(UNTITLED)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-03092A000200010007-9
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 3
• Document Creation Date: December 9, 2016
• Document Release Date: May 14, 2001
• Sequence Number: 7
• Content Type: SUMMARY

Al3proved For Release 2001/07/28: CIA-RDP78-03092A000200010007-9
6* Cqst Eatimatee. It is estimated that the annuities- of
30 retirees and 3 survivors would be affected by the proposed initial
imity increase of 6,1 per cent. Based on an average retiree annuity
$6000, the annual increase per annuitant would be $3661 making a
total of $10980 for the entire group of retirees. Based on an average
survivor annuity of $33001 the annual increase per annuitant would be
$2011 making a total of $603 for the entire group. Thus the total
additional cost of the proposed initial increase of 6.1 per cent would
be $11,583 per year.
Nowever, the first-year cost would be somewhat less since the
increase would apply only to the seven-month period from Decevber 1)65
through June 1966. On this basis, the first-year cost would be 742
of the annual cost, or $6755.
In the absence of actuarial experience under the CIA retirement
aystem on which to base a long range estimate, the current estimate
of annual coot has been projected on a full year basis over fiscal
yea= 1967 through 1)70 for a total of 06,332. This figure added to
the FT 1965 estimate of $6755 produces an estimated additional cost
of 453087 for the first five fiscal years during which the proposed
Initial increase would apply.
There appears to be no feasible basis for eatimating the additional
costs which might result from further annuity adjustments based on the
modified formula for granting future cost-of-living increases.
Approved For Release 2001/07/28 : CIA-RDP78-03092A000200010007-9
Approved For Release 2001/07/28 : CIA-RDP78-03092A000200010007-9
Consumer Price Index Point Rise and Estimated
Percentage of Annuity Adjustments
Average Annual Consumer Price Index, 1962 105.4
Average Annual Consumer Price Index, 1964 - 108. 1
Monthly Consumer Price Index, June, 1965 110. 1
Six-m,onth average of Consumer Price Index
for calendar year, 1965 . 109.3
Point rise. 1962 to June, 1965
Point rise, 1964 to 1965
110. 2 July
110. I
-105. 4
4.7 4.8
109. 3
- 108. I
I.
Per cent of rise, 1962 to June. 1965 - 4.5 4. 6
Per cent of rise, 1964 to 1965 - 1. 1
Jan. - 108.9
Feb. - 108.9
Mar. - 109.0
Apr. - 109.3
May - 109.6
June - 110.1
655. 8
655. 8 divided by 6 = 109. 3
4.7 divided by 105. 4 ap 4. 5 4.6
1. 2 divided by 108. I = I. I
Approved For Release 2001/07/28 : CIA-RDP78-03092A000200010007-9
Approved For Release 2001/07/28 : CIA-RDP78-03092A000200010007-9
TRAttSMITTAL SLIP
DATE
.3 SEP 1965
TO:
CIA Retirement Staff
ROOM NO.
6E1319
BUILDING
Headquarters
REMARKS:
Attached is the cost estimate
paragraph for Statement of Justification
and Explanation of our CIA Retirement
Act amendment.
FROM:
Exec.
Asst. to D/Pers
BUILDING
Hqs.
EXTENSION
6825
ROOM NO.
5E56
FORM NO
1 FEB 55
REPLACES FORM 368 * GPO 1957-0-439445
WHICH MAY BE USED.
(47)
Approved For Release 2001/07/28 : CIA-RDP78-03092A000200010007-9