SUPPORT BULLETIN JANUARY 1967

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-04724A000800020002-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 24
• Document Creation Date: November 16, 2016
• Document Release Date: May 15, 2000
• Sequence Number: 2
• Publication Date: January 1, 1967
• Content Type: BULL

support-
FOR INFORMATION OF HEADQUARTERS AND FIELD PERSONNEL
DP78-04724A000800020002-4
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,.~4AO00800020002-4
TABLE OF CONTENTS
Page
BENEFIT PROGRAMS FOR YOU AND YOUR FAMILY . . . . . 1
LIFE INSURANCE PROGRAMS AVAILABLE . . . . . . . . . . . 2
Federal Employees Group Life Insurance (FEGLI) . . . . . . . 2
Worldwide Assurance for Employees of Public Agencies (WAEPA) . 2
United Benefit Life Insurance Company (UBLIC) . . . . . . . . 4
MEDICAL BENEFITS AND HOSPITALIZATION . . . . . . . . . 5
Hospitalization and Health Insurance . . . . . . . . . . . . . 5
Specified Dread Diseases Policy . . . . . . . . . . . . . . . . 6
Overseas Medical Benefits . . . . . . . . . . . . . . . . . . 6
Medicare . . . . . . . . . . . . . . . . . . . . . . . . . . 6
OTHER INSURANCE PLANS AVAILABLE . . . . . . . . . . . . 7
Income Replacement Plan . . . . . . . . . . . . . . . . . . 7
Travel Insurance Plans . . . . . . . . . . . . . . . . . . . . 7
JOB-RELATED DISABILITY AND DEATH BENEFITS . . . . . . 8
THE CIVIL SERVICE RETIREMENT SYSTEM . . . . . . . . . . 9
PRACTICAL ILLUSTRATIONS OF FINANCIAL PLANNING . . . 12
CASUALTY PROGRAM . . . . . . . . . . . . . . . . . . . . 16
Death of an Employee . . . . . . . . . . . . . . . . . . . . 16
Designating Emergency Addressees . . . . . . . . . . . . . . 16
PLANNING YOUR ESTATE . . . . . . . . . . . . . . . . . . 17
Your Important Papers and Records . . . . . . . . . . . . . 18
Storing Your Documents . . . . . . . . . . . . . . . . . . . 18
Personal File at Headquarters . . . . . . . . . . . . . . . . 18
Size of Your Estate and Taxes . . . . . . . . . . . . . . . 19
Counselors Can Help . . . . . . . . . . . . . . . . . . . . . 19
The Estate Plan . . . . . . . . . . . . . . . . . . . . . . . 20
Questions to Ask Yourself . . . . . . . . . . . . . . . . . . 21
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 CPYRGHT
Approved For Ra gase 2000/06/05
Appro
FOR YOU AND YOUR FAMILY
BENEFIT PROGRAMS
In establishing benefit plans for their fami-
lies, many employees, -we have discovered, lack
an adequate appreciation of the comprehen-
siveness of the insurance and retirement pro-
grams available to them. Too often this has
been reflected in inadequate provision for
families following the breadwinner's injury
or death. This situation, together with the
recent passage of significant legislation aff ect-
ing personnel benefits, has prompted us to
devote this entire issue of the Support Bulletin
em-
ployees.
The Benefits and Services Division of the
Office of Personnel has developed a positive
program of benefits to assist you. The fol-
lowing pages explain the various insurance
and retirement plans and the related benefit
programs which comprise the overall program.
If you find that some of your questions aren't
answered or if you are prompted to make
? benefit plans you now have
? yourself ? your family, we suggest you get in touch with your support officer.
He can either furnish you with additional in-
formation or advise you on how to obtain it.
002-4
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DUCCA
life insurance programs available
d4
91mm"N ",
FEDERAL EMPLOYEES' GROUP
LIFE INSURANCE
During 1954 a new term, FEGLI, became
important in the jargon of Federal personnel
specialists. In August of that year the Gov-
ernment, as your employer, took a big stride
toward a comprehensive employee benefits pro-
gram by providing Federal Employees' Group
Life Insurance (FEGLI) under the act of the
same name. Employees were encouraged by
the act to provide protection to their survivors
under term insurance at a reasonable cost.
(Term insurance has no cash, loan, paid-up,
or extended insurance values.)
The Group policy provides you with two
kinds of insurance during employment-life
insurance, and accidental death and dismem-
berment insurance. The amount of insurance
of each kind equals your current annual
salary rounded to the next higher $1,000 with
a maximum of $2Q,000. The amount of your
life insurance is payable in the event of your
death, no matter how caused. Accidental
death and dismemberment insurance is pay-
able if you lose your life, limb or eyesight as
a direct result of an accident. The full
amount of your accidental death and dismem-
berment insurance is payable in the case of
loss of life; half the amount is payable to you
for the loss of one limb or sight of one eye
and the full amount for two or more such
losses. For all losses resulting from any one
accident, no more than the full amount is
payable.
The premium is 25 cents biweekly for each
$1,000 and is automatically deducted from
your pay check unless you elect to waive the
aoaooooUooaOoUo(ao
~W~
insurance. The Government contributes half
as much towards the premium as you do.
You do not need to name a beneficiary if
you are satisfied to have the death benefits
of your insurance paid in the following order
of precedence:
1. Your widow or widower.
2. Your child or children in equal shares.
3. Your parents in equal shares or the en-
tire amount to the. surviving parent.
4. The executor or administrator of your
estate.
5. Your next of kin under the laws of your
State of domicile at the time of your
death.
If you have at least 12 years of creditable
Government service and retire on an immedi-
ate annuity, your insurance will continue to
remain in force and will be free of premiums.
The amount of insurance, however, will be
reduced at the time you retire or when you
reach age 65, whichever is later. The reduc-
tion will be two percent each month until
the amount of the policy represents 25 percent
of the coverage you carried at retirement.
WORLDWIDE ASSURANCE FOR EMPLOYEES
OF PUBLIC AGENCIES
WAEPA offers group life insurance benefits
under contracts underwritten by the Equi-
table Life Assurance Society of the United
States. This is term insurance and has no
cash, loan, paid-up, or extended insurance
values. It is available only to full-time civil-
ian employees of the United States Govern-
ment and will protect you and your family
during the time you are employed with the
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CPYRGH
Government whether at home or abroad.
Coverage under the WAEPA plan is divided
into three categories.
Age Group
Monthly
Premium
Face Value
Additional
for
Accidental
Death
Up to 40 incl.
$ 8.93 *
$20,000 * *
$25,000 * * *
41 to 50 incl.
11.02 *
$17,500 * *
$25,000 * *
51 to 65
13.10*
$16,250**
$25,000* * *
* Includes cost of $2,000 dependent coverage.
* * Includes $15,000 basic plus supplement coverage.
* * * Includes benefits for accidental disemberment.
Partial Coverage After Retirement
When you retire with an immediate an-
nuity for reasons other than disability or if
you attain age 65 before you retire, you may
be eligible to continue, for the remainder of
your life, one-third of your basic group life
insurance (e.g. $15,000 would reduce to
$5,000). The cost of this continued coverage
will be $30.00 per year per $1,000. If you
should be retired with immediate annuity be-
cause of total disability, you will be eligible
to continue two-thirds of your basic group
life insurance until you reach age 65, when
you could apply for continued coverage.
Coverage for Dependents
With the WAEPA policy your spouse and
your unmarried children who are at least 14
days old and under age 19 are considered your
eligible dependents. The policy also includes
any unmarried child who is a full-time student
and has attained the age of 19 years but has
not reached 21. Your dependents will be in-
cluded in the plan on the same date you be-
come insured. WAEPA will provide $2,000
in group life insurance for each of your de-
pendents who is five years of age or older.
Children younger than age five receive cover-
age in a smaller amount, depending upon
their age.
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UNITED BENEFIT
LIFE INSURANCE COMPANY
UBLIC offers the second of the two avail-
able commercial life insurance programs.
This insurance is also term insurance and
thus has no cash, loan, paid-up, or extended
insurance values.
All full-time Organization employees who
have not yet reached their 60th birthday may
apply for UBLIC coverage. This coverage
can be purchased in amounts ranging from
$3,000 to $30,000. In the event of accidental
death, these amounts are doubled. Benefits
are also payable for accidental dismember-
ment similar to those stated for FEGLI. Pre-
miums are 50 cents per thousand per month.
Under the UBLIC policy, dependent coverage
is provided at no additional cost to you. Your
spouse and children ages 5 to 21 years each
have-$1,000 of coverage; children ages 14 days
to 5 years have coverage in smaller amounts,
depending upon their age.
Major Benefit Added
Under a recent change a major benefit was
added to the UBLIC plan in the form of con-
tinued coverage after retirement. If you have
been insured with UBLIC for not less than
ten years prior to your retirement and retire
on an immediate annuity, you are eligible for
this benefit. Briefly, this plan offers you re-
duced insurance coverage after retirement and
you continue to pay the current monthly pre-
mium of 50 cents per thousand until you at-
tain the age of 60 years. At that time cover-
age is reduced to 1/6 of the average amount
of coverage you had in the ten-year period
immediately preceding your retirement and
no further premium payment is required of
you. Upon attaining the age of 70 years,
your coverage is reduced to 1/12 of your ten-
year average held immediately preceding re-
tirement and you will have this protection for
the rest of your life.
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HOSPITALIZATION AND HEALTH INSURANCE
Four health benefit programs are available
to Federal employees under the Federal Em-
ployees Benefits Act of 1959. One of these,
the Association Benefit Plan, provides benefits
for sickness or accident as shown on the chart
below.
KINDS OF
BASIC BENEFITS PAY
(DEDUCT-
I MAJOR MEDICAL BENEFITS PAY
EXPENSES
(No Deductible)
IBLE
(After Deductible)
Hospital
For each confinement for up to 90 days-
Inpatient
? up to $30 per day for room and board
YOU
80% of covered hospital char es not
paid by basic benefits g
? full payment of all other covered charges
P A Y
Hospital
Outpatient
Up to $202.50 for each accident or sickness
$100
80% of covered hospital outpatient
charges not paid by basic benefits
Surgical
Actual charges up to amounts specified in the Schedule
D
80% of reasonable and customary
of operations (Maximum $500)
E
charges over amount allowed by
Schedule of Operations
Out of Hospital
X-Ray and Lab
Up to $75
per person per calendar year
D
80%
covered charges not paid by
U
basic c benefits
Other Medical
Services and
NO BASIC BENEFITS
C
80% of eligible expenses not covered
Su
lies
(Major Medical Only
T
by Basic Benefits (e.g. doctors' visits,
pp
nurses, prescription drugs, etc.)
Hospital-For normal delivery, up to $20 per day for up
to 8 days. (For cesarean section, miscarriage, and se-
1
80% of covered charges not paid by
Basic Benefits for severe complica-
vere complications of pregnancy, regular Basic Hospi-
B
tions of pregnancy
Maternity
tal Benefits will be paid instead of Maternity Benefits)
L
-$100 for delivery
Doctors' charges-Up to-$150 for cesarean section
E
(Major Medical Benefits are not pay-
able for normal delivery
cesarean
-$ 50 for miscarriage
,
section, or miscarriage.)
MAXIMUM MAJOR MEDICAL BENEFITS: $30,000 per person, plus automatic annual restoration of $1,000
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SPECIFIED DREAD DISEASES POLICY
This policy offers as much as $10,000 in
benefits to you and your family to defray the
costs associated with polio, leukemia, scarlet
fever, diphtheria, smallpox, spinal or cerebral
meningitis, encephalitis, tetanus, or rabies.
Benefits will be paid for each incidence of the
disease within three years after the date of
the first treatment. Payments to you are
made regardless of, and in addition to, any
other forms of compensation you receive from
any other sources. Coverage under the family
plan extends to your unmarried children un-
der 21 years of age. Cost of this insurance
is $4 per year for coverage of the employee
only or $10 per year to cover the employee
and his family members.
OVERSEAS MEDICAL BENEFITS
Eligible Organization personnel on PCS or
TDY assignments outside the continental
limits of the United States may be reimbursed
for hospital and related medical expenses.
The program covers only those injuries or ill-
nesses which require or normally would re-
quire in-patient hospitalization by U.S. stand-
ards and which are not the result of vicious
habits, intemperance, or misconduct. Ex-
penses for maternity, elective and cosmetic
surgery, ordinary dental care, and out-patient
care are excluded.
Under the same circumstances as related
above, eligible employees may also be reim-
bursed for expenses of dependents for injuries
or illnesses incurred while the dependent is
located abroad which require in-patient hos-
pitalization or equivalent care. Generally,
dependents are covered for the total cost of
treatment which exceeds $35.00 up to a maxi-
mum of 120 days of treatment.
MEDICARE
Upon retirement and attaining age 65 you
may be eligible for certain benefits under
Medicare. If you are interested in obtaining
information on Medicare eligibility or benefits
for you or your parents, you should contact
your nearest Social Security Office.
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CPYRGHT
25X1A
1 50
Vbi(~ yn4altw~ ylea~~
Me;~~2
INCOME REPLACEMENT PLAN
Under the IRP benefits begin on the 31st
day of total disability. You can receive from
$25 to $100 per week thereafter for a period
of up to 10 years if the total disability is the
result of illness and for the rest of your life
if the result of an accident. This insurance is
available only to persons who are under age
68 and in good health at the time of applica-
tion. It is payable regardless of benefits re-
ceived from sick leave or other insurance.
TRAVEL INSURANCE PLANS
Air Flight Trip provides coverage for the in-
sured in event of accidental death or loss of
limb or sight while a passenger on a scheduled
commercial airline. Coverage is for travel on
one-way or round-trip flights completed in
one year and does not cover travel on MAC
or any other type of military or private air-
craft. Coverage ranges from $15,000 to
$150,000, and rates are comparable to those
available at major airports.
Military Air Flight Trip is similar to Air
Flight Trip but is extended to cover trips not
only in commercial air carriers but in any
aircraft (other than a single-engine jet) oper-
ated by the U.S. Department of Defense, in-
cluding MAC and military aircraft used pri-
marily for transporting passengers. Coverage
is good for trips completed within 30 days
and is available in amounts of $12,000, $25,000,
and $50,000.
In addition to the above plans, a Flight and
Accident Policy (FAP) is available, which
gives you 24-hour protection against death,
blindness, dismemberment, or total disability
caused by an accident including, but not lim-
ited to, flight hazards. Coverage ranges from
$25,000 to $150,000 for employees and is also
available to dependents in limited amounts.
Employees who take the basic coverage of the
FAP may also apply for War Coverage Sup-
plement at an additional premium, thereby
insuring themselves against losses resulting
from war or acts of war.
If you are required to travel between foreign
and domestic areas because of the death or
serious illness of a relative or other named
person, the Emergency Travel Plan is also
offered as an additional plan of insurance to
provide you with partial reimbursement for
travel expenses.
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CPYRGHT
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JOB-RELATED
DISABILITY AND
DEATH BENEFITS
FEDERAL EMPLOYEES
COMPENSATION ACT
Government employees are eligible for bene-
fits under the Federal Employees Compensa-
tion Act for injuries or illnesses incurred in
the performance of duty; i.e., illness or in-
jury proximately caused or materially aggra-
vated by the performance of officially assigned
duties. The coverage of the act extends to
Federal employment any place in the world.
Among the benefits provided by FECA are
full hospital and related care, compensation
for loss of wages (in lieu of the use of sick
and annual leave), compensation for perma-
nent disability, and compensation to certain
named survivors in case of your death.
DEATH BENEFITS
If death results from an injury or illness
incurred in the performance of duty, a widow
without children is entitled to receive 45 per-
cent of the deceased employee's monthly
salary. Benefits for a widow with children
under age 18* are 40 percent for herself and
15 percent for each child not to exceed 75
percent of the employee's annual salary. The
total compensation cannot exceed 75 percent
of the top step of GS-15.
* Children attending school full time can receive
benefits until completion of four years of edu-
cation beyond the high school level or until age
23, whichever occurs first.
DISABILITY BENEFITS
If disability -results from an injury or ill-
ness incurred in the performance of duty,
compensation in lieu of sick and/or annual
leave is payable at the rate of 662/3 percent
of the annual salary if the employee has no
dependents and at the rate of 75 percent of
the annual salary with dependents. The
maximum dollar benefit per month is 75 per-
cent of the top step of GS-15.
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 CPYRGHT
Approvea or se
l 1 ~~
~k ~~.~~~ ~1~ k do o ,,woad ~d3 Il
The Organization is concerned that employ-
ees who are nearing eligibility for retirement
be informed about the subject of retirement.
An advisory service offered by the Retirement
Branch is referred to in the memorandum sent
to each employee five years before the date
of his eligibility for retirement. If you plan
to retire in the near future, you should re-
member to notify the Retirement Branch of
your intention to retire no later than 90 days
before separation.
In its role as a retirement counselor, the
staff of the Retirement Branch answers many
questions about tlTe Civil Service Retirement
System. For your information we have in-
cluded below some of those which are most
frequently asked.
91
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What requirements must I meet to retire
under the Civil Service Retirement System?
You may retire if you meet any combina-
tion of minimum age and service, as well as
the special requirements (if any) shown in
the following table.
Earliest
Age
Years of
Service
62
5
60
20
55
30
any
25
age*
50*
20
age
5
any
Remarks
Your separation must be
involuntary without cause.
Your separation must be
involuntary without cause.
You must be totally dis-
abled for service in the
position you occupy.
* If you retire before age 55 except for total dis-
ability, your annuity is reduced by 1/6 of one
percent for each month you are under age 55.
What periods of civilian service are credit-
able toward retirement?
All periods of service as an employee of
the Federal Government or the District of
Columbia are creditable toward retirement.
Is military service creditable under the Re-
tirement Act?
As a general rule, military service is credit-
able, provided it was active service, was ter-
minated under honorable conditions, and was
performed before separation from a civilian
position under the Retirement Act.
What are the exceptions to the general rule
on crediting military service?
Military service after 1956 is not creditable
for retirement purposes if the annuitant is
eligible for social security benefits. The re-
ceipt of military retired pay bars credit for
service unless the retired pay is:
? Based on a disability incurred in com-
bat with an enemy of the United States
or caused by an instrument of war and
incurred in the line of duty during a
period of war.
? Granted as retired pay to a member
of a reserve component of the Armed
Forces on the basis of service instead
of disability. The basic requirement
is the attainment of age 60 and the
completion of 20 years of service.
? Waived so that military service will be
credited.
How is the amount of my annuity deter-
mined?
The amount depends upon your length of
-service and your "high-five" average salary.
These two items are used in a formula which
produces your annuity.
What is the "high-five" average salary?
The "high-five" average salary is the high-
est salary obtainable by averaging your rates
of salary in effect during any five consecutive
years of service.
Is there any limitation on the size of my
annuity?
Yes, it may not exceed 80 percent of your
high-five average salary.
What is the general formula for obtaining
my annuity?
Take : 11/z percent of the high-five average
salary and multiply the result by five
years of service,
Add : 13/4 percent of the high-five average
salary multiplied by years of service
between five and ten,
Add : 2 percent of the high-five average
salary multiplied by all service over
ten years.
Are annuities adjusted after retirement to
take care of future cost-of-living increases?
Yes. Future adjustments in the annuities
of retired employees and survivors are geared
to percentage rises in nationwide living costs
as measured by the Consumer Price Index.
Upon a price index rise of at least three per-
cent, annuities will be increased by an equiva-
lent percentage.
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What are the types of retirement annuities?
Life Annuity - Provides annuity payments
to you only-no survivor benefits may be paid
to your widow. If you are married, you must
.request, the Life Annuity in writing, since
married employees are automatically granted
an annuity with survivor benefit to widow or
widower.
Reduced Annuity with Benefit to Widow or
Widower - Although it is automatic that all
of your annuity is used as a base for your
widow's survivor annuity, you may elect to
designate only a portion of it as the base.
Upon your death after retirement she will re-
ceive an annuity of 55 percent of all or what-
ever portion of your annuity you specified as
the base for the survivor annuity. Under
this plan your annuity will be reduced by:
21/z percent of the first $3,600 as a base
for survivor annuity
PLUS
10 percent of any amount over $3,600
used as a base for the survivor annuity.
Reduced Annuity with Benefit to Person
Having an Insurable Interest-If you are
unmarried when you retire, you may select
this plan.
What kind of death benefits are there?
There are two kinds :
1. A lump-sum benefit which is paid only
once.
2. A survivor annuity benefit which is
payable in monthly installments.
Of what does the immediate lump-sum bene-
fit consist?
The amount paid into the Civil Service Re-
tirement Fund by the employee, plus any ac-
crued interest.
Under what conditions would a lump-sum
left no widow or children who were eligible for
a survivor annuity.
What conditions must my widow meet to
be eligible for a survivor annuity?
She must have been married to you for at
least two years immediately before your death
or, if married less than two years, be the
mother of your child born of the marriage.
What conditions must my child meet to be
eligible for a survivor annuity?
He or she must be unmarried and under
age 18. However, an unmarried child who is
over 18 and is incapable of self-support be-
cause of a physical or mental disability which
began before age 18 or an unmarried child
who is a student up to age 22 is also eligible.
Would my adopted child be eligible for a
survivor annuity?
Yes, a legally adopted child is eligible if he
meets the conditions stated in the answer to
the preceding question.
How much survivor annuity will each of my
children receive?
This will depend on whether you, as the de-
ceased, are survived by your wife. If your
wife survives, each eligible child will receive
whichever of these three yearly amounts is
the least :
1. 40 percent of your high-five average
salary divided by the number of eligible
children.
2. $636.60
3. $1,909.80 divided by the number of eli-
gible children.
If your wife does not survive you, as the
deceased, each eligible child will receive which-
ever of these three yearly amounts is the least:
1. 50 percent of your high-five average
benefit be payable immediately to my sur-
vivors after my death? 2.
A lump-sum benefit is payable immediately 3.
if you had less than five years of civilian serv-
ice or if you had completed five years but
salary divided by the number of eligible
children.
$763.92
$2,291.76 divided by the number of eli-
gible children.
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Is a child's survivor annuity payable in ad-
dition to the widow's annuity?
Yes. For example, if you died and were
survived by your wife and your three children,
all of whom were eligible to receive survivor
annuities, this benefit would be paid to all
four survivors.
CPYRGHT
A pamphlet entitled Your Retirement Sys-
tem has been published by the U.S. Civil
Service Commission and is available through
your support officer. It may help. answer
other questions you may have concerning re-
tirement which were not included in our
presentation.
practical illustrations of
financial planning
As a guide in developing a balanced in-
surance program we have illustrated on the
following pages three typical programs for
Organization employees. To increase their
usefulness, each plan is tailored for a specific
salary group, with the assumption that each
employee's salary increases before retirement
at age 60. In the first two illustrations we
assumed that the employee has a wife and
two dependent children, but in the third il-
lustration we assumed that the children are
no longer dependent. The programs are
based on plans available internally to our em-
ployees. No outside income, insurance, or
sources of investment have been included al-
though you may wish to include these outside
sources in developing your own program.
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YEARLY COSTS OF A FINANCIAL PLAN
Employee Age - 47 yrs.
Employee Age - 40 yrs.
Employee Age - 40 yrs.
Annual Salary - iii
Annual Salary - $7,500
Annual Salary - ii
FEGLI
84.50
52.00
$ 39.00
UBLIC
90.00
54.00
36.00
WAEPA
132.24
Income Replacement
120.80
90.60
60.40
Hospitalization
178.68
178.68
178.68
Dread Diseases
10.00
10.00
10.00
Credit Union Savings*
600.00
300.00
120.00
Retirement Deductions
845.00
487.50
357.50
TOTAL
$1,172.78
* WAEPA ;Insurance has not been: included in Programs II and III but is available for any employee who
wishes additional insurance coverage.
** An alternative to saving through the Credit Union is to authorize a Savings Bond payroll deduction
to be made from your salary. Submit Treasury Form No. 2254 requesting the deduction through your
support officer to the appropriate payroll office.
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 Approved For Release 2000/06/05: CIA-RDP78-04724A000800020002-4
PROGRAM Employee Age - 47 yrs.
Program in Effect - 5 yrs.
Government Service --- 15 yrs.
Annual Salary -$13,000
Hi
h
5 A
12
PROGRAM II
Employee Age - 40 y~s.
Program in Effect - 5 yrs.
Government Service - 15 yrs.
Annual Salary -$7,500
PROGRAM Program Erfiployee Age
Effect Government Service
Annual Salary
- 40 yrs.
- 6 yrs.
-$5,500
verage -$
g
-
,500
Dies Killed Not in Killed in
Natural Performance Performance
Death of Duty of Duty
High-5 Average iii
Dies Killed Not in Killed in
Natural Performance Performance
Death of Duty of Duty
_
Dies
Natural
Death
Killed Not in
Performance
of Duty
i00
Killed in
Performance
of Duty
FEGLI
$8,000 $16,000 $16,000
$6,000
$12,000
$12,000
UBLIC 15,000 30,000 30,000
9,000 18,000 18,000
6,000
12,000
12,000
WAEPA 17
500 42
500 42
500
,
,
,
CREDIT
UNION 3,413 3,413 3,413
CIVIL
SERVICE
ANNUITY 3
076 3
076
,
,
(Widow and
two Children)
FECA 9
100
25
5
,
,
0
3,850
per year
per year
per year
tax free
tax free
tax free
NOTE: Benefits i ed on the basis of death 't p `esent
of emplo e
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INSURANCE, SAVINGS, AND ANNUITY BENEFITS
UPON RETIREMENT AT AGE 60
HIM 92~1RU-MIRMIA
$17,000, reduced by 2% each month $10,000, reduced by 2% each month $9,000, reduced by 2% each month
after age 65 until policy equals 25% of after age 65 until policy equals 25% of after age 65 until policy equals 25% of
coverage at retirement. Policy after coverage at retirement. Policy after coverage at retirement. Policy after
retirement is free of premium pay- retirement is free of premium pay- retirement is free of premium pay-
ments. ments. ments.
WAEPA Reduced to $5,000 at time of retire-
ment. Continued payment of pre-
mium required.
UBLIC Reduced to $2,500 until age 70, then
reduced to $1,250. Policy after retire-
ment is free of premium payments.
HEALTH Continued with the premium deducted
INSURANCE from your annuity check.
CREDIT $5,000. This is the ceiling on a share
UNION account. Interest accumulated on this
amount is forwarded by check. Your
account must be withdrawn from the
Credit Union upon retirement.
CIVIL $8,360- Life Annuity*
SERVICE $7,794 - W/Survivor Benefit
ANNUITY $4,598 -Widow's Annuity* *
Reduced to $1,500 until age 70, then
reduced to $750. Policy after retire-
ment is free of premium payments.
Same as PROGRAM I
Same as PROGRAM I
Reduced to $1,000 until age 70, then
reduced to $500. Policy after retire-
ment is free of premium payments.
Same as PROGRAM I
Same as PROGRAM I
$6,293
- Life Annuity*
83,860 - Life Annuity*
$5,934
- W/Survivor Benefit
$3,744 - W/Survivor Benefit
$3,461
- Widow's Annuity* *
$2,123 - Widow's Annuity*
tb you only,--no survivor4benefiPaid upon your death folo ri -g retiremei to your w i whtr -ear tinue to be iovered by heath insurance;
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 Approved For Re
000800020002-4
C~tt,~uttl#~ Program
One of the lesser known programs of the
Benefits and Services Division is the Casualty
Program, administered by the Benefits and
Counseling Branch (BCB). Although your
need for this assistance may seem remote,
just knowing that the Organization has
such a program may ease any concern you
may have about survivor entitlements and the
manner in which your official affairs would be
settled.
DEATH OF AN EMPLOYEE
Upon notification of the death of an em-
ployee, whether in our country or overseas,
BCB assumes responsibility. Working closely
with other components, BCB will arrange
for proper notification to survivors and
will render them as much assistance as pos-
sible. If death occurs overseas, BCB will di-
rect the return of the body to the place of
interment and will also attend to other ar-
rangements such as return of family members
in the area, shipment of personal and house-
hold effects, etc. At the same time, BCB
conducts an immediate review of all benefits
to which survivors may be entitled; i.e., un-
paid compensation, insurance, credit union,
death benefits of the retirement system,
FECA, social security, etc.
BCB representatives get in touch with sur-
vivors as soon as proper under the circum-
stances and if possible by personal visit.
These representatives will advise the survivors
of all benefits to which they are entitled and
will obtain any necessary signatures. By the
immediate review of benefits and the personal
contact, the survivors (particularly widows
and children) are spared not only the worry
about the benefits available for financing
their daily needs, but also the ordeal of inquir-
ing about the means to obtain these benefits.
DESIGNATING EMERGENCY ADDRESSEES
An understanding of the scope of this serv-
ice should be comforting to the employee,
since he can be.certain that his widow, chil-
dren, and other survivors will be assisted and
guided through the emotional period follow-
ing his death. Often, however, this service
is complicated by certain difficulties which
the employee could have avoided. For ex-
ample, one of the most important and im-
mediate considerations facing BCB is notifi-
cation of death to the emergency addressee
selected by the employee. Sometimes these
designations are useless, since they are such
as to make contact with the addressee impos-
sible or at least very difficult. Therefore, the
following points should be kept in mind with
respect to emergency addressees:
First, select someone capable of receiving
immediate notification and making decisions
on your behalf, despite the emotional shock
present. Selection of an aged or ill parent of-
ten defeats the purpose, since the severe emo-
tional shock accompanying the notification
could create a new physical or mental crisis.
If faced with this problem, BCB will avoid
direct notification to the aged or ill parent and
will search for someone (such as a brother or
sister, family doctor, or family church head)
who can act as intermediary and soften the
initial announcement to the parent. Keep
this in mind, and select someone who can
absorb the emotional impact of the notifica-
tion and at the same time act on your behalf.
Secondly, your official records should show
whether or not your designated emergency ad-
dressee is aware of your Organization affilia-
tion. A great deal of effort and concern is
devoted to resolving this question so that se-
curity implications are protected when notify-
ing the addressee.
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And last, be sure that your designation of
an emergency addressee is always current and
that any change of status is immediately re-
ported to BCB. Current designations and
addresses are vital to a proper handling of
the case.
CPYRGHT
Your planning for your family's future is
incomplete unless proper consideration has
been given to 'estate planning. The informa-
tion and advice in the preceding pages is only
part of a design for family security which is
completed by a comprehensive plan for the
While the Casualty Program has been de-
scribed in connection with the death of an
employee, the services of BCB apply as well to
cases of serious injury or illness of employees
and also to death, serious injuries, or illnesses
of dependents accompanying the employee to
overseas assignments.
settlement of your estate. Too often the head
of a household postpones the setting up of a
program for his family that would automati-
cally go into operation upon his death. The
result is that frequently when death overtakes
the breadwinner, his survivors are burdened
with resolving his jumbled affairs. This, as
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 Approved For Relje 2000/06/05: CIA-RDP78-047 6000800020002-4
we have suggested, can be prevented by the
sponsor's timely consideration of what the
family must face after his death. And to
help you in studying your situation, we have
included a checklist of estate planning points
at the end of this article.
Once the importance of formulating a pro-
gram is realized, you will wonder just how you
should go about your planning. To your sur-
prise you will find that unless you have es-
pecially complex problems, the task of putting
your affairs in order will not be as formidable
as you might have imagined.
YOUR IMPORTANT PAPERS AND RECORDS
Several steps are involved in estate plan-
ning, the first of which is knowing where your
valuable papers and documents are located.
These include everything from insurance poli-
cies to wills, bankbooks, and birth certificates.
A complete list of these important papers
might surprise you by its length. The list
that follows sets forth the most important
of these papers-ones that are often needed to
expedite the settlement of an estate.
Insurance Policies Previous Tax Returns
Real Estate Deeds General Instructions
Stock Certificates to. Your Wife
Bonds Marriage Certificates
Burial Instructions Birth Certificates
Notes Receivable Divorce Papers
Bankbook Veteran's Discharge
Safe-Deposit Key List of Your Assets
and Liabilities
You should make every effort to retain the
original of these documents. It is also ad-
visable to have an adequate number of pho-
tostat copies certified by the custodian of
such records. The documents are obtained
from various sources. Your County Clerk or
a similar official can provide certificates of
marriage, deeds, mortgages, or court orders.
Adoption, birth, and death certificates can be
obtained from the Vital Statistics and Wel-
fare Department of the State concerned.
STORING YOUR DOCUMENTS
Once located, careful thought should be
given to the storage of your papers. Your
signed will should be kept in a sealed envelope
in a safe place where it can easily be found.
Your lawyer's vault is a good place; or the
bank may agree to keep the will in its vault,
if you name it as trustee. Remember, how-
ever, that many banks seal the safe deposit
boxes of their deceased depositors pending
court action on the will. If this should
happen, your heirs might be delayed in apply-
ing for the money due them as beneficiaries.
It is important, therefore, to keep insurance
policies and documents, such as marriage,
birth, and divorce certificates safely at hand,
since they might be needed immediately to
collect social security and other benefits in
case of death. Just as a precaution, if you
are going to keep them at home, it would be
well to have them in a fireproof strong box.
Inexpensive boxes of this kind are available
and are guaranteed to withstand 1700 degrees
F. for one hour.
PERSONAL FILE AT HEADQUARTERS
The Benefits and Services Division will, at
your request, establish and maintain a per-
sonal file in which may be placed or recorded
data and records of a personal and financial
nature. Only copies of your vital documents
should be stored in this file, with the originals
maintained in another safe place. Any em-
ployee desiring this service should contact
the Benefits and Counseling Branch.
Personal files containing these personal
vital documents will be maintained separately
from an employee's Official Personnel Folder,
and on a highly confidential basis, protecting
the employee's privacy. Such files will be-
come a matter of official action only upon
specific request by the employee or, upon his
death, as part of the settlement of his affairs.
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 Approved For Release 2000/06/05: CIA-RDP78-04 24A000800020002-4
SIZE OF YOUR ESTATE AND TAXES
Another item to be determined is the size
of the estate. Many a man goes to a lawyer
to get estate planning advice and can't answer
this very basic question. The net value of
your estate is vitally important not only as
an indication of what you will leave your
family but of the amount of estate and in-
heritance taxes that might have to be paid.
Your lawyer will be able to advise you on
how to reduce these taxes to a minimum but
here are a few suggestions for you to consider
in the meantime. Did you know, for example,
that you may gradually decrease the size of
your estate and thus reduce or avoid the estate
tax by giving as much as $6,000 each to as
many persons as you wish without paying any
gift tax? You might wish to present such
gifts to your children on a yearly basis. In
addition to these annual allowances, you have
a lifetime allowance of $60,000 in tax-free gifts
you can make. A single person, however, is
restricted to a $3,000 annual limit and a
$30,000 lifetime allowance.
CPYRGHT
COUNSELORS CAN HELP
At the time the above matters are being
decided, you should also take into account
who will provide intelligent counsel to your
family in the settlement of the estate. Per-
haps you have retained a lawyer who should
be known to your wife and family. These ad-
visers might include not only your lawyer
but your stockbroker, insurance agent, or
banker. They could provide immediate and
helpful guidance. Your wife should be aware
also of the counseling service available
through the Benefits and Services Division
of the Office of Personnel. This division is in
a position to review immediately the benefits
to which your family is entitled; i.e., unpaid
compensation, insurance, credit union, death
benefits of the retirement system, FECA, so-
cial security, etc., and to assist the family in
obtaining these benefits.
BENE1 r
SfR3//CFs
viNrsianr
~~,r4cvta/~i
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 Approved For Release 2000/06/05: CIA-RDP78-04724A000800020002-4
THE ESTATE PLAN
Perhaps you have wondered while reading
the preceding pages just what an estate plan
looks like. To answer this question the "typi-
cal" employee from Program I in the "Practi-
cal Illustrations of Financial Planning" sec-
tion of the bulletin has been used so that we
might construct a sample estate plan using
his financial circumstances. You will remem-
ber that this employee is married, has two
children, and at age 47 is earning $13,000 per
year. In studying our example don't con-
sider our figures as representative of what
should or should not be the amounts included
in your plan but rather look carefully at the
categories of things to be considered in draw-
ing up a good plan. Our employee's first step
will be to determine the value of his estate,
followed by a forecast of his widow's income.
In arriving at the figures shown below, cer-
tain assumptions were made. It was assumed
that the employee dies a natural death at age
55 leaving two dependent children and a
widow who would work after his death. After
using a portion of the life insurance to pay
off liabilities, the balance of the insurance
and his savings and securities were assumed
to produce income at an annual rate of 5
percent. It was also assumed that his high-
five average salary had risen to $15,000, with
his salary at death being $15,600. (The above
assumptions would have the effect of increas-
ing his FEGLI insurance to $16,000 and de-
creasing his WAEPA to $16,250.
Savings
$ 6,000
Securities
2,000
Real Estate
24,000
Life Insurance
47,250
Other Assets
1,500
Total Assets
$80,750
LIABILITIES
Debts
$ 2,500
Burial Expense
800
Estate and Inheritance Tax
2,000
Real Estate and Income Tax
2,200
Administration Expense
4,500
Total Liabilities
$12,000
Assets $80,750
Liabilities 12,000
NET ESTATE $68,750
WIDOW'S AVERAGE
MONTHLY INCOME
Invested Life Insurance
$147
CSR Widow's Annuity
290
Dependent, Children's Annuity
106
Income
from Securities and Savings
33
Salary
416
Total
$992
20
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 Approved For Remise 2000/06/05: CIA-RDP78-04,4A000800020002-
QUESTIONS TO ASK YOURSELF
As the final part of your estate planning,
there are a number of questions you should
ask yourself. Your ability to answer them
in the affirmative will have much to do with
your family's future well-being.
1. Have I made an overall plan for my
estate?
2. Have I discussed with my wife the details
of my estate plan and other important
papers?
3. Have I a will?
4. Has my wife a will?
5. Do we both know where the wills are
stored?
6. Are my beneficiary arrangements up to
date in insurance policies and pension
plans?
7. Have I made provision for the children's
guardian?
8. Have I left burial instructions?
9. Have I minimized taxes and administra-
trative costs?
10. Have I gone over these matters recently
with a lawyer?
In the foregoing we have stressed the im-
portance of some of the aspects of estate
planning. Not all of the items to be consid-
ered have been mentioned but we have pur-
posely avoided an exhaustive treatment of
this complex topic. The bulletin has merely
sought to remind you that you should be
thinking about estate planning in more im-
mediate terms than perhaps you haye been
doing.
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 Approved For RelWe 2000/06 Mc iCRDP78-047 A000800020002-4
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