SECTIONAL ANALYSIS AND EXPLANATION

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-04722A000200010029-4
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 9, 2016
• Document Release Date: June 8, 2000
• Sequence Number: 29
• Content Type: REGULATION

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SECTIONAL ANALYSIS AND EXPLANATION
Section 1 amends section 204(b)(3) of the Central Intelligence
Agency Retirement Act of 1964 for Certain Employees, as amended, to
eliminate the requirement that a child be dependent upon a parent partici-
pant in order to receive a survivor annuity, to raise from 21 to 22 the
maximum age for receiving survivor annuity payments as a student, to
increase from 4 to 5 the maximum months absence from school which
may be permitted without terminating such a survivor annuity, and to
permit a natural child of a deceased participant to share in the distribution
of any money or deposit in the GIA Retirement and Disability Fund which
belongs to the deceased participant. Similar changes in the administration
of the Civil Service retirement system were approved during the $9th
Congress by amendment to the Civil Service Act, P. L. 89-407, and the
"Civil Service Retirement Act Amendments of 1966" set forth. in P. L.
89-504.
Section 2 amends section 221(e) of the Act to provide for the
commencement and termination date for a child survivor annuity and to
assure that the. survivor annuity of a student may be granted even though
it had previously been terminated. A similar provision is contained in
the Civil Service Retirement Act Amendments of 1966, Section 506(d),
P. L. 89-504.
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Section 3 amends section 221 of the Act by adding new paragraphs
(i), (j ), and (k) as follow:
.New paragraph (i) authorizes the payment of annuities from the
fund as soon as a participant otherwise eligible for an annuity enters
nonpay status and incorporates specific provisions for commencement of
annuities to survivors, conforming to the Civil Service provision set
forth at 5 U. S. C. 8345 (b). -
New paragraph (j) incorporates specific provisions for the
termination of annuities to retirees and survivors, conforming to the
Civil Service provision set forth at 5 U. S. C. 8345(c).
New paragraph (k) provides an option to credit prior civilian
service for which no deductions have been made by reducing the resulting
annuity by 10 percent of the amount owed, conforming to the Civil Service
provision set forth at 5 U. S. C. 8339(h).
Section 4 amends section 23b of the Act to increase the number
of retirements authorized during the period 1 3'uly 1969 through 30 June
1974. It is estimated that the present limit of 400, which applies to all
retirements except disability, will be reached in fiscal year 1973. Under
these circumstances orderly retirement planning cannot proceed. The
limit on number of retirements was established in the Act only for the
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first ten years of the operation of the retirement system and the numerical
limitations placed in the Act were based upon the best estimates that were
available at that time assuming a stable rather than a reducing work force.
Section 5 amends section 252- of the Act to permit the
transfer to the CIA Fund of the employer's contributions as well as
the contributions of the employee when an employee is transferred
from some other Government retirement system to the CIA Retire-
ment and Disability System. In addition, it authorizes the transfer
from the Agency retirement fund of the employee's and the employer's
contributions whenever a participant becomes eligible for participation
in any other Government retirement system. Thus the retirement
fund incurring the liability for the payment of benefits would also be
in receipt of all contributions made by or on behalf of the employee so
covered. It would also permit direct transfer of the employee contri-
bution from the CTA Fund to any other fund,, eliminating the present
cumbersome and costly procedure which requires: refund, income
tax payment on any interest, and repurchase of service credit in new
system by deposit of refund and appropriate interest.
Section 6 amends section 252 of the Act by adding a new
paragraph to grant to survivors the same right afforded participants
to purchase prior civilian service. This change conforms to the
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Section 7 amends section 273(a) of the Act to permit an annuitant
retired under the Act to receive his full salary upon reemployment in the
Federal Government service subject to a maximum limitation of combined
salary and annuity in the amount of his salary at the time of retirement.
Agency retirees, with few exceptions, need to seek a second career and
may well desire such a career elsewhere in Government. CIA employees
do not acquire status in the competitive service, however, and much of
their experience and competence cannot readily be related to normal
Government positions. The total offset of annuity upon reemployment in
Gavernment service, as it is now required, tends to limit second career
employment opportunities for CIA, retirees to the private sector, It thus
tends to deny to the Government the services of individuals who, even
though they have completed their CIA careers, are highly competent,
Retirees under the CIA Retirement and Disability System have earned
their. annuities at the time when they retire. This principle appears to
have been established for the .Reserve military officer, and more recently,
the retired Regular military officer, and for the retired Foreign Service
Officer. With respect to retired military officers a Reservist can retain
both his civilian salary and his entire annuity, and a Regular officer can
retain his salary plus the first $2, 359. $7 (presently) of his annuity and '
50 percent of the balance thereof.
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