DEAR MR. SPEAKER:

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-04722A000200020081-5
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 9, 2016
• Document Release Date: August 24, 2000
• Sequence Number: 81
• Content Type: LETTER

-Approved For ReIL a 2001/08/29 : CIA-RDP78-04722A000Z00020081-5
WASHINGTON, D.C.??..204151,
widow(er) commencing after the effective date of a cost-of-living
annuity increase shall not be less than it would have been if it
.the proposal provides that the annuity of an employee's or Member's.:
had been eligible for annuity on the effective date. Similarly,
not be Ie ~hann his annuity would have been if he had retired and
,ter. the effective date of a cost-of-living annuity increase shall
which provides that the immediate (not deferred) Civil Service Re-
tirement annuity of an employee or Member of Congress retiring af-
recommends favorable action on, the attached legislative proposal
The Commission submits for the consideration of the Congress, and
.his total years of service, for his annuity without the cost-of-
ployee would need 3-10 additional months' service, depending on
salary increases, and a 5 percent cost-.of-living increase, an em
with the individual. Assuming a normal pattern of past and future
.&g(2) all service and salary up to the date of actual separation,
without a cost-of-living increase, depends on factors which vary
most recent cost-of-living increase, plus that percentage increase
Whether an employee's annuity will be greater computed on the
basis of (1) service and salary up to the effective date of the
proposal, an employee would in all cases receive the larger annuity..,
living increase to equal the amount he could get if he had retired
on the effective date of the cost-of-living increase. Under the
nuity increase in order to have it applied in the computation of
commence on or before the effective date of a cost-of-living an-.?.
8340, provides that an employee must retire and his annuity must
The present cost-of-living adjustment provision, found in 5 U.S.C.;
his annuity. The reasons for the proposed change are:
;.UNITED STATE CIVIL SERV1C . COMMISSIO
The present provision produces the anomaly of an
,employee who retires soon after the effective
date of an increase receiving less annuity than
Approved For.Release,_2001/08/29: CIA-RDP78-a4722A00020O020081,-5
 an employee, with the same service beginning
.date and high three-year average salary, who
though the employee who retires after the
,effective date has more slervice. A similar.
anomaly exists in computing, a survivor's an-
nuity because the survivor of an employee w,Wo
cost-of-living increase receive the increase,
but the survivor of an employee.-who dies after
the effective date does not recei'v :-ft...
We are concerned about the way the large..number
ed b
tiremen is t
l i i --
~6b...
- -
of re
justments affects the administration of the`~?
Civil Service Retirement System.. The present
.cost-of-living adjustment provision "bunches".
retirements immediately before the effective
date of every cost-of-living annuity increase
by accelerating the retirements of employees
who had been planning to leave within'six months
or so after that date. The last such increase,
effective August 1, 1970, for example, produced
about 19,000 retirements in addition to the
5,000 or less that occur in a normal month. De-
spite the Commission's plans to cope with such a .
peak load, work is disrupted and annuity pay-
ments are seriously delayed when so many retire- ,
ments that would otherwise have been evenly spaced
over a period of several months occur at the
same time.
Agencies throughout the Government are also ad-
versely affected because an inordinate number of
.cost-of-living annuity increase. Many otthese
people, if they are willing, must be reemployed
as annuitants to complete the projects on which
they were working..
date; (2) moderate the peaking of retirements. immediately before
cos
Df_-LLViuz F rarr. 1~ ArAe af-f air LI 04 A 2 j ,Aged savings
annuities that commence on or just.before the effective date of a
cost-of-living increase and those that commence shortly after that
Enactment of the draft bill would (1) eliminate the anomaly between
Approved For Reba 2001/08/29: CIA-RDP78-04722A000' 0020081-5
,
licy of $250.,000.' in administrative expenses now cnarga Xg. i . the Civil
 Approved For Release 2Q01/08/29 : CIA-RDP78-04722A000020081-5
Service Retirem
3 ~;
.
ent
load that and Disability k
duce accompanies each cost-oflund ivina rrocessin the e peak work.
disrunt;n.,
"lent caused b u