CONVERSATION WITH ROBERT HULL ON RETIREMENT FINANCING FROM ASSISTANT LEGISLATIVE COUNSEL

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75B00380R000100030114-6
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 2
• Document Creation Date: December 12, 2016
• Document Release Date: December 4, 2001
• Sequence Number: 114
• Publication Date: July 7, 1972
• Content Type: MFR

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OLC 72-0780
7 July 19 7 2
MEMORANDUM FOR THE RECORD
SUBJECT: Conversation with Robert Hull on Retirement Financing
1. Today I called Robert Hull, Department of State, for a progress
report on the Department's negotiations with the Office of Management and
Budget on the funding of the Foreign Service retirement system.
2. Hull said that OMB had retreated from its initial position that
either (1) normal costs should be fully covered by employer /employee
contributions, or (2) the Foreign Service system should be merged with the
Civil Service system. OMB and State, have agreed that: (1) the Foreign
Service system shall retain its independence; (2) contribution rates will be
maintained at Civil Service levels; (3) future benefits for the Foreign
Service system will be held to Civil Service levels; (4) State will request
supplemental appropriations for certain unfunded liability attributable to
service under the Foreign Service system; and (5) except for such funding
through supplemental appropriations, the system will be financed by 30-year
amortization of new benefits and interest payments on old benefits under the
existing statutory formula.
3. The supplemental appropriations concept may not materialize
because the money is not needed to pay benefits for the foreseeable future
and there is some opposition in OMB because of the add-on to the President's
budget request. In the meantime, State is running an actuarial projection
on the amount that might be needed, which could be as high as 7 per cent of
payroll.
4. Hull expects that all outstanding issues with OMB will be resolved
before the close of this Congress, and that related legislation will be enacted
early in the new Congress.
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5. The above is of direct concern to CIA since OMB has held in
abeyance proposed amendments to CIARDS pending the resolution of these
issues with State, with the idea that we would adopt whatever arrangements
are worked out. We should be hearing from OMB shortly after the funding
package is finalized with State which should give us adequate time to prepare
our legislative package for introduction and, hopefully, early passage in the
93rd Congress.
Assistant Legislative Counsel
Distribution:
Original - Subject
1 - OPPB (Mr. Briggs)
STATINTL 1 - OGC
1 - D/Pers
STATINTL 1 J. D/Fin (Attn:
vY -OLCChrono
OLC/LLM:mmc (10 July 1972)
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