
------------
------------
------------
------------
------------
------------
------------
------------
------------
------------
------------
------------
------------
------------
CPC-i
CPC-2
CPC-3
CPC-4
CPO-5
CPC-6
CPC-7
CPC-8
CPC-9
CPC-10
[(b) The rates of basic compensation of officers and employees to whom this
Act applies shall be initially adjusted as follows:
[(1) In all cases where the number of pay rates within a grade specified
in this Act is the same as in the corresponding grade of the Classification Act
of 1923, as amended, employees shall have the same relative pay rate of,the
new. grade, except as provided in paragraphs (2), (3), and (11) of this sub-
section.
[(2) Employees in grade 1 of the subprofessional service immediately prior
to the effective date of this title, at the first, second, third, fourth, fifth, sixth,
and seventh rate shall have the first, first, second, third, fourth, fifth, and sixth
rate, respectively, of grade 1 of the General Schedule.
[(3) Employees in grade 2 of the subprofessional service immediately prior
to the effective date of this title, at the first, second, third, fourth, fifth,
sixth, and seventh rate shall have the second, third, fourth, fifth, sixth,
seventh, and seventh rate, respectively, of grade 1 of the General Schedule.
[(4) Employees in grade 1 of the crafts, protective, and custodial service
immediately prior to the effective date of this title,. at the first, second, third,
fourth, and fifth rate shall have the first, third, fourth, sixth, and seventh
rate, respectively, of grade 1 of the Crafts, Protective, and Custodial Schedule.
[(5). Employees; in grades 2 and 3 of the crafts, protective, and custodial
service immediately prior to the effective date of this title, shall have the
same relative pay rate of the first six rates of grades 2 and 3, respectively,
.of the Crafts, Protective, and Custodial Schedule.
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved
Fbr ReIases20DVMt2 YQ4,JQ M95AQQAWQO. 19-?954
[(6) Employees in grade 4 of the professional and scientific service and
grade 11 of the clerical, administrative, and fiscal service immediately prior
to the effective date of'this title, at the first, second, third, fourth, and fifth.
rate shall have the first, second, third, fourth, and sixth rate, respectively,,
of grade 11 of the General, Schedule.
[(7) Employees in grade 5 of the professional and scientific service and
grade 12 of the clerical, administrative, and fiscal service immediately prior
to the effective date of this title, at the first, second, third, fourth, and fifth
rate shall ha-?e the first, second, third, fourth, and fifth rate, respectively, of"
grade 12 of the General Schedule.
[(8) Employees in grade 6 of the professional and scientific service and
grade 13 of the clerical, administrative, and fiscal service immediately. prior
to the effective date of this title, at the first, second, third, fourth, and fifth
rate shall have the first, second, third, fourth, and fifth rate, respectively, of-
grade 13 of the General Schedule.
[(9) Employees in grade 7 of the professional and scientific service and
grade 14 of the clerical, administrative, and fiscal service immediately prior
to the effective date of this title, at the first, second, third, fourth, and fifth
rate shall have the first, second, third, fifth, and sixth rate, respectively, of-
grade 14 of the General Schedule.
[(10) Employees in grade 8 of the professional and scientific service and
grade 15 of the clerical, administrative, and fiscal service immediately prior
to the effective date of this title, at the first and second rate of the grade shall.
have the third rate of grade 15 of the General Schedule.
[(11) Employees receiving a rate of basic compensation, authorized by
law, immediately prior to the effective date of this title, in excess of the-
appropriate new rate of the grade as determined under paragraphs (1) to.
(10), inclusive, may continue to receive such rate so long as they remain in
the same position and grade, but when any such position becomes vacant,.
the rate of basic compensation of any subsequent appointee shall be fixed in,
accordance with this Act.]
SEc. 604. Employees receiving basic compensation at a rate authorized by law,.
immediately prior to the effective date of this title, in excess of the appropriate new rate-
of the grade as determined unde.r.paragraphs (1) to (10), inclusive, of section 604 (b)
of this act, as in effect prior to the date of enactment of this amended section, may con-
tinue to receive such rate so long as they remain in the same position and grade. but`
when any such position becomes vacant, the rate of basic compensation of any subse--
quent appointee shall be fixed in accordance with this act.
*
[SEc. 702. (a) Within the limit of available appropriations and in accordance-
with standards promulgated by the Commission, each department is authorized,
subject to prior approval by the Commission (except as provided in subsection (b)),
to make additional step-increases as a reward for superior accomplishment, but no
officer or employee shall be eligible for more than one such additional step-increase-
within each of the time periods specified in section 701.
[(b) The Commission is authorized to delegate to any department the authority
to make the additional step-increases provided for in this section, without prior
approval in individual cases by the Commission. The Commission may with-
draw or suspend such authority whenever review of such actions by the Com-
mission indicates that standards promulgated by the Commission have not been
observed, and may restore such authority whenever it is satisfied that subsequent,
actions will be taken in conformance with such standards. '
[(c) Each department shall report to the Commission all actions taken under
this section, together with the reasons therefor. The Commission shall submit
an annual report to Congress covering the numbers and types of actions taken
under this section.]
SEc. 703. (a) Subject to subsection (b), and as a reward for long and faithful
service, each department shall grant an additional step-increase (to be known as.
a longevity step-increase) beyond the maximum scheduled rate of the grade in
which his position is placed, to each officer or employee for each three years of
continuous service completed by him at such maximum rate or at a rate in excess,
thereof authorized by this section without [change of] increase in grade or rate
of basic compensation except such [change] increase as may be prescribed by any
provision of law of general application. Officers and employees who are otherwise-
eligible shall receive full credit under this subsection for service at the maximum
authorized salary rate specified in the Bacharach Act of May 29, 1928, as amended
and supplemented, and the Reed-Jenkins Act of May 29, 1928, as amended, to.
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved F Release 2002/07/12: CIA-RDP79-0 A001200020010-6
GOVERNMENT EMPLOYE FRINGE BENEFITS ACT OF 1954 49
the same extent as if such service had been at the maximum rate of a grade of the
-Classification Act of 1923, as amended.
(b) (1) No officer or employee shall be entitled to a longevity step-increase
while holding a position in any grade above grade [10] 15 of the General Schedule.
(2) No officer or employee shall receive a longevity step-increase unless his
-current efficiency rating is "satisfactory" or better.
(3) No officer or employee shall receive more than one longevity step-increase
for any three years of continuous service.
(4) Each longevity step-increase shall be equal to one. step-increase of the
:grade in which the position of the officer or employee is placed.
(5) Not more than three successive longevity step-increases may be granted to
any officer or employee.
(6) The officer or employee shall have had, in the aggregate, not less than ten
years of service in the position which he then occupies, or in positions of equivalent
or higher class or grade.
(c) When an officer or employee, receiving basic compensation at a rate in
excess of the maximum scheduled rate for his grade under section 604 [(b) (11)],
section 1105 (b), or any other provision of law, is eligible for his first longevity
:step-increase beyond the maximum rate of such grade he shall-
(1) receive total basic compensation which is equal to the basic compensa-
tion at the maximum scheduled rate for his grade plus such first longevity step-
increase, or
(2) continue to receive compensation at such rate in excess of the maximum
scheduled rate for his grade, if the compensation at such rate is higher .than
the total basic compensation specified in paragraph (1).
In rase any such officer or employee receiving compensation under paragraph (2)
is eligible for a subsequent successive longevity step-increase, he shall-
(A) receive the same total basic compensation which he would be entitled
to receive after such subsequent longevity step-increase, if his total basic
compensation had, at the time he was eligible for his first longevity step-
increase, been determined under paragraph (1), or
(B) continue to receive compensation under paragraph (2) if such com-
pensation is higher than the total basic compensation specified in paragraph
(A).
[SEC. 704. In computing length of service for the purposes of this title, service
immediately preceding the effective date of this title shall be counted toward
'(1) one step-increase under section 701 and one additional step-increase under
section 702, or (2) longevity step-increases under section 703, as the case may be.]
SEe. 704. In the case of officers and employees in grades 11 t,9 15, inclusive, of
the General Schedule who are receiving compensation at or above the maximum sched-
uled rates for their respective grades on the date immediately preceding the effective
date of this amendatory section, not to exceed three years of service performed immedi-
ately preceding such effective date shall be counted toward longevity step-increases
under section 703. Notwithstanding subsection (b) (4) of section 703, longevity
step-increases for grade 15 of the General Schedule shall be $200.
SEC. 802. (a) The rate of basic compensation to be received by any officer or
employee to whom this Act applies shall be governed by regulations issued by the
Commission in conformity with this Act when-
(1) he is transferred from a position to which this Act does not apply;
(2) he is transferred from any position to which this Act applies to another
such position;
(3) he is demoted to a position in a lower grade;
(4) he is reinstated, reappointed, or reemployed;
(5) his type of appointment is changed; .
(6) his employment status is otherwise changed; or
(7) his position is changed from one grade to another grade.
(b) Any officer or employee who is promoted. or transferred to a position in a
higher grade shall receive basic compensation at the lowest rate of such higher
grade which exceeds his existing rate of basic compensation by not less than one
step-increase of the grade from which he is promoted or transferred. If, in the
ease of any officer or employee so promoted or transferred who is receiving (1)
one or more longevity step-increases under section 703, or (2) basic compensation
at a rate in excess of the maximum scheduled rate for his grade under section 604
[(b) (11)], section 1105 (b), or any other provision of law, there is no rate.in such
higher.. grade which is at least one step-increase above his existing rate of basic
compensation, he shall receive (A) the maximum scheduled rate of.such. higher
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved Ff"r Release 2002/07/12: CIA-RDP79-00
50 GOVERNMENT EMPLOYEES FRR BENEFITS ACT OF 1954
grade, or (B) his existing rate of basic compensation, if such existing rate is the
higher.
[SEC. 803. The Commission shall make a study of the problem of additional
compensation for hazardous employments and submit a report to Congress not
later than one year from the date of enactment of this Act, setting forth its findings
and such recommendations as it may deem advisable for a future policy and plan
with respect to additional compensation for hazardous employments.]
Sec. 803. (a) Whenever the Commission shall find (1) that a sufficient number of
qualified eligibles for positions in a given class cannot be secured in one or more areas
or locations at the existing minimum rate for such class, and (2) that there is a possi-
bility that a sufficient number of such eligibles can be secured by increasing the mini-
mum rate for such class in such areas or loc, Lions to one of the higher rates within the
grade in which such class is placed, the Commission may establish such higher rate as
the minimum rate for that class in each area or location concerned.
(b) Minimum rates established under subsection (a) may be revised from time to
time by the Commission. Such actions or revisions shall have the force and effect of
law.
(c) Any increase in rate of basic compensation resulting from the establishment of
minimum rates under this section shall not be regarded as an "equivalent increase"
in compensation within the meaning of section 701 (a).
[SEC. 1002. (a) In each department there shall be established an Efficiency
Awards Committee, the membership of which shall be designated by the head
of the department.
[(b) It shall be the duty of the Efficiency Awards Committee (1) to identify
those supervisors and employees within the department whose superior accom-
plishments have contributed to outstanding efficiency and economy in adminis-
tration, and (2) to award to such supervisors and employees, subject to the
approval of the head of the department and to the limitations of subsection (c),
cash awards or increases in rates of basic compensation which, in the judgment
of the Committee, are commensurate with their demonstrated superior accom-
plishments: Provided, however, That the total amount of such awards or in-
creases to any group of supervisors and employees shall not exceed 25 per centum
of the estimated saving to the Government due to their superior accomplishments.
[(c) Any such cash award or any such increase in rate of basic compensation
shall not exceed an amount equal to three times the step-increase of the applicable
grade. Any such increase in rate of basic compensation shall be at one, two, or
three times the step-increase of the applicable grade and shall be in lieu of any
additional compensation as a reward for superior accomplishment under section
702.
[(d) An award under this title shall be given due weight in qualifying and
selecting employees for promotion to positions in higher grades.
[SEC. 1003. The Bureau of the Budget shall maintain control of the program
set forth in this title and shall annually report the results of such program to
Congress, with such recommendations as it may deem advisable.]
SEC. 101. (a) Subject to the exemptions specified in section 102 of this Act,
titles [II and III] II, III, and IV of this Act shall apply (1) to all civilian officers
and employees in or under the executive branch of the Government, including
Government-owned or controlled corporations, and in or under the District of
Columbia municipal government, and (2) to those officers and employees of the
judicial branch of the Government, the Library of Congress, the Botanic Garden,
and the Office of the Architect of the Capitol who occupy positions subject to the
Classification Act of 1923, as amended.
[(b) Title IV of this Act shall apply to officers and employees who occupy
positions subject to the Classification Act of 1923, as amended.]
(c) Subject to the exemptions specified in section 102 of this Act, title V of this
Act shall apply to officers and employees in or under the legislative or the judicial
branch of the Government whose compensation is not fixed in accordance with
the Classification Act of 1923, as amended, and to the officia lreporters of proceed-
ings and debates of the Senate and their employees.
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 GOVERl~16fP VL~lO!I 8c
(d) Subject. .to the exemptions specified in section 102 of this Act, title VI of
this Act (containing miscellaneous provisions) shall apply to civilian officers and
employees of the Government according to the terms thereof.
(e) All provisions of this Act applicable to the executive branch of the Govern-
ment shall be applicable to the General Accounting Office.
[SEC. 201. Officers and employees to whom this title applies shall, in addition
to their basic compensation, be compensated for all hours of employment, officially
ordered or approved, in excess of forty hours in any administrative workweek, at
overtime rates as follows:
[(a) For employees whose basic compensation is at a rate less than $2,980 per
annum, the overtime hourly rate shall be one and one-half times the basic hourly
rate of compensation: Provided, That in computing such overtime compensation
for per annum employees, the basic hourly rate of compensation shall be deter-
mined by dividing the per annum rate by two thousand and eighty.
[(b) For employees whose basic compensation is at a rate of $2,980 per annum
or more, the overtime hourly rate shall be in accordance with and in proportion
to the following schedule:
Basic rate of compensation per Overtime rate of compensation per
annum 416 overtime hours
$2,980----------------------------------------
$894.000
3,090----------------------------------------
885.554
3,200----------------------------------------
877. 108
3,310----------------------------------------
868.662
3,420----------------------------------------
860.216
3,530----------------------------------------
851.770
3,640----------------------------------------
843.324
3,750----------------------------------------
834.878
3,860---------------------------=------------
826.432
3,970----------------------------------------
817.986
4,080---------- -----------------------------
809.540
4,190----------------------------------------
801.094.
4,300----------------------------------------
792.648
4,410----------------------------------------
784.202
4,520----------------------------------------
775.756
4,630----------------------------------------
767.310
4,740----------------------------------------
758.864
4,960----------------------------------------
741.972
5,180----------------------------------------
725.080
5,390--------------=-------------------------
708.955
5,600----------------------------------------
692.831
5,810----------------------------------------
676.707
6,020--=-------------------------------------
660.583
6,230----------------------------------------
644.458
6,440 and over-------------------------------
628.334]
compensation.
(2) For each officer and employee whose basic compensation is at a rate which exceeds
the maximum scheduled rate of basic compensation provided for grade GS-9 in the
Classification Act of 1949, as amended, the overtime hourly rate of compensation shall
be an amount equal to one and one-half times the hourly rate of such maximum
scheduled rate of basic compensation, or an amount equal to the basic hourly rate of
compensation of such officer or employee, whichever is greater, and all of such amount
shall be considered premium compensation.
[SEC. 202. (a) The heads of departments, or of independent establishments or
agencies, including Government-owned or controlled corporations, and of the
District of Columbia municipal government, and the heads of legislative or judicial
agencies to which this title applies, may by regulation provide for the granting of
SEC. 201. All hours of work officially ordered or approved in excess of forty hours
in any administrative workweek performed by officers and employees to whom this title
applies shall be considered to be overtime work and compensation for such overtime
work, except as otherwise provided for in this Act, shall be at the following rates:
(1) For each officer and employee whose basic compensation is at a rate which does
not exceed the maximum scheduled rate Qf basic compensation provided for grade GS-9
in the Classification Act of 1949, as amended, the overtime hourly rate of compensation
shall be an amount equal to one and one-half times the hourly rate of basic compensa-
tion of such officer or'employee, and all of such amount sh.atl be considered premium
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved Fpr Release 2002/07/12: CIA-RDP79-00
5A000200020010-6
.52 GOVERNMENT EMPLOYEES FR:
,1 BENEFITS ACT OF 1954
.tour of duty in lieu of such compensation.
* * * * *
-compensatory time off from duty, in lieu of overtime compensation for irregular
-or occasional duty in excess of forty hours in any regularly scheduled administra-.
-tive workweek, to those per annum employees requesting such compensatory time
off from duty.]
SEC. 202. (a) The head of any department, independent establishment, or agency,
including Government-owned or controlled corporations, or the municipal government
of the District of Columbia or the head of any legislative or judicial agency to which
this title applies, (1) may, at the request of any officer or employee, grant such officer
or employee compensatory time off from his scheduled tour of duty in lieu of pay-
ment for an equal amount of time spent in irregular or occasional overtime work,
and (2) may, at his own discretion, provide that any officer or employee, whose rate of
basic compensation is in excess of the maximum scheduled rate of basic compensation
.provided for grade GS-9 in the Classification Act of 1949, as amended, shall be com-
pensated for irregular or cccasional overtime work for which compensation would be
due under this Act with an equal amount of compensatory time off from his scheduled
[SEC. 301. (a) Any officer or employee to whom this title applies who is assigned
to a regularly scheduled tour of duty, any part of which, including overtime, falls
between the hours of 6 o'clock postmeridian. and 6 o'clock antemeridian, shall, for
-duty between such hours, excluding periods when he is in a leave status, be paid
compensation at a rate 10 per centum in excess of his rate of basic compensation
for duty between other hours: Provided, That such differential for night duty shall
not be included in computing any overtime compensation to which the officer
or employee may be entitled: And provided further, That this section shall not
-operate to modify the provisions of the Act of July 1, 1944 (Public Law Numbered
.394, Seventy-eighth Congress), or any other law authorizing additional compensa-
tion for night work.]
SEC. 301. (a) Any regularly scheduled work between the hours of six o'clock post-
-meridian and six o'clock antemeridian (including periods of absence with pay during
-such hours due to holidays, and any such hours within periods of leave with pay if
-such periods total less than eight hours during any pay period) shall be considered night
work, except as provided in subsection (b), and any officer or employee performing such
work to whom this title applies shall be compensated for such work at his rate of basic
compensation plus premium compensation amounting to 10 per centum of such rate,
-unless otherwise provided in title IV of this Act. This section shall not operate to
modify the provisions of the Act of July 1, 1944 (Public Law Numbered.394, Seventy-
.eighth Congress), or any other law authorizing additional compensation for night work.
CALL-BACK OVERTIME
SEC. 203. For the purposes of this Act, any unscheduled overtime work performed
,by any officer or employee on a day when no work was scheduled for him, or for which
-he is required to return to his place of employment, shall be considered to be at least
.two hours in duration.
TIME IN TRAVEL STATUS
SEC. 204. For the purpose of this Act, time spent in a travel status away from the
official-duty station of any officer or employee shall be considered as hours of employ-
ment only when (a) within the days and hours of such officer's or employee's regularly
scheduled administrative workweek, including regularly scheduled overtime hours, or
(b) when the travel involves the performance of work while traveling or is carried out
,under arduous conditions.
SEC. [203] 205. Employees whose basic rate of compensation is fixed on an
annual or monthly basis and adjusted from time to time in accordance with pre-
vailing rates by wage boards or similar administrative authority serving the same
-purpose shall be entitled to overtime pay in accordance with the provisions of
section 23 of the Act of March 28, 1934 (U. S. C., 1940 edition, title 5, sec. 673c).
The rate of compensation for each hour of overtime employment of any such
employee shall be computed as follows:
(a) If the basic rate of compensation of the employee is fixed on an annua
basis, divide such basic rate of compensation by two thousand and eighty and
multiply the quotient by one and one-half; and
(b) If the basic rate of compensation of the employee is fixed on a monthly
basis, multiply such basic rate of compensation by twelve to derive a basic annual
-rate of compensation, divide such basic annual rate of compensation by two
thousand and eighty, and multiply the quotient by one and one-half.
* * * * *
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 COVE LAMENT EMPLOYEI.I -RINGS BENEFITS ACT OF 1954 53 (r
Approved For Release 2002/07/12 : CIA-RDP79-00065A0002000
(b) The head of any department, independent establishment, or agency; inc uding
Government-owned or controlled corporations, may designate any time after six o'clock
postmeridian and any time before six o'clock antemeridian as the beginning and end,
respectively, of night work for the purpose of subsection (a) at any post outside the
several States and the District of Columbia where customary hours of business extend
into the hours of night work provided by such subsection.
[SEC. 302. Any officer or employee to whom this title applies who is assigned
to duty on a holiday designated by Federal statute or Executive order during
hours which fall within his basic administrative workweek of forty hours shall be
compensated for not to exceed eight hours of such duty, excluding periods when he
is in a leave status, in lieu of his regular rate of basic compensation for such duty,
at the rate of twice such regular rate of basic compensation, in addition to any
extra compensation for night duty provided by section 301 of this Act: Provided,
That extra holiday compensation paid under this section shall not serve to reduce
the amount of overtime compensation to which the employee may be entitled
under this or any other Act during the administrative workweek in which the holi-
day occurs, but such extra holiday compensation shall not be considered to be a
part of the basic compensation for the purpose of computing such overtime com-
pensation. This section shall take effect upon the cessation of hostilities in the
present war as proclaimed by the President, or at such earlier time as the Congress
by concurrent resolution may prescribe. Prior to so becoming effective, it shall be
effective with respect to any designated holiday only if the President has declared
that such day shall not be generally a workday in the Federal service.]
SEC. 302. (a) All work not exceeding eight hours, which is not overtime work as
defined in section 201 of this Act and which is performed on a holiday designated by
Federal statute or Executive order, shall be compensated at the rate of basic compensa-
tion of the officer or employee performing such work on a holiday plus premium com-
pensation at a rate equal to the rate of basic compensation of such officer or employee..
(b) Any officer or employee who is required to perform any work on such a holiday
shall be compensated for at least two hours of such work, and any such premium com-
pensation due under the provisions of this section shall be in addition to any premium
compensation which may be due for the same work under the provisions of section 301
of this Act providing premium compensation for nightwork.
(c) Overtime work, as defined in section 201 of this Act, on Sundays and such.
holidays shall be compensated in accordance with the provisions of such section 201..
TITLE IV-SPECIAL PROVISIONS FOR CERTAIN TYPES OF WORK
SEC. 401. (a) The head of any department, independent establishment, or agency,.
including Government-owned or controlled corporations, or of the municipal Govern-
ment of the District of Columbia may, with the approval of the Civil Service Commis-
sion, provide that-
(1) any officer or employee in a position requiring him regularly to remain at,.
or within the confines of, his station during longer than ordinary periods of duty,
a substantial part of which consists of remaining in a standby status rather than.
performing work, shall receive premium compensation for such duty on an
annual basis in lieu of premium compensation provided by any other provisions
of this Act. Premium compensation under this paragraph shall be determined
as an appropriate percentage (not in excess of 25 per centum) of such part of the
rate of basic compensation for any such position as does not exceed the maximum
scheduled rate of basic compensation provided for grade GS-9 in the Classification
Act of 1949, as amended, by taking into consideration. the number of hours of'
actual work required in such position, the number of hours required in a standby
status at or within the confines of the station, the extent to which the duties of
such position are made more onerous by 'night or holiday work, or by being-
extended over periods of more than forty hours a week, and any other relative'
factors; or
(2) any officer or employee in a position in which the hours of duty cannot be-
controlled administratively, and which requires substantial amounts of irregular,
unscheduled, overtime duty and duty at night and on holidays with the officer or
employee generally being responsible for recognizing, without supervision, cir-
cumstances which require him to remain on duty, shall receive premium compensa
tion for such duty on an annual basis in lieu of premium compensation provided'
by any other provisions of this Act, except for regularly scheduled overtime duty.
Premium compensation under this paragraph shall be determined as an appro-
priate percentage (not in excess of 15 per centum) of such part of the rate of basic
compensation for any such position as does not exceed the maximum scheduled:
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved r Release 2002/07/12 : CIA-RDP79- 5A000200020010-6
54 GOVERNMENT EMPLOYEES FRM BENEFITS ACT'OF 1954
rate of basic compensation provided for grade GS-9 in the Classification Act of
1949, as amended, by taking into consideration the frequency and duration of
night, holiday, and unscheduled overtime duty required in such position.
(b) This section shall not apply to officers and employees in positions the duties of
which are to supervise or perform work involved in (1) fighting fires, (2) maintaining
fire-fighting apparatus and equipment, (3) inspecting fire protection apparatus and
equipment, and (4) inspecting fire hazards in public buildings and reservations with
a view to elimination of such fire hazards. Any such officer or employee shall receive
premium compensation for such duty on the basis to which such officer or employee is
entitled under any other provisions of this Act.
[LIMITATIONS ON REDUCTIONS AND INCREASES IN COMPENSATION
(SEC. 603. (a) The aggregate per annum rate of compensation with respect to
any pay period, in the case of any full-time employee in the service on July 1,
1945, (1) who was a full-time employee on June 30, 1945, (2) whose per annum
basic rate of compensation on June 30, 1945, did not exceed a rate of $1,800 per
annum and (3) whose compensation is fixed in accordance with the provisions
of the classification Act of 1923, as amended, or the Act entitled "An Act to adjust
the compensation of certain employees in the Customs Service", approved May
29, 1928, as amended, shall not, under the rates of compensation established by
this Act, so long as he continues to occupy the position he occupied on June 30,
1945, be less than his per annum basic rate of compensation on such date, plus
the rate of $300 per annum or 25 per centum of such per annum basic rate of
compensation, whichever is the smaller amount.
[(b) Notwithstanding any other provision of this Act, no officer or employee
shall, by reason of the enactment of this Act, or any amendment thereto, be paid,
with respect to any pay period, basic compensation, or basic compensation plus
any additional compensation provided by this Act, at a rate in excess of $10,330
per annum, except that (1) any officer or employee who was receiving overtime
compensation on June 30,. 1945, and whose aggregate rate of compensation on
such date was in excess of $10,000 per annum may receive overtime compensation
at such rate as will not cause his aggregate rate of compensation for any pay period
to exceed the aggregate rate of compensation he was receiving on June 30, 1945,
until he ceases to occupy the office or position he occupied on such date or until
the overtime hours of work in his administrative workweek are reduced by action
of the head of his department or independent establishment or agency, or Govern-
ment owned or controlled corporation, and when such overtime hours are reduced
such rate of overtime compensation shall be reduced proportionately, and (2)
any officer or employee who, because of the receipt of additional compensation in
lieu of overtime compensation, was receiving aggregate compensation at a rate
in excess of $10,000 per annum on June 30, 1945, may continue to receive such rate
of aggregate compensation so long as he continues to occupy the office or position
he occupied on such date but in no case beyond June 30, 1947.]
LIMITATION ON PREMIUM COMPENSATION
SEc. 603. (a) No premium compensation provided by this Act shall be paid to any
officer or employee whose rate of basic compensation equals or exceeds the maximum
scheduled rate of basic compensation provided for grade GS-15 in the Classification
Act of 1949, as amended.
(b) In the case of any officer or employee whose rate of basic compensation is less
than the maximum scheduled rate of basic compensation provided for grade GS-15 in the
Classification Act of 1949, as amended, such premium compensation may be paid only
to the extent that such payment would not cause his aggregate rate of compensation
to exceed such maximum scheduled rate with respect to any pay period.
ESTABLISHMENT OF BASIC WORKWEEK; WORK SCHEDULES; PAY COMPUTATION
METHODS
SEC. 604. (a) (1) It shall be the duty of the heads of the several departments
and independent establishments and agencies in the executive branch, including
Government-owned or controlled corporations, and the District of Columbia
municipal government, to establish as of the effective date of this Act, for all full-
time officers and employees in their respective organizations, in the departmental
and the field services, a basic administrative workweek of forty hours, and to
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 pRpmrjK9~/rdF,:IPpsLD~p(YLf`~'nn'
GOVR Nit7NGL~/SEN ITBI~ALi^~ 71 ~ U~J2000
E
require that the hours of work in such workweek be performed within a period of
not more than six of any seven consecutive days.
(2) Except where the head of each such department, establishment, or agency and
of the municipal government of the District of Columbia determines that his organi-
zation would be seriously handicapped in carrying out its functions or that costs would
be substantially increased, he shall provide, with respect to all officers and employees
in his organization, (A) that assignments to tours of duty shall be scheduled in advance
over periods of not less than one week, (B) that the basic forty-hour workweek shall
be scheduled on five days, which shall be Monday through Friday wherever possible,
and the two days outside the basic workweek shall be consecutive, (C) that the working
hours in each day in the basic workweek sha'l be the same, (D) that the basic nonover-
time workday shall not exceed eight hours, (E) that the occurrence of holidays shall
not affect the designation of the basic workweek, and (F) that breaks in working hours
of more than one hour shall not be scheduled in any basic workday.
* * * * * *
AN ACT To authorize certain administrative expenses in the Government service, and for other purposes
(60 Stat. 809; 5 U. S. C. 116a)
* * * * * * *
[SEC. 14. The head of each department is authorized, under such rules and
regulations as the President may prescribe, to pay cash awards to civilian officers
and employees (or to their estates) who make meritorious suggestions which will
result in improvement or economy in the operations of his department and which
have been adopted for use and to incur necessary expenses for the honorary recog-
nition of exceptional or meritorious service: Provided, That no award shall be
paid to any officer or employee for any suggestion which represents a part of the
normal requirements of the duties of his position. With the exception of the
War and Navy Departments, the amount of any one award shall not exceed
$1,000 and the total of cash awards paid during any fiscal year in any department
shall not exceed $25,000. Payments may be made for the appropriation for
the activity primarily benefiting or may be distributed among appropriations for
activities benefiting as the head of the department determines. A cash award
shall be in addition to the regular compensation of the recipient and the accept-
ance of such cash award shall constitute an agreement that the use by the United
States of the suggestion for which the award is made shall not form the basis of
a further claim of any nature upon the United States by him, his heirs or assigns.
[All other Acts or parts of Acts in conflict with the provisions of this section
are hereby. repealed.]
AN ACT Authorizing payments of rewards to postal employees for inventions (59 Stat. 591)
[Be it enacted by the Senate and House of Representatives of the United States of
America in Congress assembled, That the Postmaster General is authorized,
under such rules and regulations as he may prescribe, to pay a cash reward for
any invention, suggestion, or series of suggestions submitted by one or more
employees of the Post Office Department or the Postal Service, which will clearly
effect a material economy or increase efficiency in the administration or operation
of the Post Office Department or the Postal Service, and which has been adopted
for use.
[The total amount of rewards made under this Act in any one fiscal year shall
not exceed $25,000 and. the amount so paid for any one invention, suggestion, or
series of.suggestions shall not exceed $1,000.
[Rewards made under this Act shall be paid out of the appropriation for the
postal activity primarily benefiting, or may be distributed among appropriations
for postal activities benefiting. as the Postmaster General may determine. Pay-
ments shall be in addition to the regular compensation of the employee receiving
the reward. No employee shall be paid a reward under this Act until he has
properly executed an agreement to the effect that the use by the United States
of the invention, suggestion, or series of suggestions made by him shall not form
the basis of a further claim of any nature upon the United States by him, his
heirs, or assigns.]
Approved For Release 2002/07/12 : CIA-RDP79-00065A000200020010-6
 Approved Release 2002/07/12: CIA-RDP79-00%5A000200020010-6
56 GOVERNMENT EMPLOYEES FRINCM,iENEFITS ACT OF 1954
AN ACT Authorizing the Secretary of war to pay a cash award for suggestions submitted by employees
of certain establishments of the Ordnance Department for improvement or economy in manufacturing
processes or plant (37 Stat. 193; 50 U. S. C. 58)
[Be it enacted by the Senate and House of Representatives of the United States
of America in Congress assembled, That the Secretary of War is hereby authorized
to offer periodically at such of the establishments of the Ordnance Department
as he may select a cash reward for the suggestion, or series of suggestions, for an
improvement or economy in manufacturing processes or plant, submitted within
the period by one or more employees of the establishment which shall be deemed.
the most valuable of those submitted and adopted for use: Provided, That to
obtain this reward the winning suggestion must be one that will clearly effect a
material economy in production or increase efficiency or enhance the quality of
the product in comparison with its cost and in the opinion of the Secretary shall
be so worthy as to entitle the employee malting the same to receive the reward:
Provided further, That the sums awarded to employees in accordance with this
Act shall be paid them in addition to their usual compensation and shall con-
stitute part of the general or shop expense of the establishment: Provided further,
That the total amount paid under the provisions of this Act shall not exceed one
thousand dollars for any one month: And provided further, That no employee
shall be paid a reward under this Act until he has properly executed an agreement
to the effect that the use by the United States of the suggestion,. or series of
suggestions, made by him shall not form the basis of a further claim of any nature
upon the United States by him, his heirs, or assigns, and that application for
patent has not been made for the inventioli.]
AN ACT To provide equitable compensation for useful suggestions or inventions by personnel of the
Department of the Interior (58 Stat. 360; 5 U. S. C. 500)
[Be it enacted by the Senate and House of Representatives of the United States of
America in Congress assembled, That the Secretary of the Interior is authorized to
pay cash rewards, subject to such regulations as he shall prescribe, to officers and
employees of the Department of the Interior, who, in the course of their employ-
ment, and subsequent to Nov-ember 17, 1942, make suggestions or inventions
which are of such a nature that their adoption would result in improved techno-
logical or scientific processes or methods, or in improvements in the administration
or operations of the Department of the Interior. The amount expended for the
payment of such rewards during any one fiscal year shall not exceed $20,000 in the
aggregate and shall not exceed $1,000 to any one person, unless a greater amount
is specifically appropriated for a named person in an exceptionally meritorious-
case. For the purposes of this Act, the Secretary of the Interior is authorized and
directed to set up in the Department a Board-of Awards, the proceedings of which
shall be available to the public. Nothing in ,this Act shall be taken or construed
as amending or modifying the present patent and trade-mark laws as they now-
exist or may hereafter be amended.]
AN ACT To enact certain provisions now included in the Naval Appropriation Act, 1946, and for other
Purposes (60 Stat. 857; 5 U. S. C. 416)
SEC. 35. [(a) The Secretary of the Navy is authorized, in his discretion and.
under such rules and regulations as he may prescribe, to pay cash rewards to
civilian personnel of the Naval Establishment or other persons in civil life when,
due to a suggestion or series of suggestions by them, there results an improvement.
or economy in manufacturing process or plant or naval material, or in efficiency
or economy in the operation or administration of the Navy Department or the
Naval Establishment. Such sums as may be awarded to employees in accordance
with this section shall be paid them out of naval appropriations in addition to
their usual compensation. No employee or other person in civil life shall be paid
a reward under this section until he has properly executed an agreement to the
effect that the use by the United States of the suggestion or series of suggestions
made by him shall not form the basis of a further claim of any nature against the:
United States by him, his heirs, or assigns.
((b) Except as provided in subsection (a) hereof, civilian personnel of the Naval.
Establishment shall not be paid any premium or bonus or cash reward in addition..
to their regular salaries.]
* * * * * * *
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved For elease 2002/07/12 :CIA-RDP79-0006p002
R' 0020010-6
GOVERNMENT EMPLOY'_.i FRINGE BENEFITS ACT. OF 1954 57
JOINT RESOLUTION To provide cash awards to personnel of the Maritime Commission and the War
Shipping Administration for useful suggestions to improve administration of their activities (58 Stat. 115;
46 U. S. C..llllb)
[Resolved by the Senate and House of Representatives of the United Stales of
America in Congress Assembled, That the United States Maritime Commission is
authorized to pay cash awards for suggestions submitted to it by any of its
officers or employees in cases where the suggestion, in the opinion of the Commis-
sion or of a committee designated by it, would, if adopted, make. for substantially
increased efficiency, economy, or general improvement in carrying out the duties,
powers, or functions of the Commission. Such suggestions shall be submitted
and such awards shall be made tinder such rules and regulations as the Commission
may prescribe, including provision for transfer to the United States of all rights
or interests of the officer or employee in the suggestion. The provisions of this
section shall apply in like inanner to the War Shipping Administration and its
officers and employees, and for the purpose of this section the terms "United States
Maritime Commission" and "Commission" shall be deemed to refer to the War
Shipping Administration. The total amount of cash awards made under this
joint resolution in any fiscal year shall not exceed $5,000 for each such agency,
and the amount paid for any one suggestion shall not exceed $250 for any one
suggestion, except in case of a patentable idea, it may be not more than $1,000,]
SECTION 1310 OF THE SUPPLEMENTAL APPROPRIATION ACT, 1952 (PunLlc LAW
253, 82o CONG.)
[SEC. 1310. Immediately upon the enactment of this Act and until termination
of the national emergency proclaimed by the President on December 16, 1950:
[(a) The Civil Service Commission and the heads of the executive departments,
agencies, and corporations shall make full use of their authority to require that
initial appointments to positions in and outside the competitive civil service shall
be made on a temporary or indefinite basis in order to prevent increases in the
number of permanent personnel of the Federal Government above the total num-
ber of permanent employees existing on September 1, 1950: Provided, That any
position vacated by a permanent employee called to military service or transferred
to a national defense agency shall not be filled except on a temporary or indefinite
basis. All reinstatements and promotions in the Federal civil service shall be made
on a temporary or indefinite basis, and all permanent employees who are trans-
ferred from one agency to another shall retain their status as permanent employees
in the agency to which transferred at the grade or basic-pay level of their perma-
nent positions in the agency from which transferred. All appointments, rein-
statements, transfers, and promotions to positions- subject to the Classification
Act of 1949 shall be made with the condition and notice to each individual ap-
pointed, reinstated, transferred, or promoted that the classification grade of the
position is subject to postaudit and correction by the appropriate departmental
or agency personnel office or the Civil Service Commission. All transfers. of
permanent employees made on a temporary or indefinite basis since September 1,
1950, shall be changed to a permanent basis as of the effective date of this Act:
Provided, That such employees shall retain their status as permanent employees in
the agency to which transferred at the grade or basic pay level of their permanent
positions in the agency from which transferred.
[(b) The Civil Service Commission shall facilitate the transfer of Federal
employees from nondefense to defense activities and encourage the retention of
employees in defense activities, and shall provide reemployment rights for perma-
nent employees in the activities from which such employees are transferred.
[(c) The Civil Service Commission shall make full use of its authority to
prevent excessively rapid promotions in the competitive civil service and to
provide correction of improper allocations to higher grades of positions subject
to the Classification Act of 1949, as amended. No person in any executive
department or agency whose position is subject to the Classification Act of 1949,
as amended, shall be promoted or transferred to a higher grade subject to such,
Act without having served at least one year in the next lower grade: Provided,
That the Civil Service Commission for positions in the competitive service and the
head of the employing agency for positions outside the competitive service may by
regulation provide for promotions of two grades in one year (1) to positions not
higher than GS-5; (2) to positions not higher than GS-11 which are in a line of
work properly classified under the Classification Act of 1949 at two-grade intervals;
(3) to positions in the same line of work when the employee has completed a
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved For Release 2002/07/12 : CIA-RD-00065A000200020010-6
58 GOVERNMENT EMPLOYEES FRIN BENEFITS ACT OF 1954
training period under a training program approved by the Civil Service Com-
mission for positions in the competitive service, or approved by the head of the
employing agency for positions outside the competitive service; and (4) of an
employee of the agency concerned when there is no position in the normal line
of promotion in the grade immediately below that of the position to be filled:
Provided further, That this subsection shall not apply to any case involving an
employee who is within reach for appointment to a higher grade position on a
competitive civil service register, or being advanced up to a grade level from which
he had been demoted or separated because of reduction in force.
[(d) From time to time, but at least annually, each executive department and
agency shall (1) review all positions which since September 1, 1950, have been
created or placed in a higher grade or level of difficulty and responsibility of work
or in a higher basic pay level, (2) abolish all such positions which are found to be
unnecessary, (3) with respect to such positions which are found to be necessary,
make such adjustments as may be appropriate in the classification grades of those
positions which are subject to the Classification Act of 1949, as amended, or in the
basic pay levels of those positions which are subject to other pay-fixing authority.
Not later than July 31 of each year each department and agency shall submit a
report to the Post Office and Civil Service Committees and Xppropriations Com-
mittees of the Senate and House of Representatives concerning the action taken
under this paragraph, together with information comparing the total number of
employees on the payroll on June 30 and their average grade and salary with
similar information for the previous June 30, and each annual supplemental budget
estimate shall include a statement comparing the average grade and salary
provided for in each item of appropriation or fund allowance therein with similar
figures reported for the two previous periods.]
SECTION 2 OF THE ACT OF AUGUST 3, 1950
SEC. 2. For the purposes of ,this Act the term "unpaid compensation" means
the pay, salary, or allowances, or other compensation due on account of the
services of the decedent for the Federal Government or the government of the
District of Columbia. It shall include, but not be limited to, (1) * * * [(6)
payment for all accumulated and current accrued annual-or vacation leave equal
to the compensation the decedent would have received had he remained in service
until the expiration of the period of such annual or vacation leave, except that
after August 31, 1953, no such lump-sum payment shall exceed compensation for
any period of such leave in excess of thirty days or the number of days carried
over to his credit at the beginning of the leave year in which entitlement to pay-
ment occurs, whichever is the greater;] (6) payment for all occumulated and current
accrued annual or vacation leave equal to the compensation the decedent would have
received had he remained in the service until the expiration of the period of such annual
or vacation leave; except that such lump-sum payment shall not include compensation
for any period of accumulated leave in excess of thirty days, plus current accrued leave,
or in excess of the number of days of accumulated leave to which he is entitled on the
date of separation (excluding accumulated leave earned in the 1954 leave year and
thereafter), plus current accrued leave, whichever is the greater;
[SEC. 6. The heads of the departments and agencies are authorized and directed
to take such action as may be necessary to bring about reductions in the accumu-
lated annual leave to the credit of officers and employees which is in excess of the
amounts allowable under the applicable provisions of section 203 of the Annual
'and Sick Leave Act of 1951, as amended by this Act, within a reasonable period
of years, consistent with the exigencies of the public business, and to make such
reports with respect to the action taken as may be requested by the Civil Service
Commission. The Civil Service Commission shall include in its annual report to
the Congress a statement of the progress made in carrying out the purposes of
this section.]
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved For Release. 2002/07/12 : CIA-RDP79-00065A00020002fp10-6
GOVERNMENT EMPLOYEE. RINGE BENEFITS ACT OF 1954 59
SECTION 2 (B) OF THE PERFORMANCE RATING ACT OF 1950
SEC. 2. (b) This Act shall not apply to-
(1) * * *
(12) The Central Intelligence Agency.
SECTION.9 OF THE CENTRAL. INTELLIGENCE AGENCY ACT OF 1949
[SEc..9. The Director is authorized to establish and fix the compensation
for not more than three positions in the professional and scientific field, within
the Agency, each such position being established to effectuate those scientific
intelligence functions relating to national security, which require the services of
specially qualifier) scientific or professional personnel: Provided, That the rates
of compensation for positions established pursuant to the provisions of this section
shall not be less than $13,100 per annum nor more than $15,000 per annum, and
shall be subject to the approval of the Civil Service Commission.]
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved For Release 2002/07/12 : CIA-RDP79-00065A000200020010
f THE WHITE. LSE
Group
Life
Insurance'.
Employees,.
EMPLOYEES:'
As a result of'favorable action by
Congress, we are now able to'provide
the benefits of low-cost group life
insurance to-Federal employees. The
proposal to provide this:'protection to
employees through private'}nsurance"
companies, with Government assuming a
portion .:of tthe,icost was,,, developed; as
a part of the' program 'of. "this Adminis-
tra`tign;rfo improver the,GovernmeU . s
jfpersonnel system.,
ihnu
I urge all eligible employees to
:give. serious consideration to this
worthwhile program which.willrhelp
tr1z Lie; r. ; i
provide economic security for their
families:.?=
'it63 _..=54
91
U. S. CIVIL SERVICE COMMISSION . WASHINGTON 25, D. C.
Approved For Release 2002/07/12 : CIA-RDP79-00065A000200020010-6
 FOR HOW MUCH
M
e{0r% RtUj e- 2002/07/12 : CIA-RDP79-00065000200020010-6
The amount of insurance depends upon your annual basic salary.
(See page 4.)
You may not choose a lesser or greater amount of insurance.
If you are 65 years of age or older, or when you become age 65,
the amount of your insurance- will be reduced by 2 percent for
each month you are over 65 until a reduction of 75 percent is
reached. The remaining 25 percent stays in effect.
MUST I NAME A BENEFICIARY?
No. Your life insurance will be payable in the following order:
(1) widow or widower, (2) children, (3) parents, (4) estate,
(5) next of kin. Your personnel office will have the proper
form for you to use if you wish to change this; order or name
someone else.
WHAT IF I RETIRE? .
Your life 'insurance is provided without further cost, if you
retire on an immediate-annuity.either.for.,:disability or=~afrer,~iat
least 15 years of creditable civilian service. Your double
indemnity and dismemberment protection stops.
WHAT ; lf,a LEAVE ?
;GOVERNtI~E1dT SERVICE, ;.-= y_, e,
C, 4
Your life 1n`surance continues -iii effect'3 I `clays during which
you may buy,; without: a medical examination,-an`individual life
insurance policy at standard rates:
MAY I CANCEL MY.. INSURANCE UNDER THIS. PLAN?
Yes, at any time.
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved For Release 2002/0 12 : CIA-RDP79-00065AO00200020010
INSURANCE SCHEDULE
Amount of Deductions Per Pay Period
If. Annual Basic Amount of
Semi-
Salary Insurance Weekly
Biweekly
monthly Monthly
Is not
more than $1,000 $1,000 $0.13-
$0.25
$0.27 $0.54 is
2,000 .25
.50
.54
1.08
3,000 .3,000 .38
.75
.81
1.63
4,000 4,000 -50-
1.00
1.08
2.17
5,000
1.35
6,000 6,000 .75
1.50
1.63
3.25
7,000 7,000
1.75"x
1.90
379F;
8,000 8,000 1.00'''
2.00
2.17`
4:3'3
9,000.9,0001.....?1.13
'
2.25
2.44
4.8,8 ,_-;
10,000 10,000 1.25
2.50
2.71
5.42
:11,000: 11,000 .-. '_.1:38
2.75
2:98-
:5.96 '
12,000 _ ? 12,000 1.50
.
3.00
3.25
6.50
13,000 13,000 1.6
3
3.25
3.52
.
7.04
14,000 14,000 1.75
3.50
3.79.
7:58 .
15,000 15,000 1.88
3.75
4.06
8.13
16,000 16,000 2.00.
4.00
4.33
8
67
u
17,000 17,000 2.13
4.25
4.60.,
.
%2L-
18,000 18,000 2.25
4.50
;88' e' .975-
9,000. ,19.,000. 38
4.75
5.15 ,110.29:,;
Is.above --1-9,000 , 20,060 :?,rI 2.50 51
5.00
5.42 .10.83 -
A FINAL WORD ABOUT THIS INSURANCE PLAN:
This plan will provide-an` addedineasure of family securityat
low. ,cost.; :. It; is,. however, ,term insurance .and.- does not carry
cash surrenderor loan privileges. You should not,look. upon
this plan as a substitute for regular individual insurance policie s
purchased through your own'ii ranee agent:
.This leaflet outlines the principal features of the plan for your
general information only. Each insured employee will receive
a certificate outlining in' more +detail the benefits and` terms of
this group insurance.
h5 ~~ 9 h
III V v T6R41U bFFICE: 1964
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved For Release 2002/0'2 : CIA-RDP79-00065A000200020010f
83D CONGRESS j HOUSE OF REPRESENTATIVES j REPORT
2d Session f 1 No. 2665
FRINGE EMPLOYMENT BENEFITS FOR EMPLOYEES OF
THE FEDERAL GOVERNMENT
AucusT 16, 1954.--Ordered to be printed
Mr. REES of Kansas, from the committee of conference, submitted
the following
CONFERENCE REPORT
The committee of conference on the disagreeing votes of the two
Houses on the amendment of the Senate to the bill (H. R. 2263) to
authorize the Postmaster General to readjust the compensation of
holders of contracts for the performance of mail-messenger service,
having met, after full and free conference, have agreed to. recommend
and do recommend to their. respective Houses as follows:
That the House recede from its disagreement to the amendment
of the Senate to the text of the bill and agree to the same with an
amendment as follows:
In lieu of the matter proposed to be inserted by the Senate amend-
ment insert the following:
TITLE I-AMENDMENTS TO CLASSIFICATION. ACT OF
1949
NUMBER OF POSITIONS IN GRADES 16, 17, AND 18 OF THE GENERAL
SCHEDULE
SEC. 101. (a) Section 505 of the Classification Act of 1949, as amended,
is amended to read as follows:
"SEC. 505. (a) No position.shall be placed in grade 16 or 17 of the
General Schedule except by action of, or after prior approval by, the
Commission.
"(b) No position shall be placed in or removed from grade 18 of the
General Schedule except by the President upon recommendation of the
Commission.
"(c) At any one time there shall not be more than four hundred positions
.in grade 16 of the General Schedule, not more than one hundred and
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved For ReltaseF2
/071 Q-O D -OSOWM0 2lf10 EES
fifteen positions in grade 17 of the General Schedule, and not more than
thirty-five positions in grade 18 of the General Schedule.
"(d) Positions that may be established under the proviso of section
203 (b) (1) Q f the Act of August 2, 1946 (60 Stat. 836), may be in addition
to those authorized by the foregoing provisions of this section."
(b) The amendment made by subsection (a) shall not affect positions
allocated to grades 16, 17, and 18 of the General Schedule of the Classifica-
tion Act o f 1949, as amended, pursuant to provisions of law (other than
the Classification Act of 1949, as amended) and reorganization plans in
effect prior to the effective date of this section.
SEC. 102. (a) (1) Subsection (a) of section 703 of the Classification
Act of 1949, as amended, is amended by striking out the words "change
of grade or rate of basic compensation except such change as may be
prescribed by any provision of law of general application" and inserting
in lieu thereof the words "increase in grade or rate of basic compensation
except such increase as may be prescribed by any provision of law of
general application".
(2) Subsection (b) (1) of section 703 of the Classification Act of 1949,
as amended, is amended to read as follows:
"(b) (1) No officer or employee shall be entitled to a longevity step-
increase while holding a position in any grade above grade 15 of the
General Schedule."
(b) The amendments made by subsection (a) shall become effective at
the beginning of the first pay period following the date of enactment of this
Act.
SEC. 108. (a) Section 704 of the Classification Act of 1949, as
amended, is amended to read as follows:
"SEC. 704. In the case of officers and employees in grades 11 to 15,
inclusive, of the General Schedule who are receiving compensation at or
above the maximum scheduled rates for their respective grades on the date
immediately preceding the effective date of this amendatory section, not
to exceed three years of service performed immediately preceding such
effective date shall be counted toward longevity step-increases under sec-
tion 703. Notwithstanding subsection (b) (4), of section 703, longevity
step-increases for grade 15 of the General Schedule shall be $200."
(b) The amendment made by subsection (a) shall become effective at
the beginning of the first pay period following the date of enactment of this
Act.
SEC. 104. Section 808 of the Classification Act of 1949, as amended,.
is amended to read as follows:
"SEC. 803. (a) Whenever the Commission shall find (1) that a sufficient
number of qualified eligibles for positions in a given class cannot be
secured in one or more areas or locations at the existing minimum rate
for such class, and (2) that there is a possibility that a sufficient number
of such eligibles can be secured by increasing the minimum rate for such
class in such areas or locations to one of the higher rates within the grade
in which such class is placed, the Commission may establish such higher
rate as the minimum rate for that class in each area or location concerned.
"(b) Minimum rates established under subsection (a)' may be revised
from time to time by the Commission. Such actions or revisions shalt
have the force and effect of law.
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved For Release 2002/07/12 : CIA-RDP79-00065A000
FRING 4PLOYMENT BENEFITS FOIL FEDERAL EI JYEES
"(c) Any increase in rate of basic compensation resulting from the
establishment of minimum rates under this section shall not be regarded as
an `equivalent increase' in compensation within the meaning of 8eetion
701 (a)."
EXCLUSION FROM CLASSIFICATION ACT OF 1949 OF CRAFTS, TRADES,
AND LABOR POSITIONS AND APPLICATION OF PREVAILING WAGE
POLICY TO SUCH POSITIONS
SEC. 105. (a) Paragraph (7) of section 202 of the Classification Act
of 1949, as amended, is amended to read as follows:
"(7) employees in recognized trades or crafts, or other skilled mechan
ical crafts, or in unskilled, semiskilled, or skilled manual-labor occupa-
tions, and other employees including foremen and supervisors in positions
having trade, craft, or laboring experience and knowledge as the paramount
requirement, and employees in the Bureau of Engraving and Printing
the duties of whom are to perform or to direct manual or machine opera-
tions requiring special skill. or experience, or to perform or direct the
counting, examining, sorting, or other verification of the product of
manual or machine operations: Provided, That the compensation of such
employees shall be fixed and adjusted from time to time as nearly as is-
consistent with the public interest in accordance with prevailing rates
Provided further, That whenever the Civil Service Commission concurs in
the opinion of the employing agency that in any given area the number-
of such employees is so few as to make prevailing rate determinations
'impracticable, such employee or employees shall be subject to the provisions-
of this Act which are applicable to positions of equivalent difficulty or
responsibility."
(b) Section 204. (c) of the Classification Act of 1949, as amended, is-
amended to read as follows:
"(c) Section 202 (except paragraph (7) thereof) and section 203 shall'
not apply to the Office of the Architect of the Capitol."
TRANSFER OF CERTAIN POSITIONS FROM THE CRAFTS, PROTECTIVE,.
AND CUSTODIAL SCHEDULE TO THE GENERAL SCHEDULE
? SEC. 106. (a) Not earlier than the first day of the second pay period'
which begins after the date of enactment of this Act, and not'later than,the
first clay of the first pay period which begins more than six months after
the date of enactment ~of this Act, all positions in the Crafts, Protective;.
and Custodial Schedule of the Classification Act of 1949, as amended,
not excluded from such Act by section 202 (7) thereof, as amended by
section 105 of this title, shall be placed in corresponding grades of the
General Schedule as set forth below:
Grade of toe Crafts, Corresponding new
Protect ire and Cu,- grade of the Gen-
todial Schedule era, Schedule
1 ' ----------1
2--------------------------------------------------- 1
8---------------------------------------------------
4 --------------------------------------------------- 2
5--------------------------------------------------- 3
6--------------------------------------------------- 4
7-------------------------------------------------- 5
8--------------------------------------------------- 6
9--------------------------------------------------- 7
10 8.
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved For RRlease 22/07/12: CIA-RDP79-00065A gf 20002U010-6
FRIN EMPLOYMENT BENEFITS FOR F RAL a.OYEES
(b) The rates of basic compensation of officers and employees to whom
this section applies shall be'initially. adjusted =asfollows:
"(1) -If the 'employee is receiving a rate of basic compensation in the
Crafts, Protective, and Custodial Schedule which is less than the mini-
mum scheduled rate of that grade in the General Schedule in which his
position is placed, his compensation shall be increased to such minimum
rate;
(2) If the employee is receiving a rate of basic compensation in the
Crafts, Protective, and Custodial Schedule which is equal to one of the
scheduled or longevity rates of that grade in the General Schedule in which
his position is placed, he shall receive a rate of basic compensation at such
scheduled or longevity rate;
(3) If the employee is receiving a rate of basic compensation in the
Crafts, Protective, and Custodial Schedule at a rate between two scheduled
or two longevity rates, or between a scheduled rate and a longevity rate, of
that grade in the General Schedule in which his position is placed, he
shall receive a rate of basic compensation at the higher of such two rates;
(4) If the employee is receiving a rate of basic compensation in the
Crafts, Protective, and Custodial Schedule in excess of the maximum
longevity rate of that grade in the General Schedule in which his position
is placed, he shall continue to receive basic compensation without change
in rate until (A) he leaves such position, or (B) he is entitled to receive
basic compensation at a higher rate by reason of the operation of the
Classification Act of 1949, as amended; but when such position becomes
vacant the rate of basic compensation of any subsequent appointee shall be
fixed in accordance with such Act, as amended.
(c) The conversion to grades of the General Schedule of positions covered
by this section, and the initial adjustments in compensation as prescribed
herein, shall not be construed to be transfers or promotions within the
meaning of section 802 (b) of the Classification Act of 1949, as amended,
and the regulations issued thereunder.
ABOLISHMENT OF CRAFTS, PROTECTIVE, AND CUSTODIAL SCHEDULE
SEC. 107. Section 601 of the Classification Act of 1949, as amended,
is amended to read as follows:
"SEC. 601. There is hereby established for positions to which this
Act applies a basic compensation schedule, to be known as the `General
Schedule', the symbol for which shall be `GS'."
SEC. 108. (a) Section 602 of the Classification Act of 1949, as
amended, is amended by striking out "(a)" after "SEC. 602.".
(b) Subsection (b) of such section 602 is hereby repealed.
SEC. 109. (a) Subsection (a) of section 603 of the Classification Act
of 1949, as amended, is amended to read as follows:
"(a) The rates of basic compensation with respect to officers, em-
ployees, and positions to which this Act applies shall be in accordance
with the compensation schedule contained in subsection (b)."
(b) Subsection (c) of such section 603 is hereby repealed.
(c) Subsection (d) of such section 603 is amended to read as follows:
"(c) Whenever payment is made on the basis of a daily, hourly, weekly,
biweekly, or monthly rate, such rate shall be computed from the appropriate
annual rate specified in subsection (b) by the method prescribed in section
604 (d) of the Federal Employees Pay Act of 1945, as amended."
SEC. 110. (a) Section 105 of this title shall take effect on the date or
dates specified by the head of a department, but not earlier than the first
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved For Release 2002/07/12,\A-RDP79-00065A000020010-6
FRING MPLOYMENT 'BENEFITS FOR FEDERAL E YEES 5
day of the second pay period which begins after the date of enactment of
this Act, and not later than the first day of the first pay period which,
begins more than twelve months after the date of enactment of this Act,
with respect to each employee anal position in such department within the
purview of such section 105.
(b) Sections 107, 108, and 10.9 of this title shall take effect, with respect
to employees and positions in a department, upon the completion of the
actions required by sections 105 and 106 of this title to be taken with
respect to such employees and positions, but in no event later than the
first day of the first pay period which begins more than twelve months
after the date of enactment of this Act.
MISCELLANEOUS PROVISIONS
SEC. 111. Section 604 of the Classification Act of 1949, as amended,
is amended to read as follows:
"SEC. 604. Employees receiving basic compensation at a rate author-
ized by law, immediately prior to the effective date of this title, in excess;of
the appropriate new rate of the grade as determined under paragraphs
(1) to (10), inclusive, of section 604 (b) of this Act, as in effect prior to the
date of enactment of this amended section, may continue to receive such
rate so long as they remain in the same position and grade, but when any
such position becomes vacant, the rate of basic compensation of any subse-
quent appointee shall be fixed in accordance with this Act."
SEC. 112. Sections 703 (c) and 802 (b) of the Classification Act of
1949, as amended, are amended by striking out "section 604 (b) (11)"
and inserting in lieu thereof "section 604".
SEC. 118. The Civil Service Commission is hereby authorized to
issue such regulations as may be necessary for the administration of this
title.
SEC. 114. Nothing contained in this title shall be construed to decrease
the existing rate of basic compensation of any present employee, but when
his position becomes vacant any subsequent appointee to such position
shall be compensated in accordance with the scale of pay applicable to
such position.
SEC. 115. The term "department" shall have the same meaning in
this title as when used in the Classification Act of 1949, as amended.
TITLE II-AMENDMENTS TO THE FEDERAL EMPLOYEES
PAY ACT OF 1945, AS AMENDED
SEC. 201. This title may be cited as the "Federal Employees Pay
Act Amendments of 1954".
SEC. 202. (a) Subsection (a) of section 101 of the Federal Employees
Pay Act of 1945, as amended, is amended by striking out "titles II and
III". and inserting in lieu thereof "titles II, III, and IV".
(b) Subsection (b) of such section 101 is hereby repealed.
COMPENSATION FOR OVERTIME WORK
SEC. 203. Section 201 of the Federal Employees Pay Act of 1945,
as amended, is amended to read as follows:
"SEC.. 201. All hours of work officially ordered or approved in excess
of forty hours in any administrative workweek performed by officers and
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved For Release 2002/0 2: CIA-RDP79-00065AO0020002001 Qr6 ,
(A FRING EMPLOYMENT BENEFITS FOR FEDERAL E LOYEES
employees to whom this title applies shall be considered to be overtime
work and compensation for such overtime work, except as otherwise
provided for in this Act, shall be at the following rates:
"(1) For each officer and employee whose basic compensation is at
a rate which does not exceed the minimum scheduled rate of basic
compensation provided for grade GS-9 in the Classification Act of
1949, as amended, the overtime hourly rate of compensation shall
be an amount equal to one and one-half times the hourly rate of basic
compensation of such officer or employee, and all of such amount
shalt be considered premium compensation.
"(2) For each officer and employee whose basic compensation is at
a rate which exceeds the minimum scheduled rate of basic compensa-
tion provided ,for grade GS-9 in the Classification. Act of 1949, as
amended, the overtime hourly rate of , compensation shall be an
amount equal to one and one-half times the hourly rate of such
minimum scheduled rate of basic compensation, and all of such
amount shall be considered premium compensation."
SEC. 204. Section 202'(a) of the Federal Employees Pay Act of 1945,
as amended, is amended to read as follows:
"SEC. 202. (a) The head of any department, independent establish-
ment, or agency, including Government-owned or controlled corporations;
.or of the municipal government of the District of Columbia, or the head of
any legislative or judicial agency to which this title applies, (1) may,
at the request of any officer or employee, grant such officer or employee
.compensatory time off from his scheduled tour of duty in lieu of payment
for an equal amount of time spent in irregular or occasional overtime work,
and (2) may, at his own discretion, provide that any officer or employee,
whose rate of basic compensation is in excess of the maximum scheduled
rate of basic compensation provided for grade GS-9 in the Classification
Act of 1949, as amended, shall be compensated for irregular or occasional
overtime work for which compensation would be due under this Act with
an equal amount of compensatory time off from his scheduled tour of duty
in lieu of such compensation."
'`' SEC. 205. (a) Section 203 of the Federal Employees Pay Act of 1945,
as amended, is redesignated as section 205; and- wherever such section
number appears in such Act or in any other provision of law it is amended
to conform to the redesignation prescribed by this subsection.
(b) The Federal Employees Pay Act of 1945, as amended, is amended
by inserting after section 202 thereof the following new sections:
"CALL-BACK OVERTIME
"SEC. 203. For the purposes of this Act, any unscheduled overtime
work performed by any officer or employee on a day when no work was
scheduled for him, or for which he is required to return to..his place of
employment, shall be considered to be at least two hours in duration.
TIME IN TRAVEL STATUS
"SEC. 204. For the purposes of this Act, time spent in a travel status
away from the official-duty station of any officer or employee shall be
considered as hours of employment only when (1) within the days and
hours of such officer's or employee's regularly scheduled administrative
workweek, including regularly scheduled. overtime hours, or (2) when the
travel involves the performance of work while traveling or is carried out
under arduous conditions."
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved For Release 2002/07/12 A-RDP79-00065A000020010-6
FRINGE vIPL MENT BENEFITS FOR FEDERAL EM OYEES 7
COMPENSATION FOR NIGHT AND HOLIDAY WORK
SEC. 206. Section 301 of the Federal Employees Pay Act of 1945, as
amended, is amended to read as follows:
"SEC. 301. (a) Any regularly scheduled work between the hours of
six o'clock postmeridian and six o'clock antemeridian (including periods
of absence with pay during such hours due to holidays, and' any such
hours within periods ' of leave with pay if such periods total less than
eight hours during any pay period) shall be considered nightwork, except
as provided in subsection (b), and any officer or employee performing
such work to whom this title applies shall be compensated for such work
at his rate of basic compensation plus premium compensation amounting
to 10 per centum of such rate, unless otherwise provided in title IV of
this Act. This section shall not operate to modify the provisions of the
Act of July 1, 1944 (Public Law Numbered 394, Seventy-eighth Congress),
or any other law authorizing additional compensation for nightwork.
"(b) The head of any department, independent establishment, or
agency, including Government-owned or controlled corporations, may
designate any time after six o'clock postmeridian and any time before
six o'clock antemeridian as the beginning and end, respectively, of night-
work for the : purpose of subsection (a) at any post outside the several
States and the District of Columbia where customary hours of business
extend into the hours of nightwork provided by such subsection."
SEC. 207. Section 302 of the Federal Employees Pay Act of 1945, as
amended, is amended to read as_follows:
"SEC. 302. (a) All work not exceeding eight hours, which is not over-
time work as defined in section 201 of this Act and which is performed on
a holiday designated by Federal statute or Executive order, shall be com-
pensated at the rate of basic compensation of the offcer or employee
performing such work on a holiday plus premium compensation at a
rate equal to the rate of basic compensation of such officer or employee.
"(b) Any officer or employee who is required to perform any work on
such a holiday shall be compensated for at least two hours of such work,.
and any such premium compensation due under the provisions of this
section shall be in addition to any premium compensation which may be
due.. for the same work under the provisions. of section 301 of this Act.
providing premium compensation for nightwork.
"(c) Overtime work, as defined in section 201 of this Act, on Sundays
and such holidays shall be compensated in accordance with the provisions
of such section 201."
SPECIAL PROVISIONS FOR CERTAIN TYPES OF WORK
SEC. 208. (a) The Federal Employees Pay Act of 1945, as amended,
is amended by inserting after title III thereof a new title to read as follows:
"TITLE IV-SPECIAL PROVISIONS FOR CERTAIN TYPES
OF WORK
"SEC. 401. The head of any department, independent establishment,
or agency, including Government-owned or controlled corporations, or
of the municipal government of the. District of Columbia may, with the
approval of the Civil Service Commssion, provide that-
" (1) any
remain at, officer
or within employee
confines o position , his station during hiThlonger regularly
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved For Relgase,20
ordinary periods of duty, a substantial part of which consists of
remaining in a standby status rather than performing work, shall
receive premium compensation for such duty on an annual basis
in lieu of premium compensation provided by any other provisions
of this Act. Premium compensation under this paragraph shall be
determined as an appropriate percentage (not in excess of 25 per
centum) of such part of the rate of basic compensation for any such
position as does not exceed the minimum scheduled rate of basic
compensation provided for grade GS-9 in the Classification Act of
1949, as amended, by taking into consideration the number of hours
of actual work required in such position, the number of hours required.
in a standby status at or within the confines of the station, the extent
to which the duties of such position are made more onerous by night
or holiday work, or by being extended over periods of more than forty
hours a week, and any other relative factors; or
"(2) any officer or employee in a position in which the hours of
duty cannot be controlled administratively, and which requires sub-
stantial amounts of irregular, unscheduled, overtime duty and duty
at night and on holidays with the officer or employee generally being
responsible for recognizing, without supervision, circumstances which.
require him to remain on duty, shall receive premium compensation
for such duty on an annual basis in lieu of premium compensation
provided by any other provisions of this Act, except for regularly
scheduled overtime duty. Premium compensation under this para-
graph shall be determined as an appropriate percentage (not in excess
of 15 per centum) of such part of the rate of basic compensation for
any such position as does not exceed the minimum. scheduled rate
of basic compensation provided for grade GS-9 in the Classification
Act of 1949, as amended, by taking into consideration the frequency
and duration of night, holiday, and unscheduled overtime duty
required in such position."
(b) Nothing contained in this section shall be construed to decrease the
existing aggregate rate of compensation of any present employee, but when
the position of such employee becomes vacant any subsequent appointe&
thereto shall receive premium compensation provided for such position in
accordance with this section.
SEc. 209. Section 603 of the Federal Employees Pay Act of 1945, as
amended, and the heading immediately preceding such section are
amended to read as follows:
"SEc. 603. (a) No premium compensation provided by this Act shall
be paid to any officer or employee whose rate of basic compensation equals
or exceeds the maximum scheduled rate of basic compensation provided for
grade GS-15 in the Classification Act of 1949, as amended.
"(b) In the case of any officer or employee whose rate of basic com-
pensation is less than the maximum scheduled rate of basic compensation.
provided for grade GS-15 in the Classification Act of 1949, as amended,
such premium compensation may be paid only to the extent that such..
payment would not cause his aggregate rate of compensation to exceed such
maximum scheduled rate with respect to any pay period."
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 FRINGI IAJ*MV~ja Pff + T&W"26U26fli 1 QY p,79900065A000 0020010-6
SEC. 210. (a) The heading immediately preceding section 604 of the
Federal Employees Pay Act of 1945, as amended, is amended to read as
follows:
"ESTABLISHMENT OF BASIC WORKWEEK; WORK SCHEDULES; PAY
COMPUTATION METHODS"
(b) Section 604 (a) of the Federal Employees Pay Act of 1945, as
amended, is amended by inserting "(1)" after "(a)" and by adding at
the end thereof a new paragraph as follows: .
"(2) Except where the head of each such department, establishment, or
agency and of the municipal government of the District of Columbia deter-
mines that his organization would be seriously handicapped in carrying
out its functions or that costs would be substantially increased, he shall
provide, with respect to all officers and employees in his organization,
(A) that assignments to tours of duty shall be scheduled in advance over
periods of not less than one week, (B) that the basic forty-hour workweek
shall be scheduled on five days, which shall be Monday through Friday
wherever possible, and the two days outside the basic workweek shall be
consecutive, (C) that the working hours in each day in the basic workweek
shall be the same, (D) that the basic nonovertime workday shall not exceed
eight hours, (E) that the occurrence of holidays shall not affect the desig-
nation of the basic workweek, and (F) that breaks in working hours of
more than one hour shall not be scheduled in any basic workday."
SEC. 211. This title shall become effective at the beginning of the first
pay period which begins more than sixty days after the date of enactment
of this Act.
TITLE III-GOVERNMENT EMPLOYEES' INCENTIVE.
AWARDS
SEC. 301. This title may be cited as the "Government Employees'
Incentive Awards Act".
SEC. 302. The departmental awards program set forth in this title shall
be carried out under such regulations and instructions as may be issued
by the United States Civil Service Commission which shall annually
report the results of the program, with related recommendations, to the
President for transmittal to the Congress.
SEC. 303. As used in this title, the term "department" means an
executive department or independent agency in the executive branch of the
Government, including a Government-owned or controlled corporation
.(but not including the Tennessee Valley Authority), and also includes
(a) the Administrative Office of the United States Courts, (b) the Library
of. Congress, (c) the Botanic Garden, (d) the Government Printing Office,
(e) the Office of the Architect of the Capitol, and (f) the municipal govern=
ment of the District of Columbia.
. SEC. 304. (a) The head of each department.is authorized to pay cash
awards to, and to in cur necessary expenses for the honorary recognition
of, civilian officers and employees of .the Government who by their sugges-
tions, inventions, superior accomplishments, or other personal efforts
contribute to the efficiency, economy, or other improvement of Government
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 f -t
Approved For RelseI00724RDP7a'OMS'AV0{OWgO0'L&YEEs
operations or who perform special acts or services in the public interest in
connection with or related to their official employment.
(b) In instances determined by the President to warrant such action,
he is authorized to pay cash awards to, and to incur necessary expenses
for the honorary recognition of, civilian officers and employees of the
Government who by their suggestions, inventions, superior accomplish-
ments, or other personal efforts contribute to the efficiency, economy, or
other improvement of Government operations, or who perform exceptionally
meritorious special acts or services in the public interest in connection
with or related to their official employment, and any such Presidential
awards may be in addition to the departmental awards authorized in
subsection (a) of this section.
(c) Awards under this section may be paid notwithstanding the
death or separation from the service of the officer or employee concerned:
Provided, That the suggestions, inventions, superior accomplishments,
other personal efforts, or special acts or services in the public interest
forming the basis for the awards are made or rendered while the officer
or employee is in the employ of the Government.
(d) A cash award under this section shall be in addition to the regular
compensation of the recipient and the acceptance of such cash award shall
constitute an agreement that the use by the Government of the United.
States or the municipal government of the District of Columbia of any
idea, method or device for which the award is made shall not form the.
basis of a further claim of any nature upon the Government of the United
States or the municipal government of the District of Columbia by. the
employee, his heirs, or assigns.
(e) Awards to employees and expenses for the honorary recognition of
employees may be paid from the funds or appropriations available to the
activity primarily benefiting or may be paid from the several funds or
appropriations of the various activities benefiting as may be determined
by the President for awards under subsection (b) of this section, and by
the head of the department concerned for awards under subsection (a) of
this section.
(f) An award under this title shall be given due weight in qualifying
and selecting employees for promotion.
(g) A monetary award granted under this title shall not exceed $5,000,
except that an award in excess of such amount but not in excess of $25,000
may be granted, with the approval of the Commission, in special casesin
which the head of a department certifies to the Commission that the sug-.
gestion, invention, superior accomplishment, or other meritorious effort
for which such award is proposed to be made is highly exceptional and
unusually outstanding.
SEC. 305. The following laws and parts of laws are hereby repealed:
(a) Sections 702, 1002, and 1003 of the Classification Act of 1949
(63 Stat. 954; 5 U. S. C. 1122, 1152, 1153).
(b) Section 14 of the Act entitled "An Act to authorize eel tain admin-
istrative expenses in the Government service, and for other 'Purposes",
approved August 2, 194.6 (60 Stat. 809; 5 U. S. C. 116a).
(c) The Act entitled "An Act authorizing payments of rewards to
postal employees for inventions", approved December.8, 1945 (59 Stat.
591; 39 U. S. C. 813).
(d) The Act entitled "An Act authorizing the Secretary of War to pay
a cash award for suggestions submitted by employees of certain estab-
lishments of the Ordnance Department for improvement or economy in
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 FRING ,1 d f Rei as 2 QlL1 R
P7 00065A00 00020010-6
*AM
manufacturing process or plant", approved July 17, 1912 (37 Stat. 198;
50 U. S. C. 58).
(e) The Act entitled "An Act to provide equitable compensation for
useful suggestions or inventions by personnel of the Department of the
Interior", approved June 26, 1944 (58 Stat. 360; 5 U. S. C. 500).
(f) Subsections (a) and (b) of section 35 of the Act entitled "An Act
to enact certain provisions now included in the Naval Appropriation Act,
1946, and for other purposes", approved August 2, 1946 (60 Stat. 857;
5 U. S. C. 416).
(g) The joint resolution entitled "Joint Resolution to provide cash,
awards to personnel of the Maritime Commission and the War Shipping
Administration for useful suggestions to improve administration of their.
activities", approved March 13, 1944 (58 Stat. 115; 46 U. S. C. 1111b).
(h) All other laws or parts of. laws inconsistent with this Act are
hereby repealed to the extent of such inconsistency.
. SEC. 306. The enactment of this title shall not affect the right of any
employee to an award granted him under any provision of law repealed
by this title.
SEC. 307. This title shall take effect on the ninetieth day after the
date of its enactment.
TITLE ITT UNIFORM ALLOWANCES
SEC. 401. This title may be cited as the "Federal Employees Uniform
Allowance Act".
SEC. 402. There is hereby authorized to be appropriated annually to
each agency of the Government of the United States or of the District of
Columbia (including Government-owned corporations), upon a showing
of the necessity or desirability thereof, an amount not to exceed $100
multiplied by the number of the employees of such agency who are re-
quired by regulation existing on the date of enactment of this Act or by
law to wear a prescribed uniform in the performance of his or her official
duties and who are not being furnished with such uniform. The head
of any agency to which any such appropriation is made shall, out of
funds made available by such appropriation, (1) furnish to each such
employee such uniform at a cost not to exceed $100 per annum, or (2)
pay to each such employee an allowance for defraying the expenses of.
acquisition of such uniform at such times and in such amounts, not to
exceed $100 per annum, as may be prescribed in accordance with rules
and regulations promulgated pursuant to section 404. Where the fur-
nishing of a uniform or the payment of a uniform allowance is author-
ized under any other provision of law or regulation existing on the date
of enactment of this Act, the head of the agency may in his discretion
continue the furnishing of such uniform or the payment of such allow-
ance under such law or regulation, but where a uniform is furnished or
allowance paid under any such law or regulation no uniform shall bey
furnished or allowance paid under this section.
SEC. 403. Allowances paid under this title shall not be considered as
pay, salary, or compensation within the meaning of the Civil Service
Retirement Act of May 29, 1930, as amended, or as wages within the
meaning of section 209 of the Social Security Act, as amended, or chapters
21 and 24 of the Internal Revenue Code of 1954.
SEC. 404. The Director of the Bureau of the Budget is authorized
and directed to promulgate such rules and regulations as may be necessary
to provide for the uniform administration of this title.
Approved For Release 2002/07/12 : CIA-RDP79-00065A000200020010-6
 Approved Forl2elease
FRING OM/PLOYMENTIABENEFITS OR6FEDEROAL E1 004 .F NYEES
TITLE V-ANNUAL LEAVE
SEC. 501. Clause (6) of section 2 of the Act of August 3, 1950, as
amended by section 5 of the Act of July 2, 1958, is amended to read as
follows: "(6) payment for all accumulated and current accrued annual or
vacation leave equal to the compensation the decedent would have received
had he remained in. the service until the expiration of the period of such
annual or vacation leave; except that such -lump-sum payment shall not
include compensation for any period of accumulated - leave in excess of
thirty days, plus current accrued leave, or in excess of the number of days
of accumulated leave to which he is entitled on the date of separation
(excluding accumulated leave earned in the 1954 leave year and there-
after), plus current accrued leave, whichever is the greater."
SEC. 502. Section 6 of the Act of July 2, 1953 (Public Law 102,
Eighty-third Congress),. is hereby repealed.
SEC. 503. Section 501 of this title shall take effect as of September 1,
1953.
TITLE VI-MISCELLANEOUS PROVISIONS
SEC. 601. (a) Section 2 (b) of the Performance Rating Act of, 1950.
(5 U. S. C., sec. 2001) is amended by striking out the period at the end
thereof and inserting in lieu thereof a semicolon and the following:
"(12) The Central Intelligence Agency."
(b) Section 9 of the Central Intelligence Agency Act of 1949, as amended
(50 U. S. C., sec. 403i), is hereby repealed.
SEC. 602. (a) Subsection (a) of section 1310 of the Supplemental
Appropriation Act, 1952 (Public Law 253, Eighty-second Congress),
as amended, is amended to read as follows:
"(a) The Civil Service Commission and the heads of the executive
departments, agencies, and corporations shall make full use of their
authority to require that initial appointments to positions in and outside
the competitive civil service shall be made on other than a permanent basis
in order to prevent increases in the number of permanent personnel of the
Federal Government in excess of 10 per centum above the total number of
permanent employees on September 1, 1950: Provided, That- any position,
vacated by a permanent employee called to military service or transferred
to a national defense agency shall not be filled except on a temporary or
indefinite basis. All appointments, reinstatements, transfers, and
promotions to positions subject to the Classification Act of 1949 shall be
made with the condition and notice to each individual appointed, re-
instated, transferred, or promoted that the classification grade of the posi-
tion is subject to post-audit and correction by the appropriate departmental
or agency personnel office or the Civil Service Commission."
(b) Such section 1310 is further amended by adding at the end thereof
the following new subsection:
"(e) This section does not and shall not be construed to amend or
modify the Veterans' Preference Act of 1944 (Public Law 359, Seventy-
,eighth Congress), as amended."
SEC. 603. The Official Reporters of the proceedings and debates of
the Senate and their employees shall be considered to be officers or em-
ployees in or under the legislative branch of the Government within the
meaning of the provisions of section 2 (a) of the Federal Employees'
Group Life Insurance Act of 1954.
SEC. 604. The Act entitled "An Act authorizing the employment of
mail messengers in the postal service", approved March 3, 1887 (39
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 FRINGi N11fL(~YIGIEIQ $EN I7'SaF(71~FE})ERAI,121 OYRDP7?300065A00
U. S. C., sec. 578), is amended by adding at the end thereof the following
new paragraph;
"The Postmaster General may, in his discretion and under such
regulations as he may prescribe, readjust the compensation of the holder
of any contract for the performnce of mail-messenger service on account
of increased or decreased costs occasioned by changed conditions which
could not reasonably have been anticipated at the time such contract
was made."
And the Senate agree to the same.
That the House recede from its disagreement to the amendment
of the Senate to the title of the bill and agree to the same with an.
amendment as follows:
In lieu of the amended title proposed by the Senate amendment;.
amend the title so as to read: "An Act to provide certain employment
benefits for employees of the Federal Government, and for other
purposes."
EDWARD H. REES,
JOEL T. BROYHILL,
TOM MURRAY,
Managers on the Part of the House..
FRANK CARLSON,
JAMES H. DUFF,
OLIN D. JOHNSTON,
Managers on the Part of the Senate_
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved For Release 2002/07/12: CIA-RDP79-00065A000200020a10-6
STATEMENT OF THE MANAGERS ON THE PART OF THE HOUSE
The managers on the part of the House at the conference on the
disagreeing votes of the two Houses on the amendment of the Senate
to the bill (H. R. 2263) to authorize the Postmaster General to
readjust the compensation of holders of contracts for the performance
of mail-messenger service, submit the following statement in expla-
nation of the effect of the action agreed upon by the conferees and
recommended in the accompanying conference report:
The Senate amendment strikes out all of the House bill after the
enacting clause. The committee of conference recommends that the
House recede from its disagreement to the amendment of the Senate,
with an amendment which is a substitute for both the House bill and
the Senate amendment, and that the Senate agree to the same.
The House bill related only to the granting of authority to the
Postmaster General to readjust the compensation of the holders of
mail-messenger service contracts to reflect certain changes in operating
costs. The Senate amendment (which does not contain any such
provision) consists of six titles, as follows: Title I (containing amend-
ments to the Classification Act of 1949), title II (containing amend-
ments to the Federal Employees Pay Act of 1945), title III (providing
for a program of incentive awards for Government employees), title
IV (providing for uniform allowances for Government employees),
title V (relating to annual leave of Government employees), and title
VI (containing certain provisions relating to miscellaneous subjects).
The following statement discusses the provisions of the conference
substitute and notes the similarities and differences between the con-
ference substitute and the Senate amendment and the conference sub-
stitute and related provisions of S. 2665 as reported to the House by
the Committee on Post Office and Civil Service of the House.
TITLE I-AMENDMENTS TO CLASSIFICATION ACT OF 1949, AS AMENDED
NUMBER OF POSITIONS IN GRADES 16, 17, AND 18 OF THE GENERAL
SCHEDULE
Section 101 of the Senate amendment and section 103 of S. 2665,
as reported to the House, relate to the number of positions authorized
in grades 16, 17, and 18 of the general schedule of the Classification
Act of 1949.
Subsection (a) of section 101 of the Senate amendment and subsec-
tion (a) of section 103 of S. 2665, as reported to the House, amend
section 505 of the Classification Act of 1949, as amended. Such sec-
tion 505 now provides that at any one time there shall not be more than
300 positions in grade GS-16, not more than 75 positions in grade
-GS-17, and not more than 25 positions in grade GS-18, making a total
of 400 positions in these so-called supergrades. Such section 505, as
amended by subsection (a) of section 101 of the Senate amendment,
provides that at any one time there shall not be more than 400 posi-
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 FRINGi aPL#W_RYeAf 9fIF I g i107ir_ DF, 9-00065A01200020010-6
tions in grade 16 of the general schedule, not more than 115 positions
in grade 17 of the general schedule, and not more than 35 positions in
grade 18 of the general schedule, making a total of 550 positions.
Such section 505, as amended by subsection (a) of section 103 of S.
2665, as reported to the House, provides that at any one time there
shall not be more than 396 positions in grade GS-16, not more than 123
positions in grade GS-17, and not more than 31 positions in grade
GS-18, making a total of 550 positions. The conference substitute
contains the provisions of the Senate amendment with respect to the
number of positions in grades 16, 17, and 18 of the general schedule.
Both subsection (a) of section 101 of the Senate amendment and
subsection (a) of section 103 of S. 2665, as reported to the House,
continue the provisions of section 505 of the Classification Act of 1949
which require (1) that positions may be placed in grades GS-16 and
GS-17 only by action of, or after prior approval by, the Civil Service
Commission, and (2) that positions may be placed in or removed
from grade GS-18 only by the President upon recommendation of the
Civil Service Commission. The conference substitute also continues
these provisions.
Such section 505, as amended by subsection (a) of section 101 of
the Senate amendment, also provides that positions of senior special-
ists in the Legislative Reference Service of the Library of Congress
which may be established under section 203 (b) (1) of the Legislative
Reorganization Act of 1946 may be in addition to those authorized
by the other provisions of section 505. No such provision is contained
in,, S. 2665, as reported to the House. The conference substitute
contains this provision of the Senate amendment.
Subsection (b) of section 101 of the conference substitute provides
that the amendment made by subsection (a) shall not affect positions
allocated to grades 16, 17, and 18 of the general schedule of the Classi-
fication Act of 1949, as amended, pursuant to provisions of law (other
than such act) and reorganization plans in effect prior to the effective
date of such section 101. The Senate amendment and S. 2665, as
reported to the House, contain the same provision.
LONGEVITY STEP-INCREASES
Subsection (a) (1) of section 102 of the conference substitute amends
subsection (a) of section 703 of the Classification Act of 1949, as
amended,. to provide that, if an employee who has earned credit
toward the required 3-year longevity period at the maximum rate or
a longevity Iate of his grade is transferred to the maximum rate or a
longevity rate of a lower grade, the credit earned by such employee
in the higher grade shall apply toward a longevity step increase in
the lower grade. Under such subsection (a) of section 703 of the
Classification Act of 1949 as now in effect, an employee has to begin
his 3-year longevity period over again when he is reduced in grade.
Subsection (a) (1) of section. 102 of the Senate amendment contains
the same provision. There is no comparable provision in S. 2665, as
reported to the House.
Subsection (a) (2) of section 102 of the conference substitute amends
subsection (b) (1) of section 703 of the Classification Act of 1949, as
amended, to provide that no officer or employee in a position in any
grade above grade 15 of the general schedule shall be entitled to a
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved
For
longevity step increase. Such section 703 (b) (1) now provides that
no officer or employee in a position in any grade above grade 10 of
the general schedule shall be entitled to a longevity step increase.
Both subsection (a) (2) of section 102 of the Senate amendment and
subsection (a) of section 104 of S. 2665, as reported to the House,
contain this provision of the conference substitute.
Subsection (b) of section 102 of the conference substitute provides
that the amendments made by subsection (a) shall take effect at the
beginning of the first pay period after the date of enactment of the
conference substitute. The Senate amendment and S. 2665, as
reported to the House, contain the same effective date provisions.
Subsection (a) of section 103 of the conference substitute amends
section 704 of the Classification Act of 1949, as amended. Such
section 704, as so amended, provides that, in the case of employees in
grades 11 to 15, inclusive, of the general schedule, not to exceed 3
years of service performed immediately prior to the effective date of
the amendment at or above the maximum scheduled rates for their
respective grades shall be counted toward longevity step ircreases.
For grade GS-15, which has within-grade compensation steps of $250,
longevity step increases are limited to $200. These same provisions
are also contained in subsection (a) of section 103 of the Senate amend-
ment and subsection (a) of section 105 of S. 2665, as reported to the
House.
Subsection (b) of section 103 of the conference substitute provides
that this amendment shall become effective at the beginning of the
first pay period after the date of enactment of the conference sub-
stitute. The Senate amendment and S. 2665, as reported to the
House, contain the same effective date provisions.
RECRUITMENT ABOVE THE MINIMUM RATE OF THE CLASS
Section 104 of the conference substitute amends section 803 of the
Classification Act of 1949, as amended. Such section 803, as so
amended, relates to the recruitment of employees at pay rates above
the statutory minimum rate for a class of positions when authorized,
under certain conditions, by the Civil Service Commission. Under
section 801 of the Classification Act of 1949, each original appoint-
ment to any position under, such act must be at the minimum per
annum rate of the grade in which such position is classified. At times
the inflexibility of this provision has constituted an impediment to the
recruitment of a sufficient number of qualified eligibles to fill positions
in a given class in certain areas.
Subsection (a) of section 803 of the Classification Act of 1949, as
amended by section 104 of the conference substitute, provides that
whenever the Civil Service Commission finds with respect to any area
or location (1) that a sufficient number of qualified eligibles for posi-
tions in a given class cannot be secured at the existing minimum rate
for such class, and (2) that there is a possibility of securing a sufficient
number of such eligibles by increasing the minimum rate for such class
of positions in such area or location, the Commission may establish
one of the within-grade step rates above the statutory minimum rate
of the appropriate grade for such class of positions as the minimum or
entrance rate for such class of positions in such area or location.
Subsection (b) of section 803 of the Classification Act of 1949, as
amended by section 104 of the conference substitute, authorizes the
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 FRINGE, &PIAMJ& ea4W FT@ I*YAeF ' ILMFAERDFII'9-00065A01200020010-6
Civil Service Commission to revise, from time to time, such higher
minimum rates as it may establish under subsection (a). Subsection
(b) also provides that such rates or any revisions thereof established
under section 803 shall have the force and effect of law.
Subsection (c) of the amended section 803 provides that any increase
in rate of basic compensation under section 803 shall not be regarded
as an "equivalent increase" in compensation within the meaning of
section 701 (a) of the Classification Act of 1949 (which relates to
within-grade step increases).
These same provisions with respect to recruitment above the
minimum rate of the class are also contained in section 104 of the
Senate amendment and section 106 of S. 2665, as reported to the
House.
EXCLUSION FROM CLASSIFICATION ACT OF 1949 OF, CRAFTS, TRADES,
AND LABOR POSITIONS AND APPLICATION OF PREVAILING WAGE
POLICY TO SUCH POSITIONS
Subsection (a) of section 105 of the conference substitute amends
paragraph (7) of section 202 of the Classification Act of 1949, as
amended. Paragraph (7), as so amended, removes from the cover-
age of that Act employees in recognized trades or crafts, or other
skilled mechanical crafts, or in unskilled, semiskilled, or skilled
manual-labor occupations, the duties of which involve the mainte-
nance and operation of public buildings and associated equipment or
the performance of work in scientific or engineering laboratories as
assistants to scientists or engineers, and other employees including
foremen and supervisors in positions having trade, craft, or laboring
experience and knowledge as the paramount requirement. Para-
graph (7), as so amended, also provides that the compensation of
such employees shall be fixed and adjusted from time to time as
nearly as is consistent with the public interest in accordance with
prevailing rates (as is the case with respect to other employees who
come within the purview of this paragraph), except that where, in
the opinion of the employing agency and the Civil Service Com-
mission, it is impracticable to do so because of the small number of
these employees in any given area, the rates of compensation for
such employees in that particular area shall be fixed at rates. of com-
pensation prescribed in the Classification Act of 1949, as amended,
for positions of equivalent difficulty or responsibility. The effective
date of section 105 of the conference substitute is provided for in
section 110 (a) of the conference substitute, which provides that
section 105 shall take effect on the date or dates specified by the
head of a department, but not earlier than the first day of the second
pay period which begins after the date of enactment of the conference
substitute, and not later than the first day of the first pay period
which begins more than 12 months after the date of enactment of
the conference substitute, with respect to each employee and position
in such department within the purview of such section 105.
The change made by subsection (a) of section 105 of the conference
substitute will affect about 69,000 crafts, trades, and manual-labor
employees. Of this number, approximately 37,000 are employed by
the Veterans' Administration and 16,000 in the General Services Ad-
ministration, with others spread throughout a number of agencies.
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved
For Rel seF; %O7 o QA[ gM6? OQQiliWj 12I QL--6YEES
Some of these employees will receive increased pay when they are
moved to a prevailing-rate pay system. As provided in section 114 of
the conference substitute, no employee will have his present pay
reduced as a result of such change.
Both subsection (a) of section 105 of the Senate amendment and
section 107 of S. 2665, as reported to the House, contain the above
provisions.
Subsection (b) of section 105 of the conference substitute amends
section 204 (c) of the Classification Act of 1949, as amended, to permit
the Architect of the Capitol to compensate, on the basis of prevailing
wage rates, those employees in crafts and labor occupations now com-
pensated under the crafts, protective, and custodial schedule of the
Classification Act of 1949. This provision is also contained in sub-
section (b) of section 105 of the Senate amendment but is not con-
tained in S. 2665, as reported to the House.
TRANSFER OF CERTAIN POSITIONS FROM THE CRAFTS, PROTECTIVE,
AND CUSTODIAL SCHEDULE TO THE GENERAL SCHEDULE
Subsection (a) of section 106 of the conference substitute directs
the conversion from the crafts, protective, and custodial schedule to
the general schedule of all positions which do not go to the prevailing-
wage system by virtue of the amendment made by section 105 of the
conference substitute to paragraph (7) of section 202 of the Classifi-
cation Act of 1949. Such positions which are in grades CPC-1, 2,
and 3 shall be placed in grade GS-1 and such positions which are in
grades CPC-4, 5, 6, 7, 8, 9, and 10 shall be placed in grades GS-2,
3, 4, 5, 6, 7, and 8, respectively. No such action may be taken prior
to the first day of the second pay period beginning after the date of
enactment of the conference substitute nor later than the first day
of the first pay period beginning more than 6 months after such date
of enactment.
Subsection (b) of section 106 of the conference substitute prescribes
the following rules by which the existing pay rates of employees under
the crafts, protective, and custodial schedule are to be initially ad-
justed to the rates in the general schedule:
(1) Each employee paid at a rate. of basic compensation in the
.crafts, protective, and custodial schedule which is. less than the
minimum scheduled rate of the grade in the general schedule in which
his position is placed, shall have his compensation increased to such
minimum rate;
(2) Each employee paid at a rate of basic compensation in the crafts,
protective, and custodial schedule which is equal to one of the sched-
uled or longevity rates of the grade in the general schedule in which
his position is placed, shall be paid at such scheduled or longevity rate;
(3) Each employee paid at a rate of basic compensation in the crafts,
protective, and custodial schedule which is at a rate between 2 sched-
uled or 2 longevity rates, or between a scheduled rate and a longevity
rate, of the grade in the general schedule in which his position is placed,
shall be paid compensation at the higher of such 2 rates;
. (4) Each employee paid at a rate of basic compensation in the crafts,
protective, and custodial schedule which is in excess of the maximum
longevity rate of the grade in the general schedule in which his posi-
tion is placed, shall continue to be paid basic compensation without
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 FRINGE PLappr ve 'for el11ease
R ~1~' 7 I hD 9I9-00065A0 J200020010-6
any change in rate until he either leaves such position or is entitled to
receive basic compensation at a higher rate by reason of the operation
.of the Classification Act of 1949, as amended; but when such position
becomes vacant the rate of basic compensation of any subsequent
appointee shall be fixed in accordance with the Classification Act of
1949, as amended.
Subsection (c) of section 106 of the conference substitute provides
that the conversion of positions to grades of the general schedule under
such section 106, and the initial adjustments in compensation pre-
:scribed in such section, shall not be construed to be transfers or promo-
tions within the meaning of section 802 (b) of the Classification Act
.of 1949, as amended, and regulations issued thereunder.
The conversion prescribed in this section of the conference substi-
tute will affect about 47,000 employees, mostly guards, messengers,
and fire fighters, the majority of which are in the Department of
Defense and General Services Administration. Most of these em-
ployees would receive small pay increases by conversion of their posi-
tions to the general schedule. Like the CPC workers who are moved
to a prevailing-rate system, none would have his present pay reduced.
Both section 106 of the Senate amendment and section 108 of S. 2665,
as reported to the House, contain identical provisions with respect to
the transfer to the general schedule of the above-mentioned positions
in the crafts, protective, and custodial schedule.
ABOLISHMENT OF CRAFTS, PROTECTIVE, AND CUSTODIAL SCHEDULE
Sections 107, 108, and 109 of the conference substitute abolish the
crafts, protective, and custodial schedule by making necessary revi-
sions in the language of the Classification Act of 1949 to effect that
action.
Section 107 deletes from section 601 of the Classification Act of 1949
reference to the crafts, protective, and custodial schedule.
Section 108 deletes from section 602 of the Classification Act of 1949
the grade-level definitions of the crafts, protective, and custodial
schedule.
Section 109 deletes from section 603 of the Classification Act of 1949
the entire crafts, protective, and custodial schedule, incidental refer-
ences to such schedule, and paragraph (c) (2) of such section relating
to the rates of pay of charwomen and head charwomen.
Section 110 of the conference substitute relates to the dates on
which sections 105, 107, 108, and 109 of the conference substitute
shall become effective.
Subsection (a) of section 110 provides that section 105 (relating to
the conversion of employees and positions to prevailing-wage rate
basis) shall be effective on the date or dates specified by the head of a
department but not earlier than the beginning of the second pay period
following the date of enactment of the conference substitute nor later
than the first day of the first pay period beginning more than 12
months after such date of enactment.
Subsection (b) of section 110 provides that, with respect to em-
ployees and positions in a given department, the crafts, protective,
and custodial schedule shall be abolished effective upon the completion
of the con version of employees and positions to prevailing-wage rate
basis under section 105 and the conversion of the remaining employees
.and positions to the general schedule under section 106, but, in any
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved For ReMaseIN2/@Zt~12olaR'r77>U~6~~~9~>EES
event, not later than the first day of the first pay period beginning-
more than 12 months after the date of enactment of.the conference
substitute.
These above-discussed provisions of the conference substitute relat-
ing to the abolishment of the crafts, protective, and custodial schedule
are also contained in sections 107, 108, 109, and 110 of the Senate
amendment and in sections 109, 110, 111, and 112 of S. 2665, as
reported to the House.
Section 202 of the conference substitute makes the coverage of the
new title IV added by the conference substitute to the Federal Em-
ployees Pay Act of 1945, as amended, the same as the coverage of
MISCELLANEOUS PROVISIONS
Section 111 of the conference substitute deletes from section 604 of
the Classification Act of 1949 certain obsolete rules for the adjustment
of basic compensation to the original pay scales of the Classification.
Act of 1949. One necessary provision, a broad savings clause, is
retained.
Section 112 of the conference substitute makes certain changes in.
references to section 604 of the Classification Act of 1949 which are
made necessary by the amendment to such section made by section 111.
Section 113 of the conference substitute authorizes the Civil Service
Commission to issue regulations for the administration of title I of the
conference substitute.
Section 114 of the conference substitute is a general overall com-
pensation saving provision. It provides that nothing in title I of the
conference substitute shall be construed to reduce the existing rate of
basic compensation of any present employee, when, for example, he is
changed from one schedule to another or from a scheduled rate of pay
to a prevailing-rate basis, or by reason of any other provision of title I.
However, when he vacates his position, the compensation of any sub-
sequent appointee to such position will be fixed in accordance with
the regular scale of pay applicable to such position.
Section 115 of the conference substitute provides that the term
"department" shall have the same meaning in title I of the conference
substitute as when used in the Classification Act of 1949, as amended.
These above-discussed miscellaneous provisions of title. I of the
conference substitute are the same as sections 111, 112, 113, and 114
of the'Senate' amendment and sections 113, 114, 115, and 116 of S. 2665,
as reported to the House.
TITLE 11-AMENDMENTS TO THE FEDERAL EMPLOYEES PAY: ACT OF
1945, AS AMENDED
Title II of the conference substitute contains amendments to the
Federal Employees Pay Act of 1945, as amended. Title II of the
conference substitute, except sections 203 and 208 (a).thereof, is the
same as title II of the Senate amendment and title II of S. 2665, as
reported to the House.
Section 201 of the conference substitute provides that title II may
be cited as the "Federal Employees Pay Act Amendments of 1954".
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved For Release 2002/07/1 CIA-RDP79-00065AO
FRINGEriPLOYMENT BENEFITS FOR FEDERAL EMPLOYEES 21
other overtime, night, and holiday-pay provisions of that act. Section
202 also repeals an obsolete subsection (subset: (b) of sec. 101) of
the Federal Employees Pay Act of 1945, as amended.
COMPENSATION FOR OVERTIME WORK
The present provisions of section 201 of the Federal Employees
Pay Act of 1945, as amended, establish a time-and-one-half rate of
-overtime pay for employees whose basic salaries are less than $2,980
per annum and a diminishing scale of overtime pay for employees
whose basic salaries are $2,980 or more per annum. Both section
'203 of the Senate amendment and section 203 of S. 2665, as reported
to the House, amend section 201 of the Federal Employees Pay Act
of 1945, as amended, in order to provide overtime pay at a time-and-
-one-half rate for employees whose basic salaries do not exceed the
maximum scheduled rate of grade GS-9. For employees above that
salary level such sections of the Senate amendment and S. 2665, as
reported to the House, provide overtime pay at a rate equivalent to
time and one-half at such maximum scheduled rate of grade GS-9,
or at their respective rates of basic compensation, whichever is greater.
.Section 203 of the conference substitute changes such provisions of
the Senate amendment and S. 2665, as reported to the House, by
providing for (1) overtime pay at a time-and-one-half rate for em-
'ployees whose basic salaries do not exceed the minimum (instead of
maximum) scheduled rate of grade GS-9, and (2) overtime pay at a
rate equivalent to time and one-half at such minimum scheduled rate
Of grade GS-9 for employees whose basic salaries do exceed such
minimum scheduled rate of grade GS-9.
Section 204 of the conference substitute amends section 202 (a) of
the Federal Employees Pay Act of 1945, as amended, in order to give
agency. heads the authority, which they do not now have, to require
employees at salaries above the maximum scheduled rate of grade
GS-9 to take compensatory time off instead of receiving overtime pay
for irregular or occasional overtime duty. The am.endment made by
section 204 also continues existing authority for granting compensatory
time off, at the request of an employee, in place of pay for irregular or
occasional overtime work. In both instances, the time off so provided
will compensate the employee for an equal amount of time spent by
him in irregular or occasional overtime work.
CALL-BACK OVERTIME AND TIME IN TRAVEL STATUS
Subsection (a) of section 205 of the conference substitute redesig-
nates section 203 of the Federal Employees Pay Act of 1945, as
amended, as section 205 of that act and contains language which, in
effect, amends all references to such section 203 elsewhere in existing
law to conform with such redesignation.
Subsection (b) of section 205 of the conference substitute adds new
sections 203 and 204 to the Federal Employees Pay Act of 1945, as
amended.
The new section 203 provides a minimum of 2 hours of pay at the
overtime rate for any employee who is called back to perform un-
scheduled overtime work either on a regular workday after he has
completed his regular schedule of work and left his place of employ-
ment or on one of the days when he is off duty.
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved For Relgas ?ZQ /0 ZtiGi Ar9R MOEA0AOEigDfl SEES
The new section 204 places on a statutory basis those principles
now established by decisions of the Comptroller General which relate
to time spent in-a travel status away from the official duty station of'
an officer or employee. Under the new section 204 such time is
treated as hours of employment only when: (1) within the regularly
scheduled workweek, including regularly scheduled overtime, of the
officer or employee, or (2) the travel involves the performance of work
while traveling of is carried out under arduous conditions which have
the effect of making such travel inseparable from work.
COMPENSATION FOR NIGHT AND HOLIDAY WORK
Section 206 of the conference substitute amends the night-differ-
ential-pay provisions of section 301 of the Federal Employees Pay Act
of 1945, as amended. The amendment made by section 206 does not
change the existing 10 percent rate of night differential for regularly
schedule work between 6 p. in. and 6 a. in. At present employees
receive night differential only for hours actually worked. New pro-
visions contained in the amendment made by section 206 liberalize
this existing requirement that hours be actually worked by allowing
an employee whose regular tour of duty includes nightwork to be paid,
night differential: (1) for his regular nightwork hours when he does
not work because of a holiday, and (2) for periods of leave with pay
during any pay - period in which his leave totals less than 8 hours.
The amendment made by section 206 also authorizes agency heads to
change the night-differential period at overseas posts to the extent
required to relieve such agencies of the necessity for paying night
differential during hours that are customary hours of business in the
locality. concerned.
Section 207 of the conference substitute amends the holiday-pay
provisions of section 302 of the Federal Employees Pay Act of 1945,
as amended. The amendment made by section 207 continues the
existing provision for extra pay at the straight-time rate, in addition
to pay at the regular rate, for work on a holiday within the 40-hour
basic workweek of an employee. The amendment also adds a new
provision guaranteeing a minimum of 2 hours of pay at the holiday
rate for any employee required to work on a holiday. The amendment
also. provides that any extra pay for an employee at the holiday rate
shall be in addition to the differential of 10 percent which such em-
ployee is entitled to receive for a regularly scheduled tour of duty
performed by him at night on a holiday, each such rate of premium
compensation for such holiday or nightwork being computed separately
on the rate of basic compensation of the employee concerned. In
addition, the amendment states explicitly the policy which is implicit
in existing provisions of the Federal Employees Pay Act of 1945, as
amended, that is, that overtime work on Sundays and holidays is to
be compensated at the same rates as overtime work on other days.
Subsection (a) of section 208 of the conference substitute adds a
new title IV to the Federal Employees Pay Act of 1945, as amended.
Paragraph (1). of section 401 (a) of the new title IV authorizes
agency heads to allow additional annual pay at rates up to 25 percent
of base-pay rates, in lieu of all overtime, night, and holiday pay, for
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 FRINGE(.ZPL(Apptmedfml`t e,MM-NI;cC 9-00065A0 200020010-6
employees who are required, by reason of the duties of their positions,
to remain at or within the confines of their stations during longer than
ordinary periods of duty but who spend a substantial part of their time
on duty in a standby status rather than actually performing work.
Additional annual pay granted under such paragraph (1) will be
determined after consideration of the following factors: (1) The num=
ber of hours of actual work required in each of such positions, (2) the
number of hours required in a standby status at or within the confines
of the station, (3) the extent to which the duties of each such position
are made more onerous by night or holiday work or by being extended
over periods of more than 40 hours a week, and (4) any other factors
relative to the determination of such additional annual pay.
Paragraph (2) of section 401 (a) of the new title IV authorizes
agency heads to allow additional annual pay at rates up to 15 percent
of base-pay rates, in lieu of other pay for irregular or unscheduled
overtime duty and for night and holiday duty, for those employees
whose hours of duty cannot be controlled administratively and who are
required to perform substantial amounts of irregular, unscheduled,
overtime and night and holiday duty, each employee generally being
responsible for recognizing (without supervision) circumstances which
require him to remain on duty. Each such employee will receive other
overtime pay, computed in the usual manner, for regularly scheduled
overtime work which is officially ordered or approved. Paragraph (2)
is designed specifically to permit this form of additional compensation
for those investigators of criminal activities whose positions meet all
the conditions specified in such paragraph. Paragraph (2) also will
permit similar payments to employees in other types of positions with
respect to which all these conditions exist in like degree.
Additional annual pay granted under such paragraph (2) will be
determined after consideration of the frequency and duration of night,
holiday, and unscheduled overtime duty required in each of such-
positions. . "
Additional annual pay under the new title IV is subject to the
approval of the Civil Service Commission.
It should be noted that under the Senate amendment and S. 2665,
as reported to the House, such additional annual pay is to be com-
puted on only that part of the base pay of an employee which does
not exceed the maximum scheduled rate of basic compensation pro-
vided for grade GS-9 of the Classification Act of 1949, as amended.
Under the conference substitute such additional annual pay is .to be
computed on only that part of the base pay of an employee which
does not exceed the minimum (instead of the maximum) scheduled
rate of such grade GS-9.
Section 401 (b) of the new title IV as contained in the Senate
amendment and S. ?2665, as reported to the House, provided that the
new title IV shall not apply to fire-fighting personnel. The Senate
amendment and S. 2665, as reported to the House, thus excluded
fire fighters from those categories of personnel who would be eligible
to receive up to 25 percent additional annual pay in lieu of other
premium compensation for long periods of standby duty. As a result, fire fighters would have continued to be paid for overtime,
night, and holiday duty under provisions (other than the new title IV)
of the Federal, Employees Pay Act of 1945, as amended, which relate
to such duty. This provision was included in the Senate amendment
and S. 2665, as reported to the House, in order to prevent a redtiction
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved For Release 2007/12 : CIA-RDP79-00065AO00200020QIO-6
24 FRIN EMPLOYMENT BENEFITS FOR FEDERAL k_'LOYEES
r
in compensation for a number of fire. fighters now in the service who,
are receiving more than 25 percent additional pay by virtue of over-
time, holiday, and night differential now authorized.
The conference substitute changes these provisions of the Senate
amendment and S. 2665, as reported to the House, by providing that
the new title IV shall apply to fire fighters. For the future, the
committee of conference agreed that new fire-fighting employees should
receive up to 25 percent additional annual compensation in lieu of
other premium compensation for their long periods of standby duty,
in order to avoid the complexities which arise in attempting to deter=
mine premium compensation for night, overtime, and holiday work.
caused by long periods of standby duty frequently performed by
fire-fighting personnel. The committee of conference further agreed,
however,. that the pay of those fire fighters now in the service who
receive more than the 25 percent additional pay provided by the
conference substitute should not be reduced. This is accomplished by
section 208 (b) of the conference substitute which provides that the
provisions of the new title IV added by section 208 (a) of the con-
ference substitute to the Federal Employees Pay Act of 1945, as
amended, shall not be construed to decrease the existing aggregate
rate of compensation of any present employee. If, however, the
position of such present employee should become vacant in the future,
any subsequent appointee to such position will receive premium
compensation for such position in accordance with the provisions of
such new title IV.
Subsection (b) of section 208 of the conference substitute provides
that the provisions of the new title IV added by section 208 (a) to
the Federal Employees Pay Act of 1945, as amended, shall not be
construed to decrease the existing aggregate rate of compensation of
any present employee. If, however, the position of such present
employee should become vacant in the future, any subsequent ap-
pointee to such position will receive premium compensation for such
position in accordance with the provisions of such new title IV.
LIMITATION ON PREMIUM COMPENSATION
Section 209 of the conference substitute amends section 603 of the
Federal Employees Pay Act of 1945, as amended, to provide new
limitations with respect to receipt of premium compensation which
will replace the existing limitations contained in such section 603.
Subsection (a) of such section.603, as so amended, provides that
no premium compensation will be paid, under the amendments made
by title II of the conference substitute, for overtime, night, or holiday
work, to any officer or employee whose rate of basic compensation
equals or exceeds the maximum scheduled rate of basic compensa-
tion provided for grade GS-15 in the general schedule of the Classi-
fication Act of 1949, as amended.
Subsection (b) of such section 603, as so amended, provides that,
in the case of any officer or employee whose rate of basic compensation
is less than the maximum scheduled rate of basic compensation pro-
vided for grade GS-15 in the Classification Act of 1949, as amended,
such premium compensation may be paid only to the extent that
such payment would not cause his aggregate rate of compensation
to exceed such maximum scheduled rate with respect to any pay
period.
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 FRINGE `Sr,1PL~Y-Qe~il~eleaSUGYIV-?,DR9-00065A0
The amendment made by section 209 of the conference substitute
replaces the present ceiling rate of $10,330 in the Federal Employees
Pay Act of 1945, as amended-a former maximum scheduled rate of
the former grade CAF-15.
WORK SCHEDULES
Section 210 of the conference substitute adds to section 604 (a) of
the Federal Employees Pay Act of 1945, as amended, new provisions
relating to the scheduling of tours of duty. Except where an agency
head determines that his organization would be seriously handicapped
in carrying out its functions or that costs would be substantially
increased, the new provisions will require such agency head to provide
for the following actions and policies with respect to all officers and
employees in his organization: (1) Assignments to tours of duty shall
be scheduled at least 1 week in advance, (2) the basic workweek of 40
hours shall be scheduled on 5 days (Monday through Friday, if
possible) and the 2 days outside the basic workweek shall be consecu-
tive, (3) the working hours on each day in the basic workweek shall
be the same, .(4) the basic nonovertime workday shall not exceed 8
hours, (5) the basic workweek shall not be altered because of the
occurrence of a holiday, and (6) daily tours of duty shall not be split by
off-duty periods of more than 1 hour.
It should be noted that existing mandatory scheduling provisions
of the Federal Employees Pay Act of 1945, as amended, will continue
in effect. Such provisions require agencies to establish a basic work-
week of 40 hours and require that the hours of work in such workweek
be performed within a period of not more than 6 of any 7 .consecutive
days.
Section 211 of the conference substitute provides that title II of
the conference substitute shall become effective at the beginning
of the first pay period which begins more than 60 days after the date
of enactment of the conference substitute.
TITLE III-GOVERNMENT EMPLOYEES' INCENTIVE AWARDS
Section 301 of the conference substitute establishes for title III a
short title, the "Government Employees' Incentive Awards Act."
Section 302 of the conference substitute states that the awards
program under this title shall be carried out under regulations and
instructions issued by the United States Civil Service Commission.
It further provides that the Commission shall report the results of the
program annually to the President for transmittal to the Congress.
Section 303 of the conference substitute defines the term "depart-
ment." This section will place all Federal departments and agencies
except the Tennessee Valley Authority under the provisions of this
title.
Section 304 (a) of the conference substitute authorizes the head of
each department to pay cash awards to and incur necessary expenses
for the honorary recognition of civilian officers and employees of the
Government in the following circumstances:.
1. When, such officers or employees have contributed to the effi-
ciency, economy, or other improvement of Government operations
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 77Approved For Fea2Q~7I~OQg~0(0~s
by their suggestions, inventions, superior accomplishments, or other
personal efforts; or
2. When they have performed special acts or services in the public
interest in connection with or related to their official employment.
Section 304 (b) of the conference substitute authorizes the President
to pay cash awards to and incur necessary expenses for the honorary
recognition of civilian officers and employees of the Government in
addition to departmental awards authorized in section 304 (a) in
circumstances where such additional awards or recognition are
determined by the President to be warranted.
Section 304 (c) of the conference substitute provides that awards
authorized in section 304 (a) and 304 (b) may be paid even though the
official or employee has died or been separated from the service, pro-
vided that the suggestion or other contribution on which the award is
based was made while he was in the Government's employ.
Section 304 (d) of the conference substitute provides that a cash
award under this section shall be in addition to regular compensation
of the officer or employee. It also is designed to protect the United
States from a claim of any kind which might arise from the acceptance
of a cash award by any employee, former employee, or his heirs or
assigns. It should be understood that the inclusion of this subsec-
tion in the title in no way implies the existence of a claim against the
United States in any case in which the award is not accepted or in
which the recipient later deems it insufficient. This carries forward
the language in existing law to be found in section 14 of the act entitled
"An act to authorize certain administrative expenses in the Govern-
ment service, and for other purposes" approved August 2, 1946, which
section is repealed in section 305 hereinafter.
Section 304 (e) of the conference substitute authorizes departments
to pay cash awards and expenses for honorary recognition from their
general appropriations. In addition it will permit two or more
departments which have benefited from a single suggestion or other
contribution to share in the cost of the award granted therefor. The
President will determine the proportionate amount that each benefiting
department will contribute in the case of those awards he authorizes,
and the head of each department will determine. the amount of the
awards he authorizes.
Section 304 (f) of the conference substitute states that due weight
shall be given to awards made under this title in considering employees
for promotion.
Section 304 (g) of the conference substitute provides that no cash
award paid under this title shall exceed $5,000, except that in special
cases awards of not in excess of $25,000 may be granted, with approval
of the Civil Service Commission, upon certification by the head of
the department concerned.
Section 305 of the conference substitute repeals all existing laws
governing incentive-awards programs. Section 702 of the Classifica-
tion Act of 1949, which authorizes within-grade salary step increases
for superior accomplishment is among the laws repealed in this
section.
Section 306 of the conference substitute provides that the enact-
ment of this title shall not affect the right of any employee to an
award granted him under any provision of law repealed by this title.
Section 307 of the conference substitute establishes the effective
date of this title as 90 days after its enactment. This will give de-
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 FRINGE (.iPAW9WPdAF eia e 2iA7/ iG1 DP119-00065A00
partments time to revise their awards programs in compliance with
the provisions of this title.
The conference substitute adopts the language of the Senate
amendment, except for the addition of the monetary limitations in
section 304 (g) and the saving clause in section 306 thereof which are
discussed above. S. 2665, as reported to the House, contained lan-
guage which is similar in effect to that of the. Senate amendment,
and in addition thereto contained the monetary limitations and the
saving clause which are included in sections 304 (g) and 306, respec-
tively, of the conference substitute.
TITLE IV-UNIFORM ALLOWANCES
Section 401 of the conference substitute establishes a short title, the
"Federal Employees. Uniform Allowance Act."
Section 402 of the conference substitute authorizes the annual
appropriation of funds to Government agencies in amounts up to $100
multiplied by the estimated number of agency employees (1) who are
required by existing regulation or by law to wear a prescribed uniform
while on duty and (2) who are not furnished with the required uni-
form. Under rules issued by the Bureau of the Budget the agency head
would have to.furnish such uniform, or pay out of such appropriated
funds, to each such employee to defray the expense of acquiring such
uniform an allowance of not in excess of $100 per year as prescribed by
agency regulations. Any amounts allowed for the same purpose
under other law or regulation would be deducted from any allowance
paid under this title.
Section 403 of the conference substitute provides that allowances
paid under this title shall not be considered as pay, salary, or compensa-
tion within the meaning of the Civil Service Retirement Act of May
*29, 1930, as amended, or as wages within the meaning of section 209
of the Social Security Act, as amended, or chapters 21 and 24 of the
Internal Revenue Code of 1954.
Section 404 of the conference substitute authorizes and directs the
Director of the Bureau of the Budget to issue necessary rules and
regulations for the administration of this title.
The conference substitute adopts the language of the Senate amend-
ment, except (1) for deletion of a provision therein for use of uniform
allowances for upkeep of uniforms and (2) addition of language giving
the agency head discretion to furnish such uniforms out of funds
appropriated therefor, in lieu of a cash allowance for the purpose.
S. 2665, as reported to the House, provided a comparable uniform
allowance, but contained no provision which would make the appro-
priation of funds for the uniform allowances dependent upon a showing
of the necessity or desirability thereof.
TITLE V-ANNUAL LEAVE
Section 501 of the conference substitute amends section 2 of the
act of August 3, 1950, as amendedby section 5 of the act of July. 2,
1953, which provides,. in part, for the lump-sum payment for all
accumulated annual leave to survivors of deceased officers and em-
ployees in an amount equal to the compensation that the decedent
would have received if he had remained in the service until the
expiration of the period of such annual leave. Payment under
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved For Reese 201/07/12: CIA-RDP79-00065A0002000 10-6
FRI EMPLOYMENT BENEFITS FOR FEDERALPLOYEES
existing law may be made for current accrued leave only where the
total does not exceed 30 days. Section 501 so amends this provision
to permit current accrued annual leave to be added to the accumulated
leave and be paid in a lump-sum payment even though the total leave
equals or exceeds the 30-day maximum.
Section 502 of the conference substitute repeals section 6 of the
act of July 2, 1953, which directed departmental heads to take action
for the reduction of accumulated annual leave credited to officers
and employees which was in excess of amounts allowable under the
applicable provisions of section 203 of the Annual and Sick Leave Act
of 1951, as amended.
Section 503 of the conference substitute provides `that title V shall
take effect as of September 1, 1953.
Section 601 (a) of the conference substitute amends section 2 (b)
of the Performance Rating Act of 1950 by excluding the Central.
Intelligence Agency from the application of such act.
Section 601 (b) of the conference substitute repeals section 9 of the
Central Intelligence Agency Act of 1949, as amended, which authorizes.
the Director of the Central Intelligence Agency to establish not more
than three positions in the professional and scientific field in such
Agency with compensation at rates (subject to Civil Service Com-
mission approval) of not less than $13,100 nor more than $15,000 per
annum. Such section 9 is no longer needed because of subsequent
legislation.
These same provisions are also contained in subsections (a) and (b)
of section 601 of the. Senate amendment and subsections (a) and (b)
of section 602 of S. 2665, as reported to the House.
Section 602 of the Senate amendment repeals section 1310 of the
Supplemental Appropriation Act, 1952 (Public Law 253, 82d Cong.),
as amended. S. 2665, as reported to the House, contains no com-
parable provision. The conference substitute modifies such section
1310, in lieu of outright repeal, as follows:
(1) The limitation in such section 1310 on the maximum allowable
number of permanent personnel in the Federal Government (that is,
the total number of. permanent employees on September 1, 1950) is
increased by 10 percent;
(2) the prohibition in such section 1310 against permanent rein-
statements and permanent promotions is eliminated; and
(3) a new subsection (e) is added to such section 1310, providing
that such section does not, and shall not be construed to, amend or
modify the Veterans' Preference Act of 1944, as amended.
According to information received from the Civil Service Commis-
sion the first two numbered modifications of such section 1310 will
permit the Commission to place in effect its proposed program to
convert present indefinite employees in the competitive service to a
permanent status and to provide a new system of appointments for
the future.
The committee of conference understands that such program will
include the following principles:
(1) Establishment of a new type of appointment to be designated
"career-conditional" ;
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 ( Approved For Release 2002/07/12 .iA-RDP79-00065A00
FRINGE PL MENT BENEFITS FOR FEDERAL EMI-.,,YEEs 29
(2) Automatic conversion of each present indefinite appointment,
heretofore made in lieu'of reinstatement, to a permanent appointment
after a total of 3 years of service, or to a career-conditional appoint-
ment after a total of less than 3 years of service;
(3) Automatic conversion of each present indefinite appointment
which was made after,open competitive civil service examination to a
permanent appointment after 3 years of continuous service, or to a
career-conditional appointment after less than 3 years,of such service;
(4) Career-conditional appointments to persons employed in the
future after open competitive civil-service examinations, the first year
to be a probationary period, such appointments to be converted auto-
matically to permanent after 3 years;
(5) Immediate automatic conversion to permanent appointments
of all indefinite appointments received by permanent employees as the
result of promotions; and
(6) Continuance as indefinite appointments of present indefinite ap-
pointments made without open competitive civil-service examination.
It is understood, also, that Executive Order 10180, dated November
13, 1950, will be rescinded and that a new Executive order will be
issued in place thereof to authorize the Civil Service Commission to
place its career-conditional program in operation. As pointed out
above, under the conference substitute the limitation on the maximum
allowable number of permanent Federal personnel applies on a
Governmentwide basis; rather than by individual departments and
establishments. In accordance with-this policy, it is contemplated
that neither permanent appointments nor career-conditional appoint
ments will be allocated by the Commission to the various departments
and establishments. Thus, both the overall limitation on permanent
appointments provided by section 1310 of the Supplemental Appro-
priation Act, 1952, as amended by the conference substitute, and the
giving of career-conditional and permanent appointments under the
proposed career-conditional program of the Civil Service Commission
will be applied on a Governmentwide basis.
The third numbered modification of such section 1310 is merely a
:restatement of existing law for purposes of clarification and emphasis.
The conference substitute continues in force provisions of such sec-
tion 1310 which were designed to assure that the bulge in Federal
employment during the. present emergency will not be permanent,
and which are deemed both appropriate and desirable as a means of
congressional control of payrolls during such periods of emergency.
Recognition is given to the recommendations in the report accompany-
ing S. 2665, as reported to the House, that Executive Order 10180
should be replaced by a new Executive order which is in harmony
with such section 1310 and which provides for a Governmentwide
ceiling on permanent appointments rather than a ceiling applied by
.individual departments and establishments as is the case under Execu-
tive Order 10180. Recognition also is given the recommendation in
such report that the Civil Service Commission make a beginning on
adjustment of the Federal personnel program based upon an actual
proposed plan within the framework of the law.
Section 603 of the conference substitute provides that official re-
porters of the proceedings and debates of the Senate and the employees
of such reporters shall be considered to be officers or employees in or
under the legislative branch of the Government for the purposes of the
p00020010-6
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6
 Approved For Relea%200R2/ /13-PCLI T7P1gW~#99Q29AMCL1 PleLOYEES
Federal Employees' Group Life Insurance Act of 1954. This same
provision is contained in section 603 of the Senate. amendment, .but
there is no comparable provision in S. 2665, as reported to the House.
MAIL-MESSENGER SERVICE CONTRACTS
The House bill amended the act of March 3, 1887 (39 U. S. C.,
sec. 578), which authorizes the employment of mail messengers in the
postal service, in order to permit the Postmaster General, in his
discretion and under regulations prescribed by him, to readjust the
compensation of the holder of any mail-messenger service contract
on account of increased or decreased costs occasioned by changed
conditions not reasonably foreseeable at the time the contract was
entered into. Mail-messenger service contracts provide for trans-
portation of mail between post offices and railroad stations or airports.
The Motor Vehicle Service of the Post Office Department provides
such transportation in most of the larger cities, while the mail-
messenger service contract is used in smaller places. Such contracts,
which are awarded by competitive bidding, continue until either the
United States or the contract bolder gives notice to withdraw and,
thereupon, the contract 'is is readvertised for bids. In some cases
increased costs of operation which are incurred by holders of such
contracts justify increases in their contract compensation. In other
cases reduced costs of operation (generally by reason of -decreased
volume of mail) for holders of such contracts justify reductions in
their contract compensation. Existing law does not authorize read-
justment of mail-messenger service contract compensation. The
contract must be canceled and readvertised for competitive bids.
In authorizing the Postmaster General to readjust mail-messenger
service contract compensation the House bill follows the policy estab-
lished by the act of June 19, 1948 (Public Law 669, 80th Cong.), and
the act of February 29, 1952 (Public Law 262, 82d Cong.), which
authorize the Postmaster General to make such readjustments in the
compensation of holders of star route contracts and screen vehicle
service contracts. The Senate amendment does not contain any
provision relating to mail-messenger service contracts. Section 604
of title VI of the conference substitute retains the above-discussed
provisions of the House bill.
The committee of conference recommends a modification of the
title of the bill to reflect more adequately the provisions of the bill as
agreed to in conference.
EDWARD H. REES,
JOEL T. BROYHILL,
TOM MURRAY,
Managers on the Part of the House.
0
Approved For Release 2002/07/12 : CIA-RDP79-00065AO00200020010-6