QUESTION ON RETIREMENT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80M00165A002500110004-2
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 15, 2016
• Document Release Date: April 5, 2004
• Sequence Number: 4
• Publication Date: February 28, 1977
• Content Type: MF

. Approved Fotc,$elease 2004/05/05 : CIA-RDP80M0010025001
28 February 1977
MEMORANDUM FOR: Admiral Stansfield Turner
FROM John F. Blake
Deputy Director for Administration
SUBJECT Question on Retirement
REFERENCE Your Memo of 13 February 1977,
Same Subject
1. Submitted below is information which I. trust responds
to your question of how much your retirement pay would be
increased if you should elect to retire and remain employed as
DCI for five years. For purposes of the computations which
follow, we assumed that your retirement rank will be approved
as a Full Admiral.
2. Option 1: Upon your new retirement from civilian
status as DCI, you can waive your military retired pay. This
allows you to combine all your military service. with the five
years of civilian service and draw a civilian service retire-
ment annuity based on the following:
a. Service - Military: 23 Jun 1943-28 Feb 1977
(33 yrs., 8mos., 8 days)
- CIA 1 Mar 1977 - 28 Feb 1982
(5 yrs., 0. mos., 0 days)
Total Service
38 years, 8 mos., 8 days
High 3 Average Salary: $57,500
(based on proposed new EP Level II
rate)
Basic Annuity :
$42,310 or 3.526 per month
Reduced Annuity :
$38,349 or 3.196 per month
Survivor Benefit :
$23,271 or 1,939 per month
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b. By operation of law, at age 62 your annuity will
be recomputed to eliminate all military service
performed after 1 January 1957, which is subject
to coverage under Social Security, resulting in
the following annuity payable at age 62:
Basic Annuity
$19,119 or 1,593 per month
Reduced Annuity
$17,477 or 1,456 per month
Survivor Benefit
$10,515 or 876 per month
Comment:
a. We have assumed both for your military retirement
and for the calculations based on civilian status
that you would elect a reduced annuity to provide
survivorship benefits for your wife. Based on our
assumption of your retirement as full Admiral,
your reduced military annuity would be $2,830 per
month. (This includes a 4.8% cost-of-living
increase effective 1 March 1977.)
b. You will note from b. above that the recomputatian
at age 62 results in a massive decrease in your
monthly annuity. Of course, you will be eligible
to receive a Social Security annuity, estimated
on the basis of current law at $320 per month.
Thus, at age 62 under this particular option you
would be receiving a civilian annuity of $1,456
and a Social Security annuity of $320 monthly, or
a total of $1,776 per month. This total, $1,776
you should compare with our estimate of your
military annuity without civilian service of
$2,830 per month.
c. You should consider that under obligation and until
age 62, your annuity as shown above of $3.196 per
month as compared with your military annuity of
$2,830 per month gives you a net gain of $366 per
month for the years subsequent to your retirement
as a civilian and to age 62, or roughly $16,000
to $18,000 for the total period. At age 62, how-
ever, your annuity loss, that is to say, the
difference between your military annuity of $2,830
and your civilian annuity plus Social Security of
$1,776, is $1,054 per month. This annuity loss
would be suffered from age 62 for life.
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 Approved Fo elease 2004/05/05: CIA-RDP80MO01I 002500110004-2
3. Another option is for you to continue to draw your
military retired pay. If you leave the Federal Service as a
civilian prior to age 62, you can then elect a deferred
annuity payable at age 62 based only on your civilian service.
Using as an example five years of civilian service, you could
receive the following annuity payable at age 62:
Basic Annuity
Reduced Annuity
Survivor Benefit
$4,313 or 359 per month
$4.152 or 346 per month
$2,372; or 198 per month
Comment: Again assuming you elect a reduced annuity,
at age 62, you would receive on. a monthly basis your
military annuity of $2,830, our estimate of $320
for Social Security, and the $34:6 as shown above, or
a total of $3,496 monthly. You will note that these
estimates result in a higher monthly annuity than
shown in paragraph 2 above.
4. As you can see, the relationship between military
retired pay and civilian retirement is extremely technical.
If you wish, we could arrange for our Chief, Retirement
Operations Branch to meet with you to discuss these calcula-
tions in greater detail and to answer other questions which
you may have.
John F. Blake
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TRANSMITTAL SLIP
DATE
TO:
ROOM NO.
BUILDING
REMARKS:
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FROM:
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ROOM NO.
BUILDING
EXTENSION
i RM 55 L4 I REPLACES FORM 36-8
`F WH{CH MAY BE USED.
Approved For Release 2004/05/05 : CIA-RDP80M00165AO02500110004-2