ANNUAL REPORT - FISCAL YEAR 1956. BENEFITS AND CASUALTY DIVISION
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Document Number (FOIA) /ESDN (CREST):
CIA-RDP80-01826R000100090016-9
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RIPPUB
Original Classification:
S
Document Page Count:
23
Document Creation Date:
December 9, 2016
Document Release Date:
June 27, 2001
Sequence Number:
16
Case Number:
Publication Date:
August 1, 1956
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-1 AUG 1956
MEMORANDU office of Personnel
FQR cutive Oficer
. b ~..,
,
BJEC'T: ' A.ntmal Report - Fiscal year 1956
area is by on
1. Transmitter herelNith are annual
Affair B arch of,1i
insurance Branch and the Casua'lt
pursuant to t h e TYtroc'tor of PerBan xeVs..directtve of 11. July 1955.
2. In addition to the attached reports,, it i's significant to note
Uu.ly that in addition to pe; fox*nhIng ese their
indivlduals and otherfinetYtbera
Deputy Chief of t~.is.T3iVis,ion, t
of our staff have also served :as officers
Federal. ~ edit Ux~.ivnvyEe's
-health As.sOciatiOn, Inc. and. the N,
g
,A, substantial number of ~;wfirlc hour s have
to thosenofficlall}~I~ n signednas
out these responsibilities to addition
officers and members. of this Division.
R,@Y PATE TY
PAGE'S `.~ ..~. 10.2
AUtt6~ HR
?4196 CLASS 0EXT
JUST 'e.4
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Annual Report
Casualty Affairs Branch
Benefits and Casualty Division
Office of Personnel
T"ft*"7H-M
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Section I
Major Accomplishments and Significant Developments
1 July 1955 - 30 June 1956
Casualty Program
1. The Casualty Affairs Branch completed during fiscal year
56 its first full year as the responsible unit within the Office of
Personnel and CIA. for the Agency's casualty program..
2. A refinement of previously accomplished procedures was
effected during this reporting period. In addition, many new
procedures and devices were initiated by which casualty cases
might be expeditiously handled and appropriate action immediately
taken. For example, the Emergency Report used to notify the
Director of Personnel of a 'crash incident was formalized and
made an Agency form; also the Death Check List was devised as
a means of insuring that the status of the case is constantly re-
viewed and all items of concern are being resolved. A. question-
aire was devised by which CAB is notified by Agency components
concerned of the financial status of the deceased employee.
3. The publication of R - Employee Emergencies,
during the reporting period resulted in an improvement of the
relationship between CAB and operating offices and in a more
wide-spread knowledge of the service rendered by CAB.
4. During this period, thirty-five cases of serious injuries
or illnesses and twenty-two death cases were handled. Many of
these cases required personal visits to the employees or their
next-of-kin. For a proper understanding of the statistics re-
ported in the various categories below, it is noted that while a
death may occur in one reporting period, final settlement of the
deceased's financial affairs may not be accomplished within the
same period.
Compensation and. Medical Claims
S
1. Attached is a statistical summary of compensation and
medical claims processed by the CAB during the period 1 July
1955 to 30 June 1956. This report is similar to that prepared
for previous progress reports and is designed to reveal the ex-
tent of this claims activity, the nature of claims processed, the
ultimate method by which these claims were processed and the
final determination made. ' I
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2. As shown in the attached summary, four hundred
seventy-eight claims were handled by the Branch during this
reporting period. For the purpose of this, summary, the filing
of Form CA-1, Employees Notice of Injury or Occupational
Disease, or an appropriate memorandum constitutes a claim.
3. Two hundred nine of the total claims received were
pressed, by the claimants for the reimbursement of medical ex-
penses or payment of compensation for time lost from work or
both. Of those, one hundred fifty cases were processed with
the BEG on a classified or unclassified basis as the situation
warranted, and fifty-nine were processed internally under the
provisions of Section 5(a)(5)(C) of Public Law 110. Excluding
the eighty pending cases which were carried from the previous
annual report, the following comparison may be made between
the present report and previous fiscal year reports.
FY-1956
(Excluding prior
pending cases)
FY-1955
FY-1954
FY-1953
BEG
87
75
51
40
Internal
5(a)(5)(C) 42
27
50
34
BEC Type 0
5
4
3
4. As can be noted. above, the number of BEG cases pro-
cesse.d has constantly increased since FY 1953. This is attributed
to the continued efforts by the Branch to advise administrative
officers and employees of the significant benefits afforded by the
Federal Employees' Compensation Act (FECA). Also indicated
above is a marked. increase in the number of 5(a)(5)(C) cases pro-
cessed during FY 56. This again is the result of constant efforts
by the Branch to advise employees of the 5(a)(5)(C) medical reim-
bursement program. In our previous progress reports, a forecast.
was made that the number of cases processed under Section 5(a)(5)(C)
would probably double and possibly triple with the publication of
Agency Regulation This regulation has not as
yet been published, yet there has been a significant increase in
the 5(a)(5)(C) activity. The Branch is still of the opinion that the
publication of will result in a spectacular increase
in the 5(a)(5)(C) activity.
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5. Of the eighty cases which were categorized as: pending on
the previous fiscal report, thirty-two have been approved, twelve
have been rejected, eighteen. have been withdrawn or are inactive
and eighteen are still pending.
6. During the previous reporting period, the Branch was
successful in its efforts to secure copies of all cable traffic in-
volving the injury, illness or death of Agency employees. The
Branch has continued to receive and review these cables for the
purpose of notifying the division concerned to inform the employee
of his statutory benefits. As in earlier reporting periods, many
BEG cases which would not otherwise have come to the Branch's
attention, despite efforts to advise the divisions of this require-
ment, were thus picked up and developed. The Branch feels that
the time spent on this activity has protected the rights of our
overseas employees who might not have become acquainted with
their statutory benefits.
7. The Claims Group, which was established during the
previous. reporting period, continued to operate during the present
period. The Group meetings were used to discuss various prob-
lems arising from peculiar claims received and also to make
appropriate recommendations to the Director of Personnel on
the disposition of claims. At the last Claims Group meeting of
June 27, the Chairman (Chief, CAB) discussed with the group
representatives the future utilization of the Claims Group. At
the recommendation of the. various representatives, it was agreed
that future Claims Group meetings would be held only to discuss
unique and controversial 5(a)(5)(C) claims. BEG cases and
5(a)(5)(C) claims will be independently processed by CAB with
the Office of Security, Medical Staff and Office of General Counsel
as is indicated by the particular claim.
8. The Branch was able to acquire an additional technician
during the reporting period, the result of which has been signifi-
cantly felt throughout all of the Branch operations. A further
discussion of this point will be found below.
Retirement
1. During the reporting period, the Branch conducted one
hundred sixty-seven interviews with employees for the purpose of
discussing the employees' retirement situation. Ultimately,
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seventeen Applications for Retirement, eighty-three Applications
for Service Credit, fifty-six.. Applications for Refund of Retirement
Deductions and twenty-two Applications for Death Benefits were
processed. The increase of forty-four' retirement interviews in-
dicates that more employees are becoming interested in. the various
features of the retirement system.
2. During the reporting period, the Branch assumed the
function of securely processing Applications for Service Credit
with the cleared representatives of the Retirement Division, Civil
Service Commission. This function had previously been performed
in the Office of the Director of Personnel.
3. The Branch was also assigned the additional responsibility
of monitoring retirement programs initiated for Project personnel.
No actual work has as yet been performed in the Branch on this
activity.
Federal Employees' Group Life Insurance
1. During the reporting period the Branch prepared two hundred
fifty-seven. Standard Forms 56, Agency Certification of Insurance
Status. In addition, twenty-two death claims were submitted to the
Office of Federal Employees' Group Life Insurance in New York.
The Branch also processed twenty-three Requests for Insurance
for employees who had previously waived. their FEGLI.
2. The number of S. F. 56 forms that were processed this
reporting period is less than. that reported in. the previous. reporting
period. This is explained primarily because the FEGLI program
had been initiated during the previous reporting period. Because
of peculiar security problems at the time, the Notification of Con-
version Privilege, S. F. 55, normally given to an employee on the
date of his separation was delayed. until such time as appropriate
procedures were developed. When these procedures were developed
the Agency retroactively then issued S. F. 56 in. lieu. of S. F. 55
which was responsible for an abnormally large number of these
forms being issued. The number processed during the present
period is considered a more realistic figure.
Unpaid Compensation
During the reporting period, the Branch processed twenty-two
claims for unpaid compensation.
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Missing in Action Cases
The Branch has continued its administration of the three MIA
cases brought into this reporting period. Included. in this activity
has been continuing contact with next of kin, with Congressmen,
and with outside Agencies and organizations., as appropriate.
Early in this. reporting period the Chief, Casualty Affairs. Branch,
was appointed a member of a working committee to assist a
senior committee in preparing recommended policy statements
for Principles of Conduct for Captured Agency Personnel. The
recommendations made by this working committee were accepted
by the senior committee, concurred in, by senior Agency officials
and were approved as Agency policy by the DDCI. A proposed
Agency regulation on this subject was also prepared during this
period.
Social Security
During the reporting period, the Branch Chief has been a
member of a working committee which has as its purpose the
establishment of a secure system for reporting to the Bureau of
Old Age and Survivor's Insurance records of withholdings and
contributions in connection with Social Security accounts. Al-
though the problems involved have appeared insurmountable at
times, definite progress has been made in the completion of this
task. Further discussions and procedural arrangements will be
required, however, both internally and with the BOASI.
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1 July 1955 30 June 1956
Casualties Reported
1. Serious injuries or illnesses---------------------- 35
2. Deaths ----------------------------------------- 22
Compensation and Medical Claims
1. Compensation Activity
Total Cases--------- --
------------ 478
New Claims Pressed--------------- ------ 129
New Claims Referred to State Department---- 5
New Cases Not Pressed- ------------------ 264
Pending Cases From Previous Summary---- 80
Total Claims Processed------------------ ----- 209
Medical Expenses-------------------------- 137
Compensation ------------------------------ 19
Both--------------------------------------- 53
3. Ultimate Method of Processing
Total Claims Processed ------------------------ 209
BEC Gases-------------------------------- 150
BEC Type--------------------------------- 0
5(a)(5)(G)---------------------------------- 59
Approved----------------------------------- 38
Rejected----------------------------------- 14
Pending ------------------------------------ 84
Inactive------------------------------------ 14
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Total Internal Cases ---------------------------- 59
5(a)(5)(C) ----------------------------------- 59
Approved------------------------------ 33
Rejected--------------------------- --- 9
Pending-------------------------------- 9
Inactive--------------------------------- 8
BEG Type --------------------
1. Interviews------------------------------------ -- 167
2. Applications for Service Credit------------------- 83
3. Applications for Retirement---------------------- 17
4. Applications for Refund-------------------------- 56
5. Applications for Death Benefits----------------- 22
Federal Employees.' Group Life Insurance
1. Agency Certifications of Insurance Status Issued-- 257
a. Conversions-------------------------------- 176
b. Retirement--------------------------- ----- 9
c. Dismemberment---------------------------- 0
d. Deaths -------------------------------------- 22
2. Requests for Insurance-------------------------- 23
Unpaid Compensation
1. Claims Processed-------------------------------- 22
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Objectives for Current Year and Status of Current Programs
1 July 1955 - 30 June 1956
Casualty Program
1. In. the previous report, it was noted that the. Branch planned
to attain the fluidity and efficiency of a military casualty Branch.
so that in cases involving injury, illness or death of Agency employees,
and in certain cases. their dependents, immediate and proper action
could be taken to protect both the interest of the Agency and the em-
ployee. It is. felt that haying operated an entire year, the Branch
has attained this position. The Branch plans, therefore, to continue
to strive for more expeditious treatment of such. cases to maximize
the protection to employees and. the Agency and the degree of assis-
tance that can be rendered. While the present period saw the publi-
cation of one of the fundamental regulations governing the activities
of the Branch, two of the essential regulations have yet to be 'pub-
lished, i. e., that on compensation and medical claims and missing
persons. Efforts will be made to obtain the final coordinatio4 and
publication of these regulations. Once all regulatory issuances have
been published, the Branch plans to continue efforts to improve
relationships. with the operating offices so that these offices would
have a complete and clear understanding of the various procedural
and reporting requirements contained in these regulations.
2. In addition, the Branch will continue to review and. devise
internal procedures for the purpose of eliminating possible sources
of weakness.
Compensation and Medical Claims.
1. With the acquisition of additional Branch personnel, the
Branch started a complete review of present procedures for the
purpose of discovering areas of weakness and. sources of improve-
ment. Particular emphasis was placed, and. will continue to be
placed, on processing claims as expeditiously as possible. Marked
improvement in eliminating processing delays has been seen during
the past six months, and the Branch hopes to accomplish further
improvement.
2. Some of the difficulty experienced in the Branch's claims
activity rests. on the absence of a regulatory issuance on the sub-
ject. To offset this disadvantage, the Branch has been able to
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advise the operating offices of the particular statutory benefits
by memorandum, dispatch, lecture, and phone communications.
While these efforts have resulted in a much better understanding
of the program, benefits in the operating offices, the Branch plans
to continue to engage in this educational effort until such time as
are published. The increase in the number of
claims received and processed are witness to the fact that our
efforts were worthwhile.
3. In the previous report, mention was made of the decen-
tralization of the 5(a)(5)(C) program, incorporated in proposed
and the impact of this change on the Branch.
Since the proposed regulation has not yet been issued, these
claims are still being controlled on a centralized basis. The
Branch is still of the opinion that decentralization of this program
could well result in a greater increase of activity since the decision
of overseas administrative officer In the Field will require exten-
sive review.
4. In the previous report, the Branch commented on the
wisdom of a Division representative traveling overseas to the
various field installations and explaining the various statutory
benefits to responsible field officials. The Division Chief made
such a trip to FE installations and on his return, was able to
confirm the value of a personal explanation of the Division's
program. A trip to other geographic areas by a Division repre-
sentative would be equally as profitable.
1. The Branch expects a continuation of the increasing
interest shown by employees in their retirement situation. Branch
activity is expected to increase also as. a result of the new legisla-
tion which is expected to be enacted.
2. The Branch will continue its review of OSS records on
current employees for the purpose of preparing a service record
in advance of these employees' retirement. In the past, Branch
processing of applications received from these employees has
been considerably delayed since it is often difficult to obtain
appropriate records.
3. Procedures will be devised during the current year for
the recently assigned responsibility of monitoring Project retire-
ment programs.
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Federal Employees' Group Life Insurance
1. The Branch has successfully perfected, most of the pro-
cedures initiated for FEGLI matters. Suitable secure channels
were established and utilized with satisfaction throughout the.
reporting period.
2. At the request of the Plans Staff, a draft of a regulation
on FEGLI was prepared. Further work in this direction is re-
quired, and. the Branch will assist as much as possible in. obtaining
the publication of the regulation.
Unpaid Compensation
No material change in the present program for the balance
of this reporting period is contemplated.
Missing in. Action Cases
Barring unforseen developments, the Branch expects: to con-
tinue its administration of the three current MIA cases until the
status of these individuals terminates.
Social Security
It. is anticipated that final arrangements for the maintenance
and transmittal to BOASI of appropriate Social Security records
will be completed during the current period. Inasmuch as these
arrangements are still in process, the actual work-load effect of
the Branch's responsibilities in connection with this program has
not. been felt. The impact of the full establishment of this program
will naturally be dependent upon. the type of system finally estab-
lished and the manner in which Social Security records will be
transmitted to BOASI. As current proposals are established, it
is anticipated that the bulk of Social Security records will be trans-
mitted to BOASI by an appropriate unit in the Office of the Comp-
troller. However, certain cases involving special handling because
of their sensitive nature will probably be transmitted. to BOASI by
the Casualty Affairs Branch. In addition, this Branch will main-
tain liaison with BOASI on all cases involving claims for Social
Security benefits arising out of Agency employment.
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Section III
Program Outlook for Budget Year 1958
1 July 1957 - 30 June 1958
Casualty Program
1. It is believed that the Branch will have fully developed
its internal procedures for handling casualties by the end of
FY 1957. Budget year 1958 will be devoted to the handling of
the programs as is now known, with a continuing review con-
ducted of procedures being utilized.
2. Barring unforseen disaster, no substantial change in.
Branch activity appears indicated.
Compensation and Medical Claims
1. No major change in the Branch's compensation and
medical claims program is planned.
2. The Branch will continue its emphasis on the benefits
of the FECA and by FY 1958 anticipates that all employees and
supervisors will be fully impressed with the, reporting require-
ments and. benefits of the Act. BEG cases should continue to
increase from year to year as more employees learn of the FECA.
3. FY 1958 should see the maturity of the Agency's 5(a)(5)(C)
program since by then, a regulation will be in force. From FY
1958 to subsequent periods, this 5(a)(5)(C) activity should stabilize.
Also, the decentralization of this program should. have been fully
developed by FY 1958 and its impact on Branch activity determined
and analyzed.
Retirement
1. The Branch foresees no major change of scope or em-
phasis during Budget Year 1958.
2. Retirement activity should gradually increase from year
to year as more employees seek to review their retirement situ-
ation.
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Unpaid Compensation
The Branch foresees no major change of scope or emphasis
during Budget Year 1958.
Federal Employees' Group Life Insurance
1. The Branch. foresees no major change of scope or emphasis
during Budget Year 1958.
2. By that time, the Agency's FEGLI program should be
stabilized and operated on a regular basis.
Missing in Action Cases
As noted in. Section II, no significant change is expected in
connection with Missing Persons cases in the forseeable future.
However, the magnitude of this activity will depend largely upon
the status of international relations and the extent of the Agency's
clandestine operations..
Social Security
It is anticipated that during Budget Year 1958, Social Security
activities of this Branch will have stabilized to the point where
normal work load can be anticipated for future reports.
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Annual Report
Insurance Branch
Benefits and Casualty Division
Office of Personnel
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Section 1
Major Accomplishments and Significant Developments
During the Fiscal Year 1 July 1955 - 30.June 1956
1. A representative of the Comptroller's Office in accord-
ance with a request from the Deputy Director (Support, made a
study of accounting procedures in the Insurance Branch with a view
to assisting in further streamlining and improving its accounting
functions. This review was completed during the period 22 July
1955 - 31 December 1955 with a report containing recommendations
being submitted for consideration on 18 January 1956. Most of
the recommendations contained in the report have either been
adopted or will be adopted during the ensuing fiscal year.
3. The National Cash Register machine operations were
commenced on 19 March 1956 at which time the old posting cards,
receipt books, temporary receipts and so forth were disposed of
and the new Shaw-Walker account cards together with the receipt
books for the individual employee were placed into operation.
Records of all contracts administered by CEHA have been converted
to the new National Cash Register machine operations with the
exception of WAEPA. The conversion of this plan is now being
acc omplished.
4. Arrangements were made with mutual of Omaha, one of
the Underwriters for our hospitalization insurance, whereby
policyholders resigning from the Agency are now permitted to
convert their group contract to an individual one providing
approximately the same coverage as their present contract such
new policy to be available at an increase of approximately
25% in premium.
5. A change-over was made effective 31 December 1954 from
the Old Mutual of Omaha contract, with limited coverage, to the
new Mutual of Omaha contract, with greatly increased coverage.
Employees were given the opportunity of converting as of 31
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December 1955 or of losing their coverage. Due to the fact
that a number of employees were overseas, time extensions were
granted so that all personnel were afforded the opportunity of
making this change.
6. During the fiscal year, the vital documents photographs
of all records in this branch were accomplished twice.
7. The hours in the Cashiers' Office, for making appli-
cation for insurance as well as for paying insurance premiums
were changed from the previous times of 10:00 a.m. to 1:00 p.m.
to the new hours of 10:00 a.m. to 3:00 p.m., this being permitted
each working day, rather than specific ones. This arrangement
has proven satisfactory and, in the opinion of the Branch, it
has resulted in a much more efficient means of accomplishing
cashiers' operations.
8. The backlog of old refunds on Mutual hospitalization,
which resulted from personnel transferring from the old Mutual
to Group Hospitalization, Inc.. in February 1953 as well as from
persons dropping their Mutual hospitalization for other personal
reasons, was liquidated. This function involved approximately
250 checks,
9. A "Travel-Matic" insurance policy has been added to the
list of contracts available to our employees under GEHA. This
broad coverage is primarily for accidental deaths resulting from
travel on any common carrier of passengers plus certain medical
benefits as specified in the contract. This coverage is world-
wide in its scope and includes travel while passengers on planes
operated for or by the 14ilitary Air Transport service. Suicide
or loss of life caused by war are not covered.
10. A complete audit of every WAEPA account is in progress
and is practically completed. This audit has been necessary to
provide for payment of refunds as well as for the purpose of
permitting transfer of records to the National Cash Register
cards.
11. A seminar for the Administrative Officers and their
representatives was held on February 1 and 2, 1956. At that
time discussions were held on the various plans of insurance
together with the administrative functions connected therewith.
Specific attention and point was made of coordinating problems,
especially in connection with the routing of claims for reimburse-
ments and applications for new coverage. Approximately 50
persons attended and the discussions were well received. The
Branch plans to hold another one in the near future.
la
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12, Arrangements were made through discussions between
representatives of the Branch and our WAEPA underwriters, so
that personnel now applying for WAEPA life insurance coverage
are required to pay only two premiums instead of the previously
required three. Arrangements have further been worked out. so
that the more simplified method of remitting payments as prac-
ticed in the case of Mutual of Omaha on their hospitalization
and United Life insurance plans may also be followed with WAEPA.
13. Comparative statistics for this reporting period and
the previous period are contained in the attached statistical
data sheet.
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Section 2
Objectives for Current Year and Status of Current Program
for the Period 1 July 1956 30 June 195_7
1. The completion of the project involving the payment of
approximately 350 WAEPA REFUNDS together with the necessary
accompanying conversion of WAEPA records from the old system
to the new National Cash Register method of operating will be
accomplished.
2. Exhibits are now being prepared outlining the activities
and the services offered to employees of the Agency by the Insur-
ance Branch. It is planned to establish an exhibit representing
these functions at the next and all other future Intelligence
exhibits held monthly in connection with BOO. Representatives
of this Branch will be in attendance at these sessions for the
purpose of answering questions as well as offering any advice
desired.
3. Effective September 1, 1956, arrangements have been made
with the Mutual of Omaha underwriters to reduce the premium rate,
on a monthly basis, on the Family plan, from $7.98 to $7.40.
Necessary steps to advise all components and personnel of this
change will be accomplished.
4. Arrangements are being completed with Mututal of Omaha
to provide certain increased benefits to policyholders. Such
benefits include the raising of overseas allowances for hospital-
ization (room and board) from $9.00 per day to $13.50. In
addition, the allowance for maternity will be increased from
$9.00 per day to $10.00 per day.
5. The annual application drive is planned for the period
of 1 October 1956 to 31 October 1956 inclusive, for Headquarters
employees, and the period 1 October 1956 to 30 November 1956
inclusive, for overseas employees. During this drive, personnel
wishing to do so may obtain hospitalization coverage either under
the Group Hospitalization plan or under the Mutual Hospitalization
plan, as well as obtain life insurance under UBLIC without sign-
ing a health statement or submitting a report of physical exami-
nation. In other words, during this period physical requirements
will be waived.
6. A pamphlet containing information on all of the eight
plans of coverage sponsored by GEHA will be prepared, printed
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and distributed to the field prior to the annual application
drive. In addition to this information, the pamphlet will
contain information as to filing applications for reimburse-
ment of claims as well as information as to the correct pro-
cedure for submitting applications for insurance coverage.
Instructions will serve as a guide for Headquarters as well
as for field stations.
7. Arrangements will be made for representatives of the
Insurance Branch to deliver talks in connection with lectures
to new employees coming with the Agency for the first time, so
that at that time they may be completely advised of their rights
insofar as insurance coverage is concerned.
8. Efforts will be made to further publicize our plans by
means of such media as tlstufferstt to be used with pay checks
such as was done with the first pay checks received in fiscal
1957. It is hoped by this means to make certain that all
employees of the Agency get complete information regarding
our insurance program.
Approved For Release 2001/08/
Approved For Releas01/08/07 :
Nff
-01826R00010QM0016-9
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Section 3
Program Outlook for Budget Year
1 -July 1257 - 30 June 1958
1. This Branch plans to take every step possible to
provide for as much of our manual work being done on an IBM
basis as possible. Such things as statistical reports,
reports of backlog and current amounts in force may be much
easier arrived at if we were on an IBM system of punch cards.
2. If possible, it is planned to ascertain whether or
not arrangements can be made so that not only those people on
unvouchered funds may have premiums deducted from their pay
but also those on a vouchered basis.
3. This Branch plans to continue its efforts to obtain
even greater coverage for our individual employees not only
from the standpoint of those contracts already administered
by GEHA but also insofar as obtaining any other new coverages
which might find suitable places in our employees' financial
desires.
Approved For Release 2001/08/07 : . 0-01826R000100090016-9