(UNTITLED)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-03721A000600010002-1
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 24
• Document Creation Date: December 9, 2016
• Document Release Date: October 19, 2000
• Sequence Number: 2
• Content Type: SS

Approved For Release 2001/08/28 : CIA-RDP78-03721A000600010002-1
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 Approved For Release 01/08/28 4 P~r3HITA fi000 Range of
Average Fe er ua yang alifying
Age Grade Service Service Service Service
(Years) (Years) (Months) (Months)
Participants: 53.2 GS-13.4 24.9 15.7
(168)
85 45 to 180
Retirees: 56 GS-14 23.6 16.8 98 71 to 130
(6)
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Progress report as of 15 July 1965:
a. Number of employees included in initial screening process STATINTL
(Age 50; 20 years of Federal service; 10 years of Agency service):
(1) Employees approved for designation as participants: -
(2) Employees not eligible for designation as participants: STATINTL
(3) Employees pending review by Career Services:
1
1
i 0
6 8 0 C C C 0
0 2 4 C 0 0 C.
2 4
0 C
0 0
6
1 C? 2
4" 0 C 0
0 C
1 0
2 4 C C
0 C
1
0 2 4 0
0 0
1 0 2 4
0 0
1 0 2
4 0
1 0
2 4
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? 'CIA RETIREMENT AND DISABILITY SYSTEM
a. GENERAL. This regulation prescribes rules and policies governing the ad-
ministration of the Central Intelligence Agency Retirement and Disability
System for a limited number of employees, referred to hereafter as the System,
authorized by the Central Intelligence Agency Retirement Act of 1964 for
Certain Employees, referred to hereafter as the Act. Only those employees
who are designated as participants in accordance with the provisions of this
regulation will be covered by the System,
b. DEFINITIONS. As used in this regulation, the term:
(1) "Adverse determination" means any determination involving an action
other than one for which an employee, participant, or annuitant has
applied.
(2) "Agency" means the Central Intelligence Agency as established effective
18 September 1947 by the National Security Act of 1947.
(3) "Agency service" means service performed as an employee of the Agency.
(4) "Annuitants" means participants who are receiving annuities from the
Fund and all persons, including surviving wives and husbands, widows,
dependent widowers, children, and beneficiaries of participants or an-
nuitants who shall become entitled to receive annuities in accordance
with the provisions of this regulation.
(5) "Career" means the predominant and long-range orientation of an em-
ployee's Agency service, past and present, as well as plans for his future
development and use.
(6) "Child," for the purpose of annuity benefits, means an unmarried child,
including (a) an adopted child, and (b) a stepchild or recognized natural
child who received more than one-half of his support from and lived
with the participant in a regular parent=child relationship, under the age
of eighteen years, or such unmarried child regardless of age who because
of physical or mental disability incurred before age eighteen is incapable
of self-support or such unmarried child between eighteen and twenty-one
years of age who is a student regularly pursuing a full-time course of
study or training in residence in a high school, trade school, technical or
vocational institute, junior college, college, university, or comparable rec-
ognized educational institution. A child whose twenty-first birthday oc-
curs prior to July 1 or after August 31 of any calendar year, and while
he is regularly pursuing such a course of study or training, shall be deemed
to have attained the age of twenty-one on the first day of July following
such birthday. A child who is a student shall not be deemed to have
ceased to be a student during any interim between school years if the
interim does not exceed four months and if he shows to the satisfaction
of the Director of Personnel that he has a bona fide intention of con-
tinuing to pursue a course of study or training in the same or different
school during the school semester (or other period into which the school
year fs divided) immediately following the interim.
(7) "Director" means the Director of Central Intelligence.
(8) "Employee" means a civilian officer or employee of the Agency.
(9) "Fund" means the Central Intelligence Agency Retirement and Disability
Fund.
(10) "Participant" means an employee who has been designated in accordance
with the provisions of this regulation to be covered under the System.
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(11) "Qualifying service" means performance of duty as an Agency employee:
(a) under conditions of employment which include a demonstrable hazard
to life or health in the conduct or support of covert action operations
abroad, or espionage and counter-intelligence activities abroad, or
other intelligence activities abroad; or
(b) under conditions of employment requiring the continuing practice
of most stringent security and covert tradecraft procedures to main-
tain personal cover in the conduct or support of covert action opera-
tions or espionage and counter-intelligence activities abroad; or
(c) on a continuing basis which would place the individual at a distinct
disadvantage in obtaining other employment either because (1) the
skills and knowledge are unique to the clandestine activities of the
Agency and are not in demand elsewhere, or (2) the duties are so
highly classified that his experience cannot be described in sufficient
detail to demonstrate his qualifications adequately to a prospective
employer.
(12) "Service credit" means federal civilian or military service which is credit-
able toward retirement under the System. Insofar as practicable, per-
tinent rulings of the Civil Service Commission under the Civil Service
Retirement Act will be used as a guide to determinations regarding the
creditability of any military service and of civilian service performed prior
to designation as a participant.
(13) "Widow" means the surviving wife of a participant who was married to
such participant for at least two years immediately preceding his death
or is the mother of issue by marriage to the participant.
(14) "Dependent widower" means the surviving husband of a participant who
was married to such participant for at least two years immediately pre-
ceding her death or is the father of issue by marriage to the participant,
and who is incapable of self-support by reason of mental or physical
disability, and who received more than one-half of his support from
such participant.
c. POLICY
(1) ELIGIBILITY TO PARTICIPATE
(a) Only those employees who are citizens of the United States and who
are otherwise qualified in accordance with the provisions of this regu-
lation may be designated as participants in the System.
(b) Designation: Participation in the System is reserved exclusively for
those employees who have accepted the obligation to serve anywhere
and at any time according to the needs of the Agency and who are
serving on a career basis in a field which normally requires the per-
formance of minimum periods of qualifying service as an integral
part of a career in that field.
(c) Continuance as a Participant: Following his designation as a par-
ticipant, an employee may remain under the System only if he con-
tinues to meet the criteria for participation, including the performance
of minimum periods of qualifying service.
(d) Participant After Fifteen Years of Service: Any participant who has
completed fifteen years of service with the Agency and whose career
at that time is adjudged by the Director of Personnel to be qualifying
for the System may elect to remain a participant in the System for
the duration of his employment by the Agency and such election
shall not be subject to review or approval by the Director.
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(2) ELIGIBILITY TO RETIRE. No participant shall be retired under the
provisions of section 233 or section 235(a) of the Act (paragraph j and
m of this regulation, respectively) unless he shall have performed 60
months of qualifying service.
(3) OPPORTUNITY TO BE HEARD BY RETIREMENT BOARD. Prior to
recommending an adverse determination or any other finding which ad-
versely affects the entitlements of an employee under the System, the
CIA Retirement Board will notify the employee of its tentative conclu-
sion and of his right to submit any pertinent information to the Board
within a specified period of time before making a final recommendation
to the Director of Personnel. The employee concerned shall have a
reasonable period of time in which to submit such information to the
Board. The time allowed will normally be not less than five nor more
than thirty calendar days but shall depend in any case on the circum-
stances of the case and the location of the individual. Such information
may be presented orally or in writing at the discretion of the Board.
The Board, in presenting its recommendation to the Director of Personnel
on any case, shall include a report of any information which the em-
ployee has submitted.
(4) APPEALS. Any determination made by the Director or by the Director
of Personnel pursuant to the Act or this regulation which affects the
rights or benefits under the System of an employee, participant, or an-
nuitant may be appealed by the individual affected to the Director in
accordance with the appeal procedure established in this regulation.
Submission of such appeal shall not suspend or defer the implementation
of the determination except as may be authorized in individual cases
in the discretion of the Director. Determinations made by the Director
authorized by the provisions of the Act shall be deemed to be final
and conclusive and not subject to review by any court.
d. AUTHORITIES AND RESPONSIBILITIES
(1) DIRECTOR OF PERSONNEL. The Director of Personnel shall be re-
sponsible for the general administration of the System in accordance with
the provisions of this regulation. There is hereby delegated to the Di-
rector of Personnel all authorities as are necessary for the administration
of the System except those which are specifically reserved to the Director
in this regulation.
(2) CIA RETIREMENT BOARD
(a) The CIA Retirement Board is hereby established to assist and advise
the Director of Personnel in the administration of the System. The
Board shall be composed of senior officials in appropriate numbers
from the several Directorates recommended by the respective Deputy
Directors. The Director shall appoint the Chairman and members
of the Board. The Board shall have available to it advisers from
appropriate technical staffs.
(b) The Director of Personnel shall normally obtain the advice of the
Board before making determinations as to the eligibility of employees
to participate in the System or acting upon applications for disability
or voluntary retirement or recommendations for involuntary retire-
ment. He may also refer to the Board any other matter pertaining
to the administration of the System.
(c) Any member or adviser shall have the authority to submit a separate
report to the Director of Personnel.
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(3) DEPUTY DIRECTORS AND HEADS OF CAREER SERVICE. The Director
of Personnel shall obtain the advice of the Deputy Director having career
jurisdiction over the employee concerned or the Head of the employee's
Career Service before making determinations concerning the designation
of an employee as a participant or acting upon applications for disability
or voluntary retirement or recommendations for involuntary retirement
or for disability retirement initiated by the Agency.
(4) DIRECTOR OF FINANCE. The Director of Finance shall be responsible
for the administration of the Fund. There is hereby delegated to the
Director of Finance all authorities as are necessary for the adminis-
tration of the Fund except those which are specifically reserved to the
Director in this regulation.
e. DESIGNATION OF PARTICIPANTS
(1) DESIGNATION. In order to qualify for designation as a participant, an
employee must:
(a) Be at least 25 years of age;
(b) Have successfully completed three years of Agency service;
(c) Have signed a written obligation to serve anywhere and at any time
according to the needs of the Agency;
(d) Be serving on a career basis in a field which normally requires the
performance of qualifying service as an integral part of a career in
that field;
(e) Have performed qualifying service or be under official orders for an
assignment requiring the performance of qualifying service; and
(f) Have sufficient time prior to completion of 15 years of service with
the Agency within which he could complete a minimum of 60 months
of qualifying service or, if he has completed 15 years of service with
the Agency, have performed 60 months of qualifying service.
(2) PERIODIC REVIEW AND REDETERMINATION OF DESIGNATION
(a) At intervals of not more than five years, the record. of each participant
shall be reviewed to determine that he meets the criteria under this
regulation for continued coverage under the System. Normally, these
reviews will be made within 90 days of the fifth and tenth anniversary
of designation as a participant and a final review will be made six
months prior to the fifteenth anniversary of appointment in the
Agency. Such review must show that the individual, in addition to
meeting the criteria for designation, is performing minimum periods
of qualifying service throughout his career in relation to the follow-
ing standards:
5th anniversary review: 18 months of qualifying service
10th anniversary review: 36 months of qualifying service
15th anniversary review: 60 months of qualifying service
(b) Unless the minimum periods of qualifying service set forth above have
been performed, the employee will not be eligible to remain a par-
ticipant unless (1) he is then serving on an assignment which will
satisfy the qualifying service requirement indicated for the review
involved, or (2) he is under official orders to serve in such an assign-
ment within 90 calendar days, or (3) at the time of the 15th anniver-
sary review he has sufficient time prior to completion of 15 years of
service with the Agency within which he could complete a minimum
of 60 months of qualifying service.
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118.4 27 April 1965 (237)
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(c) A former participant may again be considered for designation pro-
vided he meets all of the criteria for designation specified in sub-
paragraph e (l) and has performed the minimum periods of qualify-
ing service set forth above.
(3) DESIGNATION OF EMPLOYEES ON DUTY AT DATE OF ENACTMENT
OF THE ACT. The records of all employees who are on duty at the date
of enactment of the Act and who are serving in a career field which would
normally require the performance of qualifying service shall be reviewed
to determine in each case whether the individual (a) meets the criteria
for designation and (b) has performed adequate periods of qualifying
service on the basis of his years of Agency service in relation to the mini-
mum standards provided for the fifth, tenth, and fifteenth anniversary
reviews. An employee who has fifteen or more years of Agency service
when the review of his case is completed, who has met the provisions of
subparagraph e(2) above, and whose career is adjudged by the Director
of Personnel to be qualifying for the System may be designated a par-
ticipant. Thereafter, such participant may elect to remain a participant
for the duration of his employment by the Agency and such election shall
not be subject to review or approval by the Director.
f. NOTICE OF DETERMINATION AND OF RIGHT TO APPEAL
(1) NOTICE OF DETERMINATION OR RECOMMENDATION BY THE DIREC-
TOR OF PERSONNEL
(a) When the Director of Personnel makes a determination pursuant to
this regulation which affects the rights or benefits under the System
of an employee, participant, or annuitant, he shall notify the individ-
ual affected in writing of his determination and, if there is an adverse
determination, advise the individual of his right to appeal to the
Director.
(b) When the Director of Personnel makes a recommendation to the Di-
rector for an adverse determination, he shall notify the individual
affected of such recommendation. He shall further advise the indi-
vidual that in the event of an adverse determination by the Director
the individual shall have the right to appeal such determination to the
Director.
(2) NOTICE OF DETERMINATION BY THE DIRECTOR. When the Director
makes a determination pursuant to the Act or this regulation which affects
the rights or benefits under the System of an employee, participant, or
annuitant, he shall advise the Director of Personnel of his determination.
The Director of Personnel shall advise the individual in writing of the
determination and, if there is an adverse determination, of his right to
appeal to the Director.
(3) NOTICE OF EFFECTIVE DATE OF RETIREMENT. When a determination
has been made to approve the retirement of a participant, the Director
of Personnel shall give the participant written notice of such determina-
tion. Except in the case of disability retirement at the employee's re-
quest, such notice shall be given at least thirty calendar days in advance
of the date on which retirement shall become effective. The Director
of Personnel may, with the concurrence of the Deputy Director(s) con-
cerned and the consent of the participant, extend the effective date except
in cases of mandatory retirement for age. Any extension in the effective
date of mandatory retirement for age shall require the, approval of the
Director.
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APPEAL PROCEDURE
(1) TIME PERIOD FOR APPEAL. When a determination is made by the
Director or by the Director of Personnel affecting the rights or benefits
of an employee, participant, or annuitant under the System, the official
making the determination shall, if there is an adverse determination,
specify the time to be allowed for the individual to submit an appeal. The
time allowed shall normally be not less than five nor more than thirty
calendar days but in any given case will depend on the circumstances of
the case and the location of the individual. When justified and upon
request of the employee, the Director of Personnel may grant an exten-
sion of time for the submission of an appeal. However, an extension of
more than thirty days to an appeal period established by the Director
shall require the approval of the Director.
(2) FORM AND CONTENT OF APPEAL. An appeal made pursuant to this
regulation shall be submitted in writing to the Director. The appeal must
state the basis on which review of the determination is requested and
supply pertinent information in support of such review.
(3) INVESTIGATION BY THE INSPECTOR GENERAL. The Inspector General
shall receive appeals made to the Director pursuant to this regulation and
shall make independent investigation and appropriate recommendation
to the Director. The Inspector General shall not be limited in his investi-
gation to matters raised by or contained in the appeal but shall consider
any information which he deems pertinent and appropriate.
(4) NOTICE OF DECISION. When the Director has acted on an appeal, he
shall advise the individual and the Director of Personnel of his decision.
The Director of Personnel shall institute any action which may be required
to implement the decision.
h. RETIREMENT FOR DISABILITY OR INCAPACITY
(1) ELIGIBILITY. Any participant who has five years of service credit toward
retirement under the System, excluding credit for military or naval service,
and who becomes totally disabled or incapacitated for useful and efficient
service by reason of disease, illness or injury not due to vicious habits,
intemperance or willful misconduct on his part shall be retired. When
the participant has made application, such retirement shall require the
approval of the Director of Personnel who shall also determine whether
the disability is permanent. When disability retirement action is initiated
by the Director of Personnel on behalf of the participant, such retirement
shall be only upon order of the Director who shall also make the determina-
tion as to whether the disability is permanent.
(2) INITIATION OF RETIREMENT ACTION
(a) By the Participant: Any participant who is of the opinion that he may
be eligible for retirement because of disability may apply in writing
to the Director of Personnel for such retirement. The application must
include a description of his disability and a full explanation of the
manner in which it affects the performance of his duties.
(b) By the Director of Personnel: In the event a participant appears to be
totally disabled or incapacitated but fails or is unable to make ap-
plication for disability retirement, the Director of Personnel shall in-
stitute such action on his behalf. In such case, the Director of Per-
sonnel shall obtain the advice of the Board of Medical Examiners, the
Deputy Director having jurisdiction over the individual's Career Serv-
ice, and the CIA Retirement Board before making a recommendation
to the Director.
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(3) SUPERVISOR'S STATEMENT. On request of the Director of Personnel,
the supervisor responsible for preparing the Fitness Report of a partici-
pant who applies for disability retirement, or whose disability retirement
is initiated by the Director of Personnel, shall submit a statement describ-
ing the apparent nature of the participant's disability and explaining the
manner in which it affects the performance of his official duties. On the
basis of information available to him, the supervisor shall also indicate
whether, in his opinion, the participant appears to be totally disabled or
incapacitated for useful and efficient service in his career field. He shall
also indicate whether the participant's disability or incapacity appears to
be the result of his own vicious habits, intemperance or willful misconduct.
If the supervisor desires, he may transmit this statement direct to the
Director of Personnel in a sealed envelope marked with the participant's
name and the words "Disability Retirement - Privileged - Private."
(4) MEDICAL EXAMINATION AND EVALUATION
(a) Board of Medical Examiners
(1) A Board of Medical Examiners is hereby established. This Board
shall be responsible for the conduct of medical examinations and
for evaluating the medical status of participants for whom an
application for disability retirement is under consideration and
for annuitants who have been retired for disability.
(2) The Director of Medical Services shall serve as Chairman of the
Board of Medical Examiners. He shall nominate two other mem-
bers (and alternates for each) to serve on the Board. Members
and alternates must be qualified physicians or surgeons. At least
one of these members and his alternate shall not be in active
government service.
(3) The Chairman of the Board of Medical Examiners may designate
duly qualified physicians or surgeons to conduct medical examina-
tions of applicants for disability retirement or disability annui-
tants and to submit reports of such examinations to the Board
for its evaluation.
(b) Conduct of Examinations. Each participant considered for disability
retirement shall be given a medical examination by the Board of
Medical Examiners or by a duly qualified physician or surgeon desig-
nated by the Chairman of the Board of Examiners.
(c) Report of Medical Examination. Based on the results of the medical
examination, the Board of Medical Examiners shall make a written
report to the Director of Personnel setting forth the results of the
examination. This report shall be comprehensive, and shall include
pertinent data on all disabling or incapacitating conditions found or
alleged to exist. In addition it shall contain the Board's evaluation
of the individual's medical status in relation to the service require-
ments of his Career Service, whether the disability is permanent, and
the Board's recommendation as to approval or disapproval of disability
retirement of the participant.
(5) COMPUTATION OF ANNUITY. A participant retired on disability shall
receive an annuity computed in accordance with the provisions of this
regulation. If he is under age sixty and has less than twenty years of
service credit toward his retirement under the System at the time he is re-
tired, his annuity shall be computed on the assumption that he has had
twenty years of creditable service, but the additional service credit that may
accrue to a participant under this provision shall in no case exceed the
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difference between his age at the time of retirement and age sixty. , Not-
withstanding this provision, the annuity of any survivor shall be based
only on the actual service credit of such participant.
(6) EFFECTIVE DATE OF DISABILITY RETIREMENT FOR PAYMENT OF
ANNUITY. The effective date of separation for disability shall be the
first day following termination of pay status. The annuity shall commence
as of the first day of the month following the month in which the partici-
pant is separated and is payable on the first day of the month following
that for which it accrued.
(7) PERIODIC REVIEW AND EVALUATION OF RETIREMENT STATUS
(a) Unless his disability is permanent, each annuitant who was retired
for disability or incapacity shall be given an annual medical examina-
tion and his medical status evaluated by the Board of Medical Exam-
iners until he reaches mandatory retirement age for his grade. The
evaluation shall include a finding as to whether the annuitant con-
tinues to be totally disabled or incapacitated for useful and efficient
service, and whether his disability is permanent. This report shall be
submitted to the Director of Personnel who shall make the determina-
tion as to whether the annuitant continues to be totally disabled or
incapacitated for useful and efficient service.
(b) Whenever an annuitant's disability is determined to be of a perma-
nent character, he shall not again be given a medical examination
unless in the opinion of the Director of Personnel, with the advice of
the Board of Medical Examiners, such examination is determined to
be warranted.
(c) When a disability annuitant fails to submit to examinations as re-
quired, payment of annuity shall be suspended until continuance of
the disability is established to the satisfaction of the Director of Per-
sonnel.
(8) ALLOWABLE EXPENSES FOR MEDICAL EXAMINATION. Reasonable
and necessary travel, subsistence, and related expenses and medical fees
may be incurred in connection with required medical examinations and
evaluations and shall be paid from the Fund.
(9) RECOVERY FROM DISABILITY
(a) Termination of Annuity: If the Director of Personnel determines on
advice of the Board of Medical Examiners that an annuitant has re-
covered to the extent that he can return to duty, payment of the an-
nuity shall continue until a date six months after the. date of the
examination showing recovery or until the date of reemployment in the
Agency, whichever is earlier.
(b) Reemployment: An annuitant who is determined to have recovered
may apply for reemployment in the Agency within one year from the
date of his recovery as determined by the Director of Personnel.
(1) Upon application, the Director of Personnel may reinstate any
such recovered disability annuitant in the grade in which he was
serving at time of retirement, or the Director of Personnel may,
taking into consideration the age, qualifications, and experience
of such annuitant, and the present grade of his contemporaries
in the Agency, appoint him to a grade higher than the one in
which he was serving prior to retirement.
(2) If a recovered disability annuitant whose annuity is discontinued
is not reemployed in the Agency, he shall be considered to have
been separated within the meaning of paragraph k as of the date
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he was retired for disability and he shall, after the discontinuance
of the disability annuity, be entitled to the benefits of paragraph k
or o(1) (c) and (d). In such case, if the individual was otherwise
qualified as of the date he was retired for disability, he may elect
voluntary retirement or may be considered to have been involun-
tarily retired as of such date, and he shall, after the discontinuance
of the disability annuity, be entitled to appropriate benefits based
on such retirement.
(10) FEDERAL EMPLOYEES' COMPENSATION ACT BENEFITS
(a) No participant shall be entitled to receive an annuity under the Act
and compensation for injury or disability to himself under the Federal
Employees' Compensation Act of September 7, 1918, as amended (5
U.S.C. 751 et seq.), referred to hereafter as FECA, covering the same
period of time. Neither this provision nor any provision of FECA shall
be so construed as to deny the right of any participant to receive an
annuity under the System by reason of his own services and to re-
ceive concurrently any payment under FECA by reason of the death
of any other person.
(b) The right of any person entitled to an annuity under the System shall
not be affected because such person has received an award of com-
pensation in lump sum under section 14 of FECA, except that where
such annuity is payable on account of the same disability for which
compensation under such section has been paid, so much of such com-
pensation as has been paid for any period extended beyond the date
such annuity becomes effective, as determined by the Secretary of
Labor, shall be refunded to the Department of Labor, to be paid into
the Federal Employees' Compensation Fund. Before such person shall
receive such annuity he shall:
(1) Refund to the Department of Labor the amount representing such
commuted payments for such extended period, or
(2) Authorize the deduction of such amount from the annuity payable
to him under the System, which amount shall be transmitted to
the Department of Labor for reimbursement to the Federal Em-
ployees' Compensation Fund. Deductions from such annuity may
be made from accrued and accruing payments, or may be pro-
rated against and paid from accruing payments in such manner
as the Secretary of Labor shall determine, whenever he finds that
the financial circumstances of the annuitant are such as to war-
rant such deferred refunding.
1. DEATH IN SERVICE
(1) DISPOSITION OF CONTRIBUTIONS WHEN NO ANNUITY IS PAYABLE.
If a participant dies and no claim for annuity is payable under the System,
his contributions to the Fund with interest at the rate prescribed in sub-
paragraphs o(1) (d) or o(2) (a) shall be paid in accordance with the pro-
vision for refund of contributions in the order of precedence prescribed
in subparagraph o(3).
(2) BENEFIT TO SURVIVING WIDOW OR DEPENDENT WIDOWER. If a
participant who has at least five years of service credit toward retirement
under the System, excluding credit for military or naval service, dies before
separation or retirement from the Agency and is survived by a widow or
dependent widower, such widow or dependent widower shall be entitled to
an annuity equal to 55 percent of the annuity computed in accordance with
the provisions of subparagraph q(1) (a). The annuity of such widow
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downgrading and
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PERSONNEL
or dependent widower shall commence on the date following death of the
participant and shall terminate upon death or remarriage of the widow
or dependent widower, or upon the dependent widower's becoming capable
of self-support.
(3) BENEFIT TO SURVIVING CHILD OR CHILDREN. If a participant who
has at least five years of service credit toward retirement under the Sys-
tem, excluding credit for military or naval service, dies before retirement
or separation from the Agency and is survived by a child or children, each
surviving child shall be entitled to an annuity computed in accordance
with the applicable provisions of subparagraph q(3), depending upon
whether the participant was also survived by a wife or husband.
~. VOLUNTARY RETIREMENT. Any participant who is at least fifty years of
age and has rendered twenty years of service may on his own application and
with the consent of the Director be retired from the Agency and receive bene-
fits in accordance with the provisions of this regulation provided he has not
less than ten years of service with the Agency of which at least five shall have
been qualifying service.
(1) SUBMISSION OF REQUEST. Any participant wishing to retire under
this provision shall normally submit his request to the Director of Per-
sonnel not less than 90 calendar days prior to his desired retirement date.
(2) EFFECTIVE DATE. The effective date of the voluntary retirement of a
participant for the purpose of computing his annuity rate shall be the date
of his separation from the Agency. However, his annuity shall commence
as of the first day of the month following the month in which the partici-
pant was separated and is payable on the first day of the month following
that for which it accrued.
k. DISCONTINUED SERVICE BENEFITS
(1) ELECTION OF REFUND OF CONTRIBUTIONS OR DEFERRED ANNUITY.
Any participant who separates from the Agency after having performed
not less than five years of Agency service may upon separation from the
Agency or at any time prior to becoming eligible for an annuity elect
either:
(a) To have his contributions to the Fund returned to him in accordance
with the provisions of this regulation; or
(b) To leave his contributions in the Fund and receive a deferred annuity,
computed in accordance with the provisions of this regulation, com-
mencing at the age of sixty-two years. However, this option is not
available to a participant whose separation is determined by the Di-
rector to be based in whole or in part on the ground of disloyalty
to the United States.
(2) DEATH PRIOR TO RECEIPT OF DEFERRED ANNUITY. If a participant
who has elected to receive a deferred annuity commencing at the age of
sixty-two dies before reaching age sixty-two, his contributions to the Fund,
with interest, shall be paid to his beneficiary as prescribed in sub-
paragraph o(3).
m. INVOLUNTARY RETIREMENT
(1) The Director may in his discretion place in a retired status any partici-
pant who has completed at least twenty-five years of service, or who is at
:Least age fifty and has completed at least twenty years of service, provided
such participant has not less than ten years of Agency service of which
at least five shall have been qualifying service. If so retired, such partici-
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118.10 27 April 1965 (237)
 SECRET 25X1 A
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pant shall receive retirement benefits in accordance with the provisions
of this regulation.
(2) Ordinarily, the recommendation to retire a participant under the provi-
sions of this paragraph shall originate with the Head of his Career Service
who shall provide a full statement of the reasons for such recommenda-
tion. However, in appropriate cases the Director of Personnel shall origi-
nate such recommendation.
(3) No provision of this regulation shall impair the authority of the Director
to terminate the employment of any participant pursuant to the authority
contained in section 102(c) of the National Security Act of 1947, as
amended.
n. MANDATORY RETIREMENT FOR AGE. Any participant receiving compensa-
tion at the rate of grade GS-18 or above shall be automatically separated from
the Agency upon reaching the age of sixty-five. Any participant receiving
compensation at a rate less than grade GS-18 shall be automatically separated
from the Agency upon reaching the age of sixty. Such separation shall become
effective on the last day of the month in which the participant reaches age
sixty or sixty-five, as specified in this subparagraph. However, whenever the
Director shall determine it to be in the public interest, he may extend such
participant's service for a period not to exceed five years. A participant sepa-
rated in accordance with this provision who has completed five years of Agency
service shall receive retirement benefits in accordance with the provisions of
subparagraph q.
o. CONTRIBUTIONS TO THE FUND
(1) COMPULSORY CONTRIBUTIONS
(a) Amount of Contribution: Six and one-half percent of the basic salary
received by each participant shall be contributed to the Fund for the
payment of annuities, cash benefits, refunds, and allowances. An equal
sum shall also be contributed from the respective appropriation or
fund which is used for payment of his salary. The amounts deducted
and withheld from basic salary together with the amount so contri-
buted from the appropriation or fund shall be deposited by the Director
of Finance to the credit of the Fund. Each participant shall be
deemed to consent and agree to such deductions from his basic salary.
(b) Periods of Leave Without Pay and Military Service: Contributions shall
not be made for any periods of leave without pay, or for periods of
leave of absence during which a participant is performing active mili-
tary or naval service in the Army, Navy, Air Force, Marine Corps, or
Coast Guard of the United States, or for periods of such service prior
to becoming a participant.
(c) Refund of Compulsory Contributions: A refund of compulsory contri-
butions is payable under the following circumstances:
(1) When a participant is separated from the System without becoming
eligible for an immediate annuity or a deferred annuity at age
sixty-two or, if eligible for a deferred annuity, he elects before
reaching age sixty-two to have the refund in lieu of an annuity.
(2) When a retired participant's total compulsory contributions, in-
cluding any special contributions or deposits made to obtain credit
for prior service, with interest, exceed the total of annuities paid
to him or to an annuitant claiming through him, the excess shall
be paid in the order of precedence shown in subparagraph o(3)
below upon the establishing of a valid claim therefor, and such
payment shall be a bar to recovery by any other person.
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(d) Interest on Refund of Compulsory Contributions: Interest on com-
pulsory contributions refunded in accordance with the provisions of
this regulation shall be computed at four percent per annum to 31
December 1947 and three percent per annum thereafter to 31 Decem-
ber 1956. Such interest shall be compounded annually and propor-
tionately for the period served during the year of separation. No inter-
est is payable after 31 December 1956 except when the refund covers
Agency service of more than one year but less than five years.
(2) VOLUNTARY CONTRIBUTIONS
(a) Any participant may, at his option, deposit additional sums in multi-
ples of one percent of his basic salary, but not in excess of ten percent
of such salary, which amounts together with interest at three percent
per annum, compounded annually as of 31 December, and propor-
tionately for the period served during the year of his retirement, in-
cluding all contributions made during or for such period, shall, at the
date of his retirement and at his election, be:
(1) returned to him in lump sum; or
(2) used to purcase an additional life annuity; or
(3) used to purchase an additional life annuity for himself and to
provide for a cash payment on his death to a beneficiary who shall
be designated in writing to the Director of Personnel by the par-
ticipant; or
(4) used to purchase an additional life annuity for himself and a life
annuity commencing on his death payable to a beneficiary whose
name shall be notified in writing to the Director of Personnel by
the participant with a guaranteed return to the beneficiary or
his legal representative of an amount equal to the cash payment
referred to in subparagraph (1) above.
(b) The benefits provided by subparagraphs (2), (3), or (4) of subpara-
graph o(2) (a) above shall be actuarially equivalent in value to the
payment provided for by subparagraph o(2) (a) (1) above and shall
be calculated upon such tables of mortality as may be from time to
time prescribed for this purpose by the Director of Finance.
(c) Voluntary contributions may be made for current service as a par-
ticipant or covering any period of prior civilian service for which a
participant has purchased service credit under the System. Volun-
tary contributions covering such periods of prior service shall be in
multiples of one percent but not exceeding ten percent of the par-
ticipant's basic salary during the period of service covered. Volun-
tary contributions for current or prior service may be made by pay-
roll deduction or in such other manner as may be approved by the
Director of Finance.
(d) Contributions shall not be made for any periods of leave without pay,
or for periods of leave of absence during which a participant is per-
forming active military or naval service in the Army, Navy, Air Force,
Marine Corps, or Coast Guard of the United States, or for periods of
such service prior to becoming a participant.
(e) In case a participant shall become separated from the Agency for any
reason except retirement on an annuity, the amount of any voluntary
contributions with interest at three percent per annum, compounded
as provided in subparagraph o(2) (a) above, made by him under the
provisions of subparagraph o(2) (a) above shall be refunded in the
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 SECRET 25X1A
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manner provided in subparagraph o(1) (c) above for the return of
compulsory contributions and interest in case of death or separation
from the Agency.
(f) Any benefits payable to a participant or to his beneficiary in respect
to the voluntary contributions provided under this paragraph shall be
in addition to the benefits otherwise provided under the System.
(3) DESIGNATION OF BENEFICIARY FOR LUMP-SUM PAYMENT
(a) A designation of beneficiary is only for purposes of lump-sum payment
of refunds of either compulsory or voluntary contributions. If a par-
ticipant elects to designate a beneficiary for this purpose, he shall
make such designation in writing to the Director of Personnel. The
designation of a beneficiary does not affect the right of any person
who qualifies to receive survivor annuity benefits which are payable
under the System.
(b) It is not necessary for any participant or former participant to desig-
nate a beneficiary unless he wishes to establish a different order of
precedence for payment than that established below.
(c) If there is no designated beneficiary living, any lump-sum benefit
which becomes payable after the death of a participant or a former
participant will be payable in the following order of precedence:
(1) To the surviving wife or husband of the participant.
(2) If there be no surviving wife or husband, to the child or children
of the participant and descendants of deceased children by repre-
sentation.
(3) If none of the above, to the parents of such participant or the
survivor of them.
(4) If none of the above, to the duly appointed executor or adminis-
trator of the estate of such participant.
(5) If none of the above, to other next of kin of such participant as
may be determined by the Director of Personnel to be legally
entitled thereto. However, no payment shall be made in such
case until after the expiration of thirty days from the death
of the retired participant or his surviving annuitant.
(1) SERVICE AS A PARTICIPANT. The period of service of a participant
shall be computed from the date he is designated a participant in the
System. However, all periods of separation from the Agency and so
much of any leaves of absence without pay as may exceed six months
in the aggregate in any calendar year shall be excluded, except leaves of
absence while receiving benefits under FECA and leaves of absence granted
participants while performing active and honorable service in the Army,
Navy, Air Force, Marine Corps, or Coast Guard of the United States.
(2) PRIOR SERVICE CREDIT
(a) General. A participant may, subject to the provisions of this sub-
paragraph, include in his period of service:
(1) Civilian service in the executive, judicial, and legislative branches
of the Federal Government and in the District of Columbia gov-
ernment, prior to becoming a participant; and
(2) Active and honorable military or naval service in the Army, Navy,
Air Force, Marine Corps, or Coast Guard of the United States prior
to the date of the separation upon which title to annuity is based.
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(b) Credit for Prior Civilian Service
(1) Purchase of Service Credit: A participant may obtain prior civilian
service credit in accordance with subparagraph p(2)(a)(.1) by
making a special contribution to the Fund equal to the percentage
of his basic annual salary for each year of service for which credit
is sought specified with respect to such year in the table relating
to employees contained in section 4(c) of the Civil Service Re-
tirement Act (as shown below), together with interest computed
as provided in section 4(c) of such Act, as described below.
Contribution Required for Purchase of Prior Service Credit
Percentage of
Basic Salary Service Period
21/2
August 1, 1920, to June 30, 1926
31/2
July 1, 1926, to June 30, 1942
5
July 1, 1942, to June 30, 1948
6
July 1, 1948, to October 31, 1956
61/2
After October 31, 1956
(Interest on such contributions shall be computed from the
midpoint of each service period included in the computation
to the date of deposit or commencing date of annuity, which-
ever is earlier. The interest shall be computed at the rate
of four percent per annum to 31 December 1947 and three
percent per annum thereafter, compounded annually. No
interest shall be charged for any period of separation from
the service which began before 1 October 1956.)
A participant may elect to purchase all or any part of his prior
civilian service. However, if he elects to purchase only a portion
of such prior service, he shall be required to purchase first the
most recent service immediately preceding his becoming a par-
ticipant. A participant may make the contributions required to
obtain credit for prior civilian service by a lump-sum payment
or, under such conditions as may be determined in each instance
by the Director of Finance, by installments or payroll allotments
of not less than $25 or multiples thereof. Such installments or
allotments shall be applied first to the latest service prior to his
becoming a participant.
(2) Transfer of Contributions: When an employee under some other
Government retirement system is designated a participant in
accordance with the provisions of this regulation, his total con-
tributions and deposits, including interest accrued thereon, ex-
cept voluntary contributions, shall be transferred to the Fund
effective as of the date he became a participant. The participant
shall be deemed to consent to the transfer of such funds and
such transfer shall be a complete discharge and acquittance of
all claims and demands against the other Government retirement
fund on account of service rendered prior to his becoming a
participant in the System.
(3) Limitation on Contributions and Refund of Contributions for Pe-
riod of Service Covered by Transfer of Contributions: No partici-
pant whose contributions are transferred to the Fund in ac-
cordance with the provisions of this regulation shall be required
to make contributions in addition to those transferred for periods
of service for which full contributions were made to the other
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APERS proved or Release 2001/08/28 : CIA-RDP78-0
Government retirement fund, nor shall any refund be made to
such participant on account of contributions made during any
period to the other Government retirement fund at a higher
rate than that fixed by section 4(c) of the Civil Service Retire-
ment Act, as shown above, for contributions to the Fund.
(4) Service Credit for Periods Covered by Refund of Contributions
from Other Government Retirement Fund: No participant, whose
contributions are transferred to the Fund in accordance with the
provisions of subparagraph p(2) (b) (3), shall receive credit for
periods of service for which a refund of contributions has been
made, or for which no contributions were made to the other
Government retirement fund. A participant may, however, obtain
credit for such prior service by making a special contribution to
the Fund in accordance with the provisions of subparagraph
p(2) (b) (1) for the purchase of prior service credit.
(5) Exclusion of Credit for Service Which Is Basis of Annuity Under
Another Government Retirement System: No participant may ob-
tain prior civilian service credit toward retirement under the
System for any period of civilian service on the basis of which
he is receiving or will in the future be entitled to receive any
annuity under another retirement system covering civilian per-
sonnel of the Government.
(c) Credit for Military or Naval Service
(1) General: A participant may obtain prior military or naval service
credit as provided in this regulation by applying for it to the
Director of Personnel prior to retirement or separation from the
Agency. However, in the case of a participant who is eligible for
and receives retired pay on account of military or naval service,
the period of service upon which such retired pay is based shall
not be included except when (i) such retired pay is on account
of service-connected disability incurred in combat with an enemy
of the United States or caused by an instrumentality of war and
incurred in line of duty during a period of war (as that term is
used in Chapter 11 of Title 38, United States Code), or (ii) such
retired pay is based on retirement from a reserve component of
the Armed Forces with twenty years of service at age sixty as
provided in Chapter 67 of Title 10 of the United States Code. No
contributions to the Fund shall be required in connection with
military or naval service credited to a participant in accordance
with this provision.
(2) Exclusion of Military or Naval Service Establishing Eligibility for
Social Security Benefit: Notwithstanding any other provision of
this regulation, any military service (other than military service
covered by military leave with pay) performed by a participant
after December 1956 shall be excluded in determining the aggre-
gate period of service upon which an annuity payable under the
System to such participant or to his widow or child is to be based,
if such participant or widow or child is entitled (or would upon
proper application be entitled) at the time of such determination,
to monthly old-age or survivors' benefits under section 202 of the
Social Security Act, as amended, based on such participant's wages
and self-employment income. If in the case of the participant or
widow such military service is not excluded under the preceding
sentence, but upon attaining age sixty-two, he or she becomes
entitled (or would upon proper application be entitled) to such
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benefits, the aggregate period of service upon which such an-
nuity is based shall be redetermined, effective as of the first
day of the month in which he or she attains such age, so as to
exclude such service.
(3) Credit for Service While on Military Leave: A participant who,
during the period of any war, or of any national emergency as
proclaimed by the President or declared by the Congress, has
left or leaves his position to enter the military service shall not
be considered, for the purposes of this regulation, as separated
from his Agency position by reason of such military service, unless
he shall apply for and receive a refund of contributions under
this regulation. However, such participant shall not be con-
sidered as retaining his Agency position beyond 31 December 1956
or the expiration of five years of such military service, whichever
is later. Contributions shall not be required covering periods of
leave of absence from the Agency granted a participant while
performing active military or naval service in the Army, Navy,
Air Force, Marine Corps, or Coast Guard of the United States.
q. COMPUTATION OF ANNUITIES
(1) BASIC FORMULA
(a) The annuity of a participant shall be equal to two percent of his
average basic salary for the highest five consecutive years of service,
for which full contributions have been made to the Fund, multiplied
by the number of years, not exceeding thirty-five, of service credit
obtained in accordance with the provisions of this regulation. In
determining the aggregate period of service upon which the annuity
is to be based, the fractional part of a month, if any, shall not be
counted.
(b) The "high-five salary" means the average basic salary of a participant
for his highest five consecutive years of service for which full con-
tributions have been made to the Fund. The high-five salary is the
highest salary obtainable by averaging the rate of basic salary in
effect during any five consecutive years of service, with each rate
weighted by the time it was in effect, including odd days.
(2) REDUCED ANNUITY WITH BENEFIT TO SURVIVING WIFE OR
HUSBAND
(a) At the time of retirement, any married participant may elect to re-
ceive a reduced annuity in order to provide for an annuity payable to
his wife or her husband, commencing on the date following such
participant's death and terminating upon the death or remarriage
of such surviving wife or husband. The annuity payable to the sur-
viving wife or husband after such participant's death shall be 55
percent of such amount of the participant's annuity as he may specify
as the base for survivor benefits. The annuity of the participant
making such election shall be reduced by 21/2 percent of any amount
up to $3,600 he specifies as the base for the survivor benefit plus
10 percent of any amount over $3,600 so specified.
(b) A participant eligible to receive a deferred annuity at age sixty-two
may also elect this type of annuity.
(c) A participant may not change his election under this provision except
that a retired participant who is subsequently reemployed under the
System may make a new election at the time of his retirement follow-
ing such reemployment.
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(3) SURVIVOR ANNUITY TO CHILD OR CHILDREN
(a) When There Is Surviving Wife or Husband: If an annuitant who has
retired under the System dies and is survived by a wife or husband
and by a child or children, in addition to the annuity payable to the
surviving wife or husband, each child shall receive an annuity equal
to the smallest of:
(1) 40 percent of the annuitant's high-five salary divided by the
number of children;
(2) $600; or
(3) $1,800 divided by the number of children.
(b) When There Is No Surviving Wife or Husband: If an annuitant who
has retired under the System dies and is not survived by a wife or
husband but by a child or children, each child shall be paid an an-
nuity equal to the smallest of:
(1) 50 percent of the annuitant's high-five salary divided by the num-
ber of children;
(2) $720; or
(3) $2,160 divided by the number of children.
(c) Recomputation of Annuity: If a surviving wife or husband dies or the
annuity of a child is terminated, the annuities of any remaining
children shall be recomputed and paid as though such wife, husband,
or child had not survived the participant.
(d) Beginning and Ending Dates of Annuity: The annuity payable to a
child under this provision shall begin on the day after the participant
dies, and such annuity or any right thereto shall terminate on the
last day of the month before (1) his attaining age eighteen unless in-
capable of self-support, (2) his becoming capable of self-support after
age eighteen, (3) his marriage, or (4) his death. However, the an-
nuity of a child who is a student as defined in this regulation shall
terminate on the last day of the month before (1) his marriage, (2)
his death, (3) his ceasing to be such a student, or (4) his attaining
age twenty-one.
(4) SURVIVOR ANNUITY TO DESIGNATED BENEFICIARY OF AN UN-
MARRIED PARTICIPANT. Any unmarried participant retiring under the
provisions of the System and determined to be in good health may at
the time of retirement elect a reduced annuity and designate a bene-
ficiary to receive an annuity after his death.
(a) Designation of Beneficiary: The beneficiary must be designated in
writing to the Director of Personnel and must be a person having an
insurable interest (as that term is used in section 9(h) of the Civil
Service Retirement Act) in the participant.
(b) Determination of Participant's Health: The determination that the
participant is in good health shall be made by the Director of Per-
sonnel on advice of the Director of Medical Services following ap-
propriate medical examination.
(c) Reduction of Participant's Annuity: The annuity payable to the par-
ticipant making such election shall be reduced by 10 percent of his
annuity computed in accordance with the provisions of this regulation
and by 5 percent of an annuity so computed for each full five years
the person designated is younger than the participant, but such
total reduction shall not exceed 40 percent.
(d) Annuity to Beneficiary: The annuity of a survivor designated under
this provision shall be 55 percent of the reduced annuity payable
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ase 2001/08/28: CIA-RDP78-03721A 00M)1gAEL2-1
PE'
to the participant. The annuity payable to a beneficiary under this
provision shall begin on the first day of the next month after the
participant dies. Upon the death of the surviving; beneficiary all pay-
ments shall cease and no further annuity payments authorized under
this provision shall be due or payable.
(5) OFFENSES BARRING ANNUITY PAYMENTS. The payment of annuity
to a participant or to his survivor is barred if such participant is convicted
of certain Federal offenses or commits certain actions as provided in
5 U.S.C. 2281 et seq. The payment of an annuity is similarly barred under
the provisions of 5 U.S.C. 2283(c) if such participant remains outside the
United States for more than one year to avoid prosecution.
(6) COST-OF-LIVING ADJUSTMENT OF ANNUITIES
(a) Basis of Adjustment: On the basis of determinations made by the
Civil Service Commission pursuant to section 18 of the Civil Service
Retirement Act, as amended, pertaining to per centum change in
the price index, the following adjustments in annuities shall be made:
(1) Effective 1 April 1966, if the change in the price index from 1964
to 1965 shall have equaled a rise of at least three percent, each
annuity payable from the Fund which has a commencing date
earlier than 2 January 1965 shall be increased by the percent
rise in the price index adjusted to the nearest one-tenth of one
percent.
(2) Effective April 1 of any year other than 1966 after the price index
change shall have equaled a rise of at least three percent, each
annuity payable from the Fund which has a commencing date
earlier than 2 January of the preceding year shall be increased
by the percent rise in the price index adjusted to the nearest one-
tenth of one percent.
(b) Eligibility for Annuity Increase: Eligibility for an annuity increase
under this section shall be governed by the commencing date of each
annuity payable from the Fund as of the effective date of an in-
crease, except as follows:
(1) Effective from the date of the first increase under this provision,
an annuity payable from the Fund to an annuitant's survivor
(other than a child entitled under subparagraph q(3) above),
which annuity commenced the day after the annuitant's death,
shall be increased in accordance with the provisions of this sub-
paragraph if the commencing date of annuity to the annuitant
was earlier than January 2 of the year preceding the first increase.
(2) Effective from its commencing date, an annuity payable from the
Fund to an annuitant's survivor (other than a child entitled under
subparagraph q(3) above), which annuity commences the day
after the annuitant's death and after the effective date of the
first increase under this section, shall be increased by the total
percent increase the annuitant was receiving under this section
at death.
(3) For purposes of computing an annuity which commences after
the effective date of the first increase under this section to a
child under subparagraph q(3) above, the items $600, $720, $1,800,
and $2,160 appearing in subparagraph q(3) shall be increased by
the total percent increase allowed and in force under this section
and, in case of a deceased annuitant, the items 40 percent and
50 percent appearing in subparagraph q(3) shall be increased by
the total percent increase allowed and in force under this section
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to the annuitant at death. Effective from the date of the first
increase under this section, the provisions of this paragraph shall
apply as if such first increase were in effect with respect to
computation of a child's annuity under subparagraph q(3) which
commenced between January 2 of the year preceding the first
increase and the effective date of the first increase.
(c) Exclusion of Adjustment in Annuity Based on Voluntary Contributions:
No increase in annuity under this provision shall be computed on any
additional annuity purchased at retirement by voluntary contribu-
tions.
(d) Adjustment in Monthly Installment of Annuity: The monthly in-
stallment of annuity after adjustment under this provision shall be
fixed at the nearest dollar.
r. RECALL OF RETIRED PARTICIPANT. The Director may, with the consent
of any retired participant, recall such participant to duty in the Agency
whenever he shall determine such recall is in the public interest. Any such
participant recalled to duty in the Agency or reinstated or reappointed in
accordance with the provisions of subparagraph h(9) (b) shall, while so serving,
be entitled in lieu of his annuity to the full salary of the grade in which he
is serving. During such service, he shall make contributions to the Fund in
accordance with the provisions of this regulation. When he reverts to his
retired status, his annuity shall be determined anew in accordance with the
provisions of this regulation.
s. REEMPLOYMENT OF RETIRED PARTICIPANT
(1) GENERAL. A participant retired under the System shall not, by reason
of his retired status, be barred from employment in Federal Government
service in any appointive position for which he is qualified. An annuitant
so reemployed shall serve at the will of the appointing officer.
(2) REEMPLOYMENT COMPENSATION
(a) Any annuitant who has retired under the System and who is re-
employed in the Federal Government service in any appointive posi-
tion either on a part-time or full-time basis shall be entitled to re-
ceive his annuity payable under the System, but there shall be de-
ducted from his salary a sum equal to the annuity allocable to the
period of actual employment.
(b) In the event of any overpayment under this provision, such overpay-
ment shall be recovered by withholding the amount involved from
the salary payable to such reemployed annuitant, or from any other
moneys, including his annuity, payable in accordance with the provi-
sions of the Act.
t. MONEYS
(1) ESTIMATE OF APPROPRIATIONS NEEDED. The Director of Finance
shall prepare the estimates of the annual appropriations required to be
made to the Fund and shall cause to be made actuarial valuations of the
Fund at intervals of five years, or oftener if deemed necessary by him.
(2) INVESTMENT OF MONEYS IN THE FUND. The Director may, with the
approval of the Secretary of the Treasury, invest from time to time in
interest-bearing securities of the United States such portions of the
Fund as in his judgment may not be immediately required for the pay-
ment of annuities, cash benefits, refunds, and allowances, and the income
derived from such investments shall constitute a part of such Fund.
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(3) ATTACHMENT OF MONEYS. None of the moneys mentioned in this
regulation shall be assignable either in law or equity, or be subject to
execution, levy, attachment, garnishment, or other legal process.
u. LIMITATION ON NUMBER OF RETIREMENTS
(1) NUMERICAL LIMITATION. The number of participants retiring on an
annuity for any reason except disability shall not exceed a total of four
hundred during the period ending on 30 June 1969 nor a total of four
hundred during the period beginning 1 July 1969 and. ending on 30 June
1974.
(2) APPLICATION OF LIMITATION TO DEFERRED ANNUITIES. In the
case of a participant separated from the Agency after performing five
years of Agency service who is eligible for and elects to receive a deferred
annuity, such participant shall be regarded as "retiring" within the mean-
ing of this. paragraph when he attains age sixty-two and begins to receive
annuity payments.
(3) CONTROL. The Director of Personnel shall be responsible for controlling
the number of retirements under the System to ensure that the numeri-
cal limitation is not exceeded.
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