CIA RETIREMENT AND DISABILITY SYSTEM

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-03092A000100050006-7
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 4
• Document Creation Date: December 9, 2016
• Document Release Date: February 28, 2001
• Sequence Number: 6
• Content Type: BULL

Approved For Release 2001/03/22 : CIA-RDP78-03092A000100050006-7
? ADr 1 11SSTRA_TNR - INTERNAL URE ONLY
Headquazteis
EMPLOYEE BULLETIN
CIA RE'TIREMEN'T AND DISABILITY SYSTEM
STATINTL
1. All regular employrea of the Central Intelligence Agency are at
present covered by the provisions of the Civil Service Retirement Act. Such
coverage is appropriate for those employees whose conditions, obligations,
-and terms of service are comparable to those of federal employees generally.
However, the Agency has long been convinced that such coverage does not pro-
vide adequate retirement benefits to a relatively small group of employees
whose duties are in support of Agency activities abroad hazardous to life or
health, or so specialized because of security requirements as to be clearly
distinguishable from normal Government employment. The Agency has been suc-
cessful in obtaining legislative authority to provide such benefits to a select
group of employees.
2. The Director of Central Intelligence has approved Headquarters
Regulation .ihich prescribes the rules and policies governing the s-
tx'stion Of the Cest=1 Intellgmce Agency. Retirement and Disability System,
as authorized by Public Iew 88-6143. The benefits provided to those employees
who are, or who may become, eligible for participation in the System are many.
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Two important examples are:
a. The CIA annuity is larger than a Civil Service annuity. In
most cases, the difference is 3.759 of the individual's,high-5 salary (average
salary for his highest paid 5 consecutive years). The CIA formula is 2% of
high-5 times years of service with &-maximum of 70% of high-5. The CSC formula
is 4% of high-5 for the first 5 years, 1 3/4% for the next 5 years, and. 2% of
high-5 for all remaining years with a maximum of 80% of high-5.
b. The CIA System does not provide for any reduction in annuity
because of age. Under the Civil Service Retirement system, all retirements
below age 60 except for disability incur a penalty, that is, a reduction in
annuity. The penalty is 1% of annuity for each pant wftx sip 60 to sip 53,
and 2% of annuity for each year below age 55. As an example, at age 50 the
annuity would be reduced by 15% - 5% for the first 5 years and 10% for the
second five years below age 60.
STATINTL
3. A unique feature of the CIA Retirement and Disability System is that
eligibility for participation is not automatically determined by an individual's
employment status or his current assignment. Rather, it is determined on a
review of each individual's past and present assignments and his prospective
career utilization by the Agency. Section 203 of the CIA Retirement and Disa-
bility Act authorizes the Director of Central Intelligence to designate employees
as participants in the System upon their meeting specific criteria and conditions
of employment, which are as outlined in
4. With regard to the mechanics of the System, the reviews and recommen-
dations regarding the designation of participants in the System will be made by
Career Service officials and the CIA Retirement Board which has been established
for this purpose. In initiating the System, it is planned that the records of
all employees with three or more years of Agency service, and age 25 or over, who
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are now an duty will be reviewed to determine their eligibility for designation
as participants in the System. This review will be phased so that those
employees who are now eligible for retirement, or nearly so, will be considered
first. Successively lower age groups will then be reviewed. It is anticipated
that all employees will have been considered by the end of Fiscal Year 1966.
It should be noted that Agency employees who are now, or in the immediate future
will be, eligible for retirement under the Civil Service retirement system in
accordance with established Agency policy are not, by virtue of that fact alone,
to be excluded from consideration under the CIA Retirement and Disability system.
5. There are four types of retirement and eligibility requirements pro-
vided under the CIA Retirement and Disability System. They are as follows:
a? Voluntary Retirements A participant may voluntarily retire with
the consent of the Director of Central Intelligence at age 50 with at least 20
years of service including at least 10 years of Agency service of which 5 years
STATINTL are qualifying service as defined in As stated previously, there is
no reduction in annuity benefits for being under age 60.
b. Discontinued Service Retmeats The DCI may involuntarily retire
a participant who is at least 50 years of age if he has at least 20 years of
creditable service or who regardless of age has at least 25 years of creditable
service, provided in either case that he has at least 10 years of CIA service
including 5 years of qualifying service. There is no reduction in his earned
annuity for being under age 60.
c. Disability Retirements If the disabled or incapacitated pertici-
pant is under age 60 and has less than twenty years of service credit toward his
-retirement under the System at the time he is retired, his annuity shall be
conuted on the assumption that he has had twenty years of creditable service,
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but the additional service credit that may accrue to a participant under this
provision shall in no case exceed the difference between his age at the time
of retirement and age 60. However, the annuity of any survivor shall be based
on the actual service credit of such participant and shall not be Increased by
this provision for additional service credit.
d. Mandatory Age Retirement: Mandatory retirement age for employees
in G5-18 or higher grades is age 65, for employees in grades below G8-18, it is
60. The Director may extend the individual's service for a period up to five
years if he determines it to be in the public interest. He may also recall an
annuitant to active service if he determines it to be in the public interest.
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