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December 9, 2016
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July 21, 2000
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April 20, 1976
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Approved For Release 2002/05/02 : CIA-RDP79-00498A000500160017-1 2, 0 APR 197 O FOR. Director of Central Intaili ohm F. Blake Deputy Director for Administration be completed in two weeks, by 3 May 1976. Interim Reply to the Management DU Advisory Group me dtd 30 Mar 76 to the Director from The Management Advisory Grou ; subject: The CIA Retirement and Disability System TATI NTL I. On 30 March 1976 the Management Advisory Group prepared a memorandum recommending several far-reaching changes to the CIA Retirement and Disability System (CIARDS). The memorandum raises both interesting and serious questions which need to be thoroughly studied. 2. The Office of Personnel estimates that. a reply, for your signature, to the Management Advisory Group will S. It is suggested that you send an interim response to MAG. Such a response is attached for your signature. Attachment Distribution: Orig - Adse 1 - DDCI 1 - ER - FDA 2 - D/Pers (1 w/he 2 - DD/Pers/SP (I I. - C/ RAD 19 APR 1976 e1d) op/RA A9roved-For Release 2002/05/02 : CIA-RDP79-00498A000500160017-1 Pja(16 Apr 76) Retyped ODD/Pens/SP: jp(16 Apr 76) hn F. Ekk?r- Blake Approved For Release 2002/05/02 : CIA-RDP79-00498A000500160017-1 FRO ,keg the Denaty Director stay of the points of t his findings to re ow his YOU: STATINTL STATINTL 4 ob o s of the ; ect that y t rn Distribution: 0 Addressee 3.. - DC I 1?-I 1 1 - BR 2- DIA 1 .. D/Pers I - fl'Dfers /SP 1C/ your B ran um of 30 march 157 Originator: I be re* y G"Up on the thoronhness +OP/RAD, pja (16 Anr 6' 16 Apr 716) RETYPED: OP/DDI?ers Group Sorge Bush Iii rector Approved For Release 2002/05/02 : CIA-RDP79-00498A000500160017-1 Mr" tCRI NDUi4i A'P(v FbV eg&e E~$/O rC FA9P79-00498A000500160017-1 j -. - I= -- -_- _ DD!A FROM The Management Advisory Group SUBJECT The Central Intelligence Agency Retirement and Disability System (CIARDS) 1. There is an immediate need to introduce legislation to equalize CIARDS benefits with those accorded other federal employees engaged in activities con- sidered as difficult and hazardous as intelligence work. 2. CIARDS was enacted in 1964 and was designed to permit the CIA to retire approximately 30 percent of its employees who, because of the nature of their work, suffer from physical and mental exhaustion at a relatively early age or, because their skills are not applicable to other fields, become occupationally surplus. In passing this legislation, Congress specifically recognized the need for a young and vigorous group of employees to carry out the mission of the CIA and considered this program to be a means of ensuring the availability of fresh new talent. The law provides an annual annuity computation rate of 2 percent for each year of government service up to a maximum of 70 percent. There is, no re- duction for age under 55 years for those who retire either voluntarily or in- voluntarily under CIARDS. Mandatory retirement is at age 60. 3.` At the request of a number of Agency employees, the MAG undertook a comparative study of CIARDSbenefits relative to the special retirement benefits granted other federal er ioyees. This review shows that the CIARDS benefits have not kept pace with those of other systems. NAG recommends that you approve action to propose legislation to amend CIARDS as follows: A. Change the arrmui.ty computation rate from its present 2 percent to 2 1/2 percent for all years of Agency service and 2 percent for military and all other government service. B. Reduce the nax mum retirement age from 60 to 56 years of age or 20 years of government service, whichever is later. DCI authority to grant exceptions through age 60 would be limited to cases involving special needs of the Agency. C. Provide a lump-sum payment of $50,000 to the survivor of an employee killed in the line of duty. D. Amend the maximum annuity authorized from 70 percent to 80 percent. 4. Since CIA employees are prohibited from being represented by'unions or associations, it is incumbent on Agency management to introduce legislation on behalf of its employees. Many employees suffer undue hardship, personal inconveniences and suffering in serving CIA. We should ensure they receive all the benefits they are entitled to. L. The Management Advisory Group Attachments: Comparative Study of Special Retirement Systems Legislative History of Special Retirement Benefits Approved For Releas -RD 0 0 1111117 3A Approved For Release 2002/05/02 : CIA-RDP79-00498A000500160017-1 Comparative Study of Special. Retirement Systems Approved For Release 2002/05/02 : CIA-RDP79-00498A000500160017-1 Approved FoS R 1lga6 @ JfQ2R;; k#jW _P?9 q 000500160017-1 It took some: 18 years for certain CIA employees who served in hazardous assignments and/or positions of unusual mental, emotional and/or physical stress, to be granted the benefits accorded members of the Foreign Service. When the CIA Retirement Act for Certain Employees was enacted in 1964, Congress recognized that CIA employees serve under conditions at least as difficult as, and frequently more onerous and dangerous than, the conditions that led to improved retirement benefits for the Foreign Service and certain personnel of the FBI and other law enforcement agencies. Like members of the military services, CIA employees are obligated to serve anywhere in the world according to the needs of the Agency. Congress recognized that CIA employees perform hazardous and specialized overseas duties in the conduct and support. of intelligence activities. They further recognized that overseas CIA work produces "physical difficulties" and "motivational exhaustion" which virtually terminate the usefulness to CIA of certain employees. The CIA requires younger and more vigorous officers than generally re- quired in government service. Congress, during its hearings, indicated that it was impressed with the need for a young service by urging the Agency to encourage, and in some cases direct, early retirement. In addition, they noted that "the dynamic nature of intelligence work produces sudden and some- times radical shifts in the types of personnel required and in. their deploy- ment," making some employees "occupationally surplus." It is increasingly difficult for former CIA employees to find new employment because their skills are not always applicable to other fields and because employers are hesitant to hire former intelligence officers. This has never been more apparent than with today's image of the CIA employee. PL 93-350 was passed in 1-374 in recognition that it was not economically feasible for a federal law enforcement official or firefighter to retire in his early fifties at the. 2. percent annuity computation rate then in force. At the same time that the law increased the annuity rate to 2 :1/2 percent, it reduced the maximum retirement age to 55 years or 20 years of service, which- ever came later. Some of the agencies employees who were initially identified for this increased rate include: FBI (8,600 employees); Bureau of Prisons (5,000); Immigration and Naturalization (2,400); Marshals (800); DEA (800); ONI (5,000).; Postal Inspectors (1,800); IRS (4,500); Customs (2,600); and Secret Service (1,200). PL 91--509, passed in 1970, provides the most liberal retirement benefits granted to any government employee to date. It calls for a 2 1/2 percent rate for the first 20 years of service and 3 percent for all years over 20. It also is based on the salary at time of retirement. A most important feature of the act is a $50,000 lump-sum payment to the survivor of an individual killed in the line of duty. These benefits cover members of the Metropolitan Police, U.S. Park Police, Executive Protective Service, D.C. Fire Department and certain members of the Secret Service. Approved For Release 2002/05/02 : CIA-RDP79-00498A000500160017-1 Libe roved Fob- Releas 200 05/02 : CIA-RDP79-00498A000500160017-1 ~pized retirementebene its had not been limited to the Foreign Service and law enforcement employees prior to the enactment of the CIA act. Since 1948, Members of Congress and, subsequent to that time, Congres- sional employees have been entitled to greater computation rates. In 1964, Architect of the Capitol personnel and in 1966, Botanic Garden employees were covered under the Congressional retirement program. The annuity is based upon 2 1/2 percent for each year of service as a Member of Congress or Congressional employee; for up to 5 years of military service (for which one is not receiving retirement pay); and, in the case of a Member of Congress, for military service performed while on leave of absence during a war or national emergency. If the total service calculated at 2 1/2 percent does not equal 10 years, then those years of additional government service not calculated at 2 1/2 percent are calculated at 1 3/4 percent, not to exceed a combined total of 10 years. All other service in excess of the combined 10 years of service is calculated at a 2 percent rate. The annuity for a Member of Congress may not exceed 80 percent of his final salary. A Congres- sional employee's annuity may not exceed 80 percent of his high-three average salary. Special recognition should be taken of the benefits accorded air traffic .controllers in 1972. Because of the stresses associated with that work, mandatory retirement is at age 56. An employee who is voluntarily or involun- tarily separated after completing 25 years of service as an air traffic con- troller or after becoming .50 years of age with 20 years of service is entitled to an annuity no less than 50 percent of his average pay. in addition, the air traffic controller career program provides for up to 2 training for those controllers with at least 5 years of services who are, because of physical and/or emotiora.l stress, unable to continue to perform as controllers. They continue to draw their full salary and are entitled to any increase in rate of basic pay provided by law. They are excluded from limitations. If after 2. ear .staffing y s they are not assigned other duties, they may be released for transfer to another federal agency, or involuntarily separated. Approximately 700 controllers annually are participating in this career training program out of a total complement of 14,000 employees. The benefits cited above are not meant to be all encompassing, but rather to highlight liberalized benefits extended to other federal employees. If one can assume that in 1964, certain CIA employees warranted special recognition, then CIA employees' benefits should also be liberalized to keep pace with these other systems. Executive Order 11491 of October 29, 1969 amended the government-wide plan for labor-management relations established in 1962. However, the CIA and FBI are specifically excluded from participating in labor-management relations. Subsequently, the U.S. Foreign Service (State, AID, and USIA) was removed to a separate program of its own in 1971. Whereas the organizations and unions representing Federal employees have played a most significant role in increased benefits for their employees, CIA employees have no such spokes- men. Without same, it is incumbent upon CIA top management to represent its employees' interests. Approved For Release 2002/05/02 : CIA-RDP79-00498A000500160017-1 Approved For Release 2002/05/02 : CIA-RDP79-00498A000500160017-1 CIA employee morale has suffered over the last few years. Congress in its investigations, while criticizing Agency practices and procedures in the past, has never questioned the dedication of, and hard work expended by, CIA employees. Our employees have often heard that CIA takes care of our own. The facts do not bear this out, at least in the area of benefits. Management should show our employees that it cares by introducing proposals for increased retirement benefits on their behalf. Approved For Release 2002/05/02 : CIA-RDP79-00498A000500160017-1 Approved For Release 2002/05/02 : CIA-RDP79-00498A000500160017-1 Legislative History of Special Retirement Benefits Approved For Release 2002/05/02 : CIA-RDP79-00498A000500160017-1 Approved For Release 2002/05/02 : CIA-RDP79-00498A000500160017-1 LECISLATIVE HISTORY OF SPECIAL RETIREMENT BENEFITS PUBLIC LAW DATE OF ACT 79-601 79-724 2 Aug 1946 13 Aug 1946 80-168 11 Jul 1947 80-879 2 Jul 1948 86-604 7 Jul 1960 86-622 12 Jul 1960 88-267 7 Feb 1964 88-643 13 Oct 1964 r. BENEFITS Coverage for Members of Congress. Annuity at rate of 2 1/2 percent: of average annual salary as a member times years of service as member, but no more than 3/4ths of last salary Enacted Foreign Service Act to include retirement at age 50 after 20 years with annuity equal to two percent of average salary up to 35 years of service credit. Provides for 1 1/2 years of service credit for each year of service at unhealthful posts except that no such extra credit for service shall be credited to anyone who receives a salary differential. (Option remains with employee) Provided retirement for FBI employees to retire at age 50 after 20 years of service with annuity computation equal to two percent of average salary Extended same liberalized FBI benefits to officers and employees whose duties "are primarily the investigation, apprehension, or detention of persons suspected of offenses against criminal laws of the United States" Liberalized annuity benefits for members of Congress and Congressional Employees Provided additional annuity for certain long- term employees and reemployed annuitants and liberalized benefits for Members of Congress Included service by Architect of the Capitol personnel as "Congressional Employee" service Provided retirement benefits to certain CIA employees. Permitted CIA Director to mandatorily retire at age 50 with 20 years or 25 years at any age, anyone who had at least 10 years with CIA and 5 years qualifying service. Annuity computation equal to two percent of average salary. Maximum retirement pay set at 70 percent of average salary. Approved For Release 2002/05/02 : CIA-RDP79-00498AO00500160017-1 Approved For Release 2002/05/02 : CIA-RDP79-00498A000500160017-1 PUBLIC LAW DATE OF ACT BENEFITS 89-604 26 Sep 1966 Included service for United States Botantic Garden personnel as "Congress- ional Employee" service 2 Nov 1966 16 Dec 1967 26 Oct 1970 Provided that premium pay under Section 5545 (c)(1) shall be considered "basic pay" for civil service retirement purposes Fixed maximum basic annuity benefit at 80 percent of final pay received by a former member of Congress reemployed with Member-annuity title Provided retirement on immediate annuity after 20 years regardless of age. Annuity computed on basis of 2 1/2 percent for first twenty years and 3 percent for all years over 20 on salary at retirement. Maximum retirement pay set at 80 percent. Also provides $50,000 lump-sum payment to survivor of individual covered who is killed in the line-of-duty. Law covers Metropolitan Police Department, Executive Protective Service, the D.C. Fire Department, U.S. Park Police and certain contingents of US Secret Service 92-297 16 May 1172 Provided liberalized benefits for air traffic controllers. Mandatory retirement at age 56. Annuity entitlement after 25 years as controller or 20 years and age 50. Annuity not less than 50 percent (2 1/2 percent). Law also provides equivalent of 2 years of full-time training for control lers with 5 years of service who are unable to continue to perform as controllers. After 2 years during which they are entitle. to all benefits, they be reassigned within DOT, transferred to another federal agency or involuntarily separated. 93-350 12 July 1974 Liberalized retirement benefits for "law enforcement" employees and firefighters (approximately 41,700 employees). Mandator; retirement at age 55 or after 20 years, whichever occurs later. Computation rate increased to 2 1/2 percent on first 20 year, and 2 percent for years exceeding 20. Premium pay for uncontrollable overtime as part of basic pay for average salary. Approved For Release 2002/05/02 CIA-RDP79-00498A000500160017-1 Approved For Release 2002/05/02 CIA-RDP79-00498A000500160017-1 EXCERPTS FROM CONGRESSIONAL TESTIMONY ON 20 SEPTEMBER 1973 RE PL 93-350 Congressman DULSKI "To maintain a staff of relatively young and vigorous men capable of carrying out the government's criminal law........ 5:~ the replacement of older men who, because of the stringent physical requirements of their positions and the unusual mental, emotional and physical stress encountered in performing their duties, are no longar able to perform at peak efficiency. "The more liberal compensation factor was provided not as a reward for performance of hazardous duties, but because a more generous formula was necessary to make earlier retirement, with resultant shorter service, economically feasible." "Make it more economically practicable for these employees to retire before reduced proficiency stamina make them a greater risk to themselves and others." Congressman BRASCO .'First, to assist in maintaining a relatively young, vibrant and effective work force............... Second, to make the recruient program for the agencies competitive.. While the intent. of the legislation is not to reward our law enforcement officers and firefighters for performing their dangerous duties, but rather in recognition of the everyday psychological stress they must endure, it is a fact that these public servants do suffer fatalities and serious injuries during the course of daily activities." Congressman RANGEL "What the bill is doing is encouraging Federal law enfocement officers and firefighters to retire after 20 years. Why? Primarily so that these work forces will remain organizations with young people doing the hazardous work in which they are so involved. To put employees engaged in a hazardous occupation on the same level as other Federal employees with respect to retirement benefits is simply not proper. The Federal-officers and firefighters experience hazards, isolation, loneliness, and indefinite hours and locations that other employees do not. And it takes young men to do the good job we require of them under these conditions ..................Isolation from one's neighbors and friends is a common problem for these officers, but what may be even worse is the necessary lack of communication with one's family regarding his day- to=day activities. Combined with the hazards we all are aware of and the Approved For Release 2002/05/02 : CIA-RDP79-00498A000500160017-1 Approved For Release 2002/05/02 : CIA-RDP79-00498A000500160017-1 indefinite working hours, isolation makes the. officers years of duty a continuous string of stressful days and nights. Yet, I ask, where would we be without his dedication and selfless efforts in combating organized crime?" Congressman BRASCO "Is it not a fact that their job descriptions and the assignments that we in the Congress want them to perform, and the service the American people expect to receive make them different because they are firefighters and law enforcement personnel and must put their lives on the line daily, 24 hours a day, which is not so of any other Federal employees in our committee's jurisdiction." Congressman DANIELS "While the element of hazard was, and is recognized, I wish to emphasize that the special treatment originally and presently accorded these employees, and the benefit levels proposed in this bill, are provided not as a reward for them having been subjected to an inordinate degree of hazard during the performance of their primary duties ................... providing an incentive for young men and women to enter and remain in such careers, and that replacements within the service might be facilitated at younger ages without undue hardship." Con ressman BUNT. "Many members of the grouping covered by this bill seldom spend more than a few nights each week with their families. So they have given their lives to law enforcement and it is no more than right that we give these men some privileges, some real reason to stay in." Approved For Release 2002/05/02 : CIA-RDP79-00498A000500160017-1 Approved For Release 2002/05/02 : CIA-RDP79-00498A000500160017-1 DCI/DDCI Routing Slip ACTION INFO. ACTION J INF O. 1 DCI 11 LC 2 3 4 5 DDCI S/MC DDS&T DDI 112 113 14 15 IG Compi Asst/DC;I AO/DCI 6 6 DZ;4,SA x 16 Ex/Sac 7 DDO X 17 8 D/DCI/IC l8 9 D/DCI/NIO 1 119 0 GC X ~ '2p TO: For review and recommendation. I owe MAG an interim. comment on this. Approved For Release 2002/05/021: CIA-RDP79-00498A000500160017-1