MEMORANDUM FOR: EXECUTIVE DIRECTOR-COMPTROLLER FROM R. L. BANNERMAN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP84-00780R002100100007-3
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 17
• Document Creation Date: December 15, 2016
• Document Release Date: August 13, 2002
• Sequence Number: 7
• Publication Date: May 7, 1968
• Content Type: MF

 Approved For Re f21$
7 May 1968
DD/S 68-2309
P84-0078OR002
. MEMORANDUM FOR: Executive Director -Comptroller
For the Thursday meeting of the Deputies
.there are attached proposals for :
(a) A Trial Retirement Program;
(b) A Selection-Out System ;
(c) A note on the Civilian Reserve Program.
On the latter we are not ready to offer a specific proposal but
certainly we could discuss the principles involved in such a program.
The DD/I and the DD/S&T had definite reservations on the Reserve
Program which I think however stemmed from lack of information on
the intent of the Program.
If you agree that these are worthy of presentation
I can arrange to have them duplicated and sent to the Deputies and
other attendees.
SIGNED R. L. Bannernran
R R. L. Bannerman
Atts : As Stated
DD/S:RLB:maq
Distribution:
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1 - DD/S Subject w/ccy atts
1 - DD/S Chrono Ref Sht
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I' EMORANDUM FOR: Deputy i irector for 6upport
SUBJECT : Retirement with Re- employment Rights
1. PURPODE
Paragraph 4 of this memorandum contains recommendations
for your approval.
2. BACKGROUND
The Department of Agriculture experimented on a one year
basis (1965-1966) with a "trial retirement" program which offered
employees of one of its services, who were eligible for optional retire-
ment, the opportunity to retire with job restoration rights after one
full year. Wt of 175 employees retired under the plan, only one
elected to return to duty. On the basis of the success of the initial
program, the Department of Agriculturis has opened the program to
other services of the Department with a selection control arrange-
ment.
USIA and the Air Force Systems Command, Department of the
Air Force, have recently established similar trial retirement programs.
NASA is currently considering adoption of a trial retirement option.
3. DISCUSSION
There are approximately 72 Agency employees under the Civil
s3erviceRetirement System who are 55 through 57 years of age with at
least 30 years of service. Under the CIA R&D System there are 105
individuals 55 through 57 years of age with 20 or more years of service.
The establishment of an option to retire with reemployment
rights after one year should encourage a percentage of these eligibles
to advance their retirement date upon receiving assurance that they
can elect to return to duty if their post-retirement plans are unsuc-
cessful. The prospects that employees who elect this option will re-
main retired appear to be optimistic. Employees electing this option
must either return to duty 365 days after the effective date of retirement,
or remain in full retirement.
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4. REC OMMENDAT IONS
(a) That a program offering retirement with re-employment
rights be approved on a one year experimental basis.
(b) That the program be offered to any employee who is 55
through 57 years of age and is eligible for optional
retirement.
Robert S. Wattles
Director of Personnel
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CIF ` INITI
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EYES OILY
I MORANWM FOR: Director of Central Intelligence
SUBJECT : Maintaining Nigh Quality Level of Personnel
1. This memorandum submits recommendations for your approval; these
recommendations are contained in paragraph 11.
2. The highly important work of this Agency demands that it be staffed
at all levels by people of high competence, integrity, and dedication to the
fulfillment of the Agency's mission. Employees of the Agency must be imbued
with a feeling of personal involvement in the Agency's work and recognition
that their work must be performed with utmost responsiveness. This requires
a general state of mind that timeliness is critical, accuracy is a must, and
absorption with the task at hand takes priority over personal distractions.
It follows that there is no room in the Agency for people of limited ability
to perform their jobs, or who have lost their drive, or who for any reason
do not or cannot continue to perform in a completely satisfactory manner.
Although this and other organizations have limited needs for people who are
content and best qualified to serve out their careers in relatively routine
rolas*,, this Agency for the most part needs people with the intellectual
capacity and ambition to develop themselves for progressively more demanding
and responsible jobs.
3. The icy has developed rigorous and extensive selection procedures
to bring on board only those people who are x st likely to succeed in their
Agency careers. These selection procedures have shown a high degree of
validity in identifying the "right? people to appoint from a large group of
applicants. But they are only predictors. The real test lies in the indi-
vidual's sustained performance over the years. Consequently, the evaluation
of personnel and the elimination of those who are less than effective is a
continuing process to ensure that the Agency's staffing is maintained at a
high level.
1.. Currently, the evaluation of personnel is formally carried out through
our system or Fitness Reports and, at professional levels, by periodic com-
petitive proMation reviews. In addition, there are two reviews which have
been given special emphasis: (a) the review occasioned by the preparation
of the initial Fitness Report prior to the completion of an employee's first
year of service with the Agency (probationary period); and (b) an overall
review by the Career Service concerned and by the Office of Personnel in
coiZaboratfon with the Office of the Inspector General, the Office of Medical
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T EYES1 Y
sUBJECT: Maintaining High Quality Level of Personnel
Services, and the Office of Security to determine an employee's suitability
for conversion from Career-Provisional to full Career Employee status upon
completing three years of Agency service. Both of these programs have
proved successful in identifying problem situations which are evidenced early
in an individual's career, although the thoroughness with which the Career
Employee conversion review is made by the Career Service varies considerably
among Career Services. Since the procedures for these latter reviews are
already formalized, they have been excluded from the discussion which follows.
5. Supervisors are charged with the responsibility for surfacing prob-
lem cases involving performance or conduct as they come to their attention
,and occasionally cases are surfaced by the Off ices of Medical Services,
Personnel* or Security. But there is no periodic or systematic ranking of
employees to identify those who are of lesser effectiveness and productivity
unless or until their situations become so serious as to warrant individual
identification as "problem cases." Yet, the weeding out on a continuing
'asis of less-than-effective employees before they become "problem cases" is
an essential ingredient of our pursuit of -excellence in Agency sta``i'ing. It
is the purpose of this paper to propose methods for doing so.
6. The two key elements of such a system are: (a) the identification
oof the lose -than-effactive employee; and (b) remedial action, including
separation from employment, accomplished in the most humane and least dis-
:ruptivs manner possible.
7. Identification of Less -T an-Effective Employees -
Initially each Deputy Director will be responsible for establishing
procedures for the Career Bervices under his jurisdiction for the identifi-
cation of persons who are not fully productive in terms of the requirements
of the der Service or, when applicable, lack potential for further develop-
zrnt, these procedures must be meaningful and valid for the particular Career
services ? nd must be applied on an equitable basis. Use of such existing
u hanismss as Career Service Boards, or Competitive Promotion or Evaulation
panels, or the creation of special ranking panels -could be appropriate, pro-
vided such grow" operate under standards or guides established by the Head
of the Career Service within the framework of the procedures prescribed by the
Deputy Director concerned. At least annual reviews are required, with the
understanding that the prompt and timely identification of cases will not be
deferred pending such review.
Whatever the mechanism for review might be, it should take into
conration the individual's length of time in grade, Fitness Reports, and
any other evaluative inforn*tion available, particularly to include discussion
with the individual's first-line supervisor and perhaps intermediate super-
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EYES E -Y
SUBJECT: Maintaining High Quality Level of Personnel
visory echelons to discuss the employee's day-to-day performance in less
:formal fashion than that required by the Fitness Report format. The real
purpose of this review is to find out how well the employee is functioning
in his job and whether his performance is at an acceptable level within the
Framework of the overall Agency demands and the standards established for
his Career Service.
The findings of the review mechanism concerning those individuals
considered to ba less-than-effective or of questionable effectiveness will
be submitted to the Head of the Career Service concerned for his consideration
and determination as to whether any remedial action should be instituted.
To illustrate how such a review system might operate, principal
responsibility for screening the employees of a particular Career Service
might be placed with the Career Board or Panel which ranks employees for
promo,on. Those employees ranked in the lowest ten percent of their grade
group Vould be the subject of the type of special review described above.
The Boa or Panel would report to the Head of the Career Service concerning
the results of such review, including their recommendations to him for
remedial action as appropriate.
8. Remedial Action -
Z asdial action might be as simple as advising an employee that he
Is slipping a must show improvement. In other cases, it might mean reassign-
ment to work for which the individual is better suited, his participation in
appropriate training courses, or a fresh start in a new job. Most such
actions can appropriately be handled within the Career Service. This paper
is not addressed to such actions but rather to the more serious cases which
may involve reassignment across Career Service lines or formal probation or
possible involuntary separation action.
When the Head of a Career Service identifies a case in the latter
categories, he will present the case to the Director of Personnel for pre-
liminary review and consultation concerning further processing. Situations
requiring medical evaluation, adjustment of assignment or grade level, and
so forth, 'will be handled as appropriate in accordance with pertinent Agency
regulations. Situations which upon the most thorough review warrant consid-
25X1 eration under the provisions Involuntary Separations, or the
25X1 involuntary retirement provisions of will be handled accordingly.
When the Director of Personnel determines that action should be
initiated to separate an individual from Agency employment, there are two
courses of action available: pursuit of the various alternative ways of
separation or exercise of the Director's authority to terminate employment
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EYES 0,,.Y
S[TBJEGT: Maintaining High Quality Level of Personnel
under section 102(c) of the National Security Act of 1917, as amended, or if
the individual is eligible, under the Director's authority involuntarily to
retire a participant in the CIA Retirement and Disability System. Our
experience shows that the former course of action is usually successful.
While we must be prepared to be patient and to give the employee
time to locate other euployment and assistance in doing so, an appropriate
time limit based on the circumstances of the case must be established.
9. It in relevant to note somewhat parenthetically that individuals
serxarated involuntarily or who resign or retire in lieu of involuntary
separation may be entitled to financial benefits. Generally, employees under
either the Civil Service Retirement System or the CIA Retirement System who
have 20 years of federal service and are at least age 50 or who have 25 years
of federal service at any age my receive an immediate annuity computed on
the basis of the years of service and "high-five" salary. The CIA retiree
receives his full earned annuity while the Civil Service retiree's annuity
is reduced two percent per year for each year he is under age 55. There is
also general legislation permitting severance pay on a formula based on age
and years of service to individuals who are involuntarily separated or resign
in lieu thereof. We have in draft a proposed regulation adopting this
general legislation for the Agency but have yet to resolve with the Office
of General Counsel certain provisions for liberalizing the general formula
under special circumstances.
10,. We believe that our regulations are adequate to cover cases arising
under the proposed procedure. What in lacking and needs to be communicated
to a command channels of the Agency and to the employees of the Agency is
the--4etermination of the Director to maintain the high quality of Agency
stai`'ing by insistence upon regular evaluation and appropriate action to
correct the situation when an employee is identified as being less-than-
effective. We believe that a directive from the Director to the Deputy Direc-
tors requiring the establishment of review mechanisms as described in para-
graph 7 above an the issuance of an All-Employee announcement by the Director
would serve this purpose. Drafts of such issuances are attached at Tabs A
and B, respectively.
U. It is recommended that you approve the proposals contained herein
in principle and institute the proposed procedures by issuing the attached
meruor iir-.
L. K. White
Executive Director-Comptroller
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11
J Y
SUBTECT: Maintaining High Quality Level of Personnel
Thomas H. Karamessis -_ Date
Deputy Director for Plans
R. J. Smith Date
Deputy Director for Intelligence
R. L. Bannerman
Deputy Director
for Support
Carl E. Duckett T---- Date
Deputy Director for science & Technology
Gordon M. Stewart Date
Inspeeter General
L. R. Houston Date
General Counsel
The recowJndations contained in paragraph 11 are approved.
Ri Helms Date
Director Of Central Intelligence
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MII OR1 DUM FOR: Executive Director-Comptroller
Deputy Director for Intelligence
Deputy Director for Plans
Deputy Director for Science and Technology
Deputy Director for Support
SUBJlCT : Maintaining High Quality Level of Personnel
1. It is nary expectation that in carrying out their personnel manage-
ment responsibilities Deputy Directors and Heads of Career Services will
constantly endeavor to maintain the highest possible standards of performance
arranC their staf'f's, and to this end will take appropriate measures both to
reward outstanding performance and to initiate appropriate corrective
action when work performance or suitability fall below the desired levels.
The highly important work of this Agency leaves no room for the continued
employment of people of limited ability to perform their jobs, or who have
lost their drive, or vho for any reason do not or cannot continue to perform
in a completely satisfactory manner.
2. In line with this concept, it is ray desire that each of you, working
through the Heads of your Career Services, inaugurate appropriate procedures
for the periodic and continuing evaluation of personnel directed toward the
identi=fication of those individuals whose performance is less than ef'f'ective
in relation to the standards applicable to the particular Career Service.
Initially, the Head of each Career Service will be responsible for estab-
lishing standards of performance to be applied in evaluating the personnel
o his Career Service and procedures for the identification of those who
fail to meet these standards. Use of such existing mechanism as Career
Service Hoards, or Competitive Promotion or Evaluation Panels, or the creation
of special ranking panels would be appropriate, provided such groups operate
under standardss. or guides established by the Head of the Career Service
within the fraemewoxk of procedures prescribed by each of you for your respec-
tive components. (The Executive Director-Comptroller will be responsible
for ensuring the tgstablishment of appropriate procedures for the Career
Services represented by the Independent Offices.)
3. At least annual reviews are required, with the understanding that
the prompt and timely identification of problem cases will not be deferred
pending such review. Whatever the mechanism for review or identification
might be'.it should take into consideration the individual's length of tine
in grade, l , ss Reports, and any other evaluative information available,
particularl Ito include discussion with the individual's first-line supervisor
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and perhaps intermediate supervisory echelons to discuss the employee's day-
to-day perEornance in less formal fashion than that required by the Fitness
Report format.
4. The findings of the review mechanism concerning those individuals
considered to be less than effective or of questionable ef'Iectiveness will
be submitted to the Head of the Career Service concerned and determination
as to whether a y remedial action should be instituted. When the Head of
the Career Service identifies a case calling for formal probation or possible
involuntary separation, he will present the case to the Director of Personnel
for pr'eiiminary review and consultation concerning further processing.
Situatians requiring medical evaluation, adjustment of assignment or grade
level, and so .forth, will be handled as appropriate in accordance with 25X1
pertinent Agency regulations. Situations which upon the most thorough review
warrant consideration under the provisians Involuntary Sepa-
rations, or the involuntary retirement provisions of I-rill be 25X1
handled accordingly.
5. An announcement to all employees of the emphasis to be placed upon
contiradng evaluation of their performance and the necessity for each
employee to maintain his performance at the highest possible level is being
issued separately. A copy is attached for your iaforr:ation.
Richard Helms
Director of Central Intelligence
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XWRU JUM FOR ALL EMPTAYF.
The highly important work of this Agency demands that it be staffed
at all levels by people of high competence, integrity, and dedication to
the fulfillment of the Agency's mission. Employees of the Agency must
be imbued with a feeling of personal involvement in the Agency's work
and recognition that their work must be performed with utmost responsive-
ness. This requires a general state of mind that timeliness is critical,
accuracy is a must, and absorption with the task at hand takes priority
over personal distractions. It follows that there is no room in the
Agency for people of limited ability to perform their jobs, or who have
lost their drive, or who for any reason do not or cannot continue to
perform in a completely satisfactory manner. Although this and other
organizations have limited needs for people who are content and best
qualified to serve out their careers in relatively routine roles, this
Agency for the most part needs people with the intellectual capacity and
ambition to develop themselves for progressively more demanding and
responsible jobs.
You were selected for employment with the Agency after passing a
series of rigorous and extensive selection procedures. However the real
test of your suitability of continued employment with the Agency lies in
your maintaining a completely satisfactory level of performance through-
out your career. There are existing procedures for the evaluation of
personnel. I have directed that continuing concentration be placed upon
their applition and the initiation of appropriate remedial action if
required.
Many courses of remedial action are available,,* ranging from training
o reassignment to involuntary separation. Each case will be most thor-
oughly considered by the Career Service concerned and by the Director of
Personnel to determine that the appropriate course of action is selected.
My purpose in addressing this memorandum to you is two-fold: first,
I desire that each of you be aware of urj determination that the effective-
ness of our performance as an Agency be maintained at the highest degree
possibls3 second, I want to dispell at the outset any rumors that there
is & now program or procedure designed as a one-time exercise to remove a
substantial number of employees from the Agency. Our experience over the
years has shown that Agency employees as a group are tell-qualified, highly
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motivated, and contribute fully to the work to be done. The emphasis
on the evaluation of personnel is intended to identify early the
minority who for any reason fail to maintain these standards of
accomplishes and to take appropriate corrective action.
Richard Helms
Director of Central Intelligence
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? SEE
NMMORARM FAR: Deputy Director for Support
ACT : CIA Civilian Reserve Program
1. In response to your oral request that we make another attempt at
drafting a proposal for a CIA Civilian Reserve/Retirement Incentive Program,
I instructed the drafter to stay within the guidelines recommended by the
General Counsel in his memorandum to you dated 24 April 1968 (OGC-18..0892).
9. The restrictive elements in the Office of General Counsel's
memorandum are as follows:
a. Former employment rather than retired status should be the
participation criterion if we are to avoid making it obvious that the
program. : 1s' primarily intended as a supplement to the Agency's two
retirement systems (i.e. a retirement incentive).
b. If age is to be a criterion, and we believe it must, it
should be the same with no established distinction between the CIARDS
and the CSRS.
3. Since participation in the reserve would follow a selective process,
we could possibly overcome the first restriction by selecting few if any
resignees for the program.
4. The second restriction although logical for a true Agency Civilian
Reserve Systew,, seriously impairs the Retirement Incentive aspect of the
program. If a maximum age of 63 is established for a three year participa-
tion in the paid active reserve, a true retirement incentive would exist for
those individuals under the CSRS. It would, however, require a meaningless
and Unnecessary expenditure for those who face mandatory retirement at age
60 under the CIARDg. On the other hand, if the maximum age is established
at age 60, a retirement incentive would be provided for those individuals
age 50 to 57 under CIA DS, but would be of little value for retirees under
C&RS other than for the relatively small group age 55 through 57 with 30
years of service.
5. Our first draft, prepared to stay within the above guidelines,
does "meet the requirement as levied by you. We will make a further
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atteipt to develop a awe imaginative pro m within these guidelines,
but it is my opinion tt if ve stay ' ithin the restrictions suggested
by the Office of Goners! Creel nduria, we will have a paid Civilian
Reserve Syste that epn be supported legally but we will not have the
decd Retirement Incentive Program.
Robert S. Wattles
Director of personnel
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Subject File
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25X1 OD/Pers/[777]seb (6 may 1968)
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