(UNTITLED)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00357R000700090115-3
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 12, 2016
• Document Release Date: February 14, 2002
• Sequence Number: 115
• Content Type: REPORT

Approvecl(For Release 2002/05/07 : CIA-RDP82-0a357R000700090115-3
Earlier we had reported on the passage of Public Law
94-397, passed by Congress an 3 September. J q76 and effective
1 October 1976, which would. re~{ui xe agencies to rei.mbur1 e,
the Treasury the amount of annuity for rcc:mpl_oyed a .n.nui.tar.ts .
Based on our readii.g of the law, it was clear that the
reimbursement applied only to annuitants used in. an. employee
capacity and not to independent contractors To be absolutely
certain, DD/Pers called the Director, 3z!re au. of Retirement and
Insurance, to confirm our understanding as well as to find. out
when implementing regulations would be issued.
The Director, BRI reported that regulations had. boon. preps-red
based on the interpretation as we had it, i_.e, a,n.uitar~,t~ h.i.i`ed.
in an employee relationship. He added, however, that he bas had.
a series of meetings with staff members of the Congress who
disagreed with this interpretation and who have take,-). the T?cis:i, ri.ai~
that it was the intent of Congress to apply the reimbursement
feature of the law more broadly than just to those. h rred in an
employee relationship. Specifically, it was the Directors s
impression that Congressional staff members want the regir.:-.ati_ons
to cover all annuitants hired on a personal services contract
and.perhaps to exclude only those independent contractors wbo
are hired to produce a product. The Director reported : at
growing pressure was put on him to incorporate this concept in
his regulations and he was informed that, unless he did, action
would be taken early in the new Congress to. effect a. statute
taking the broader position. The Director reported also that
he hopes to have this issue resolved by the first. of. th:e year<
The intent of the Congress as reported by staff members
that independent contractors, except those working to produce
. product, were within the scope of the law apparently came as
a complete surprise and this has caused the delay in issuing
implementing instructions.
Needless to say, this position has come as a shock to us STATINTL
STATINTL and will have a larger budgetary impact on the, Agency than was
previously contemplated if it turns out the way the Congressional
STATINTL staff wants it to. 0/Comptroller, and
DDO have been informed. w
pass this on to other Directorate representatives.
Approved For Release 2002/05/07 : CIA-RDP82-00357R000700090115-3
 STAT Approved For Release 2002/05/07 : CIA-RDP82-00357R000700090115-3
Approved For Release 2002/05/07 : CIA-RDP82-00357R000700090115-3