EMPLOYEE PENSION TRUST QUESTIONS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-03089R000100030011-0
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 12, 2016
• Document Release Date: March 11, 2002
• Sequence Number: 11
• Content Type: MISC

Approved ForRelease 2002/05/06 : CIA-RDP78-0308'000100030011-0
EMPLOYEE PENSION TRUST
QUESTIONS
2. TVA was of the opinion that the individual had to be able to transfer
his Take Stock credits to the TVA annuity system as a requisite to IRS qualifi-
cation of the voluntary trust. Is this true?
3. What are the basic minimum IRS requirements for qualification of
a pension trust?
4. Is payroll deduction requisite to qualifying the CIA pension trust?
5. Is it correct that the SEC has now prohibited the practice of holding
the buy orders of large mutual fund accounts if the next net value is down? I
think the SEC has recently ruled that holding orders for the next rise are dis-
criminatory to small purchasers.
6. The following provisions of the rules and regulations of the TVA
Retirement System have been incorporated by reference in the "Terms and
Conditions" of the TVA Take Stock Plan:
a . Section 6D2 (Article 5, para 3.)
b. Section 6D3 (Article 5, para 4.)
c . Section 6B3 (Article 5, para 4.)
d . Section 9A, para 5 (Article 6)
e . Section 3, para 7 (Article 8, para 3.a.)
f. Section 6D1 (Article 8, pars 3.b.)
g. Section 11, paras 7, 8, 9 (Article 8, para 3.c.)
h. Section 12 (Article 8, para 3.d.)
What are these provisions and are they pertinent to a plan for a comparable CIA
stock plan?
STAT
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7. Is the prohibition against the assignment or encumbrance of
benefits an IRS requirement?
8. Will IRS negotiate the issue of starting the investment trust with
lump sum payments by individuals?
9. Will IRS negotiate the limitation on percentage of salary going
into tax exempt retirement funds?
10. Does IRS have any standards that would limit the types of employees
who can participate, i.e., those in the Civil Service or CIA Retirement Systems,
contract employees under Social Security, foreign national employees, or resident
alien employees?
11. If an individual exercises the option to take his proceeds under a
mutual fund installment plan, when and under what formula is tax liability
imposed?
12. If an individual withdraws part of his savings from the pension
trust but less than he has "paid in, " what tax liability is there for gains at
the date of withdrawal, if any?
13. Was the TVA provision permitting a retiree or survivor to place
proceeds in the TVA pension fund required by IRS?
14. What are the basic legal documents necessary to:
a. Establish a CIA pension trust?
b. Establish CIA control over the trustees?
c. Establish IRS qualification of the pension trust?
d. Govern the relationship between the trustees and the chosen
investment media?
15. If the CIA pension trust uses,C multiple mutual fundsor other
investment media and permits individuals to shift their investments from
one fund to another, does any tax liability accrue to the individual so long
as his money remains in the trust?
Approved For Release 2002/05/06 : CIA-RDP78-03089R000100030011-0