FEDERAL EMPLOYEES RETIREMENT CONTRIBUTION TEMPORARY ADJUSTMENT ACT OF 1983

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86B00338R000400480010-7
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 21, 2016
• Document Release Date: October 23, 2008
• Sequence Number: 10
• Publication Date: September 19, 1983
• Content Type: MEMO

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OLL 83-2073/4
19 September 1983
SUBJECT: Federal Employees Retirement Contribution
Temporary Adjustment Act of 1983
REFERENCE: A. MFR, Senate Committee On Governmental Affairs
Hearing on Retirement, OLL 83-2073/2 dated
13 September 1983
B. MFR, Same Subject, OLL 83-2073/3 dated
15 September 1983
1. The staff of the Subcommittee on Civil Service, Post
Office, and General Services, Senate Committee on Governmental
Affairs, has prepared its first draft of a bill concerning
retirement system coverage and associated payroll withholdings
for new employees hired 1 January 1984 or later. This first
draft of the.bill will be rewritten at least once, and I will
pick up the rewritten bill on Tuesday, 20 September 1983.
2. Subcommittee staff, in the person of Mrs. K. Frances
Dolan, advises'that the attached draft legislation, entitled
"Federal Employees Retirement Contribution Temporary Adjust-
ment Act of 1983," accomplishes the following:
-- it establishes a temporary retirement system for
Federal employees hired during the period 1 January
1984 through 31 December 1985;
-- this temporary retirement system has a two-year life
(1 January 1984 through 31 December 1985);
-- the temporary system will provide all Social Security
benefits, plus the death and and disability benefits of
the Civil Service Retirement and Disability System
(CSRDS)--which, I am told, are the only CSRDS benefits
available prior to five years' CSRDS membership;
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-- the employee will pay full Social Security withholding
into the Social Security fund, as will each employing
.agency;
-- the employee will pay 1.3% of base pay (for no reason
other than equity purposes) into the CSRDS, and-the
employeeing agency will make a full 7% payment into the
CSRDS fund;
-- in addition to its 7% payment into the CSRDS fund, each
employing agency will make up the difference between the
employee's normal 7% contribution and the-reduced 1.3%
contribution (a net additional payment of 5.7% of each
employee's base pay);
-- this additional 5.7% of each employee's base pay will be
amortized over a 30-year period--and, hopefully, to be
accomplished via a budget transfer which will be
transparent to employing agencies;
-- all earned service achieved under this interim system
will be directly transferred to any new retirement system
that may become effective 1 January 1986, without the
requirement for additional retroactive employee contri-
butions into any new retirement system enacted to be
effective 1 January 1986.
3. Senator Ted Stevens (R., AL) plans to incorporate this
bill into the full Committee on Governmental Affairs (GAC)
report that itself will become the Governmental Affairs amend-
ment to the 1984 Budget Reconciliation Bill. The GAC amendment,
incorporating all budget savings called for earlier this year in
the joint budget resolution, will be reported back to the Senate
Committee on Budget for debate on the Senate floor within three
weeks. Failing this legislative strategy, Senator Stevens will
look for any other appropriate legislation to which he can
append this bill.
raison Division
Office of Legislative Liaison
Attachment
As stated
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Distribution:
Original - OLL Record w/att
1 - OLL Chrono w/o att
1 - DDA w/att
1 - D/OLL w/att
1 - DD/OLL w/att
1 - C/LD/OLL w/att
C/LEG/OLL w/att
1 - C/SL/OLL w/att
1 - C/HL/OLL w/att
1 - DD/Pers w/att
1 - DD/Pers SP w att
1 - OGC/AL w/att STAT
1 - TBC Subject w/att
1 - TBC Chrono w/o att
LD/OLL I gg (20 September 1983) STAT
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