EARLY RETIREMENT LEGISLATION

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75B00380R000500020001-8
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 12, 2016
• Document Release Date: January 4, 2002
• Sequence Number: 1
• Publication Date: December 9, 1963
• Content Type: MEMO

Approved For Release 2002/01/23 : CIA-RDP75B0038OR000500020001-8
9 December 1963
TO: Chiefs of Stations and Bases
SUBJECT: Early Retirement Legislation
1. The Central Intelligence Agency Retirement and Disability
Act, H. R. 8427, is designed to provide an internally administered
retirement and disability system for those Agency employees whose
careers ever the years are predominantly concerned with the conduct
and support of intelligence operations in foreign countries. It is intended
to designate an employee as a participant in this system at the earliest
time after he has gained full career employee status in the Agency that
it can be determined that his career field of work is in the conduct and
support of intelligence activities abroad. Thereafter, his service record
will be reviewed periodically to verify that his career has remained in
this field and that he is in fact serving overseas for sufficient periods
of time to warrant his continued participation in this system. If on
such review it should be determined that an officer's career specialization
has permanently shifted to a different field, he will be transferred to
the Civil Service Retirement System. However, any participant who
has completed 15 years of service with the Agency and whose career at
that time is adjudged by the Director to be qualifying for the system, has
the option to remain a participant for the duration of his Agency employ-
ment. It is anticipated that this Act will cover 25 - 30 per cent of Agency
employees; criteria for -articipation will be spelled out in Agency regula-
tions. Questions of individual eligibility for Participation under the Act
will be determined by the Director. It is interesting to note in this regard
that, in the interest of security, the Act specifically precludes outside
review of the Director's decisions.
Z. H. R. 8427 was passed by the House of Representatives in
October of 1963. It is expected that the Senate will act on this bill early
in 1964. Though the bill is subject to change as it makes its way through
the remainder of the legislative process, we trust it will be passed by
the Senate in essentially its present form.
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 Approved For Release 2002/01/23 : CIA-RDP75B0038OR000500020001-8
3. The bill Is almost identical to that which obtains for Foreign
Service Officers and is designed to provide more equitable treatment of
Agency employees whose duties are such as to be clearly distinguishable
from normal government employment. A comparison of pertinent pro-
visions of the Civil Service, Foreign Service, and proposed Central
Intelligence Agency retirement and disability systems is set out in
Appendix I of the attached report, pages 11 - 16.
4. Among the key features of the bill is that which provides
for voluntary retirement at age 50 years with 20 years of service.
Basically, the annuity of a retiring participant is 2 per cent of his
average basic salary for the highest five consecutive years of service,
multiplied by the number of years of creditable service. Thus, one
retiring after 20 years of service would receive an annuity of approxi-
mately 40 per cent of his average basic salary for the highest five
consecutive years of service. In addition, provision is made in cases
of discontinued service retirement for immediate annuities for GS-14
and above having at least 10 years of service with the Agency including
at least five years of service of a nature qualifying for coverage under
this system. Those involuntarily retired who either do not meet these
service requirements or are in grades GS-13 and below are eligible to
receive separation pay of up to one year's salary.
5. The bill provides for a mandatory retirement age of 65 for
GS-18 or above, and age 60 for those in grades below GS-18. In either
case, the Director may extend an individual's service for a period not
to exceed five years. In addition to crediting all prior agency service
for the purpose of computing annuities, provision is also made for
crediting prior civilian service in the Federal Government and active
military or naval service.
6. The attached Report No. 763 was prepared by the House
Committee on Armed Services to explain the import of this bill and to
record its reasons for recommending passage. In addition, the report
indicates the action taken by the Committee in the course of four days'
hearings.
Approved For Release 2002/01/23 : CIA-RDP75B0038OR000500020001-8