EXPLANATION OF H.R. 13705, SECTION 8

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP74B00415R000600030059-5
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 12, 2016
• Document Release Date: January 2, 2002
• Sequence Number: 59
• Content Type: REQ

Approved For Release 2002/01/23 : CIA-RDP74B00415R000600030059-5
EXPLANATION OF H. R, 13705, SECTION 8
H. R. 13705 was introduced by Mr. Philbin on 26 October 1967
and amends the Central Intelligence Agency Retiren-16i_ Act of 1964 for
Certain Employees.
Section 8 of H.R. 13705 closes the gap between the CIA and
other major Federal retirement systems on cost-of-living adjustment
of annuities. The gap stems from the fact that the CIA, retirement
system is operating under an old formula and the other systems, such
as military and Civil Service, are operating under a new formula.
The new formula reduces from one year to three months the period
over which increases in the Consumer Price Index must be maintained
and permits increases to be applied to retirees on a more current
basis. On 1 May 1968 the gap between the percentage increases in
force and effect under the Civil Service and the CIA systems had
reached 12.2 percent for 1965 retirees, 9 percent for 1966 retirees,
and 3.9 percent for 1967 and some 1968 retirees. If this gap continues
much longer it will. substantially weaI -cen the effectiveness of the CIA
retirement system and inevitably effect the morale of those covered
by it.
Section 8 of H. R. 13705 will conform the cost-of- ivin_g feature
of the CIA Retirement Act to that found in the other major Federal
retirement systems and will assure that future cost-of-living adjust-
ments under the CIA retirement system will be precisely in phase
with those granted under the Civil Service system and will provide
as of 1 January 1967 a catchup increase to the percentage increase
in force and effect under the Civil Service system.
In view of the pressing need to correct this situation, the Agency
has agreed to defer all other provisions in H. R. 13 7 05 to a more
opportune time and anticipates favorable consideration of this one
provision by the legislative committee in the other body.
Approved For Release 2002/01/23 : CIA-RDP74B00415R000600030059-5