AMENDING THE CENTRAL INTELLIGENCE AGENCY RETIREMENT ACT OF 1964 FOR CERTAIN EMPLOYEES, AS AMENDED

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP72-00337R000400020002-1
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 9
• Document Creation Date: December 16, 2016
• Document Release Date: June 1, 2005
• Sequence Number: 2
• Publication Date: December 8, 1970
• Content Type: REGULATION

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FILE COPY Calendar No. 1432
91ST CONGRESS SENATE REPORT
2d Session No. 91-1419
AMENDING THE CENTRAL INTELLIGENCE AGENCY RE-
TIREMENT ACT OF 1964 FOR CERTAIN EMPLOYEES, AS
AMENDED
Mr. STENNIS, from the Committee on Armed Services,
submitted the following
REPORT
The Committee on Armed Services, having had under consideration
the question of amending the Central Intelligence Agency Retirement
Act reports the bill (S. 4571.), to amend the Central Intelligence
Agency Retirement Act of 1964 for Certain. Employees, as amended,
and for other purposes, and recommends that it do pass.
PURPOSE Of, THE BILL
The bill makes certain changes in the CIA Retirement Act of 1964
which will conform to provisions enacted into law with respect to the
Civil Service Retirement Act. The bill also makes two other changes.
The conforming amendments deal with definitions relating to child
survivors, commencement (late of annuities, and a formula for crediting
prior Federal service not covered by contributions. The remaining two
changes provide for transfer of employer contributions into and out of
the CIA retirement fund and increase the ceiling on retirements.
The CIA Retirement Act was enacted to provide a comprehensive
retirement and disability program for a limited number of employees
whose duties either were in support of Agency activities abroad,
hazardous to life or health, or so specialized as to be clearly distinguish-
able from normal Government employment.
The Central Intelligence Agency operates under two retirement
systems-the regular civil service retirement system for the majority
of its employees and the one established under the CIA Retirement
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Act for a smaller number. 't'he primary Inir o oi:Ukc'elatter system is
to sustain a shorter career base for service where the conditions of
employment are substantially different from those associated with
normal Government employment.. Ivey provisions of the CIA Retire-
ment Act include a straight 2-percent factor in the computation
formula and retirement eligibility at age 50 after 20 years uf~ service,
both modeled after civil service provision for certain personnel in-
volved in law enforcement activities (5 U.S.C. 8336(c)). Other pro-
visions of the CIA Retirement Act are, for the most part, also pat-
terned after those of the civil service retirement system.
As the principal features of the CIA and the civil service systems are
the same, failure to keep pace with civil service improvements tends
to dilute the effectiveness of the CIA retirement, system, especially
where comparability once existed.
Public Law 90-539 (bringing the cost-of-living provision of the CIA
Retirement Act back into consonance with the civil service retire-
ment systemic) and Public Law 91--185 (incorporating the benefits of
the NfeGec-Daniels bill) serve as {precedent for the approval of con-
forming amendment, for the CIA Retirement Act as proposed in this
report.
Si'et ion I
Section 1 does three things: First, it eliminates the requirement that
it child be dependent upon it parent retiree in order to receive it
survivor annuity. The present definition of a child requires that time
child receive more than half his support from ilie participant to he
eligible. This requirement. could defeat a survivor annuity based on
sloe service of a working mother. This support requirement was
eliminated fronm the Civil Service Retirement Act by the 89th Con-
gress. (Public Law 89-504.)
Second, it also raises from 21 to 22 time maximum age for receiving
survivor annuity payments as a student and increases from 4 to 5
months as the maximum absence from school which may be permitted
without terminating the survivor annuity. This will aid survivor
children enrolled in trisencester programs to secure employment and
earn money without losing their annuity.
This same action was taken by the b9th Congress for student, bemie-
ficiaries under the Civil Service Retiremnent Act. (Public Law 89-407,
504.)
Lastly, it permits a natural child to share in the distribution of any
money in the CIA retirement and disability fund. The act today
clearly permits a natural child to receive an annuity but. it is not
entire1v clear with respect to lump-suin benefits. This would correct
this deficiency.
this similar provision amending the Civil Service Retirement Act Was
approved by the 89th Congress. (Public Law 89--407.)
Section 2
This section (irovides for the commencement and termination date
for a child survivor annuity and assures that the survivor annuity of
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a student may be resumed even though it had previously been ter-
minated, as for example, because of military service. Today once an
annuity has been terminated because of an absence between school
terms in excess of the maximum absence authorized, the annuity
cannot be resumed.
A similar amendment to the Civil Service Retirement Act was
approved by the 89th Congress. (Public Law 89-504.)
Section 3
This section makes a technical change in the law which will author-
ize the commencement of an annuity as soon as the individual enters
a nonpay status. Under existing law, an annuitant must wait until. the
beginning of the month following his date of separation.
It also incorporates specific provisions for termination of annuities
to retirees and survivors.
This will conform the CIA retirement system to the civil service re-
tirement system in this respect. (5 U.S.C. 8345.)
PRIOR SERVICE CREDIT (PARTICIPANTS)
Section 3
Section 3 makes a technical change in the law which will provide an
option to credit prior civilian service for which no deductions have
been made by reducing the resulting annuity by 10 percent of the
amount owed. This will conform the CIA retirement system to the
civil service system. in this respect. (5 U.S.C. 8339(h).)
Section
Section 4 increases to 800 the retirement ceiling imposed on antici-
pated retirements through June 30, 1974. Under existing law, retire-
ments during the formative years of the system were limited to 400
for the first 5-year period ending June 30, 1969, and 400 for the second
5-year period ending June 30, 1974. In the absence of actuarial ex-
perience the establishment of a ceiling on retirements was necessarily
somewhat arbitrary. The ceiling was established with the under-
standing of all concerned that it would be adjusted as necessary.
Experience to date has indicated that the ceiling of 400 for the second
5-year period is insufficient. In the interest of orderly and equitable
personnel maagement an increase in this ceiling is essential. The
Agency is rapidly reaching the ceiling now established by law and
without the increase would be unable to accommodate the numbers
who will go on the retired list prior to June 1974.
TRANSFER OF GOVERNMENT CONTRIBUTIONS
Section 5
Under existing law, an individual who transfers into the CIA retire-
ment fund from some other Government retirement system can trans-
fer his contributions from the other fund to the CIA fund, but there
is no provision for transfer of the Government contribution to such
fund.
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Also, licii an individual transfers front the CIA retirement fund
to some other Government retirement fund, there is no provision for
the transfer of either the Government's contribution or provision
own con-
tribution to the non-CIA retirement full(]. This section would correct
the itnequities of this situation.
The Civil Service Commission is wholly in accord with this change.
Section C
Section 6 makes a technical change in the law granting to survivors
the same right afforded participants to purchase retirement credit for
prior civilian service.
This will conform the (`IA retirement system to the civil service
retirement system in this respect. (5 U.S.C. 8334)
FISCAL DATA
The aruendments do not involve it measurable cost impact for either
fiscal year 1971 or fiscal year 1972.
DEPARTMENTAL DATA
l nactment. of this legislation has the support of the Central Intelli-
gence Agency and the approval of the Office of -Management. and
Budget as evidenced by the letter from the Acting Director of Central
Intefligence dated October 13, 1970, which is set out below and made
at part of this report..
Hun. Si'tito T. AGNEw.
President of the Senatr
Washington, /).('.
CENTRAL INTELLItiE CE $GE\CY,
OFF'ICF Oil TIME DIRECTOR,
l1a.vhilnytarn, D.C. October 13, 1.970
M}' DEAR Mn. P1tF:sIISENT: This letter transmits for the considera-
lion of the Congress at draft bill alnendiltg the Central Intelligemice
Agency Retirement AN of 1964 for Certain Employees.
The proposed h'gi-lation brings the ('IA Retirement Act into con-
snnance with certain provisions of the Civil Service retirement sy tem.
Also included are several adjustments which have been identified as
important during the first 6 years of the administration of the act.
The proposals are explained in detail in the sectional anaylsis and
esplanaalion which is enclosed.
We would appreciate card and favorable consideration of the
Proposed legislation. The Oflire of Management and Budget leas
advised that there is no objection to presenting tin' Proposed legisla-
tionl to the ('.ottgress front the standpoint of the adntnutration's
program.
Sincerely,
It. E. ('usutu1AN, Jr.,
Lieutenant Ganer(z1, C,3_11(', .lcting 1iree(or.
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CHANGES IN EXISTING LAW
In compliance with. subsection 4 of rule XXIX of the Standing
Rules of the Senate, changes in existing law made by the bill as ro-
ported are shown as follows (existing law in which no change is
proposed is shown in roman; existing law proposed to be omitted is
enclosed in black brackets; new matter is shown in italic) :
Central Intelligence Agency Retirement Act of 1964 for Certain
Employees, as amended (78 Stat. 1043; 50 U.S.C. 403 note).
TITLE II-THE CENTRAL INTELLIGENCE AGENCY
RETIREMENT AND DISABILITY SYSTEM
PART A-ESTABLISHMENT OF SYSTEM
RULES AND REGULATIONS
SEC. 204. (a) Annuitants shall be participants who are receiving
annuities from the fund and all persons, including surviving wives and
husbands, widows, dependent widowers, children, and beneficiaries of
participants or annuitants who shall become entitled to receive an-
nuities in accordance with the provisions of this Act.
(b) When used in this Act the term-
(1) "Widow" means the surviving wife of a participant who
was married to such participant for at least two years immediately
preceding his death or is the mother of issue by marriage to the
participant.
(2) "Dependent widower" means the surviving husband of a
participant who was married to such participant for at least two
years immediately preceding her death. or is.the father of issue by
marriage to the participant, and who is incapable of self-support
by reason of mental or physical disability, and who received more
than one-half of his support from such participant.
(3) "Child", for the purposes of sections 221 and 232 of this
Act, means an unmarried child, including (i) an adopted child,
and (ii) a stepchild or recognized natural child who [received more
than one-half of his support from and] lived with the participant
in a regular parent-child relationship, under the age of eighteen
years, or such unmarried child regardless of age who because of
physical or mental disability incurred before ago eighteen is
incapable of self-support, or such unmarreid child between
eighteen and [twenty-one] twenty-two years of age who is a student
regularly pursuing a full-time course of study or training in
residence in a high school, trade school, technical or vocational
institute, junior college, college, university, or comparable
recognized educational institution. A child whose [twenty-first]
twenty-second birthday occurs prior to July 1 or after August 31
of any calendar year, and while he is regularly pursuing such a
course of study or training, shall be deemed for the purposes of
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this ptu?agraplt :iinl section 221 (e) of this Act to have attained
the tide of rtsveirty-one] trw?r'nty-talo on the first tlaV of July follow-
ing such birthday. A child who is it student shy not be deemed
to have reused sir be a student durinc- any interim between school
years if t he interim does not exceed Ifonr fire months and if he
shows to the sntisfartion of the Director ti-at lie has a bona fide
intention of continuing to pursue= it course of study or training in
t he stune or different school dnt'inl; the school semester (or other
period into Which the school year is divided) immediately follow-
ill- the interiitn. The term. "child".for purposes of section 241, shall
;aclude an adopted child and a natural child, but'shall not include a
icjich ild.
221.
(t) ['ripe annuity payable to it child tinder paragraph (c) or (d)
of This section shall ire=gin on the day after the participant dies, and
such anmiuitV- ill- any right thereto shall terminate on the last day of
tine mouth before (1) his attaining age eighteen unless incapable of
self-,ttl-l,ort, (2) his becoming capable of self-support alter age
eighteen, (3) his marriage or (4) his death, except. that the annuity
of aec'hilt1 tvho is it stnch,ni as described in section 204(b)(3) of this Ac.t
,hall terrtrinate on the last clay of the ntonth before (t) his marriage,
(2) his death, (3) his ceasing to be such a student, or (4) his attaining
afire twenty-o[ie.]
i'he eorrimerreinq dent, of an annuity payable to a child under paragraph,
(c) or fell of this section? Or (e) or (d) of section 232, shall be deemed to be
the clan after the annuitant or part;cipan.t dies, with. payment beginninq on
that rla~tt,r beg;rcning or resuming on the first day of the month in wh-;c& the
child later becomes or a.qa;n becomes a student as described in section
20?(b)(3), prorr;ded the lump-sum credit, if paid, is returned to the fund.
Such annuity shall terminate on the last day of the month before (1) the
child's attain;ng age eighteen unless he is then- a student as described or
;.rccapabi of self-support, (2) his becoming capable of self-support after
utta,ning age eighteen unless he is then such a student, (8) his attaining
age twenty-tuxr if he is turn such a student and not incapable of self-support,
(-f) his cc u.s;rrct to be such a student after attaining age eighteen unless he
is
then incapable tiff self .support, (5) his marriage, or (ti) his death, which-
teer first ace+rrx.
(f) Amiy unmarried participant retiring under (lie provisions of this
Act amid found hr the Director to be in good health may at the tune
of retirement elect a reduceil annuity, in lieu of the annuity as here-
inbcfora provided. and designate in' writing a person lutvjic an in-
surable loteret (ax that terns is used in section 9(h) of tIe Civil
Service IR.etironient Art (5 U.S.C. 2259(h))) in the participant
tit O'eriy-ean annuity after the liarticipant's death. The annuity
payable to the Irartiripant malting such election shrill be reduced by
10 1wreentutn of all annuity roniluited its provided in paragraph (a)
of this st?ction, and by 5 perrentum of annuity so comlitited for each
It111 fiVi' Vents till- persoat designit-red is youiiger than the ~Marticipant,
but. such total reduction shall not exceed 40 perceiituin. 'Ihen annuity
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of a survivor designated Linder this paragraph shall be 55 percentum
of the reduced annuity computed as prescribed 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 payments shall cease
and no further annuity payments authorized tinder this paragraph
shall be due or payable.]
(i) Except as otherwise provided, the annuity of a participant shall
commence on the day after separation 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 section 234 shall commence on the day after the occurrence of the
event on which payment thereof is based. An annuity otherwise payable
from the fund allowed on or after date of enactment of this provision shall
commence on the date after the occurrence of the event on which payment
thereof is based.
(j) 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 (2) in the case
of a survivor, on the last day of the month before death or any other
terminating event occurs.
(k) The annuity computed under this section is reduced by 10 percent
of a special contribution described by section 252(b) remaining unpaid
for civilian service for which retirement deductions have not been made,
unless the participant elects to eliminate the service involved for the purpose
of annuity computation.
PART D-BENEFITS ACCRUING TO CERTAIN PARTICIPANTS
* * * * * * *
SEc. 236. The number of participants retiring on an annuity pur-
suant to sections 233, 234, and 235 of this Act shall not exceed a total
of four hundred during the period ending on Juno 30, 1969, nor a total
of [four hundred] eight hundred during the period beginning on July 1,
1969, and ending on June 30, 1974.
* * * * * * *
PART F-PERIOD OF SERVICE FOR ANNUITIES
SEc. 252.
* * * * * * *
(b) A participant may obtain. prior civilian service credit in accord-
ance with the provisions of paragraph (a) (1) of this section by making
a special contribution to the fund equal to the percentage of his basic
annual salary for each year of service for which credit is sought
specified with respect to such year in the table relating to employees
contained in section 4(c) of the Civil Service Retirement Act (5 U.S.C.
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2254(c)), together with interest contlnited as provided in section 4(e)
of such Act (5 U.S.C. 2254 (e)). Any such participant may. under
such conditions as may be determined In each instance by the Director,
Inly special contributions in installments.
(c) (1) If an officer or employee under some other Government retire-
tnent system becomes at participant in the system by direct transfer,
the Goeertcmetit's contributions (including interest accrued thereon com-
pttt?d at the rate of 3 percent a year compounded annually) under such
retirement systettt an behalf of thr officer or employee shall be transferred
to the fund and such o(firer or employee's total contributions and
deposit, [,] (including, interest accrued thereon), except voluntary
contributions, shall be tra-nsfcrred to his credit in the fund effective as
of the date such officer or annployce lweonles a participant, in the sys-
tem. Each such officer or elnl)toyec shall he 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 Govern-
ment. retirement fund on account of service rendered prior to becoming
it partwwtl)ant? in the .sYstean.
If an officer or employee under some other Government retirement
.system becomes a participant in the system by direct transfer, the Govern-
ment's contributions tineluding interest accrued thereon computed at the
rate of d percent a year compounded annually) tinder stick retirement
.system on behalf of t/ie a ffceer or employee shall be transferred to the fund.
and such officer or employee's total crrntributions and deposits (including
interest accrued thereon). except voluntary contributions, shall be trans-
Jerred to his credit in the fund effective as of the date such uf}ieer or employee
becomes to participant *it the system. I:ite/c such officer or employee shall be
deemed to consent to the lranxfer of stick funds and such transfer shall be a
complete discharge and ucgtrltaare of all claims and demand s against the
other. Gorernrnen.t retirement foul on account of xeraicc rendered prior to
becoming a participant ;it the sylstemn.
(2) If a participant .n the s-tistem becomes an employer under another
Gorernnlent retirement system by direct transfer to employment covered
by such .system, the Gorernntettt's cuntribulturts (including interest accreted
thereon computed at the rate of 3 percent a year compounded annually) to
the fund on his behalf shall be transferred to the fund of the outer syslent
and his total contributions and deposits, including interest accrued
thereon, except voluntary contributions, shall be transferred to his credit
in the fund of such other retirement system effective as of the elate he be-
comes eligible to participate in such olden retirement system. Each such,
ojfteer 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 tlce fund on account of service rendered prior
to his becoming eligible for participation in such whir system.
[(2)] (3) No particilutni, whose contribution, are transferred to
the fund in accordance with the provisions of paragraph (c)(1) of this
section, shall be required to make contributions in addition to those
transferred for periods of service for which full contributions were
made to the other Government retire'uneut fund, nor shall any refund
be inade to any such patrticipatut on account of contributions made
during any period to the other Government retirement fund at. at
higher rate than that fixed for employees by section 4(c) of the Civil
Service Retirement Act (5 U.S.C. 2254(ci) for contributions to the
fund.
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[(3)] (/) No participant, whose contributions are transferred to the
fund in accordance with the provisions of paragraph (c) (1) of this
section, shall receive credit for periods of service for which a refund of
contributions has been made, or for which no contributions were made
to the other Government retirement fund. A participant may, how-
ever, obtain credit for such prior service by making a special contribu-
tion to the fund in accordance with the provisions of paragraph (b),
of this section.
(g) For the purpose of survivor annuity, special contributions authorized'
by paragraph (b) of this section may also be made by the survivor of rn
participant.
* * * * * *
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