CONVERSATION WITH VIC ZAFRA, OMB, RE RETIREMENT LEGISLATION

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP72-00337R000500060037-8
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 19, 2016
• Document Release Date: October 25, 2005
• Sequence Number: 37
• Publication Date: September 16, 1970
• Content Type: MFR

Approved For Release 2005/11/21: CIA-RDP72-00337R000500060037-8
16 September 1970
SUBJECT: Conversation With Vic Zafra, OMB, re Retirement
Legislation
1. Called Vic Zafra, in the Office of Management and Budget,
to determine the next step on our retirement legislation in the light of
Treasury's adverse comment on the funding proposals.
2. Zafra said that OMB has asked for the Civil Service
Commission's views on Treasury's report since the report also applies
to CSC and that due to the importance and complexity of the matter it
will take at least three weeks for CSC to review Treasury's report and
to prepare its rebuttal or come into line. Zafra concluded that we could
not make our legislative transmittal to the 91st Congress.
3. I told Zafra that while this delay may not be serious in
connection with Title I of our bill dealing with financing, we were facing
a critical retirement quota problem, and we feel it is important to trans-
mit to the 91st Congress Title II of the bill in which the relief from quota
is contained since a slight possibility that we could get favorable action
still exists. I reminded Zafra that the provisions in Title II are not new,
had been previously cleared on several occasions by OMB, and had, in
fact, been passed by one House.
4. In response to Zafrats request, I reviewed our quota problem
and he agreed that it was critical. He said he would see if he could get
us clearance on Title II of the bill and promised to be back in touch within
the next two days.
5. I also reminded Zafra of the previous favorable action on the
transfer of employee contributions provision in Title I, but it became clear
that this would muddy the water on clearance of Title II, so I did not push
for its inclusion in his clearance request.
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 Approved For Release 2005/11/21: CIA-RDP72-00337R000500060037-8
6. Zafra inferred that Treasury's report may open up the
whole funding question, including such possibilities as merging the
Foreign Service and our Fund with the Civil Service Fund or attempting
to determine what portion of higher "normal costs" of the Foreign
Service (by inference our Fund also) should be absorbed by the Govern-
ment for "management convenience" (a term Zafra admitted would be
difficult to define) and the portion which should be shared equally through
increased employer /employee contributions above the current 14 percent
of salary to, say, 20 percent.
7. I mentioned that factors other than the relatively small higher
benefit levels and earlier retirement age had a bearing on the "normal
costs" issue such as the gain from Government contributions paid on
behalf of the literally millions of employees who leave Government
service and never constitute a cost burden on the Civil Service Fund
and Zafra agreed.
8. Zafra also criticised the management of the Foreign Service
retirement system saying that selection out was not being used in the
manner originally intended with the result that the participants generally
retire at the same age levels as their Civil Service counterparts, but
at higher benefit levels.
Assists Legislative Counsel
Distribution:
Orig - Subj
1 - chrn
1 - OF
1 - OP
1-OL
1 - OGC
1 - DD/S
1 -
1 -
1 -
OLC / LLM: smg (17 Sept. '70)
Approved For Release 2005/11/21: CIA-RDP72-00337R000500060037-8