REPORT TO THE CIA CAREER SERVICE BOARD FROM THE INSURANCE TASK FORCE IN RESPECT TO INDEMNITIES AND BENEFITS FOLLOWING DEATH AND DISABILITY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-01826R000600070006-7
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 48
• Document Creation Date: December 9, 2016
• Document Release Date: August 22, 2000
• Sequence Number: 6
• Publication Date: April 8, 1954
• Content Type: REPORT

Approved For Relea
LQN
NLIA
REPORT
TO TEM
CIA CAREER SERVICE BOARD
FRam
THE INSURANCE TASK FORCE
IN RESPECT TO
INDEMNITIES AND BENEETIS
num-ma
DEATH AND DISABIL/1T
DOCUMENT NO.
NO CHANGE IN CLASS 0
0 DECLASSIFIED
O
_ at 6 4/
CLAM. MINCED TO: TS I
NEXT REVIEW DATE:
AUTH: HR 704
DATE / 014.,/ REVIEWER: 029725
07iblaykry.7.xj
wc,44.44,7_
--04*"5--- CONFIDE:1'MA!
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21-1E INSURANCE TASK FORGE MEMBERSHIP
caairmans
Matrber and Seep
Members
Member:
Security Advisor:
Security Advisor:
Security Advisors
Conaultants
Consultants
Consultant:
SA DD/P
PROS Personnel
ESD Personnel
Deputy Gen. Counsel
Offic:e of Sacurity
Staff C
Chief, Plans Fl
(All Consultants cleared Top-Secret)
1000.r.'
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Foreword
10 Statement of the problem.
2. Assumptions.
f:10Elit0404_18'21R000600070006-7
siimer
PART I as to death.
3. Facts
a. Statistics excerpted from TAB A
b. Existing available protective measures ? * TAB B
4. Discussion
5. Conclusions
6. Recormendations
PART II as to disability.
3. Facts
a, Statistics 6 excerpted from TAB C
b, Existing available protective measures, . " " TAB D
4c, Discussion
5. Conclusions
6. Recommendations
TO A Statistics
TAB B Existing Available
TO C Statistics . oo
TAB D Existing Available
TO E Appendices.
I. VAEPA letter re broadened air-flight acceptance
II. MAEPA lotter re broadened membership eligibility
III. WAEPA letter re broadened employee coverage
IV. The attribution factor
Definition of "employee groups by wA regulation
Hazardous duty in OTR
Hazardous duty in 1SS
Hazardous duty in operations, . per FE
1tt3(30.1=801..12 expression of insurance interests by
selection of DD/P officers.
Procedure and sources in obtaining CIA and other death anl
disability figures.
Premium change if Omaha matches GHI surgical.
Full text of I. George Baehrls Congressional testimony.
Excerpt on health insurance from TODAY'S WOMAN, 1953 (Fiwoett
Publications, Inc.), 'written by Jack Harrison Pollack.
Protective Measures
OOOO OOOOO
Protective Measures .
?
?
0
. ? . 0
. is to disability
as to death
a ii
. ?
ft VI II
Xe
XI.
XII.
XIII.
random
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FOREMORD
Because of the complexity of this subject, it is deemed, best to make
the presentation in two parts . first, as to deaths and then disability,
Clearly, what the Agency should do, if anything, in these fields/ is
properly considered only after review of existing available protective
measures. Accordingly's this presentation is so organized.
Warning is given that the statistics following in respect to death
are somewhat untrustwortNy in the earlier years especially and, overalls
may be too meagre to be fully significant. They are, however* indicative
and useful.
Agency procedures and aystems in respect to records of death and
disability should be tightened and so organized that continuingly in the
future, this type of Agency vital statistics is immediately ready for any
desired analysis by appropriate officers0 lbie is especially important
in the field of disability (hospitalization) because of the growing
cevntry-wide interest, information and change in such group plans.
Further interpretation and application of P.L. 110 in respect to
overseas ill:msses must alwaye be carefully weighed together with the
employes mamberehip in a group hospitalization plan. Full justice to
the employee includes coneern not only for coste to the Government but
also concern for the degree of employee participations and his premium
costs, in ally group plan offered.
The Task Force finds grievous lack of knowledge in the empleyee
group as to the individualls beneficial rights especially under that
important and excellent piece of legislation known as the Federal
Employees Compensation Act0 This is also trues bat now less so, as
to the Wu Agencies Employees Protective Association life insurance.
It is suggested that if future disseminations of audh nature are
dressed up modestly, they are less likely to hit the waste basket with
out reading? More importantly in this connections the Task Force
directs explicit criticism to the culpable failure of the Agency and
its executive or adminiatrative officers to assure that needfUl informa.
tion reaches ail persons concerned.
All of this material should be mads available to the Chief, Medical
Office, few hisaopropriate and proper technical contribution to personnel
administration.
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TO : CIA Career Service Board
FRCM : Insurance Usk Force
SUBJECT: Eaellegve and Family Beneficial Coverage in Respect to Death
and Disability
1. PROBLEM: at employee and fami indemnity and beneficial insurance
coverage should the Agency arrazge to have offered in order to remedy
or alleviate any possible existing injustice, to alleviate personal
and family concerns which dilute or distract from attention to
mission, to demonstrate community of interest, and to promote the
concept of career,
2. ASSUMPTIONS: The Task Force believes:
ao That from the point of view of constructive personnel adeinistration
the Agency has a deep interest, if not obligation, to assist its
employees to meet lifegs more serious exigencies, whether imposed
by or not.
b. Ihat there do mint particular security problems for the Agency in
the field of life and disability insurance.
co That the nature of CIA mission requires a quality of personal action
which is founded in a well-rounded and developed career concept,
do That the Agency, as others, desires to take advantage for its
employees of existing benefits commonly extended only to groups
as such e or to create appropriate new benefits.
00 That the Agency adopts the prinoiple that over and above present
available benefits, the employee is responsible for securing him-
self, with his own means, the needful lite (and disability) pro-
tection.
SEC MT
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asegReimm
PART I
Facts in respect to death
Excerpted from lob A are the end-product death statistics for staff
employees and staff agents for the years obtainable and valid Qom.
parison with the Department of State. Bedause age is obviousi4y a
factor, some information on thie scare is also shown. A non.valid
comparison. with Agriculture is added as a matter of general interest.
(Retirees there ate permitted to keep a reduced life policy)
Except for Agriculture, the deaths are all in service i.e.,
while employed, and the ratios are based on average monthly Strength
for the years shown.
Because the years 151? *52 and *53 are believed to provide the
most trustwortler source material, an average fcr this period is
added.
While these statistics are legitinmte in perhaps all of the
oeven last years, there is no surety that every death shows in our
records and in any event tho meagreness of the death numerator strong-
kv, cautions am to attributing complete significance.
(1) Death incidence all causess t all ages . CIA, Department of State
Department of Aiculture Beneficial Association, and U. S. Poputation
am a whole
1947
1948
362
lgo
1 19
2.912
Av.
1512221. L52,
_CrA(a)
Total deaths 1
5
8
6
12
19
18
16.3
Deaths per 1000
(physicia given
25X9
Foreign Service(b)
Teta deaths
10
15
.--8
5
8
7
Deaths per 1000 -
(physical given)
pmartmental (State)
1.86
7
1.90
lii
.92
17(d)
.56
19
1.06
12
.83
16
Tt?talathe
Deaths per 1000 .
.66
2.29
1.82
1.82
1.47
1.750)
(no phytical)
(1.29)(f)
(1054)(f)
Agric.B.A.(c)
Total deaths .
182
234
190
217
232
213
Deaths per 1000 -
(e0 physical)
11.3
1445
11.8
13.5
14.4
13.2
U.S. population(e)
Deaths per 100 -
9.88
.
01.
?111
(a) (b) (c) See Appendix 2, Tat E
(d) Contains 5 deaths from single
(e) U.S.Public Health Service
(f) If 5 deaths free a single air
for sources
air crash.
=cah are eliminated the ratios would be as shown
p
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(2) Deaths by office area for 1952 & 1953
12p& W. 12214.. COPE40 OIR
Total deaths 16 9 7 2
Deaths per 1000
(3)
Place of death, all 7 years (CIA)
72% in U,S,
15% " Far at
13%" Europe and Near East
(4) Cause of death, all 7 years (CIA)
CauseNo, II,S,Po
, a
trar ir A 32,5%-
Cancer 11 16% 13,7%
Illeess,other 22 17%
Accident in performance 8 12%
of duty
Suicide 6 9Ye lor;
Accident not in line 5 7%
of duty
Enemy action 2 3%
Total 69
Performance ct chity 10 15%
(5) Ages at death all 7 Years, in 3 selected Categories(CIA)
(a) Heart, General progressive distrIbution,frasi age 36
(b) Cancer, Piddle Ages
(c) SuicidetYounger Ages
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100
90
so
70
60
50
4o-
30
20
t COMPARATIVE AGE STATISTICS
io ? C.I.A. AND STATE DEPARTMENT
1:3
LEGEND: Curnuiative % to total personnel by age groups (up to and
including 25 yrs.; up to and including 30 yrs.; etc.)
Cl A Staff employees and staff agents as of 3t
1953
.????? :Aroma
Fore Serv ce? All personnel as of January 1954
DepartmWal Dept of State --As personnel as of January 1954
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THE 'FIRST .HVE KLLERS
U.S PoRuLAu .N
ACCIDENTS
MVP, Mr /Pp - MO *AM
SUICIDE
STROK2 STROKE
44.R1)?F_,.N .
OF AFT7t,@ES
HEART
0".
T.B
OVER
5
15-24
? 25-44
45-64
AGE GROUPS
*FROM BUREAU OF VITAL STATISTICS
U.S. FEDERAL SECUR/TY AGE111(.-Y
.13ECEIN8ER 1953
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to, Ellasting available protective measures in .benefioiaz7 coverage have the
following aspects of most impertancet
Commeroial Ordinary Life policies
The Basic Policy (Face Amount) excludes coverage if death
is occasioned by an Act of War (deilared or undeclared)
while the insured is in either the military or the civilian
service, by air flight in either stilitery or non-scheduled
planes for purposes of training, testing, military mission
or while eating as a crew mezber.
Double Indemnity feature exoludes (a) above, plus others.
(1)
(a)
Policy is not Obtainable if the applicant is scheduled far
sect -hazardous or hazardous duty, ands once granted, is voided
if the exclusions are offended.
National Service Life Instierano (or 11. S. Government Life Insurance)
Both these policies are limited to veterans and are incontestable
from date of issue for spir cause exoept.frond2- i.e. art*
exclusion.
Federal. Employees Compensation Act
This Act is an exclusive comprnsatcay needy Law death (and
disability) resulting from injuries suffered in pert .oremproe or
la_ or from diseases groximately canted by employment.
It's maximum benefit would equal the income on a capital iniest,
ment in U. S. H Bonds of about $210,000.
A hypothetical application in month benefits if:
05-11 Employee -
Beneficiary dies in 0.84
Widow only $222.75
Widow and 2 children 328.16
2 children only 239.16 ,
Civil Servioe Retirement Act
GS.0 Beagles
dies in Frankfurt
$256.50
399.00
285.00
This is primarily a retirement act, annuity in nature, but it
does provide small death (and disability) benefitarvithout.regard
to performance of duty. The Principal qualification is 5 years
of civilian service then military service may be added.
-6..
MEET
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(b) A hypothetical applicaticsi in moth)* bervAtite i83
?GS-A Employee CISR11 Employee
Benef.., witka 9 Mono. idth 15 yrs save,. Parible
Widow on
833.182
$55.69
at her age ct 50
Widow & 2 children
66?84
1.11.39
inuediately
2 Children only
606A4
80.00
immediate,*
(5) Public Las up
(a) Maxis= death benefits are preparation and transportation cte the
remed.ne of the *ploys.) or member of his family, vitzo ia* die in
travel status or abroad to sorapriate plate of interment.
(6) War AgenciesEmployee, Protective Associati.on NAVA)
. .
(a) Ihii; is excellent term 3.11ti and accidental death corsage totaling
now fMs000'availsble without andioal examination or delays for
a premium cost (up to age 111) at $100.00 per yesr..
(b) There are .no exclusions in the tern testure and tire (5) in the
accidental death category. Met inportantly. in respect to air
flights any flight is taly covered it the ? insared proceeds
under orders, directly or teueetirs of 00'14 S. Ooperneent
423 a passenger.
(c) The premiums seem mit of line with experience
(7) TO) 8ahogs an acsontial aummary application CI all these inetrusents
under certain aseUred conditions.
DISCUSS:NV, as to death
As noted in the statistical cempilationes, tecaube of the factors of
meagreness; some untrustworthiness and incoMpleteness of statistics in
CIA: observations dram here are et forth as indicative rather then
positions taken from full statistical ler.14macYp
(1) The Foreign Service of State shows a better record than We doi 2hie
might be expected due to the difference in aotivity and their' early
retirement plan.
(2) The Department (headquarters of. State) sholgs about. the same record as
edo
(3) Unquestionably va present a far better risk than that with which the
insurance companies generally contend. However, the assertion that
bacons? of our medical examinations (prevomploysent ind oversews
pre.Tgf and pre.PCS) and security screening we present- a far superior
risk potentials seomo =warranted.
(4) Whereas today, in personnel oanposition, we are an extremely youthful
group; it may be expected th4t With dart settling dawns this condition
laRET
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PART I
will show increasing maturity.
The potential of risk an the DD/P side shows up both in the ratio for
1952 and 1953 and &twin the fact of 8 DD/P deaths out of 10 (for all
years) in the performance of duty category. These figures are without
reference to deaths arising from illness proximately caused by employ.
meat. Six of the seven suicides are On the DD/P side (one was in TRS)
and in two cases of the total, it is known that Agency activities were
pressing factors.
(6) The incidence of death in performance of duty is significant at 15%.
However, the Task Force believes that this relatively low ratio can
quickly show sharp increase due to our widespread traveling and 0TR,
155 and operational activities. The potential in,respect to non-
scheduled aircraft will be treated verbally as appropriate.
(7) For the record, the Task Force desires to point up the ever-present
problem high lighted by death . of potential activity "attribution
to the U. S. Government. This is a matter of operational security
responsibility which lies in the technical or professional field.
The Task Force is not professional, but holds and emphasises the
position that to demi a Staff AgentWAEPA coverage if he desires it,
is no answer. The fact of his rights under FEU . which cannot be
denied . contains inherently the attribution potential anyway. Par.
haps our only way out is to refrain from using employees on sensitive
missions. Today this may be =impracticable ideal - but there is the
problem 4 For those interested, the position and answer to this last
25X1A problem aa the part ofillits &tonal in TAB B Appendix IV.
bo Fromm analysis of existing available protective features,the
following observations are of most importance.
(1) As to.1conesolgAILJ2nEL_Lkitt policies, unquestionably many of the
hasardi-Wihiah-edbstantiaI numbers of our people are exposed (ops,
OTR, ISO will void the individual's previously obtained policy and
neke it impossible for an applicant to obtain such coverage. Toil, is
true in respect to the Face Amount, but most especially and more
broadly true of the double indemnity and disability, features of them
policies.
Ibis fact is subject, in part, to cover.story modification, as
dictated by security
The probability of difficulty in respect to voiding of Ordinary Life
policies is deemed small, but one case Is a misfdrtune. In the case
of employee applications to Aoacia and N. Y. Life, assurances from
CIA as to nonhazardous duty are. routinely requirmi and this is likely
to spread. In one case, denial ot applied.fdr insurance was given.
8
,5SULE
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(2) As to National Service or U. S. Government Life arm.
This is andsome coverage in moderate ace amount or veteran
who kept it. This insurance is really cheap with no hazard ex-
clusions, in either death or disability features.
(3) As to 'SCA. This is excellent coverage for the individual (in die.
abilitMnd for the family in death, arising from injuries suffer-
ed in performance of duty or from diseases proximately caused by
employment. All hazardous or semi...hazardous duty is covered.
A problem may lie in sufficienoy of coverage for some standards
of living (the maximum is 4525.00 per Month regardless or size
of family). However, it would take an investment of $210,000.00
in U0 S. H Bonds to provide such interest income.
A second problem is security, i.e., attribution to the U. S.
Government in sensitive situations . but the indemnity rights
here cannot be denied. This is, however, a procedural matter in
the field of security not subetantive in respect to dollars.
(4) AS to Civil Service Retirement Act. This is a retirement
but it?esT?doproMe?quite inadiFga benefits on too limited a
basis, for death arising in lime-of-duty or not in.linefof.duty..
where FECA doesn't cover.
24e problem here of insufficiency must be taken together with
other available protective features which the individual may have.
(5) P. L. 110 This Act provides a very small assist in burial only.
(6) WAWA. This is valuable moderate face amount coverage for non-
accidental death . excellent coverage for accidental death. The
pellet is valuable because of (a) absence of ex(ilueions in the
term feature and but small limitation in the accidental death
clause; (6) ease of procurement no physical examination and
immediate availability.
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The problems here are (a) its probably somewhat too high cost .
as &own from our experience; (b) the security (attribution)
lspects in event of death in a sensitive situation; (c) insuf
ficiency of coverage in certain standards of living
5 CONCLUSILMS, in respect to death.
as There is need to bulk replacement provision for potential voiding of
an individual's ordinary life policy and to counter.denial of such
coverage from the commercial market.
b, There is no need to seek supplemental beneficial coverage in the
field of performance...of...duty.
(1) The PEOA is excellent coverage; when supplemented by the optional
coverage of WAWA, and probable ordinary life (and for a veteran,
NSW all reasonable Agency obligation and concern is satisfied*
a. It is desirable to seek, as have others, additional, better, or
cheaper life coverage outside the field of performance . of ? duty.
Our people are young with existing and/or potential family responi.
sibilities.
(1) the group factor here provides the potential of about 70$ saving
in premium cost against commercial Ordinary Life.
d, There is need to subject our %EPA experience to actuarial scrutiuy.
e. The liberal clauses in Waft make it an extremely desirable offer*
ihg and one not to be jeopardised.
f, There is need to facilitate the individual's procurement of single
trip coverage on scheduled airlines, with arrangement for such offer.
ing throughout processing. (This facility has been agreed to by
Omaha?sas a convenience for us = if desire to so place it,)
g. There is need to arrange (probably as above) for trip coverage an
non-scheduled and military aircraft. (It is possible to do this
? securely by special arrangement.)
h. The "exclusive remedy', aspect Of FEOA precludes the expenditure of
appropriated dollars for the individualss benefit, in either premium
cost or other substantive benefit lathe life field, (excepting the
small benefit in PL 110).
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However, because of the nature of Agency mission - its high demand
for dw-otions its general and overriding 'security demands, the Ageney
mast 1 'prepared to spend appropriate needful adidnistrative dollars
to backbtop all proper beneficial coverage measures.
i. NASA shall not be denied a staff employee or staff agent at any time.
The attribution factor contained in ?RCA is overriding. Choice must
be confined to the Emma for the mission.
j. At the present time, the Task Force is not looking to legislation
for resolution of our Insurance?Iproblems.
k. As funii- illustrated from lack oikinewledge amovg our employees of MCA
almost entirely, and of WAEPA leSer4OW0 we must consider new ways
and msans to get information over to our empleyees. This is vitally
important first in respect to mission, then in justice to the employee
and last in respect to the importance of long-time solid career develop-
rent program.
Many aspects of the foregoing ask for technical insurance consultation
with actuarial study, to conclude in respect to appropriate existing
supplemental measures or self-insurance.
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6. RROOMNIDATIONS, as to death
After consultation with and based upon their
views as to how.best ?our problem in respect to
death, the Task Force recommends the following plakt
act Offer to en Agency Staff Gag Meets and Staff Agents, the oppomp
tunity to secure group term life coverage with conversion
privilege and pranium waver for disability along the fonoang
linen
(1) For salaries under $3,200 annualy, an opfional coverage
range with a minimum to equal the nearest $3.,000 of Balmy
and a maximum of e6p00.
(2) For salaries over $3,200 annually, an opktonal coverage
range ath a minimum to equal the nearest $1,000 of saw
and a maximum of $15,000*
Add $15,000 aceildemtal death coverage to the foregoing In each
policy.
040 Provide in the plan for the same ecaausion leewey as presently
in the WANPA contract and the save procedtu?al (seautity) handling
as Omaha Mutual Benefit Health & Accident Association now has
with us in the hospitalisation field.
de Pat this plan vo to United Benefit Life insurence Cawley of
Omaha, Nebraska for costing, Le., for their fine offer as to
premiums*
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0. Ask WARPA to bid on this same plena
I'. Take the of Omahass offer (and of WAWA, if any) to the 25X1A5a1
for assessment against selfAnsurance on the ma
d then not only point up the coat advantage
(prelims) of eelf.ainsurances but also outline risks to us in so
underbaldnge
44-
non
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TAB A
DEATH STATISZCS
STAFF EMPLOYEES AND STAFF AGENTS FOR CIA
AND STAFF EMPLOYEES FOR STATE AND AGRICULTURE
410?111????01110eal0111111.01.111MOMMINOM.
1, A Comparison of death incidence with the Foreign Services and Departmental,
Department of State; and with Department of Agriculture Beneficial Association;
and with U. S. mortality tables.
Average
CIA 2/ 1214.2 2;9!8 19149, gig 2,251 Ng 1252 .51_21 Lv53
Total in service deaths 2./ 1 5 8 6 12 19 18
State IV ... Foreign Servo
NW in Service deaths . - 10 15 8 5 8 7
Av. Monthly Strength . .. 5378 7898 8692 8993 7562 8415
Deaths per 1000 a 1.86 1,90 .92 .56 1.06 .83
(physical given)
State . Departmental
wiz in Service deaths .
Av. monthly strength .
Deaths per 1000 .
(no physical exam
Agriculture Ben. Assn,
(includes Retirees)
Total deaths incl. seped
Strength of Almon. .
Deaths per 1000 .
(no physical exam)
.. 7
18
171/ 19
12
16
- 10630
7870
9316-10046
8166
9176
. .66
2.29
1.82.il1o82
1.47
1.75 lif
(1,29y
(1.54)
182
234
190 217
232
213
... 1612216193
16161 16045
16080
16095
- 11.3 14.5
11.8 13.5
14.4
13,2
U.S. _population as a whole (deaths per 1000)
(1) Estimate for 1951 by the World Almanac 0 9.7
0 . 9.7
(2) U.S. Public Health Service for 1952 . . 0 0 906
25X9A2
y and c/ - See Tab E for =roes.
W -Contains 5 deaths from single plane crash. If not.includedsthe ratio is shown in
e Not separated from service. ( ) above.
SOFT
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Approved For Release 2000/09MECIA-RDP80-01826R000600070001147 A
2. Comparison by Ofi'ice (CIA)
(37 Total far years 152 and 153 only)
122/2 Oa
ELL COMO
OIR
1952
ID
6
2
0
1
1953
6
3
5
2
2
again.
Yazd..
01?0.00
Total
16
9
7
2
3
Average
8
4.5
3.5
1
1.5
Average MOnth17 Strength
Deaths per 1000
*Statistically Insignificant 25X9A2
30 Comparison by Office (69 Total an years)
Di_24 COMO OIR REGISTRY DCI
26 22 14 3 3
40 Place of death (CIA) (69 Total - all years)
U.S. overseas
3577"37 177617
2
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5, Cannes
(CIA):
U.S. Poz.d
80
Heart
25
(35%)
32.5%
b.
Cancer
11
(16%)
13.75
c.
Suicide W
6
( .9%)
dA
Ulcers, tbstruction? Peritonitis
6
( 9%)
e.
Polio (3) Diphtheria (L)
4
fo
Complications following operation
2
go
Accident not in line of duty
5
( 7%)
By fire while trysting 1
By air cradh on LWOP 1
By namtwin climbing 1
By auto collisions 2
hl Accident in performance of duty 8 (12%)
By explosion of gasoline 1
By air crash (Schad.) 3
By air crash (Non-Shed,) 1
By boom of crane 1
By ship sinking 1
By shooting (2nd party) 1
i* By enemy action 2
IOTAL 69
(PERFtRMANCE OF DUI! TOTAL: 10 (1407%) 2,i)
6, U. S. Public Health Service 1948 Vital Statistics for U. S. Population
as to death from selected causes" (most). Rates per le000 of mid-
year population,
All Causes..
Heart
Cancer
Suicide
9.885
3.227
1.349
.112
Ages lLgt 25.1.1k 2L4ik LIL.1[1 6
All Causes 1;4-24 IOTT .5:976 --,7;048- 19.3311 0
Heart .085 .208 .854 2.918 7.259 17.908
Cancer 0056 .168 .598 1.718 3.789 76347
Suicide .047 4090 .147 .208 .255 6288
fJ
U. S. Public Health Service 1948
i 5 suicides in DD/P
B Performance of Duty in DD/P
- 3 -
c'TP 1'
1.......60.11111?61?110...1410?11111?
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IALS
7 CIA ageu at death for All cases (J9) in th-lrears 1951, 1952, 1953
ag2,
Under
n
25
30
Cumulative
Totals
Percent of
Grand Total
4 cases
14
8
28
I/
35
19
38
n
4o
23
46
u
45
29
58
n
50
33
66
a
55
40
80
n
60
44
88
a
65
14?
9/4
n
u
70./17
75
4,9 '
9/4
loo
8. CIA ages related to total deaths for the sane age groups (Cumulative
% to total in both cases)
under
n
n
u
b
N
n
IT
25
30
35
4o
te
4,
5o
55
60
Age
DistributionpJ
Death
Distribution 12/
16%
1j2%
64%
79%
89%
95%
97%
99%
8%
28%
38%
46%
58%
66%
801%
88%
IV As of 30 June 1953 (no significant change as of Jan. 154)
Ef 3.4year totals - 19512 1952, 1953.
- 4 -
SECRE T
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9. Ages at death in 3 categories (Total Agency S.E. & 3..A.147-053,
Note: Total of /1.2 in these 3 Heart Eatom. Subside - (Location)
categories is 62% of grand total) (ts')
-
24
25
26
27
28
29
1?
1
30
1
31
32
33
1
FE tIS
34
35
ail
36
1
37
38
2.
39
11
40
1
11
- 41
1
MR US
42
1
43
1
FE US
1
1
45
1
46
11
47
48
1
49
1
3.
50
2.
51
111
52
S3
I
54
1
55
56
57
1
58?
1
59
1].
60
61
1
62
63
614
1
65
1
66
67
68
69
70
71
1
72
1
w5_
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Approved For Release 2000/09/MagIA-RDP80-01826R000600070006-70 A
AGES oe EMPLOYEES STAFF EMPLOYEES AND STAfF AGENTS onr
No.
a:a .31u.35 262
0L,..60 61..65 25:s_61
State
Foreign Svc.
396
1225
1294
Cum. No.
1621
2915
Cum* %
7.1
29.
52
Departmental
337
710
952
Cum. No,
1c47
1999
Cum.
6.9
21.4
41,
CIA nil
Cum. No,
Cum. %
????almmllas?Borannamba,
1017
3932
70
866
2865
58.5
,
598
438
287
14530
4968
5255
81
89
94
713
515
358
3578
14093
4451
73
83.2
92.,
208 92 / 29
5463 5555
98 99
257 130 56
4708 4838
96. 99
si CIA Under 21 Figures are as of
31 Dec. 1953 from Research Branch, Plans, Research
& Development Staffs, Office of Nrsonnel.
6 -
25X9A2
.............m.vmares...moworMansfaseaddlattor
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25X9A2
25X1A5a1
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614=-F.
6. BECOMONHATIONS, as to death
After consultation with ' ' * based upon their
views as to has beat ,,.. .:T.4. --i , , prohlem in respect to
death, the Task Force rooms:ends the following plant ?
a. Offer to all Agency Staff employees and Staff Agents, the oppore,
tunity to secure group term life coverage urith ace:version
privilege and premiten waiver for di:pal:ditty along the following
lines:
(1)
For silariot under $3,206 annually, an optional coverage.
range with a minima to equal the nearest $1,000 of salmi
and a maxima of $6.000.
(2) For salaries over 0,200 anoma117, an optional coverage
rango with a minimum to equal the nearest $1,000 of yam,'
and a maximum of $15,1003.
b. Add $15,000 accidental death coverage to the foregoing in each
Pater.
Provide in the plan for the same occlusion leeway as presturbl,y
in the WABPA contract and the sane procedural (smutty) handLtug
as Omaha Mutual Benefit Health & Accident Association nor has
idth us in the hospitalisation field.
do Put this plan up to United Benefit Life Ineurance Company of
Omaha, Nebraska for costing, Lees for their firm offer as to
Pit=,
e. Ask WAEPA to bid on this sane plan.
of Omaha's offer (and of WABPA, if any) to the
for assessment agEdnst self.ipasuranoe on the sane
d then not only point up the cost advantage
(pried) of self-insurance, but also outline risks to us in so
endertakingo
MOW
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25X1A5a1
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TAB B
1. Facts in respect to death . as to existing available protective features
:in beneficiary coverage. These are:
a. Commercial Cmclizid...aols.A.9.1....ee
(1) Most importantly for us is the matter of exclesions from cover-
age - and here the policies vary conelderablero However, some
aspects which are generally common are these:
(a) The incontestibility period for all features of the policy
is 2 years (all of those listed except New "fork Lila,
which is I year).
(b) The Basic (Face amount) Policy contains airflight exclue
sion as relieve:
Any flight operated for military wposoa or where the
insured individual acts as a crew me has duties
ahoarq, parachutes or participates
raLning
Non-Scheduled Airlines are not dealt with explicitly
as such except by Prudential which vonot cover any
Ma-night.
(0) Invariably, all flights as a passenger in commercial
scheduled airlines of any country are covered risks
today. *0
(d) The Basic (Face amount) Policy contains war exclusions
(declared or undeclared war) as follows:
Death arising from an act of war 'while in either mili-
tary or civilian service outside the Hone Areas or
within 6 months after return to Home Areas. ***
* Examination was made of sample policies from: Acacia, John Hancock,
No Y. Life, Omaha Un. Ben. Life, Guardian, Prudential, Travelers,
Lincoln Nat'l., Penn Mutual.
41* "Scheduled Airlines" are commonly defined as follows: "Aircraft operated
? on schedule for commercial purposes by an incorporated and governmentally
certified Scheduled Commercial Air Carrier over an established route
between specified airports."
*** The Hone Arson are commonly defined as the U.S., Canada, Panama, D. G.,
TJ., Puerto Rico and Virgin Mends. -
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TAB B
(e) The Double Indemnity (twice the Face Amount) accidental
death feature contains all the *foregoing exclusions plus
self-inflicted cause, illness or disease, gas or fumes,
assault or feloly, war, insurrection, riot,military eer.
vice during time of war, and air flight in non.echeduled
airlines,
(2) The risks of Agency hazardous and semi.bazardous duty not
covered by Ordinary Life policies are:
( 3 )
( a )
In respect to the Basic (Face Amount) policy:
1. Air flight in military or non-scheduled planes
for the purpose of tes.ing or training (TSS and
TRS), for military purposes (OPS), acting as a
crew =Mbar or with duties aboard, parachuting
(US), and in some oases aa a passenger in nba-
aChecla (IRS? -TSS, Ws).
2. Exposure to an sot alai* (declared or not),.mili-
tary
or civilians while outside home area's or dur.
inrsix months after retUrn.
/n respect to the Double IndeMnity Accidental Death
feature:
1. Allot the above plui expodure to disease, illness,
gas or fumes, assaillt, Mew, riot, insurrection,
military servioe, and air flight in nonaieeheds as-
&Passenger.
It is to be noted that in addition to the above listed rinke,
there are 16 hazardous duty risks which, if revealed in the
candidate's: application for insurance or ferreted out by the
agent, would probahly either exclude acceptance or provide
coverage, in some cases, at an excessive premium. However,
given acceptance of the candidate on a non-hazardous ?coupe..
tian description, the policy is iezecure for two years (the
contestibilitY Period). The insurance 00nPanies are already
suspicious *fuse
b. National Service Life Insurance or U. S. Government Life Insurance
(1) Both of these policies are OX - the lett* available in
World War I, and since, to that veteran if in active service, and
NSLI during and since Wgrld war II without previous service. ,The
on difference is that U. S. Government Life has a double. '
ability feature for a small additional prod= 0. VSL1 does aol,.
-
SURL:T
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TAB B
(2) Both of these policies are ineontestible fron date of issue
for any cause exilept fraud, in both deatirmralraimur--
features. i.e,, NO exclusions.
0. FsIter.al.S. Im.....mitsnsation Act
(1) Ibis act provides compensation for disability, death and mediae'
care (including hospitalisation) resulting from injuries suffered
in performance af duties or from diseases arimate ceased, by
empIWEREV711Xclus1ons from coverage are s es or ath
resulting from willful misconduct, self-inflicted action, ci?
intoxication?
(2) FECA . as to death benefite *
(a) Burial expenses up to 3400.00 plus transportation of
remains to homs.
(b) Widow no other depqndents. 45% of pir 4)* not to exceed
. mon until her death or remarriage.
(c) Widow. with 2 unmarried children under 18 ars of 0
INW ow pus at. sac 0 al ? ) not
to exceed (75% of PAT in ax r cage) $525000 total per month
until death or remarriage of widow and until children marry.,
die, or reach 18 years of'age as to their part.
(d) No widow 2 unmarried children war 18 ars of aged
35X-6f15-4 for one chil or the oth?ot to exceed
(?S% of my in any case)total of $525000 per month until
children marry, die, or reach 18 years of age.
(3) In summary, continuing death benefits to beneficiaries arising
from injuries suffered inn)..2artfooe of duty or from disease
cacimate caused by empleyment are these . for the situations
* the statement of benefits below. is translated leer here with chosen examples.
it* Ihe pay or salary rate for this purpose includes all amounts withheld for tax
and retiremsht purposes 2122 value of subisIende, quarters and other consider-
ations as part of pay.
- 3 -
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SECRET TAB B
GS.11 GS.11
Employee Emplwee dies
Beneficiary dies in Up S. in Frenkteree
(a)
Widow only
$222.75
$256.50
(monthly)
(b)
Widow and 2 children
328.16
359.00
(monthX0
(c)
2 children only
239,16
285,00
(monthly)
(4) This act is an exclusive remedy, but does not prevent the beneficiary
from electing to receive the benefits of the Civil Service Retirement
Act if she so desires, but she cannot receive suoh benefits cancer.
ently with those under FECA.
(5) All hazardous duty or seedeehazardous duty risks rim by Agency employees
are covered by FECA under the conditions of performance of duty Or
proximate cause reating in employment.
Civil Service Retirement Act
(1)
This Act provides death and disability benetits to employees of the
114 S. Government with and witholreperformance or line of duty quali-
fication provided-the empfoyee has acquiredminineueri=811M-Orii
Tan-ET-five years of civilian service ** ? intermittent or otherwise,
As noted in the previous analysis of FECA, no continuing benefit under
this Act can run concurrently with FECA benefits, The individual
concerned (employee or beneficiary) ray choose.
(2) Exclusions from coverage are common with FEGA, i.e., willful miscon.
duct, vicious habits and intemperance, with respect to disability
only.
(3) The continuing benefits are annuity, in nature, computed as a per.
centage of the highest fiveeyear aeerege base salary modified by the
years of creditable service. Military service can be eddied to the
civilian years for this computation. No additions for overseas allow.
ances are permitted as in the case of FEM.
"Pee includes the addition of $500.00 quarters allowance arumally.
Under 5 years of service, or more than 5 eare with no widow or
dependent children, the Act provides for a lump sum of amount
paid-in, plus .interest.
- 4
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(4) As to death benefits: *
(a) Widow-nherr....dendents.
50 % of employee's then annuity benefit, attainable when
widow reaches age 50, and terminable when she dies or
remarries.
(b) Widow and 2 children. Immediately payable.
5o% of employee's then annuity benefit, plus to each child
.50% of the widow's annuity:, not to exceed 0900.00 annually,
divided by the number of children, or $360.00 annikinn
whichever is lesser . terminable to each child on death
or marriage or attainment of age 18, except that if such
child is incapable of self-support, terminable on death,
or marriage or recovery. Upon death of widow, recompute
as in (c) below.
(o)
No widow, 2 children only. Immediately payable
50% of employee's than annuilT benefit to each child not to
exceed $1200.00 annually divided by the naMF of children or
3480.00 annually, whichever is lesser . terminable as above
in (b) and, in case of termination to one child, recompute
as if that child had not survived the annuitant, a
case of one child only.
(d) In sunnary? as to continuing benefits to dependents.:
Employee Employee
GS.11 GS41
Category urs.
Widow only $33,42
Vidow plus 2 children 66.84
2 children only 66.84
* The statement of benefits below is translated later
here with chosen examples.
- 5 -
SEM T
15 yrs. eve.
$55.69 monthly (at
age 50
111.39 monthly.
(immediately)
80.00 monthly max.
(imuediately)
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Approved For Relaie 2000/09/12 : CIA-RDP80-01827R000600070006-7
ere Public Lev 110 ac to death e on POS abroad
(1) .Pay the cost of preparing and transporting the remains
of an employee, or meMber or hialemily, who may die in
travel statue or abroad to appropriate place of
interment
f. War Agencies Employees Protective Association (NAEPA)
(1)
This is a non.profit association independent of the U. S.
Government, 'which provides death benefits on.ler, in two (2)
categories . term lire besuramce and accidental death, and
only to civilian employees of the U. S. Gemernment.
.(2) This insurance i3 effective only when the individual is aotively
?named, not including terminal leave. Eligibility extends to
age 60 and membership in the Association terminates at age 65
or upon entry into the Armed Porces of any country. Membership
is open to erg employee of this Agency *Who mg, go overseas at
some future timeGu (see Appendix II) and without a medical
examination, if he applies within 60 days Rafter becoming
eligible.0 If Application is Inter than these 60 days a "stateui
msnt of health!' is required. Eligibility extends to aey indivi-
dual paid from appropriated funds of this Government (see
Appendix III). On termtnatiea of government service the tarn
life feature may be converted into one of the Underwriters
standard ordinary life policies, without medical examination.
(3) The policy is effective on the date of application if the applie
cation is acceptable to the Association. There is no coneestible
period as in Ordinary Life policies and, in respect to the tern
insurance part or the policy, no exclneions of aey kind. The
accidental death feature has these rive (5) exclusions*
(a) Bacterial infeotione (ezoept pyogenic infection arising
from accidental wound).
(b) Any kind of disease.
(c) Medical treatment (except from accidental injuries).
(d) Suicide
(e) Air flight in non-scheduled flight unless under orders of
the U. S. Goverment, and in any flight as a crew member of
the plane (see WASPA letter 15 January 1953, Appendix I
herewith).
6
=UT
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SECRET TAB B
Death benefits now are:
2-1tEr Term Liie Ins0 Accidental Death fatal
3200 or over 129000 15,000 279000
(5) Costs are:
Age up to 41
18.33 per month
25.00 Quarterly
100.00 Annua14
Age 41 to 51
10.42 per month
31.25 11
125.00' ?: n
Age 51 to 65
12.50 per month
37050
"
15(0?
(6) The underwriters are:
(a) Equitable Life Assurance lociety of the U. S. as to the term
feature.
(7)
(b) American Casualty Company of Reading, Pa. as to the accidental
death benefit.
Our experience with WAEPA is as fo1100e:
Premiums Paid
Benefits, Paid
(&)
Total
Total
1947
70915.25
0
1948
11,630.00
0
1949
14,615.50
0
1950
20,299.43
0
1951
55,400.82
27,000.00 1 death
1952
117,437.29
12,000.00 1 death
1953
1 47.46
18.103.00 3 deaths
3 3# .
570103900
(b)
Premiums Paid '
Rate of Coverage
.1),I.t..M.I......... nicintli
persons 1. years
1947
791.00
79.00
1948
969.00
116.00
1949
1,218.00
14o.00
1950,
1,691.00
203.00
1951
49616.00
5514.00
1952
9,786.00
1,174.00
1953
13,045.00
1,565.00
* This salary is about GS-4; for salaries below this figure ($3200)9 the benefits
and costs are approxiately one-half of the amounts shown above. See rates in
Brochure.
** Persons - years: assuming ages up to 41 premium is $100.00 for an individual
for A year.
- -
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c""??
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B
(8)
) Length of time contracts in force 1947;4953 inclusive.
Cancelled Contracts
Existing -contracts .
-..fcirce.as.pf 1 Jan. 191j
19$4
. 8 .
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(d) Modifying factors in the above tire:
le in 1950 UAEPA.added 32000 to the term coverage
2* in 1951 n added $15,ocoo accidental death coverage
21.. in 1953 FAEPA added eligibility liberalization to red:
ft... available to anyone (it CIA) sho mqy go overseas at
30E0 future throb" Previously, oVerSean orders had to
be cut.
4. Bad Agency publicity.
DDI reports no interest in risk coverage on the part or his people
but a good interest in group life (term) coverage. They- feel that
with 99% of them not going overseas at any time, 41ey muld be
straining the truth to applyrar WAEF1.
(a) He also reports that they don't knew the exclusions in their
0. L. policies. Nor do they knew anything about F.E.C.A.
Recapitulation as to continuing benefits atter death.
(1) In order to assess practically the asset values to the beneficiary
In existing available protective nacres, certain assumptions as
to asset (or proceeds) dispositionvmethods are utilized as follows:
. 8 .
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apitulation as to continuing benefits atter death.
(1) In order to assess practically the asset values to the beneficiary
In existing available protective nacres, certain assumptions as
to asset (or proceeds) dispositionvmethods are utilized as follows:
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SECRE!A TAB t
(a)
Tae widow's age is assumed at 30 years (because of the
general youth of the Agency employees) in both examples
to follow, i.e., widow is the only beneficiary in the
first case, and widow and 2 children in the aecond
ages 5 and 6 years.
(b) As to Ordinary Life Insurance. Mere is aasumed a policy
of $107:60?fandsmnity for accidental death.
The widow chooses to receive the proceeds immediately in
the form of a monthly life income (20 years certain) in
both examplee. Disposal of these proceeds in illustrated
by utilising option 4, under an ordinary Lire policy
witten by United Benefit Life Insurance Co. of Omaha,
Nebraska. The benefit is $30.50 per month for the face
of policy, or $61.00 per month with the Double indemnity
feature.
(d)
1. The proceeds of this policy are not taxable as income
unless left with the company at interest. Such interest
is taxable.
As to FECA in the summarr following here,. the examples
shown in the analysis heretofore are need.
1. The benefits here are not taxable as income,
(d) As to 052A, it is seen that its value is small . is of
no consideration in the case of death in performance of
duty, and is applicable under line.of.duty or not, to a
widow alone only when she reaches %years. To evictor
with children benefits are applicable immediately but
are small,
(0)
1. The benefits here are taxable an income under the
' annuity rule. (3%. of total salary deduction until tax
eqUals deduction, than all taxable.)
As to IIAEPA in the term feature, it is assumed that the
employee Chose proceeds disposal on the basis of monthly
installments parable immediately on his death for the 15.
year period, This pairs $6053 per month per $1,000 of
policy face ($12,000 now), i.e,, a total of $78.36.
1. Tae proceeds here are not taxable as income,inthe
same wares Ordinary Life,
As to WAEPA, in the accidental death feature, whidh mot
be paid in a lump suaL(0151,000 now), it is assumed that
the single beneficiary (wife only, age 30) is better
served by her purchase of a single premium Deferred,
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T TalB B
Refunding Life Annuity payable in 20 years at her than
age of 50 years (or earlier for less amount if she
chcoaes or needs). On this basis, Guardian Life of
N.Y.C. will, in 20 years, accumulate a cash value
fer her of 824,135 end than Par her $94.13 monthly
for life and also refund the unused balance to her
epeoified beneficiaries.
However, under this feature, in respedt to the second
example (the employeess beneficiaries are wife and 2
children, ages 5 and 6), it is deemed ths pert of visq.
dom for her to use the principal as she chooses under
a Trust rund arrangement, for a minimum of 12 years
(until the children are 18 years old). The truete
now pay about 4% average on the illivestmant and charge
5% an the fUnd earnings. This mill net the benefit:WY
additional earnings over 12 years of about $3,000 total,
or an average earring of about $250 per year. She takes
out 1125,00 per month average for 12 years and nags up
the principal.
1. The proceeds under Wan accidental death feature
are not taxable as income, except as to interest
parnings.
(g) As to GSM (Civil Service Retirement Act) benefits,
even though the beneficiary can choose as between CSRA
and FECA1 there is really no competition betasenthe
two. Escheat: designei for a different PurP0406
Houever, outside of performance of duty death, the ecle
benefictary (widow only) waits until she is SO years or
ago to benefit in a..1 way under CERA, The midget
with 2 children securee somewhat larger, though rola..
tive1y small, benefits immediately foll:wing death,
under CSRA. Here again thereto no competition with /ICA,
hence the great importance of interpretation as to 'sperm
formance or duty." The 0/0 CAWS used in the analreie
proper are again utilised in the following =Manny
1. The proceeds are taxable as income under the ennui*
rule.
(h)
In respect to National service Life Insurance (veteran),
the 15wyear installment lathed of paying proceeds is
ohoosen $6.11 monthly per $1000 of policy faoe. This
is $61.10 monthly.
1. Mese prooeeds are not taxable as income.
10
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SUMMARY OF EXISTING AVAILABLE PROTECTIVE ASSETS IN TERMS OF THE PROCEEDS - DISPOSAL PLANS CHOSEN ASSUMPTIONS;
(MONTHLY PAYMENTS)
BENEFICIARY
ASSET PERFORMANCE OF DUfY
WITH ORD/NARY,LIFE WITHOUT ORDINARY LIFE
-Pk
LINE OF DUTY OR NOT
WITH One. FE WITHOUT ORD.
LIFE
1. DEATH OF A CS-11 wiTt
9 YEARS SERVICE
BEMEFICIART - ACE 30
WIFE
ONLY
WIFE AND
TWO CHILDREN
ANY DEATH OUTSIDE OF
ORDINARY LIFE INSURANGE (FACE)
It N
FECAiiiiiiiiiii
L3RA
WAEPA (YEW) -
" (AOCIDENTAL DEATH)
TotA
NSLI
ORDINARY LIFE !NSURANCE tFACE)
? ft 11
(0.101
FECA
CSRA
WAEPA (TERM)
" (ACCIDENTAL DEATH)
TOTAL
NSLI
TOfAl
. 25X1A6a
ERFORMANOE OF DUTY
Approved For Relea
30.50
30.50
222.75
78.36
362.11
61.10
423.21
30.50
30.50
328.16
78.36
125.00
592.52
61.t0
653.02
(+ 34.00)
(4 34.00)
(+ 34.00)
(+ 71.00)
(+ 71.00)
S CRET
e 2000/09/12 : CIA-RDP
222.75
78.S6
301.11
61.10
362.21
328.16
78.36
125.00
5.31.52
61.10
592.62
0-01826R00
(+ 34.00)
C. 34.00)
? 3k.00)
? 71.00)
71.00)
30.50
30.50
78.36
.y.4*
139.36
61.10
200.46
30.50
30.50
66.84
78.36
125.00
331.20
61.10
392.30
78.36
61.10
139.46
66.84
78.36
125.00
270.20
61.10
331.30
4 33.42 A7 AGE 50
? 94,43 AT AGE 50
O27.55 AT AGE 50.
+127.55 AT AGE 50
IMMEDIATELY AT DEATH
TRUST FUND
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APPENDICIg3
SERE?
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25X1A5b1
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SECRST
AP:Pit/MIA V
OUPS
DE2111111(24 Dy CIA regulation (CDs, Section 14) the Zollewing :our
categories of employment are ep? of the U. S. Government, and no
employee rights as specified Inegi1atton can be denied them
1. Staff arpioyeee
2. Staff Agents
3.. Career Agente
4. Contract Enployeee
The Contract Agent ie not an epployee unless control of his
activities ie close and continua in which case he might be
able to prove qualification.
In respeot to Career Agents GOR 14,7 - deductions from salary
are made for Civil Service Retirement Act and ...the Gamer
Ant automatically come under the coverage of
FM& and PL 110. Parente of the Meeting Persona Act mgy
also be granted, and where compatible with security and
operational etendards, oareer agents rev subscribe, if
ble, to hespitalieation and life inetvance plans which are
available to Agency employees.** *
In. respeat to tie Contract Umpacree, OFR 14,8 - no deductions
will be made from salary tinder the Civil Service Retirement
Aot...however, "such periods of service would be available as
creditable service :or retirement porpoeses upon depoait by
the individual of a 0= equalling the dednotiLne based upon
ealary paid during that period d? Also, (the Contract grapier-
ee) "7411 he entitled to the benefits; of E.3%11 and PL 110
and his contract :shall so state_ Denefita of the ateang Per-
sons Act =4, aloe bo grantdd-end, where oompatrble with security
and operatteruel atandarde, the Contract. Employee mgy subacribee
if eligible, to hoepitalizatiaa and 112e insurance plane which
are available to Agency erkelorses.* *I
*1 Per COPS . DD/P.January 454, all fur.eategories eligible for life
ineurenee; oreliy Staff EmpUyees and Staff Agents eligibls for Agana.
hospitalization.
a:MET
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25X1A14a
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0
APPEND-4 VIII
16, October 1953
Z-21.1CalIDUI4 ARs 10.
Rootal!g111:K B Java
SUBJECT s operational Risks'
-In accordanep with c4r coierereationyeetordaY / list herewith
FE Divixienie ideas of the, special operational Maks that are en..
tailed in coronation with Agency employment 'abroad.
1. 'Drawl. This includes very ereassive.air travel, bath on
n lli
schedu:ind?Zrron.scheduled o i elm
tes t includes rather marginal
air travel. suoh 33 getting around by Jeep plane and speratiooal
flights under the worst of circuM
ms emcee. Virtually all forms of east
transport woad be invcavek ouch as navalamoluding sub-surface).
civilian and indigenous, .
2, Health. Zit:will include risk 'of serious diseases prevalent
in the area1 general. physical disabilitide resulting from the climate
and conditions and the amnipreeent risk to the mental health of the
employee which. az you know, can reach its most aggravted form,
Thee, rinks to health are f;equentlyfarther aggravated by lack of
proper medical attention in some of the areas involved,
34 lateleLlau.
a. Training operations,
explosives training.
b. Action of the eiemy.
countries,
iiniab of *curse inolude !Sum awl
including enemy agents in friendly
Operations in denied areas, It should be noted here
that from time to time these operations have been conducted by
staff emp/stees without the knowledge or consent of Headquarters,
but inPurtherance of the basic' miesion. / raise the ?pcint to
indicate that there should be no teohnicalities with respect to
appropriate clearance of such cperatiene.
4. Dungeons both in and outside of denied areas.
5. Civil riots amd in csurretions,
6. Miscellaneous Itemo
a, Coverage of members of the raidly is of great importance,
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b. Frequently an agent is recruited in the saver job which
he will use oparationally. His association with the Agenoy poses
a threat to is continued employment in that cover Jobs etipecdally
if there is a blow. A similar risk to the business iteelf is ran
by an saluting *avow used for cover.
C. Ti is most important that U. S. Contraot Agents should
be covered by such a policy. In their own the asks are frequently
greater and intrurance coverage available to them is less.
d. I maimed to you in our conversation that it .ght
be advantegoeus to provide that the decision o2 the Agency regarding
the date o2 death should be final S.Z this can be 2ega3lY achieved.
0
- 2 -
SECLiE T
13/ 25X1A9a
input?, Chief* 7h3
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LPOSUDIx
25X1 A9a
25X1 A9
October 1953
Miscellaneous Expressions of Interest in Insurance from :Random
Selection of DD/P Officers
1. Good hospital and surgical benefits plans for overseas
dependents - this inclusive of proprietary companies.
2, Raise WAWA basic limits of group insurance coverage.
25X1A9a
Policy to cover transportatior risks all kinds.
4. Mutual type insurance group operated by similar
to that of Army and Wavy ... would be best as far as security breaches
go re Covert Persomnel.
5. Investigate Blue Gross, believes offers moreo3verage over.
seas than company we now subscribe to.
6, Something to cover hazardous duty. (He never heard of FSCA)
7. Protection far injury or death in line of duty which would
provide living expense for family in the states.
O. Something similar to Trip Insurance obtainable at Airport
at reasonable rate; would be benefit to have included in regular.
processing routine, sometimes forget to pick up at Airport ? method
to be as simple as possible.
9. Accidental death and injury in line of duty.
10. Health, physical, mental and injury coverage overseas other
than in line of duty CIA unlike the State Department does not
cover employees for illness or injury incurred other than in line of
duty.
U. Tralma insurance, short term.
120 Transportation insurance employees should not have to
afford this.
13. Re Wan lino high for short period; too long minimum period.
Follow...up on return for possible interest in keeping WASPA. Have WAEPA
also cover pczalel who do not Lntioipste trawa, INTILEPA requires too
zwir form bc5..Ez Ailed out*
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25X1A
0
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PReCEDURE AND SaiRat,e IN 0DTALTxne
CIA AND elifER DEA5M IalD r)ISABILI FIGIefqt`
011?111101100?10.1.111111.101.??
2iemethcd of arriving at the CIA figures is noted 2or the record
as follows:
With reseect to death, a clerical task force (lap to 4 people)
supervised fal.time by a borrowed intelligence officer from PP
examined every card in the Inactive Service Record Card file,
to spot postings of ntermination by death". The name of each poraon
so terminated wan noted on an inventary sheet (sample attached) to-
gether with other personal data shown as
sheet. (Data called for was specified b
Cause and place of death net shoving here, was sot- in
dualls personnel fclder (where for the most part it didn't show either).
Search then went to the ollices ard division, The inventory sheets
were all completed.
In respect to the statistics on death, in one known case the
personnel file (the card file of personnel actions) shomwi no card at
all for the employee. (This was a 1953 death). In another instance,
the card showed ureeignatioe. This, of course, raises the question
of other possible missing or mis-loading cards, most especially far
the earlier years. In another owe the clerical task force missed
the record entirely because the notation of termination by death showed
on a second attached card underneath the firat, in spite of plenty of
posting roam remaining on the upper card. Of cue the task force
could have missed for other rename too.
As to disability, the same task form and supervieor examined
all records of hospitalisation and surgical instances as shown in
the Omaha and OM files of the Inarrance Bran& of the Personnel
Office. Desired information as called for on a disibility inventory
25X1A5a1 sheet was posted (specifications on this sheet Obtained from MN
. each case to a separate Sheet. (Sample attached) lilen
ese BlCt8 were coded for IBM.
25X1A
25X1A
All of this disability vmrk was under the general supervision
of Chief, Reeearch Branch, Plans, Research Development
Staff, Pernorir1 Office0
With respect to Staff Agents, the records were set up properly
in February 1953. Previous to that, for a little time at least, an
hasalliMAILMiltrbeenmadeandsenttotheInactiveServiceRecord.Oour
known Staff Agent deaths, only one sudh card was found. Then, at
another time, the Service Record Card held by the Personnel Office
responsible far its original creation, was sent with the irWlividualls
personnel folder to archive?, hence is buried with thousands of others,
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who are inactive for any cause,
For the yearn desired, 1947-1253 inclusive (in respect to death),
dependence had to ba placed onmemoriee. Ftur MOMM108 fran ON were
substantiated, The Agency Securitf Offioe, Medical Calm and Divisions
of DWP were circularised. and bought forward no new names,
In addition, the action file ,-.1f Fiscal, to the Civil Service Como
mission, vas checked. This process producod ten fewer names than Per.
sonneles Insetkve Service file but included two new Goes.
In addition, Personnel-Is Inactive Service file was thoroughly
checked through again, Sixty.seven records of death were turned up
against the original sixty.two, but this included corrections mode
since the first effort. One new name VAS turned up, (but this pro-
y
was missed four names t ori Imally!) This re.,oheck was super
25X1A9a vised personal] by .
The employee& personnel folders are in generally poor shape,
filled with duplicate papers, someuhat inconsistent in arrangement of
material, and incomplete as to cause and place of death. In mew cases
the information as to cause and place of death had to be obtained from
individual memories or records within the operating 'arenas's. Such
memories were accepted because in each case an inforaeut vas fount
who could assert with complete confidence of accuracr. With due use
of cryptonyes in those few cases where necessary, thore is no reason
Iihy the *termination lbydeathP record on Ftru 50 caret show came
and place. (This has boon informally agreed to by
25X1A
-2 -
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Sources of Figures for CIA, Dept. of Agriculture
and Department of State
came from Research Br
Personnel Office.
year. This method was specified
30 Decetber 1953. The figures
Plans search and Development Staff,
In respect to the CIA strength reports, one can take the years
1951, 3.952 avd 1953 as solid and carreat. For the earlier years shown,
there is unquestionably some..probably small..variation as to what is
included and what not and when. All figures come from official reports.
State These figures are from, Howard Ham, Chief of the Placement
and Career Emvelopment Branch, Personnel Operations Division, Office
of Personnel, Department of State,
The population or strength figures for the Foreign Service are
averaged for the year from monthlr figures except for 190 - which year
is a "budget average," The Departmental yearly averages are also "bud-
get averages" =opt 1953 which is averaged from monthly postings.
Agriculture These figures are from Mr. J. H. Kemper, Secretary-
-Treasurer of the Departamnt of Agriculture Beneficial Association.
The "strength" is total membership as of 15 September of each year.
(*Deaths" include 10.12 cases of permanent and total disability which
Kemper estimates is correct for the total in these 5 years and also
include meMbership and deaths of retirees who kept their policies.)
T. Roy Reid, Personnel Director of the Department, estimates that
Agriculture has about 56,000 employees . thus making Kemper's member-
ship 29% of the total eligible groep.Thie fact, pine inclusion of ren
tirees, plus the unchanging yearly level of memberships, leads to the
suspicion that the age level of this membership is high. (Kemper was
uncooperative when asked if he could supply age date,)
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NFIDENTIAL
_01826R000600070006-7
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Re : Deaths (Staff Hooplcyees)
Hams Sex
Data of Employmsnt
Last Office
Last Assignment (nature)
Title
When so assigned How many others so assigned
Date of birth
Date of death
Place of death (cotuitrr)
Cause of death
piuved or reiese
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paza NO
Res Hospitalisation & Surgical (Staff Employees & S.A./s)
Naas
Sex
Amudgimanmt Office)
CLAIM NO.
ltaJOHER }To.
Date of Birth
Nature of Illness
Place of Illness (Country)
Period of Mess
Benefits Paid By
Hosrdtal
Surgical
Extras
Actual Cost
H.
S.
E.?
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CON4ENTIA16
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Append-Lc XI
14 tie:mazy 1954
MEMORANDUM FOR: Members of the Insurance Task Force
SUBJECT : Exploratory discussion with representatives from OMAHA on
lit January 1954 by 25X1A9a
1, /n regard to dMAHAte matching Gill surgical benefits, the
actuary stated that their-premium rates would change as follows:
From
To
Additional
Single Contract
a..60
31,76
$.16
Individual and Spouse
4.75
5.64
.89
Family
6,00
6080
.80
2, Please note that the increase in the family rate is less than
that for an individual and spouse. This is due to the fact that previous
rates were incorrect, and the actuary wiped out the inconsistency in pro.
pacing us the new rates.
3. In regard to (11AHAts complete matching of 0111, they need cer-
tain dependency figures for overseas, now in process of preparation by
Research Branch, EMS. This information will be given in percentages
alikr (approved by the Director of Security personally.)
25X1A9a
COI,FIDEN FIAL
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CPYRGHT
APPENDIX xni
Excerpt from ledaysis Woman, 1953 (Fawcett Publications, Inc.)
Written by Jack Harrison Pollee*
"Perhaps the most satisfactory health insurance today is found
in the seventy odd comprehensive non-profit plans throughout the
United States. Usually sponsored:by co..operatives and built around
the group..medical-practice idea which made the Mayo Clinic famous,
they furnish in a single package virtually all of the medical and
surgical oare you and your family mey require. When held along
with Blue Cross they offer nearly complete health coverage. .
'From the-patient's point of view they're better because they
emphasise preventive medicine,' a top doctor told me.
Typical of thoee plans are an Franciscols Permanente Health
Plan; the Seattle and St, Louis Group Health Associations; the Elk
City, Oklahoma, Farmers Co-operative Plan; New York Cityss bustling
Health Ineuranoe Plan (HIP).
HIP is Americals'outstanding comprehensive prepaid medical
plan. Terming'it "the finest experiment of its kind," The New
York Times editorialised: "For actuarial and medical soundness,
HIP ha e no superior. It is unique, a model for the country." In
1951 HIP received the Looker Award for distinguithed public-health
service.
?
Designed mainly for familiee with incomes under 36,500, HIP
members never seea doctors.; bill nor are they saddled with extra
charges. There are no age limits or waiting periods and you can be
treated for anything frora a common cold to the most complicated
surgery. HIP's 400,000 members include employees of the City of
New York, the United Nations and over 300 business firms, undone
and social agencies and their eamilies. Their employers .pay half .
the cost, employees per the rest. Ihe total cost ranges from 342.72
a year for ome person to $126.Wa year for three or more peroons;"
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