LETTER TO HONORABLE HUBERT H. HUMPHREY FROM W. F. RABORN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80B01676R000500110002-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 50
• Document Creation Date: December 12, 2016
• Document Release Date: May 30, 2002
• Sequence Number: 2
• Publication Date: April 6, 1966
• Content Type: LETTER

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,?':: ~c CENTRAL INTELLIGENCE AGENCY
ionorable Hubert H. Humphre
President of the Senate --~
Washington, D. C. 20510
Dear Mr. Humphrey:
This letter transmits for the consideration of the Congress,
a draft bill to amend the Central Intelligence Agency Act of 1949,9 as
amended, and for other purposes. The purpose of the proposed bill
is to provide for technical amendment to legislative authorities
pertaining to the Central Intelligence Agency. Provisions relating
to personnel benefits, claims arising in foreign areas and acceptance
of gifts are included to accomplish purposes which we believe
necessary.
We consider enactment of the proposed bill to be essential
to the effective performance of our mission and would appreciate
early and favorable consideration. The Bureau of the Budget has
advised that there is no objection to the presentation of the proposed
bill to the Congress from the standpoint of the Administration's
program.
Sincerely,
W. F. Raborn
Director
''
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6 APR 1966
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11ZLIG~~
! C:EN TRfll IhY'4'it 1 I IGENCE ,R P~l_
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NCY
6 APR 1966
Honorable John W. McCd"smack f
Speaker
House of Representatives
Washington, D. C. 20515
Dear Mr. Speaker:
This letter transmits .for the consic:.eration of the Congress,
a draft bill to amend the Central Intelligence Agency Act of 1949, as
amended, and for other purposes. The purpose of the proposed bill
is to provide for technical amendment to legislative authorities
pertaining to the Central Intelligence Agency. Provisions relating
to personnel benefits, claims arising in foreign areas and acceptance
of gifts are included to accomplish purposes which we believe
necessary.
We consider enactment of the proposed bill to be essential
to the effective performance of our mission and would appreciate
early and favorable consideration. The Bureau of the Budget has
advised that there is no objection to the presentation of the proposed
bill to the Congress from the standpoint of the Administration's
program.
Sincerely,
W. F. Raborn
Director
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17 JAN 1966
Honorable Charles L. Schultze
Director
Bureau of the Budget
Washington, D. C. 20503
In accordance with Bureau of the Budget Circular A-19, revised,
there are enclosed four copies of a draft bi11, "To amend the Central
Intelligence Agency Act of 1949, as amended, and for other purposes".
This bill is submitted for clearance by Bureau of the Budget prior to
submission to the Congress. Also enclosed are copies of the explanation
and justification, together with proposed letters of transmittal to the
President of the Senate and the Speaker of the House of Representatives.
Section 1 of the proposed bill will bring existing provisions of
law in the field of travel expenses and overseas allowances into
conformity with those available to the Foreign Service. Certain other
provisions relating to re-employment rights, claims arising in foreign
areas, and gifts are included in the section to accomplish purposes
which we believe necessary.
By letter dated 14 March 1963, the Bureau of the Budget advised
that there would be no objection to the presentation of a draft bill
containing these same provisions. That bill was subsequently intro-
duced as H. R. 7216, 88th Congress. The provisions were deleted from
the bill without prejudice during consideration by the House Armed
Services Committee.
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Section 2 contains minor authorities necessary for the
administration of the Agency retirement and disability system.
Section 3 amends the Federal Employees Pay Act to exclude officers
and employees of the Central Intelligence Agency. This proposal is
in keeping with existing Civil Service Commission Regulations.
Advice is requested as to whets the Bureau of the Budget
has any objection to the presentation of the proposed bill to the Congress
from the standpoint of the Administration':: .rogram.
Sincerely,
W. F. Raborn
Director
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1. Proposed Bill
2. Explanation and Justification
Appendix - Sectional Analysis and
Explanation
3. Draft Transmittal Letters to President
of the Senate and Speaker of the House
of Representatives.
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To amend the Central Intelligence Agency Act of 1949, as amended,
and for other purposes.
1 Be it enacted by the Senate and House of Representatives of
2 the United States of America in Congress assembled,
3 SEC. 1. The Central Intelligence Agency Act of 1949, as
4 amended (50 U. S. C. 403 a et seq.), is further amended as follows:
5 (1) Amend section 3 by deletion of subsections (a)
6 and (b) and substitute therefor:
7 R?(a) In the performance of its functions, the Agency
8 is authorized to exercise the authorities contained in sections 2301;
9 2302 (2) and (3); 2303 (b) and (c); 2304(a) (1), (2), (3), (4), (5), (6),
10 (10), (12), (15), and (17); 2305; 2306; 2307; and 2312 of title 10,
11 United States Code.
12 "(b) In the exercise of the authorities granted in sub-
13 section (a) of this section, the- term "Agency head' shall mean the
14 Director and the Deputy Director. "
15 (2) Amend section 3(d) by deletion of the wording
16 "section 2(c) and section 5(a) of the Armed Services Procurement
17 Act of 1947" from the first sentence and substitute therefor,
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{
1 "section 2304(a) and section 2307 of title 10, United States Code."
2 Further amend section 3(d) by deletion of the wording "section 2(c),
3 by section 4 or by section 5(a) of the Armed Services Procurement
4 Act of .1947" from the second sentence and substitute therefor,
5 "section 2304(a), by section 2306 or by section 2307 of title 10,
6 United States Code".
7 (3) Amend section 4 by adding the following new
8 paragraphs (1)(G) and (1)(H), and (8), and further amend section 4 by
9 deletion of the words "Under such regulations as the Director may
10 prescribe, the Agency, with respect to its officers and employees
11 assigned to duty stations outside the several States of the United
12 States of America, excluding Alaska and Hawaii, but including the
13 District of Columbia, shall--" and substitute therefor, "Under such
14 regulations as the Director may prescribe, the Agency, with respect
15 to its officers and employees assigned abroad to duty stations out-
16 side the several States of the United States of America, excluding
17 Alaska and Hawaii, but including the District of Columbia, may--".
18 11(1)(G) Pay the travel expenses of officers and
19 employees of the Agency and members of their families, while
20 serving at posts specifically designated by the Director for purposes
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1 of this paragraph, for rest and recuperation to other locations
2 abroad having different environmental conditions than those at the
3 post at which such officers ..,nd employees are serving, provided
4 that such travel expenses shall be limited to the cost for each
5 officer or employee and members of his family of one round trip
6 during any continuous two-year tour unbroken by home leave and
7 two round trips during any continuous three-year tour unbroken
8 by home leave;
9 "(1)(H) Pay the travel expenses of members of the
10 family accompanying, preceding, or following an officer or
11 employee if, while he is enroute to his post of assignment, he is
12 ordered temporarily for orientation and training or is given other
13 temporary duty. "
14 "(8) Provide appropriate orientation and language
15 training to members of family of officers and employees of the
16 Agency in anticipation of the assignment abroad of such officers
17 and employees, or while abroad."
18 (4) Amend section 4(3)(A) to read as follows:
19 "(3)(A) Order to any of the several States of the
20 United States of America (including the District of Columbia, the
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1 Commonwealth of Puerto Rico, and any territory or possession
2 of the United States) on leave of absence authorized in section 203(f)
3 of the Annual and Sick Leave Act of 1951, amended, each officer
4 or employee of the Agency who was a resicant of the United States
5 (as described above) at the time of emp` ient, upon completion of
6 three years' continuous service abroad or as soon as possible
7 thereafter and may so order after completion of eighteen months
8 such service without regard to the limitation contained in section 203(f)
9 of the Annual and Sick Leave Act of 1951, as amended. "
10 (5) Amend section 4(5) by striking out subsections (A)
11 and (C) and inserting in lieu thereof the following new paragraphs
12 (A) and (C):
13 "(A) In the event an officer or employee of the Agency
14 or one of his dependents, requires medical care, for illness or
15 injury not the result of vicious habits, intemperance, or misconduct,
16 while on assignment abroad in a locality where there is no qualified
17 person or facility to provide such care, pay the travel expenses of
18 such officer, employee, or dependent by whatever means deemed
19 appropriate by the Agency, including the furnishing of transportation,
20 and without regard to the Standardized Government Travel Regulations
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1 and section 10 of the Act of March 3, ?33, as amended (60 Stat.
2 808; 5 U. S. C. 73b), to the nearest i ality where suitable medical
3 care can be obtained and on his recovery pay for the travel expenses
4 of his return to his post of duty. If any wuch person is too ill to
5 travel unattended, or in the case of a dependent too young to travel
6 alone, the Agency may also pay the round-trip travel expenses of
7 an attendant or attendants;".
8 ?u(C)(i) In the event of illness or injury requiring
9 hospitalization or similar treatment incurred by an officer or
10 employee of the Agency while on assignment abroad, not the result of
11 vicious habits, intemperance, or misconduct on his part, pay
12 for the cost of treatment of such illness or injury;
13 "(ii) In the event a dependent of an officer or employee
14 of the Agency who is assigned abroad, incurs an illness or injury
15 while such dependent is located abroad, which requires hospitaliza-
16 tion or similar treatment, anO. which is not the result of vicious
17 habits, intemperance, or misconduct on his part, pay for that
18 portion of the cost of treatment of each such illness or injury that
19 exceeds $35 up to a maximum limitation of one hundred and twenty
20 days of treatment for each such illness or injury, except that such
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1 maximum limitation shall not apply whenever the Agency, on the
2 basis of professional medical advice, shall determine that such
3 illness or injury clearly is caused by the fact that such dependent
4 is or has been located abroad;".
5 (6) In section 5, add the following new paragraphs (g)
6 and (h) :
11(g) Upon the termination of the assignment of an
employee appointed from another Government agency without a break
9 in service for duty with the Agency for a specific period of time
10 agreed upon by both agencies, such person will be entitled to
11 reemployment in such other Government agency in the position
12 occupied at the time of assignment, or in a position of comparable
13 salary, or, at the volition of the other Government agency, to a
14 position of higher salary. Upon reemployment, the employee shall
15 receive the within-grade salary advancements and other salary
16 adjustments he would have been entitled to receive had he remained
17 in the position in which he was employed prior to assignment to the
18 Agency.
19 "(h) Settle and pay, whenever the Director determines
20 that payment will further the purposes of this Act, without regard to
6
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1 any other provisions of law and under such regulations as the
2 Director may prescribe, in an amount not exceeding $10, 000, any
3 claim against the United States for loss of or damage to real or
4 personal property (including loss of occupancy or use thereof),
5 belonging to, or for personal injury or death of, any person not a
6 citizen or resident of the United States, where such claim arises
7 abroad out of the act or omission of any Agency employee or out
8 of the act or omission of any person acting on behalf of the Agency
9 but only if such claim is presented in writing to the Agency
10 activity involved within one year after it accrues."
11 (7) Renumber section 7 to read section 8. Renumber
12 section 8 to read section 9, APPROPRIATIONS. Renumber
13 section 9 to read section 10, SEPARABILITY OF PROVISIONS.
14 Renumber section 10 to read section 11, SHORT TITLE. Add a
15 new section 7 as follows:
16 "7. (a) For the benefit of or for use in connection
17 with the Agency or for the benefit or welfare of employees of the
18 Agency or their dependents, the Director is authorized, notwith-
19 standing any other provisions of law--
20 "(1) to receive gifts to the Agency and in his discretion
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1 to accept, receive, hold, administer, and expend or dispose
2 of such gifts and bequests of property from individuals or
3 others;
4 "(2) to disburse gifts, bequests of money, interest,
5 profits, income, or proceeds from sales of other property
6 received as gifts in accordance with the terms and conditions
7 of the acceptance of any particular gift or bequest;
8 "(3) to invest, reinvest or retain investments of the
9 money, property or securities and the interest, profits, or
10 proceeds accruing from such money, property or securities;
11 Provided, however, That the Director is not authorized, as a
12 consequence of gifts or bequests of money, property, or securities
13 to the Agency, to engage in any business or to exercise any voting
14 privilege which may be incidental to securities in his hands received
15 as a gift to the Agency, nor shall the Director make any investments
16 other than securities of the United States or other securities
17 guaranteed as to principal and interest by the United States, except
18 that he may make any investments directly authorized by the instru-
19 ment of gift, and may retain any investments accepted by him;
20 Provided further, That gifts, bequests of money, or proceeds from
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1 other property are not utilized for the conduct of activities by the
2 Agency, as authorized in section 4 et seq. of this Act through the
3 augmentation or in lieu of appropriations by the United States
4 Congress; And provided further, That the funds represented by the
5 gifts, bequests of money, or proceeds from other property are
6 not 'commingled with funds appropriated by the United States
7 Congress.
8 "(b) For the purpose of Federal income, estate, and
9 gift taxes, gifts and bequests accepted by the Director shall
10 be deemed to be a gift or bequest to or for the use of the United
11 States."
12 SEC. 2. Title II. The Central Intelligence Agency Retire-
13 ment and Disability System, of the Central Intelligence Agency
14 Retirement Act of 1964 for Certain Employees (50 U.S. C. 403,
15 note) is amended as follows:
16 (1) Amend section 221 by striking out subsection (f) and
17 inserting the following new paragraphs (f), (g), and (h):
18 "(f) Any unmarried participant retiring under the
19 provisions of this Act and found by the Director to be in good health
20 may at the time of retirement elect a reduced annuity, in lieu of the
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1 annuity as hereinbefore provided, and designate in writing a
2 person having an insurable interest (as that term is used in section
3 9(h) of the Civil Service Retirement Act (5 U. S. C. 2259(h))) in the
4 participant to receive an annuity after the participant's death. The
5 annuity payable to the participant making such election shall be
6 reduced by 10 per centum of an annuity computed as provided in
7 paragraph (a) of this section, and by 5 per centum of an annuity so
8 computed for each full five years the person designated is younger
9 than the participant, but such total reduction shall not exceed
10 40 per centum. The annuity of a survivor designated under this
11 paragraph shall be 55 per centum of the reduced annuity computed
12 as prescribed above.
13 "(g) Except as otherwise provided, the annuity of a
14 participant shall commence on the day after separation from the
15 service, or on the day after salary ceases and the participant meets
16 the service and the age or disability requirements for title thereto.
17 The annuity of a participant under section 234 shall commence on
18 the day after the occurrence of the event on which payment thereof
19 is based. An annuity otherwise payable from the fund allowed on
20 or after date of enactment of this provision shall commence on the
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1 day after the occurrence of the event on which payment thereof
2 is based."
3 "(h) An annuity payable from the fund on or after date
4 of enactment of this provision shall terminate (1) in the case of a
5 retired participant, on the day death or any other terminating
6 event occurs, or (2) in the case of a survivor, on the last day of
7 the month before death or any other terminating event occurs."
8 (2) Amend section 252 by deleting subsection (c)(1);
9 renumbering subsections (c)(2) and (c)(3) to read (c)(3) and (c)(4)
10 and inserting the following new subsections (c)(1) and (c)(2):
11 "(c)(1) If an officer or employee under some other
12 Government retirement system becomes a participant in the system
13 by direct transfer, the Government's contributions under such
14 retirement system on behalf of the officer or employee shall be
15 transferred to the fund and such officer or employee's total contri-
16 butions and deposits, including interest accrued thereon, except
17 voluntary contributions, shall be transferred to his credit in the
18 fund effective as of the date such officer or employee becomes a
19 participant in the system. Each such officer or employee shall be
20 deemed to consent to the transfer of such funds and such transfer
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1 shall be a complete discharge and acquittance of all claims and
2 demands against the other Government retirement fund on account
3 of service rendered prior to becoming a participant in the system.
4 "(c)(2) If a participant in the system becomes an
5 employee under another Government retirement system by direct
6 transfer to employment covered by such system, the Government's
7 contributions to the fund on his behalf may be transferred to the fund
8 of the other system and his total contributions and deposits, including
9 interest accrued thereon, except voluntary contributions, may be
10 transferred to his credit in the fund of such other retirement system
11 at the request of the officer or employee effective as of the date he
12 becomes eligible to participate in such other retirement system.
13 Each such officer or employee in requesting such transfer shall be
14 deemed to consent to the transfer of such funds and such transfer
15 shall be a complete discharge and acquittance of all claims and demands
16 against the fund on account of service rendered prior to his becoming
17 eligible for participation in such other system.
18 (3) Amend section 273 by deletion of subsection (a);
19 renumbering subsection (b) to read (c) and inserting the following
20 new subsections (a) and (b):
,21 "(a) Notwithstanding any other provision of law, any
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1 annuitant who has retired under this Act and who is reemployed
2 in the Federal Government service in any appointive position
3 either on a part-time or full-time basis shall be entitled to receive
4 the salary of the position in which he is serving plus so much of
5 his annuity payable under this Act which when combined with such
6 salary does not exceed during any calendar year the basic salary
7 such officer or employee was entitled to receive on the date of his
8 retirement from the Agency. Any such reemployed officer or
9 employee who receives salary during any calendar year in excess of
10 the maximum amount which he may be entitled to receive under this
11 paragraph shall be entitled to such salary in lieu of benefits here-
12 under.
13 "(b) When any such annuitant is reemployed, he shall
14 notify the Director of Central Intelligence of such reemployment
15 and shall provide all pertinent information relating thereto. "
16 SEC. 3. Section 102(b) of the Federal Employees Pay Act of 1945,
17 as amended (5 U. S. C. ? 90Z(b)), relating to exemption from coverage
18 under the Act, is amended by striking out "and" immediately preceding
19 "(7)" therein and by inserting before the period at the end thereof
20 "; and (8) officers and employees of the Central Intelligence Agency".
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To amend the Central Intelligence Agency Act of 1949, as amended, and
for other purposes.
The purpose of the proposed bill is to provide for technical amend-
ment to legislative authorities pertaining to the Central Intelligence
Agency. Some of the provisions are necessary to achieve desired legal
clarification of existing Agency authority; others are necessary to pro-
vide authorities which have been granted by Congress elsewhere in
Government for travel, medical, claims, retirement and similar house-
keeping-type programs.
The specific provisions of the proposed bill together with related
Central Intelligence Agency statutory provisions, if any, and explanatory
notes, are set forth in the Appendix, "Sectional Analysis and Explanation. "
No additional costs to the Government will result from enactment of
section 2, relating to the Agency disability and retirement system, and
section 3, exclusion from the Federal Employees Pay Act of 1945, as
amended. Additional costs of providing the new authorities set forth
in section 1 are estimated not to exceed $155, 000. 00 for the first full
year.
The following statements are cited to the appropriate section and
subsection of the proposed bill.
Sections 1(l) and (2) Procurement Authorities
The Central Intelligence Agency Act of 1949 authorized the Agency
to exercise certain specified authorities contained in the Armed Services
Procurement Act of 1947. Since that time the Armed Services Procure-
ment Act has been codified and enacted into positive law in Title 10 of
the United States Code. Consequently, the purpose of these subsections
is to provide corrected citations to the Armed Services Procurement
Act.
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Section 1(3) Allowances and Benefits
Subsection (3) amends section 4 of the Central Intelligence Agency
Act of 1949 adding three new paragraphs, [(1)(G), (1)(H), and (8)1. The
preceding paragraphs of section 4 were originally patterned after
allowances and benefits available to Foreign Service personnel. The
new paragraphs are provisions which have been subsequently authorized
by the Congress for Foreign Service personnel and they are:
(a) Rest and Recuperation Travel
Paragraph (1)(G) permits the travel of employees
and members of their family at Government expense for
certain designated hardship posts to an area where the
employee and his family may relax and obtain needed
freedom from climatic and other conditions which
caused his post of assignment to be designated as a
hardship post. For example, if an employee were
stationed at a harship post on the Gold Coast of Africa
he could be permitted to travel once during a two-year
tour or twice during a. three-year tour to the Canary Islands
or possibly Capetown, South Africa.
(b) Dependents Accompanying Employee on Temporary
Duty
Not infrequently, an Agency employee, upon
assignment to a permanent post of duty is directed to
deviate to or stop at another post enroute in order to
receive orientation or training. Paragraph (1)(H) would
permit the dependents of the employee to travel
concurrently and remain with him at the temporary duty
post with appropriate travel expenses paid by the Agency.
An example of this type of travel would be the transfer of an
employee from Washington to a station on the Gold Coast of
Africa but with a requirement that he spend ten days enroute
for briefings and familiarization. This authority would
avoid requiring the employee to choose between sending
his family on to the Gold Coast prior to his arrival or
scheduling his departure from Washington early in order
to be at the post in time to meet his family upon their
arrival.
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Paragraph (8) will permit necessary orientation
or language training for members of the employee's
family where this is deemed necessary because of the
circumstances of the prospective post of assignment or
because of contemplated duties of the employee.
Section 1(4) Eighteen.-month Home Leave
Existing authority to order employees to the United States from
a post abroad for home leave is conditioned upon "completion of two
years' continuous service abroad or as soon as possible thereafter."
This proposal extends the two-year period to three years and also
permits the Director, when hardship posts are involved, to order the
employee on home leave after completion of 18 months of continous
service. At certain hardship posts it is highly desirable to return
the employee for home leave after eighteen months; on the other
hand, at posts where living conditions are more favorable, a tour of
duty of three years is more appropriate than a two-year tour. There-
fore, this proposal will give the Agency additional flexibility in
managing the assignments of employees on a world-wide basis.
Section 1(5) Hospitalization and Travel for Medical Treatment
a. Travel for Medical Treatment
Existing legislation permits the Agency to pay the
travel expenses of employees who suffer illness or injury
abroad to the nearest locality where a suitable hospital
exists. The proposed legislation removes the require-
ment of hospitalization and replaces it with a more
realistic standard permitting travel at Government expense
when travel is required to obtain adequate medical care.
In many places medical care available locally is either
nonexistent or is completely inadequate by U. S. standards;
consequently, while the illness or injury may not require
hospitalization, travel to a location where adequate medical
care is available becomes a necessity. In addition, this
provision includes the travel of dependents in the event of
their illness or injury on the same basis as for the
employee.
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(c) Orientation and Language Training ,for Dependents
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b. Hospitalization or Similar Treatment
Existing authority permits the Agency to pay the
cost of hospitalization of an employee in the event of ill-
ness or injury incurred abroad. The proposed legislation
would broaden this standard slightly by authorizing
reimbursement not only for hospitalization but also for
costs of medical treatment where hospitalization is not
required. In many cases, although the illness or injury
may not require hospitalization, treatment which cannot
be obtained locally is required to prevent a more serious
illness or aggravation of the injury. This proposed legisla-
tion would also permit similar reimbursement for
expenses of dependents located abroad; however, for
dependents there is a $35. 00 deductible clause and a
maximum limitation of 120 days of treatment for each
illness or injury. This maximum limitation will not apply
in the event it is determined that the illness or injury
clearly is caused by the fact of location of the dependent in
the foreign area.
Section 1 (6) Reemployment Rights and Claims Authority
a. Reemployment Rights
This is a new authority for the Agency which
would permit an individual to transfer from another
department or agency to CIA for a specified period of
time agreed upon by the two agencies and afford the
individual statutory protection in reemployment upon
completion of his Agency assignment. This authority
is already available in slightly differing forms to such
agencies as State Department and AID. It could be of
material assistance in fulfilling critical personnel
requirements in times of emergencies by giving employees
transferring to CIA the assurance that they can return
to their parent agency upon completion of their assignment
to CIA.
b. Claims Authority
The Agency has found need for authority to process
justifiable claims arising at overseas installations. The
-4-
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proposed legislation would permit the Agency to settle such
claims of noncitizens in amounts not exceeding $10, 000
for any one claim. This authority would extend to loss or
damage to real or personal property or personal injury or
death. Claims would only be payable where it was
established that the loss arose abroad out of the act or
omission of an Agency employee or a person acting on
behalf of the Agency. Similar authority in a somewhat
more extensive form is available to the military depart-
ments, Department of State and other agencies.
Section 1 (7) Authority to Accept Gifts
This subsection would authorize the Director to accept gifts
and bequests to the Agency for the benefit or welfare of employees
of the Agency or their dependents. It is anticipated that in future
years there will be gifts or bequests from donors who are interested
in the welfare of Agency employees and their dependents. For
example, it is hoped that such funds may become available for
scholarships which could be granted to children of Agency employees
in deserving cases. This type of authority is available in varying
forms to many agencies of Government today.
Section 2(1) Annuity Commencement Date
Under the present CIA Retirement and Disability System, an
annuitant who is fully qualified to retire and receive an immediate
annuity must wait until the beginning of the month following his date of
separation from the service to be eligible for such annuity. This rule
works a hardship on employees who are eligible to retire and who desire
to retire earlier than the last day of the month.
In addition, in an Agency such as CIA when employees may be
members of either of two separate retirement systems, a difference in
so simple a matter as the beginning date of the annuity is confusing to the
employee. The proposed change would conform the CIA Retirement System
to the Civil Service Retirement System with respect to the beginning date
of the annuity.
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Section 2(2) Transfer of Contributions
This change permits the transfer of both the employer and
employee contributions to the Government retirement fund from which
the employee will receive his retirement benefits. At present, where
an individual transfers into the CIA Retirement and Disability System
from some other Government retirement system, there is provision for
the transfer of the employee's contributions from the other Government
retirement fund to the CIA fund, but there is no provision for transfer
of the contributions made by the Government to such fund on the
employee's behalf.
Further, there is at present no provision for the transfer of
an employee's contributions from the CIA retirement fund to some
other Government retirement fund in the vent he changes employment.
The result is that if an employee wishes to obtain credit for his CIA
service under such other system, he must obtain a refund of his
contributions and any interest applicable therein, pay tax on such
interest, and then re-purchase service credit on the basis of his
contributions plus the applicable interest rate under the retirement
system which he has entered. This is inequitable and cumbersome.
In addition, it denies to the receiving retirement system the benefit
of the Government's contributions toward the retirement benefits
ultimately to be granted to the employee.
The proposed change would correct the inequity to the employee
and make it possible for the Government's contributions toward his
retirement to be credited to the Government retirement fund from
which his retirement benefits will ultimately be paid.
Section 2(3) Reemployment of Annuitants
This provision (to authorize an annuitant reemployed in the
Government to retain the salary of the new position and so much of
his annuity when added to the new salary as does not exceed the salary
at the time of retirement) relates to one of the basic problems of CIA
for which it sought relief in the Central Intelligence Agency Retirement
Act of 1964 for Certain Employees. It is imperative that CIA hold
down the average age of the group of employees covered by the Central
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Intelligence Agency Retirement Act of 1964 for Certain Employees.
The retirement program established thereunder permits voluntary
retirement at a relatively early age.
These retirees, however, with few exceptions will need to seek
a second career and may well desire such a career elsewhere in
Government. CIA employees do not acquire status in the competitive
service however and much of their experience and competence cannot
readily be related to normal Government positions. It is more probable,
therefore, that the retired CIA employee will only be able to qualify
initially for employment in the competitive service several grades below
his terminal CIA position. Only if he can retain at least a portion of
his annuity will he be able to remain in Government service without
a drastic lowering of his standard of living. The total offset of annuity
upon reemployment in Government service, as required by the present
Act, will tend to limit second career employment opportunities for
CIA retirees to the private sector. It will thus tend to deny to the
Government the services of individuals who, even though they have
completed their CIA careers, are highly competent.
Retirees under the CIA Retirement and Disability System have
earned their annuities at the time when they retire. This principle
appears to have been established for the Reserve military officer
and, more recently, the retired regular military officer, and for the
retired Foreign Service Officer. With respect to retired military
officers, a reservist can retain both his civilian salary and his entire
annuity, and a regular officer can retain his salary plus the first
$2, 000 of his annuity and 50% of the balance thereof.
Federal Employees Pay Act
Civil Service Commission Regulations relating to premium pay
(Federal Personnel Manual Supp. 990-2, at Book 550-2) issued under the
authority of section 605 of the Federal Employees Pay Act of 1945, as
amended, exclude officers and employees of the Central Intelligence
Agency from coverage under the regulations.
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This exclusion of Agency personnel from the Pay Act recognizes
the pay-fixing authority granted to the Director of Central Intelligence
in section 8(a) of the Central Intelligence Agency Act, as amended
(50 U.S.C. 403j), and the specific exemption of the Agency's positions
from the provisions of the Classification Act of 1949, as amended
(5 U.S.C. 1082(16)). The Agency's unique conditions do not permit
a salary administration program conforming in all respects to the
specific principles and standards established in the two basic statutes
governing salary administration in the classified civil service.
The Agency has developed a salary administration program
which adheres closely to the principles and standards of the Classifi-
cation Act regarding the classification of positions, establishment of
entry salary rates, and the grant of merit and quality step increases
and conforms generally to the principles and standards of the Pay
Act regarding premium pay and hours of work. However, it has been
necessary for the Agency to deviate somewhat from the specific
practices required by these Acts to accommodate peculiar problems
inherent in its mission and function. The proposed amendment clarifies
the authority of the Director of Central Intelligence to do so by specifying
the exclusion of its officers and employees from the provisions of the
Pay Act.
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To amend the Central Intelligence Agency Act of 1949, as amended, and
for other purposes.
SECTIONAL ANALYSIS AND EXPLANATION
(NOTE: Proposed legislation by section is
set forth on the left with the existing Central
Intelligence Agency statutory provision, if
any, on.the right.)
Proposed Legislation
Be it enacted by the Senate and
House of Representatives of the
United States of America in Congress
assembled,
Sec. 1. The Central Intelligence
Agency Act of 1949, as amended (50
U. S. C. 403(a) et seq. ), is further
amended as follows:
(1) Amend section 3 by deletion of
subsections (a) and (b) and substitute
therefor:
"(a) In the'-performance of its
functions, the Agency is authorized
to exercise the authorities contained
in sections 2301; 2302(Z) and (3);
2303(b) and (c); 2304 (a)(1), (2), (3),
(4), (5), (6), (10), (12), (15), and (17);
2305; 2306; 2307; and 2312 of title 10,
United States Code. "
Existing Legislation
Sec. 3. (a) In the performance of
its functions the Central Intelligence
Agency is authorized to exercise the
authorities contained in sections
2(c)(1), (2), (3), (4), (5), (6), (10),
(12), (15), (17), and sections 3, 4, 5,
6, and 10 of the Armed Services Pro-
curement Act of 1947 (Public Law
413, Eightieth Congress, second
session).
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Proposed Legislation
/-Section 3(1) continued]
"(b) In the exercise of the
authorities granted in subsection
(a) of this section, the term
'Agency head' shall mean the
Director and the Deputy Director. "
(2) Amend section 3(d) by
deletion of the wording "section 2(c)
and section 5(a) of the Armed
Services Procurement Act of 1947"
from the first sentence and substi-
tute therefor, "section 2304(a) and
section 2307 of title 10, United
States Code." Further amend
section 3(d) by deletion of the
wording "section 2(c), by section
4 or by section 5(a.) of the Armed
Services Procurement Act of 1947"
from the second sentence and sub-
stitute therefor, "section 2304(a),
by section 2306 or by section 2307
of title 10, United States Code. "
Existing Legislation
(b) In the exercise of the
authorities granted in subsection
(a) of this section, the term
"Agency head" shall mean the
Director, the Deputy Director, or
the Executive of the Agency.
(d) The power of the Agency
head to make the determinations or
decisions specified in paragraphs
(12) and (15) of section 2(c) and
section 5(a) of the Armed Services
Procurement Act of 1947 shall not
be delegable. Each determination or
decision required by paragraphs
(12) and (15) of section 2(c), by
section 4 or by section 5(a) of the
Armed Services Procurement Act
of 1947, shall be based upon written
findings made by the official making
such determinations, which findings
shall be final and shall be available
within the Agency for a period of at
least six years following the date of
the determination.
Explanation: These sections update procurement authority references and
terms used in the Central Intelligence Agency Act of 1949. The Armed
Services Procurement Act of 1947 has been incorporated into title 10,
"Armed Forces, " U. S. Code. The term "Executive" as set forth in 3(b)
of existing legislation is no longer used to designate a senior Agency
official and consequently has been eliminated.
(3) Amend section 4 by adding the
following new paragraphs (1)(G) and
(1)(H), and (8), and further amend
section 4 by deletion of the words
"Under such regulations as the Director
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Proposed Legislation Existing Legislation
[section 4 continued]
may prescribe, the Agency, with
respect to its officers and
employees assigned to duty stations
outside of several States of the United
States of America, excluding Alaska
and Hawaii, but including the District
of Columbia, shall--" and substitute
therefor, "Under such regulations as
the Director may prescribe, the
Agency, with respect to its officers
and employees assigned abroad.to
duty stations outside the several
States of the United States of Ameri-
ca, excluding Alaska and Hawaii,
but including the District of Columbia,
may-- "
"(1)(G) Pay the travel expenses of
officers and employees of the Agency
and members of their families, while
serving at posts specifically designated
by the Director for purposes of this
paragraph, for rest and recuperation
to other locations abroad having different
environmental conditions than those at
the post at which such officers and
employees are serving, provided that
such travel expenses shall be limited
to the cost for each officer or employee
and members of his family of one round
trip during any continuous two-year tour
unbroken by home leave and two round
trips during any continuous three-year
tour unbroken by home leave. "
Explanation: This section provides for travel of the employee and his
dependents away from specifically designated posts for rest and recupera-
tion in other locations abroad having more favorable environmental
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Proposed Legislation Existing Legislation
[Section 4 continued]
conditions. Such travel is necessary to the health and welfare of the
individual and his family as well as the maintenance of a high standard
of work productivity at the post of assignment. Similar authority has
been provided by section 911(9) of the Foreign Service Act for Foreign
Service personnel serving under comparable conditions.
"(1)(H) Pay the travel expenses
of members of the family accompanying,
preceding, or following an officer or
employee if, while he is enroute to his
post of assignment, he is ordered
temporarily for orientation and training
or is given other temporary dui. "
Explanation: This section provides for payment of the cost of travel of
dependents to necessary temporary duty points enroute from one post of
assignment to another. Such authority is necessary for consultation and
retraining between assignments and is identical with section 911(10) of
the Foreign Service Act.
"(8) Provide appropriate orientation None
and language training to members of
family of officers and employees of the
Agency in anticipation of the assignment
abroad of such officers and employees,
or while abroad. "
Explanation: This section provides for orientation and language training
for members of Agency families in regard to assignment abroad. It is
substantively the same authority provided in section 701 of the Foreign
Service Act.
(4) Amend section 4(3)(A) to read
as follows:
"(3)(A) Order to any of the several Section 4 (3)(A) Order to any
States of the United States of America of the several States of the United
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Proposed Legislation
Existing Legislation
[Section 4(3)(A) continued]
(including the District of Columbia,
the Commonwealth of Puerto Rico,
and any territory or possession of
the United States) on leave of
absence authorized in section 203(f)
of the Annual and Sick Leave Act of
1951, as amended, each officer or
employee of the Agency who was a
resident of the United States (as
described above) at the time of
employment, upon completion of
three years' continuous service
States ofAmerica (including the
District of Columbia, the Common-
wealth of Puerto Rico, and any
territory or possession of the
United States) on leave of absence
each officer or employee of the
Agency who was a resident of the
United States (as described above)
at time of employment, upon
completion of two years' continuous
service abroad, or as soon as
possible thereafter."
abroad or as soon as possible there-
after and may so order after comple-
tion of eighteen months such service
without regard to the limitation
contained in section 203(f) of the
Annual and Sick Leave Act of 1951,
as amended. "
Explanation: This section realigns existing Agency authority for home
leave travel to bring it in accord with the authority set forth in section
933(a) of the Foreign Service Act. This section also authorizes home
leave travel after completion of 18 months at selected hardship or
notoriously unhealthful posts.
(5) Amend section 4(5) by striking out
subsections (A) and (C) and inserting in
lieu thereof the following new paragraphs
(A) and (C):
"(A) In the event an officer or
employee of the Agency or one of his
dependents, requires medical care,
for illness or injury not the result of
vicious habits, intemperance, or
misconduct, while on assignment
Section 4 (5)(A) In the event of
illness or injury requiring the
hospitalization of an officer or
full time employee of the Agency,
not the result of vicious habits,
intemperance, or misconduct on
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Proposed Legislation
[Section 4 (5)(A) continued7
abroad in a locality where there is
no qualified person or facility to
provide such care, pay the travel
expenses of such officer, employee,
or dependent by whatever means
deemed appropriate, by the Agency,
including the furnishing of transpor-
tation, and without regard to the
Standardized Government Travel
Regulations and section 10 of the
Act of March 3, 1933, as amended
(60 Stat. 808; 5 U. S. C. 73b), to
the nearest locality where suitable
medical care can be obtained and on
his recovery pay for the travel
expenses of his return to his post of
duty. If any such person is too ill
to travel unattended, or in the case
of a dependent too young to travel
alone, the Agency may also pay the
round-trip travel expenses of an
attendant or attendants;"
Existing Legislation
his part, incurred while on assign-
ment abroad, in a locality where
there does not exist a suitable
hospital or clinic, pay the travel
expenses of such officer or employee
by whatever means he shall deem
appropriate and without regard to
the Standardized Government Travel
Regulations and section 10 of the
Act of March 3, 1933 (47 Stat. 1516;
5 U. S. C. 73b), to the nearest
locality where a suitable hospital
or clinic exists and on his recovery
pay for the travel expenses of his
return to his post of duty. If the
officer or employee is too ill to
travel unattended, the Director
may also pay the travel expenses
of an attendant;
Explanation: This section extends to the dependents of Agency officers and
employees stationed abroad the present provisions of law permitting the
Director to pay expenses of transportation and authorizes such expenses to
the nearest locality where suitable medical care can be obtained. Similar
authority is provided at section 942 of the Foreign Service' Act for depen-
dents of Foreign Service personnel.
"(C)(i) In the event of illness or
injury requiring hospitalization or
similar treatment of an officer or
employee of the Agency while on assign-
ment abroad, not the result of vicious
habits, intemperance, or misconduct on
his part, pay for the cost of treatment of
such illness or injury;
Section 4 (5)(C) In the event of
illness or injury requiring
hospitalization of an officer or
full time employee of the Agency,
not the result of vicious habits,
intemperance, or misconduct on
his part, incurred in the line of
duty while such person is assigned
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Proposed Legislation
,[Section 4 (5)(C) continued]
Existing Legislation
abroad, pay for the cost of the
treatment of such illness or injury
at a suitable hospital or clinic;
"(ii) In the event a dependent of
an officer or employee of the Agency
who is assigned abroad, incurs an
illness or injury while such dependent
is located abroad, which requires
hospitalization or similar treatment,
and which is not the result of vicious
habits, intemperance,. or misconduct
on his part, pay for that portion of
the cost of treatment of each such
illness or injury that exceeds $35 up
to a maximum limitation of one hun-
dred and twenty days of treatment
for each such illness or injury, except
that such maximum limitation shall
not apply whenever the Agency, on
the basis of professional medical
advice, shall determine that such
illness or injury clearly is caused by
the fact that such dependent is or has
been located abroad;"
Explanation: This provision amends existing law pertaining to medical
treatment of Agency officers and employees and extends medical treatment
to their dependents. The benefits provided are the same as those set
forth in section 941(a) and (b) of the Foreign Service Act. The amended
language affords protection where the illness or injury requires hospitali-
zation or "similar treatment" since at a number of posts hospital
facilities are lacking or are so inadequate that the individual is assured
better care by treatment at home.
(6) In section 5, add the following new
paragraphs (g) and (h):
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Proposed Legislation Existing Legislation
[Section 5 continued]
"(g) Upon the termination of the None
assignment of an employee appointed
from another Government agency
without a break in service for duty
with the Agency fora specific period
of time agreed upon by both agencies,
such person will be entitled to re-
employment in such other Government
agency in the position occupied at the
time of assignment, or in a position of
comparable salary, or, at the volition
of the other Government agency, to a
position of higher salary. Upon re-
employment, the employee shall receive
the within-grade salary advancements
and other salary adjustments he would
have been entitled to receive had he
remained in the position in which he
was employed prior to assignment to
the Agency. "
Explanation: This section provides reemployment rights with the
former employing agency for individuals who transfer to the Central
Intelligence Agency with the consent of the former employer. It is
similar in substance to authority provided by section 5Z8 of the Foreign
Service Act and section 625(b) of the Act for International Development
of 1961.
"(h) Settle and pay, whenever the None
Director determines that payment will
further the purposes of this Act, with-
out regard to any other provisions of
law and under such regulations as the
Director may prescribe, in an amount
not exceeding $10, 000, any claim against
the United States for loss of or damage
to real or personal property (including
loss of occupancy or use thereof),
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Proposed Legislation
[Section 5(h) continue
belonging to, or for personal
injury or death of, any person not
a citizen or resident of the United
States, where such claim arises
abroad out of the act or omission of
any Agency employee or out of the
act or omission of any person acting
on behalf of the Agency but only if
such claim is presented in writing
to the Agency activity involved
within one year after it accrues.
Existing Legislation
Explanation: This section authorizes the payment of meritorious claims
arising in foreign countries from the acts or omissions of individuals
engaged in Agency activities. The authority as outlined is similar to
that granted the State Department for the settlement of claims up to
$2, 500 under subsection 2(f) of P. L. 84-885; the authority of the military
departments for settlement of claims up to $15, 000 as set forth in section
2734 of title 10, U. S. C. ; and the authority for payment of claims up to
$10, 000 set forth at section 10(b) of the Peace Corps Act, P. L. 87-293.
The Federal Tort Claims Act does not apply in foreign countries and in
keeping therewith separate authority for the settlement of such claims
in overseas areas is required.
(7) Renumber section 7, to read
section 8. Renumber section 8 to read
section 9, APPROPRIATIONS.
Renumber section 9 to read section 10,
SEPARABILITY OF PROVISIONS.
Renumber section 10 to read section 11,
SHORT TITLE. Add a new section 7 as
follows :
"7(a) For the benefit of or for use in
connection with the Agency or for the
benefit or welfare of employees of the
Agency or their dependents the Director
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Proposed Legislation
[Section 7(a) continued]
is authorized, notwithstanding any other
provisions of law--
"(1) to receive gifts to the Agency
and in his discretion to accept, receive,
hold, administer, and expend or dispose
of such gifts and bequests of property
from individuals or others;
Existing Legislation
"(2) to disburse gifts, bequests of
money, interest, profits, income or
proceeds from sales of other property
received as gifts in accordance with
the terms and conditions of the acceptance
of any particular gift or bequest;
"(3) to invest, reinvest, or retain
investments of the money, property or
securities and the interest, profits, or
proceeds accruing from such money,
property, or securities;
Provided, however, That the Director
is not authorized, as a consequence of
gifts or bequests of money, property or
securities to the Agency, to engage in any
business or to exercise any voting privilege
which may be incidental to securities in
his hands received as a gift to the Agency,
nor shall the Director make any investments
other than securities of the United States
or other securities guaranteed as to
principal and interest by the United States,
except that he may make any investments
directly authorized by the instrument of
gift, and may retain any investments accepted
by him; Provided further, That gifts,
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Proposed Legislation Existing Legislation
Cection 7(a)(3) continued
bequests of money, or proceeds from
other property are not utilized for the
conduct of activities by the Agency,
as authorized in section 4 et. seq. of this
Act through the augmentation or in lieu of
appropriations by the United States
Congress; And provided further, That
the funds represented by the gifts,
bequests of money or proceeds from 21 her
property are not commingled with funds
appropriated by the United States Congress.
"(b) For the purpose of Federal income, None
estate and gift taxes, gifts and bequests
accepted by the Director shall be deemed
to be a gift or bequest to or for the use of
the United States. "
Explanation: This section permits 'the acceptance of gifts and bequests
to the Agency whether conditional or unconditional and allows the Director
to administer them in accordance with the terms and conditions of the
particular gift or bequest. It also allows the acceptance of gifts for the
purpose of furthering the welfare of employees and their families. Normal
exemption for the value of such gifts from gross income for Federal tax
purposes is authorized.
Authority for the acceptance of gifts and exemption for tax purposes of
the value thereof will authorize assistance such as acceptance of gifts
such as donations to the library or to an historical intelligence collection
and the acceptance of gifts and bequests directed for the benefit of
employees or their dependents, such as educational scholarships for
deserving children of Agency personnel.
Sec. 2. Title II, The Central Intelligence
Agency Retirement and Disability System,
of the Central Intelligence Agency Retire-
ment Act of 1964 for Certain Employees
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Proposed Legislation
/Section 2 continued/
(50 U. S. C. 403, note) is amended as
follows:
(1) Amend section 221 by striking
out subsection (f) and inserting the
following new paragraphs (f), (g), and
(h):
"(f) Any unmarried participant
retiring under the provisions of this
Act and found by the Director to be
in good health may at the time of
retirement elect a reduced annuity,
in lieu of the annuity as hereinbefore
provided, and designate in writing a
person having an insurable interest (as
that term is used in section 9(h) of the
Civil Service Retirement Act (5 U. S. C.
2259(h))) in the participant to receive
an annuity after the participants death.
The annuity payable to the participant
making such election shall be reduced
by 10 per centum of an annuity com-
puted as provided in paragraph (a) of
this section, and by 5 per centum of
an annuity so computed for each full
five years the person designated is
younger than the participant, but such
total reduction shall not exceed 40 per
centum. The annuity of a survivor
designated under this paragraph shall
be 55 per centum of the reduced annuity
computed as prescribed above.
Existing Legislation
"(f) Any unmarried participant
retiring under the provisions of this
Act and found by the Director to be
in good health may at the time of
retirement elect a reduced annuity,
in lieu of the annuity as hereinbefore
provided, and designate in writing a
person having an insurable interest
(as that term is used in section 9(h)
of the Civil Service Retirement Act
(5 U. S. C. 2259(h))) in the participant
to receive an annuity after the
participant's death. The annuity
payable to the participant making
such election shall be reduced by 10
per centum of an annuity computed
as provided in paragraph (a) of this
section, and by 5 per centum of an
annuity so computed for each full
five years the person designated is
younger than the participant, but such
total reduction shall not exceed 40
per centum. The annuity of a
survivor designated under this para-
graph shall be 55 per centum of the
reduced annuity computed-as pre-
scribed above. The annuity payable
to a beneficiary under the provisions
of this paragraph shall begin on the
first day of the next month after the
participant dies. Upon the death of
the surviving beneficiary all pay-
ments shall cease and no further
annuity payments authorized under
this paragraph shall be due or pay-
able.
12
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Proposed Legislation
"(g) Except as otherwise provided,
the annuity of a participant shall
commence on the day after separa-
tion from the service, or on the day
after salary ceases and the participant
meets the service and the age or
disability requirements for title thereto.
The annuity of a participant under sec-
tion 234 shall commence on the day
after the occurrence oft the event on
which payment thereof is based. An
annuity otherwise payable from the
fund allowed on or after date of enact-
ment of this provision shall commence
on the day after the occurrence of the
event on which payment thereo is based "
"(h) An annuity payable from the
fund on or after date of enactment of
this provision shall terminate (1) in the
case of a retired participant, on the day
death or any other terminating event
occurs, or (Z) in the case of a survivor
on the last day of the month before the
death or any other terminating event
occurs. If
Existing Legislation
Explanation: This change authorizes the payment of annuities from the
fund as soon as a participant otherwise eligible for an annuity enters
non-pay status and incorporates specific provisions for commencement
of annuities to survivors other than children, and the termination of
annuities to retirees and survivors. The language relating to commence-
ment of annuities is comparable to that of section 14(b) of the Civil Service
Retirement Act.
(2) Amend section 252 by deleting sub-
section (c)(1); renumbering subsection (c)(2)
and (c)(3) to read (c)(3) and (c)(4) and inserting
the following new subsections (c)(1) and (c)(2):
"(c)(1) If an officer or employee under Sec. 252. (c)(1) If an officer
some other Government retirement system or employee under some other
becomes a participant in the system by Government retirement
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Proposed Legislation
Section (2)(c)(1) continued]
direct transfer, the Government's
contributions under such retire-
ment system on behalf of the
officer or employee and such officer
and employee's total contributions
and deposits, including interest
accrued thereon, except voluntary
contributions, shall be transferred
to the fund effective as of the date
such officer or employee becomes
a participant in the system. Each
such officer or employee shall be
deemed to consent to the transfer
of such funds and such transfer shall
be a complete discharge and
acquittance of all claims and demands
against the other Government retire-
ment fund on account of service
rendered prior to becoming a parti-
cipant in the system .
Existing Legislation
system becomes a participant in
the system by direct transfer, such
officer or employee's total contri-
butions and deposits, including
interest accrued thereon, except
voluntary contributions, shall be
transferred to the fund effective as
of the date such officer or employee
becomes a participant in the system.
Each such officer or employee shall
be deemed to consent to the transfer
of such funds and such transfer
shall be a complete discharge and
acquittance of all claims and demands
against the other Government retire-
ment fund on account of service
rendered prior to becoming a
participant in the system.
"(c)(2) If a participant in the
system becomes an employee under
another Government retirement system
by direct transfer to employment
covered by such system, the Govern-
ment's contributions to the fund on his
behalf and his total contributions and
d~osits, including interest accrued
thereon, except voluntary contributions,
m_ ay be transferred to the fund of such
other retirement system at the request
of the officer or employee effective
as of the date he becomes eligible to
participate in such other retirement
system. Each such officer or employee
in requesting such transfer shall be
deemed to consent to the transfer of
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Proposed Legislation
[section (2)(c)(2) continued
such funds and such transfer shall
be a complete discharge and
acquittance of all claims and
demands against the fund on
account of service rendered prior
to his becoming eli&ible for
participation in such other system. "
Existing Legislation
Explanation: This change permits the transfer to the fund of the Govern-
ment's contributions as well as the contributions of the employee when
an employee is transferred from some other Government retirement
system to the CIA Retirement and Disability System. In addition, it
authorizes the transfer from the fund of the employee's and the Govern-
ment's contributions to the CIA Retirement and Disability System when-
ever a participant becomes eligible for participation in any other
Government retirement system.
(3) Amend section 273 by
deletion of subsection (a);
renumbering subsections (b) and
(c) to read (c) and (d); and inserting
the following new subsections (a)
and (b):
"(a) Notwithstanding any other
provision of law, any annuitant
who has retired under this Act and
who is reemployed in the Federal
Government service in any appoin-
tive position either on a part-time
or full-time basis shall be entitled
to receive the salary of the position
in which he is serving plus so much
of his annuity payable under this
Act which when combined with such
salary does not exceed during-any-
calendar year the basic salary such
officer or employee was entitled to
Sec. 273. (a) Notwithstanding
any other provision of law, any
annuitant who has retired under
this Act and who is reemployed
in the Federal Government service
in any appointive position either
on a part-time or full-time basis
shall be entitled to receive his
annuity payable under this Act,
but there shall be deducted from
his salary a sum equal to the
annuity allocable to the period of
actual employment.
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Proposed Legislation Existing Legislation
[Section (3)(a) continued]
"receive on the date of his retire-
ment from the Agency. Any such
reemployed officer or employee who
receives, salary during any calendar
year in excess of the maximum
amount which he may be entitled to,
r under this paragraph shall
be entitled to such salary in lieu of
benefits hereunder.
"(b) When any such annuitant
is reemployed, he shall notify th_e
Director of Central Intelligence of
such reemployment and shall
provide all pertinent information
relating thereto. "
Explanation: This provision will permit an annuitant retired under the
Central Intelligence Agency Retirement Act of 1964 for Certain Employees
to receive his full salary upon reemployment in the Federal Government
service subject to a maximum limitation of combined salary and annuity
in the amount of his salary at the time of retirement. This provision
further imposes on the annuitant the requirement to notify the Director of
Central Intelligence of such reemployment.
Sec. 3. Section 102(b) of the Federal
Employees Pay Act of 1945, as amended
(5 U. S. C. 5 902(b)), relating to
exemption from coverage under the
Act, is amended by striking out "and"
immediately preceding "(7)" therein
and by inserting before the period at
the end thereof "; and (8) officers and
employees of the Central Intelligence
Agency.."
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Proposed Legislation Existing Legislation
Section 3 continued]
Explanation: This change amends the Federal Employees Pay Act of
1945, as amended (5 U. S. C. 9902(b)) to include the officers and employees
of the Central Intelligence Agency among those already excluded from the
provisions of that Act.
X/1
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 Approved For Release 2002/07/29 CIA-RDR80B01676F ik0%(~01 j192@2-5
PPB 65-0911
OGC 65-4422
", 'A N 7
MEMORANDUM FOR: Director of Central Intelligence
SUBJECT: Agency Legislation
1. This memorandum contains recommendation for action by
the Director of Central Intelligence. Such recommendation is contained
in paragraph 5.
2. The items contained in section 1 of the proposed omnibus
bill forwarded herewith were approved by the Bureau of the Budget and
submitted to the Congress in 1963 along with our proposed early retire-
ment system. They were included in the bill. as introduced and
considered by the House Armed Services Committee. The Committee
deleted these items to avoid dilution of the Committee's effort to get
the basic retirement bill through the Congress. However, the
Committee suggested we resubmit these items at a later date. The
items included are as follows:
(a) The procurement authority references and
terms used in the Central Intelligenc+.Agency Act of
1949 are brought up to date. The Ari red Services
Procurement Act of 1947 referenced ,ri our act has
since been incorporated in Title 10 ":')rmed Forces"
of the United States Code.
(b) Personnel allowances and benefits are
requested relating to (1) travel for rest and recuperation,
(2) travel expenses of dependents accompanying an
employee during temporary duty layovers on lateral
transfer, and (3) orientation and language training for
dependents whenever necessary due to circumstances
of the prospective post of assignment or contemplated
duties of the employee.
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(c) Authority for granting of home leave after
18 months for hardship posts and up to three-year
tours at other posts is requested to replace the present
two-year home leave authority.
(d) Travel for medical treatment and cost of
medical care is requested for dependents of employees
on overseas assignment.
(e) Authority is requested to permit an individual
to transfer from another department or agency to CIA
for a specified period of time agreed upon between the
two agencies. This will afford the individual statutory
protection for reemployment upon completion of his
Agency assignment.
(f) Authority is requested to process and pay
justifiable claims of noncitizens arising in overseas
areas in amounts not exceeding $10, 000 for any one
claim, and
(g) Authorization for the Director to accept
gifts and bequests to the Agency for the benefit or
welfare of employees of the Agency or their dependents.
3. Section 2 contains minor adjustments for the administration
of the Agency retirement and disability system. Each item is briefly
discussed below:
(a) Under the Agency retirement system, individuals
must wait until the first of the month following retirement
before commencement of their annuity. Provision is made
in the bill for the annuity to begin the first day after retire-
ment which will bring our retirement program into line with
normal Civil Service procedure.
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(b) Upon entering the CIA retirement system,
the contributions made to the Civil Service fund or other
retirement fund by the individual are transferred to the
CIA retirement fund. Statutory authority is required,
however, to authorize the transfer of the Government's
contributions from Civil Service to the retirement fund as
well as to transfer these amounts out of the fund should
the individual later change to another retirement system.
The proposal has the informal concurrence of the Civil
Service Commission.
(c) Authority is provided to authorize a person
retiring under our retirement act to take another job in
Government and retain not only the salary of the other
job but so much of his annuity when ,:-.ombined with the
salary as will equal his salary at the time of retirement
from the Agency. This authority is riot as liberal as the
reemployment provisions that have l.. en authorized for
retired military.
4. Section 3 amends the Federal Employees' Pay Act of
1945 to provide specific exclusion of the Central Intelligence Agency
from coverage relating to overtime pay and hours of work. This is
a technical amendment to provide legal clarification of the question
of Agency overtime and hours of work. Exclusion of the Agency will
provide a solid legal basis for the Agency overtime and hours of
work regulations.
5. The views of all Agency compone pits as to their need
for legislation were solicited i.:i the develop:::tent of this bill. I
believe it is appropriate for the Agency to go forward at this time
to obtain the authorities set forth in the proposed bill. Therefore,
I recommend you sign the attached letter to the Bureau of the Budget
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requesting approval of the submission of the bill to the Congress
for consideration. The bill is attached to th4 letter to the Bureau
of the Budget together with the necessary materials required for
submission to the Bureau.
25X1
Legis/ative Counsel
Lawrence K. White
Executive Director-Comptroller
The recommendation contained in paragraph 5 is approved.
W. F. Raborn
Director
- OGC/LC
- DCI
- DDCI
- Ex. Dir-Compt.
- ER
- D/Pers
- D/Security
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TO: DDCI
1.0 JAN 1966
Attached for DCI approval is a request for BOB clearance,
prior to our submission to the Congress, of a draft bill to amend
the CIA Act of 1949. When BOB approval has been obtained, letters
will go to the President of the Senate and the Speaker of the House.
The amendments, in general, will provide us with increased flexi-
bility and authority in travel, leave, and administration.
The overall cost to the Agency of the amendments is not great
Letters to the Director of the Bureau of the Budget, the
President of the Senate, and the Speaker of the House are attached
for DCI signature. The letters to the Senate and the House will be
retained by Legislative Counsel until BOB has approved their
submission.
Recommend signature.
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25X1
25X1
 Appro
d Paws I -5
f UNCLASSIFIED CONFIDENTIAL SECRET
ve
Approve
CENTRAL INTELLIGENCE AGENCY
OFFICIAL ROUTING SLIP
TO
NAME AND ADDRESS
DATE
INITIALS
I
ER, Rm 7E1Z, Hdqrs.
2
3
4
5
6
ACTION
DIRECT REPLY
PREPARE REPLY
APPROVAL
DISPATCH
RECOMMENDATION
COMMENT
FILE
RETURN__
CONCURRENCE
INFORMATION
SIGNATURE
Remarks :
Attached is your copy of the Memorandum for
the DCI dated 6 January on Agency Legislation
and our proposed legislative package as it
was forwarded to the Bureau of the Budget on
17 January.
On 5 April, the Bureau approved the draft bill
and the package was transmitted to the House
and Senate on 7 April.
FOLD HERE TO RETURN TO SENDER
FROM: NAME. ADDRESS AND PHONE NO.
DATE
UNCLAS IF
Use previous editions
FORM NO. 237
2-61 I
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25X1
FORM 55 ~ l I REPLACES FORM 36-8
WHICH MAY BE USED.
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