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9 : SEGRET Approved For Release 2001/08/27 : CIA-RDP58-00453R000200160021-4 OGC HAS REVIEWED. Mr. Prorzheimer 22 Jwly 1954 OGC, 1707 J Building 25X1A SN 22 220* 2eserecce 1. The principal feature of the Bill is the extension af coverage to approxinately 2.5 million Pederal civilian employees. It covers ell service for sugh persons after 1952 "in the employ of the United States or any instrumentality thereof which is wholly owned by the United States." 2. Excluded frou the coverage of Government employees are: a. Menubers cf the Armed Forose; >. Foreign Service personnel for whan special separation allow- ances are provided; e. Allens employed outside the United States (ceographically this includes: the States, Alask., Hawali, District af Columbia, Puerto Rico, and the Virgir Islands); a. Individuals peid by contract or on fee basis. 3- Unemployment compensation itself is administered and paid either by the States or by the Secretary of Labor, where the Secretary of Labor has entered into an agreeaent with either the State or ite unemployzent coupensation agency, the compensation is paid in the seme amount and under terme and conditions applied by the State for other than Federal employees and is subject to the normal administrative and jueieial review af the State. In the absence of an agreement with the State, the Secretary of Labor makes the payments based upon the amounts, terme and conditions esteblished by the appropriate State. In the case of peraons resident in Puerto Rico or the Virgin Islands, the law of the District of Columbla is applied. Payments in this fashion are subject to review by the Federal Courte. 4, ‘Phe State to which services and wages are aesignable is: a. The last official station of the individual in Federal service; or b, The residence in the last place of cover employment after separation fron the Government; or c. The residence at the time of claim if the last station in Government was outside the United States; or a. In Puerto Rico or the Virgin Islands if the claim is filed eee ved For Release 2001/08/27 : CIA-RDP58-00453R000200160021-4 eres bee Approved For Release 2001/98/47 AFI RDP58-00453R000200160021-4 5. Probably the most iuportant factor fron ow etandpoint is the requirement placed upon Federal agercies te provide information to either the State uncaploysent. conpecsetion agencies or the Secretary of Labor. The nature and scops of such informition would be that deter- mined by the Secretary of Labor as necessary and practicable to establish whether a claimant {s entitled to benefite. Requirements will presumably be specivied in regulations promulgated by the Secretary. However, the Agency has the sole authority to determine: a. Whaether a given iniividual is covered; b. The Length of the period of covered service; ec. The amount of covered wages; ani ad. The reasons for termication of service. (It should be noted that the Secretary of Labor or the State agencies would not be precluded fron exauining the fects beyoud sueh determine - tions. For example, they aigh> inguire into the particular reason for discharge to discover whether it was baned on siseonduct or other ¢die- qualifying factors.) 6 We can certainly anticipate cower situations in which persons basically entitled to the benefits of weaploynent insurarce would osten- sibly fall within the excluded categories of the Act ltrelf or exceptions to coverage stipulated ir reguiitions of the various States (e.g., Penn- aylivania adopts the Federal act which includes employees ef tax exempt orgatizations, etc.). ‘The information require’ by the Secretary of Labor for himpelf or the various State agencies say, of course, produce seeuwlty hazards since identification of an individual with the Agency must be concealed in certain cases even after separation from the Covern- meat service. As indicated above, the Secretary of Labor or the State agencies will be entitled to luvestigate the facts relating to qualifi- eation for payment and this wou.d, of course, invelve exploynent by us. 7. Qhe solution, in the absence af an exclusion from coverage under the Act which would eppear to be an unnecessary ani vunpolitic @enial of basic rights even if it could be eecomplished, would eppear to be in the eztablishvent of liaison with the Secretary of Labor cr the adaption of cover to Tit the requirements of entitlement. The latter alternative would probably be axtrempely difficult in certair eceaes an® the former may be undesirable from a security standpoint. In many respects, the difficulties of application will complement those we have elready encountered with Social Security. 8. Attached hereto is our file with Congressman Reed's report on H.R. 9/09 marked for emphasis. When you have finished, please return it to the J Building Office. is 29X1A Di eaortle : | DistAipreient For Release 2001/08/27 : CIA- 60021-4 orig. & 1 - addressee 1-chrono. 1 - Ins. file 1-0GC, 317 South