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PARES SVth-1 a4) 2a 10807 : ClA-RDPS8-00453R0002001 60010-6 Mr. Pforzheiner 22 July 1964 aac, 1707 J Building BH. R. 9709 - Unemployment Insurance 1. ‘fhe principal feature of the Bill is the extension of coverage to approximately 2.5 million Federal civilian employees. It covers all service for such persons after 1952 "in the employ of the United States or any instrumentality thereof which 1s wholly owned by the United States." 2. Bxeluwied from the coverage of Government employees are: a. Members of the Armed Porces; b. Foreign Service personnel for whom especial separation allow- ances are provided; ¢, Aliens employed outside the United States (geographicelly this includes: the States, Alaska, Hawaii, District of Columbia, Puerto Rico, and the Virgin Islands); a. Individuals paid by contract or on fee basis. 3. Unemployment compensation itself is administered and paid either by the States or by the Becretary of Labor. Where the Secretary of Labor has entered into an agreement with either the State or ite unemployment compensation agency, the compensation is paid in the same amount and under terms ani conditions applied by the State for other than Federal employees amd is subject to the normal administrative and juciclal review of the State. In the absence of an agreement with the State, the Secretary of Labor makes the payments based upon the amounts, terms and conditions established by the appropriate State. In the case of persons resident in Puerto Rico or the Virgin Islands, the law of the District of Colurbia is applied. Payments in this fashion are subject to review by the Federal Courts. 4, he State to which services and wages are assignable 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 from the Government; or c, Whe residence at the time of claim if the last station in Government was outside the United States; or ad. Io Puerto Rico or the Virgin Islands if the claim is filed Abproved For Release 2001/08/27 : CIA-RDP58-00453R000200160010-6 Approved For Release 2001/08/27 : CIA-RDP58-00453R000200160010-6 5, Probably the wost important factor from our standpoint is the requirement placed upon Federal agencies to provide information to either the State unemployment compensation agencies or the Secretary of Labor. The nature and scope of such information would be that deter- mined by the Secretary of Labor as necessary and practicable to esteblish whether a claimant is entitled to benefits. Requirements will presumably be specified in regulations promulgated by the Secretary. However, the Ageney has the sole authority to determine: a. Whether a given individual is covered; b. The length of the period of covered service; ce, The amount of covered wages; ant & Whe reasons for termination of service, {It should be noted that the Seeretary of Labor or the State agencies would not be precloted from examining the facts beyond such determina - tions. For example, they might inquire into the particular reason for discharge to discover whether it was based on misconduct or other dis- qualifying factors.) 6. We ean certainly anticipate cover situations in which persons basically entitled to the benefits of unemployment insurance would osten- aibly fall within the excluded categories of the Act itpelf or exceptions to coverage stipulated in reguletions of the various States (e.g., Penn- aylvanie adopts the Federal Act which includes employees of tax exempt organizations, etc.). The information required by the Secretary of Labor for himself or the various State agencies may, of course, produce security hazards since identification of an individual with the ageocy must be concealed in certain cases even after separation from the Govern- ment service. As indicated above, the Secretary of Labor or the State agencies will be entitled to investigate the facts relating to qualifi~- eation for payment ani this would, of course, involve employment by us. 7. She solution, in the ebsence of an exclusion frog coverage under the Act which would appear to be an unnecessary and unpolitic denial of basic rights ever if it could be accasplished, would appear to be in the establishmerct of liaison with the Secretary of Labor or the adaption of cover to fit the requirements of entitlement. The latter alternative vould probably be extremely difficult in certain cases and the former may be undesirable from a security standpoint. tn many respects, the difficulties of application will comp]. ment those we have already encountered with docieal Security. 8. attached hereto is our file with Congressman Reed's report on H.R. 9709 marked for emphasis. When you have finished, please return it to the J Building Office. o5X1A Approved For Release 2001/08/27 : _ 4a