Document Type: 
Document Number (FOIA) /ESDN (CREST): 
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Document Creation Date: 
December 9, 2016
Document Release Date: 
August 24, 2000
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PDF icon CIA-RDP78-04722A000200020081-5.pdf443.03 KB
-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