SECTION 208 - COST-OF-LIVING ADJUSTMENT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75B00380R000700120033-0
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 16, 2016
• Document Release Date: June 1, 2005
• Sequence Number: 33
• Content Type: REGULATION

Approved For Release 2005/06/09 : CIA-RDP75B00380R000700120033-0
. SECTION 208 - Cost-of-Living Adjustment
This section of the bill is to bring the cost-of-living provision
of the Agency's retirement act into line with provisions which currently
apply to civil service and military retirees.
The Central Intelligence Agency Retirement Act of 1964 authorizes
automatic cost-of-living adjustments whenever the cost-of-living, as
reflected in the Consumer Price Index maintains an increase of 3 per
cent over a 12-month period. This automatic adjustment principle was
approved by the Congress for the Civil Service Retirement System in
1962 and extended to the retired and retainer pay of members of the
Armed Forces in 1963. It was incorporated into the Central Intelligence
Retirement Act when that Act was passed in 1964.
During the first session of the 89th Congress the cost-of-living
provision for military retirees was amended (P. L. 89-132) to gear
increases to quarterly rather than average calendar year Consumer
Price Indexes and to accelerate the cost-of-living adjustment due on
1 April 1966.
Later on in the first session, similar legislation for the benefit
of the entire Civil Service System was approved (P. L. 89-205, 27
September 1965 and P. L. 89-314, 1 November 1965). As 6, result of this
legislation, the cost-of-living feature of the Civil Service system is now
based on cost-of-living indicators over three-month periods, and the
Approved For Release 2005/06/09 : CIA-RDP75B00380R000700120033-0
 pproved r_ R leas' 2005106109 : C1A-RDP7 . 00 $0 3-0
5
annuities of retirees as of 1 October 196 and prospective retirees
through 31 December 1965 were increased in an amount equivalent
to the Consumer Price Index change from 1962 to July of 1965 plus an
additional 1. 5%.
The proposed amendment adopts the same type of formula
for the Central Intelligence Agency retirement system as is now
applied to the Civil Service retirement system. Further, the proposed
amendment will assure that the cost-of-living adjustment provision of
the Central Intelligence Agency Retirement system is consistent with
Administration policy with regard to the method of determining cost-
of-living increases for civilian and military retirees.
This will be applicable to all of our retirees, as well as. to
0n
any employees who o to retire within three months after enactment.
Approved For Relo'gst 2005106/09: CIA-RDP75BOO380R000700120033-0