REQUEST FOR EXCEPTION TO AGENCY REGULATIONS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP83-01004R000200050004-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 9
• Document Creation Date: December 12, 2016
• Document Release Date: February 25, 2002
• Sequence Number: 4
• Publication Date: September 3, 1971
• Content Type: MF

DERS
Approved For Relea' 2002/05/07 : CIA-RDP83-01004R0002 605000
3 September 1971
MEMORANDUM FOR: Deputy Director for Support
SUBJECT: Request for Exception to Agency Regulations
REFERENCE: 22 Jul 71 Memo fr FMSAC for DDS, Same
Subj ect
1. As you are aware, for many years the Agency has taken
the position that its employees are not subject to the various laws
relating to overtime, hours of work, holiday pay, etc. These
various provisions were originally in the Federal Employees Pay
Act of 1.945. Having once reached the position that we are not
subject to these laws, the Deputy Director for Support is authorized
to establish appropriate regulations regarding these matters.
2. In the past the Deputy Director for Support has exercised
his authority to establish exceptions to existing regulations in special
situations where they seemed warranted. Two cases come to mind,
namely, Vietnam and Laos. Consequently, a decision whether to
approve FMSAC's request is a pure policy question within the
authority of the Deputy Director for Support.
3. It is noted that there are other situations in the Agency
where the actual hours of work do not correspond to prescribed
regulations. Apparently, in some of these situations the time
worked is reported in accordance with Agency regulations but not
in accordance with the actual hours worked. In our view, each
of these situations should be examined so that if a work week is
at variance with the regulations it would receive, if warranted,
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 express Deputy Director for Support approval as an exception.
Reporting hours worked on a basis different from the actual
facts could result in claims for additional overtime, holiday,
or night pay. Were such claims presented, they would have
to be adjudged on. the basis of the policy expressed in existing
regulations.
4. In summary, it is believed that all hours worked and
the reporting of them should be in accordance with Agency regu-
lations or as otherwise approved by the Deputy Director for
Support.
c ing General Counsel
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25X1A
 Approved For Release 2002/05/07 : CIA-RDP83-01004R000200050004-4
express Deputy Director for Support approval as an exception.
Reporting hours worked on a basis different from the actual
facts could result in claims for additional overtime, holiday,
or night pay. Were such claims presented, they would have
to be adjudged on the basis of the policy expressed in existing
regulations.
4. In summary, it is believed that all hours worked and
the reporting of them should be in accordance with.Agency regu-
lations or as otherwise approved by the Deputy Director for
Support.
25X1A
{
Acting General Counsel
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 Approved For Release 2002/05/07 000200050004-4
express Deputy Director for Support approval as an exception.
Reporting hours worked on a basis different from the actual
facts could result in claims for additional overtime, holiday,
or night pay. Were such claims presented, they would have
to be adjudged on the basis of the policy expressed in existing
regulations .
4. In summary, it is believed that all hours worked and
the reporting of them should be in accordance with Agency regu-
lations or as otherwise approved by the Deputy Director for
Support.
25X1A
LActing General Counsel
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 All roved For ReIease 0O Cn&PMO~ ](p 04-4
FEDERAL EXPLOYEES'r
0
0
EWS IGEST
EDITED BY JOSEPH YOUNG
GOVERNMENT COLUMNIST -- WASHINGTON (D.C.) STAR-NEWS
PUBLISHED IN WASHINGTON, D. C. * DIRECTED TO FIELD PERSONNEL
Vol. 22, No. 22 January 15, 1973 Washington, D.C.
FRINGES VS. PAY-The Nixon administration has let it be known that any improved fringe benefits
won by federal employees this year may come at the expense of the size of their next scheduled pay
raise. The Postal Service is expected to take the same attitude in bargaining with postal employees.
Administration officials say that annual industry adjustments, upon which comparable federal
salaries are based, often involve both salary raises and fringe benefits in one single compensation
package.
Therefore, they contend, it is too much of a bonanza to give federal employees pay raises in the
total amount of compensation received by private sector workers, plus liberalized fringe benefits.
The administration feels that fringe benefits should be figured as part of the total federal
compensation package.
Thus, for example, if government employees this year should secure improvements in retirement
and insurance benefits, the amount of their next scheduled pay raise-either in October or Jan_ 1,
1974-would be reduced accordingly. For example, if improved fringe benefits totaled 1 percent and
federal workers were in line for a pay raise of 5 percent next January, then the pay raise would be
reduced to 4 percent.
Actually, federal blue-collar workers already face the prospect of having their scheduled pay raises
this year reduced as a result of a law enacted by Congress last year.
The new law goes into effect in April and adds two additional automatic in-grade pa
ste
s It's
y
p
. estimated that this will increase the payroll cost by at least 1-1/2 to 2 percent.
Thus, the Civil Service Commission and the Office of Management and Budget are now studying
whether the amount should be deducted from this year's round of pay raises for blue-collar workers.
Also involved in the situation is the economic controls program which limits national pay raises to
5.5 percent. Another 0.7 percent has been alloted for, fringe benefits. In a few cases a combination of
pay raises and fringe benefits totaling 7 percent has been allowed. The amount of federal blue-collar pay
raises, plus their new liberalized pay structure, will have to be determined by the CSC and OMB to see if
they can get the full amount of their scheduled pay raises this year.
HEALTH INSURANCE AND OTHER ISSUES-Rep. Jerome Waldie, D-Calif., chairman of the House
Civil Service Insurance subcommittee, has sponsored legislation to increase the government's contribution
to the cost of group health insurance for federal employees, including postal workers.
The bill would boost government's present 40 percent of contributions to 45 percent upon
enactment, and thereafter in annual 5 percent increments to a total of 75 percent.
The House passed a similar bill last year. The Senate passed a less generous version, raising
government contributions to 50 percent and excluding postal workers.
It was the dispute over whether or not to include postal workers that killed the bill in
House-Senate conference. The Senate would not yield in its insistance that postal workers be excluded.
Now, Waldie has again sponsored his bill with postal workers included. Unless the Senators change
their minds, this once again could be a great stumbling block against the bill's chances of enactment into
law during this session of Congress.
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 Approved For Releawd 2002/05/07 : CIA-RD?83-01004R000050004-4
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postal
end,
In fact, the entire issue of whether postal
workers should be treated as federal employees
when it comes to fringe benefits is one that is
going to have to be eventually decided by Con-
gress. The last session of Congress never resolved
the issue, with the result that virtually all fringe
benefits bills went down the drain. The only
thing the House and Senate are agreed on is that
postal workers should be included in all retire-
ment benefits legislation.
But even on retirement, there is discord, The
House wants the Postal Service to reimburse the
civil service retirement fund for the cost of all
future retirement liberalization costs pertainin
to
g
well as the added cost to the retirement fund resulting from postal a raises T , thi
first week of the new Congress saw top members of the House Post Office and Ci
p
il S
i
v
erv
ce
Committee sponsor such legislation. They included Chairman Thaddeus Dulski, D-N.Y. and Rep. 11. R.
Gross, R-Iowa, the ranking minority member. In contrast, the Senate Post Office and Civil Service
Committee is opposed to such legislation.
CSC CONTROVERSY-After Gordon Rule was bounced from his job as the top Navy civilian
procurement office after criticizing President Nixon for picking the head of Litton industries, the giant
conglomerate, as the new director of the office of Management and Budget, he appealed to the Civil
Service Commission. To his surprise he found that the vice chairman of the CSC, Mrs. Jayne Baker
Spain, is a member of the board of directors of Litton and that she also receives $7,500 a near from
Litton.
The propriety of a CSC commissioner serving as a director for a company that does a huge business
with the federal government, particularly with the Defense Department and its more than 1 million
civilian employees who have to appeal to the CSC on adverse personnel actions, has created considerable
controversy.
Mrs. Spain has indicated that she would withdraw from the consideration of Rule's appeal if it
reaches the commissioners' level. But the larger issue of the propriety of a CSC commissioner serving as
a member of the board of directors of a private company dealing with government and drawing a salary
has not been resolved.
PUBLIC HEARINGS-The Supreme Court has cleared the way for an open public hearing for A. Ernest
Fitzgerald before the Civil Service Commission in his appeal of his dismissal by the Defense Department
for disclosing cost overruns in the C5A cargo plane project. The U.S. Court of Appeals had given
Fitzgerald the right to a public hearing at which the press would be present. The government asked the
Supreme Court to delay the effect of the decision pending a possible appeal to the high tribunal.
However, the government last week notified the Supreme Court that it would not contest the appeals
court decision and the Supreme Court ratified the order. The action also opens the way for open public
hearings for other government employees in appeals to the CSC if they want them.
FOUR-DAY EXPERIMENT DROPPED-The Nixon administration has torpedoed plans to test the
feasibility of a four-day week in government.
There had been reports emanating from a government conference on a four-day workweek that the
Civil Service Commission was planning to enter into agreements with selected federal units to
experiment with a shorter workweek. The object was to determine whether this would result in greater
employee productivity and thus benefit the government.
However, CSC Chairman Robert Hampton says the whole thing was a misunderstanding.
Approved For Release 2002/05/07 : CIA-RDP83-01004R000200050004-4
 JanuaWpjov&For Release 2002/05/07: CIA-RDPl83-01004R000%W050004-4
PRODUCTIVITY EMPHASIS-There's increasing evidence that the Nixon administration means business
in its goal to increase the productivity of federal workers.
Roy L. Ash, appointed by President Nixon as the new director
f th
Whi
'
o
e
te House
s Office of
Management and Budget, said that since government can't operate on a profit and loss basis as does
industry, productivity results can be substituted instead.
Ash, who is resigning his $195,000 a year job as president of Litton industries, said the
productivity of individual federal workers as well as programs will be measured.
AGAINST IT-The National Right to Work Committee says it will wage all-out war to defeat legislation
that would establish a federal agency shop in government in which all employees in a unit represented
by a union would have to pay the equivalent of union dues if they weren't members.
Such a system would destroy the merit system "and would mean a return to the spoils system,
except instead of buying favors from politicians, employees would be forced to buy favors from union
officials who then do the dealing with the politicians", the right to work group said.
The right to work group said that federal unions had sought the right to represent all employees in
units where they won exclusive recognition rivhts and thus should not complain when required to
represent non-members as well as members omplain that representing non-members is very
costly and that these employees should be re,, ay for these services.
SOCIAL SECURITY-Rep. Joel Broyhill, R-Va., says he will seek approval in the House Ways and
Means Committee next year of legislation to give federal and postal employees the option of securing full
social security coverage in addition to their retirement benefits. Broyhill is a member of the Committee.
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 Approved For Release 2002/05/07 : CIA-RDP83-01004R000200050004-4
- 3 - moo
Apparently what shelved the project was the high cost of the overtime that would be involved-
The plan apparently had been for federal workers in selected units to work a 10-hour day, four
days a week.
But this would necessitate time-and-one-half overtime, because all work in excess of 8 hours a day
is considered to be overtime.
And the Nixon administration is now engaged in an intensive economy program to reduce federal
costs. The contemplated project therefore would have been directly contrary to administration policy
and hence had to be scrapped.
What the CSC would like to do is test the feasibility of a 4-day 40-hour workweek or variations of
this without having to pay overtime to federal employees involved in this experiment.
However, the law forbids government employees to waive their overtime rights, even if they want
to do so for a limited period in order to test the feasibility of a 4-day week.
Consequently, any such test would involve the payment of overtime, a very costly item. And it
definitely does not fit into the Nixon administration's scheme of things.
POSTAL CRACKDOWN-Postmaster General T. E. Klassen has ordered involuntary reassignment of
"ineffectual postmasters and supervisors."
In a memorandum to the five regional postmasters general throughout the country, Klassen said
"The responsibility of postal managers is too critical to be left in the hands of those who do not
provide strong, effective leadership."
He cautioned, "On the other hand, nothing could be more self-defeating for postal managurnent
than the widespread and capricious transfer of postmasters or other managers against their wishes, for
that would destroy the morale of a key group whose performance is essential to postal success."
However, Klassen said that marginal postmasters and supervisors whose work is "inadequate" but
not "hopeless", require special treatment. Presumably those in the "hopeless" category will be fired
The marginal supervisors and postmasters will be transferred to less-demanding jobs, probably at a
cut in salary.
Klassen said that "voluntary" movement is desirable, but "if necessary" the transfers will be made
on an involuntary basis.
Spokesmen for groups representing supervisors and postmasters fear the Klassen order will be
abused, with competent managers being removed. They feel it could lead the way to a postal service
"buddy" system whereby high officials will place their friends in choice jobs.
TAX CASE-The federal district court for the eastern district of Michigan has placed on its April docket
the test suit challenging the government's right to tax the 7 percent of salary that federal and postal
employees pay for their retirement benefits.
The suit is being brought by the National Association of Internal Revenue Employees and the
National Association of Letter Carriers.
VA RUMOR-The Indianapolis Star and several other midwest newspapers have reported that the White
House is considering replacing Veterans Administrator Donald Johnson with assistant deputy VA
administrator Richard Roudebush. Roudebush is a former member of Congress from Indiana.
RETIREMENT MEASURES-Rep. Joel Broyhill, R-Va., has sponsored a bill to increase retirement
annuities of government investigative and law-enforcement employees and to permit them to retire
earlier.
The measure would increase the present 2 percent annuity computation factor for these employees
to 2-1/2 percent of high-three-year salary for the first 20 years of service and 3 percent for each year
over 20. Also, they could retire after 20 years service at any age instead of the present age 50
requirement. Involved would be Secret Service and FBI agents, U.S. Marshals, corrections officers,
Immigration and Customs inspectors, etc.
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 OFFICER'S
INITIALS/
COMMENTS (Number each con ent o sitar Cr :m wh
to whom. Draw a line across column o?te> w ' commei
Note article on 4-09-, veel
This, of course, is not ne,,v to u
Based on OGC opinion axici o )y
recommendation, 'you app ,-awed
amendment to regulations ~o
provide for 4-day vreek