AMENDMENTS TO THE CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM (CIARDS)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86B00338R000400620044-4
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 7
• Document Creation Date: December 21, 2016
• Document Release Date: September 16, 2008
• Sequence Number: 44
• Content Type: REPORT

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AMENDMENTS TO THE CENTRAL INTELLIGENCE AGENCY
RETIREMENT AND DISABILITY SYSTEM (CIARDS)
INTRODUCTION
Background
During the past two months numerous changes have been
proposed to substantially alter retirement programs for
federal employees. Legislation which would bring all new
federal employees entering on duty after 1 January 1984 into
Social Security has passed the House of Representatives and
has been sent to the Senate, where similar legislation has
been reported out of the Senate Finance Committee. Floor
action in the Senate is expected soon, and enactment is
virtually assured.
In addition, the Administration's budget proposals for
FY 84 contain several proposed changes to the current Civil
Service Retirement System (CSRS), most notably proposals to
raise the retirement age with full benefits from 55 to 65
and to reduce retirement annuities by 5 percent for each
year an individual retires below age 65. These changes
would impact on 80 percent of CIA employees. The Adminis-
tration has also indicated a desire to raise the retirement
age under CIARDS from age 50 to age 60. Together, these
proposals pose serious potential problems for the Central
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Intelligence Agency. These management and morale issues
have been discussed in detail in other papers and will not
be enumerated here. Suffice it to say that the Agency must
be prepared to protect its ability to carry out its vital
intelligence mission.
In determining the need for legislation, we must look
not only at the present and the impact of the current
proposed changes on CIA, but also to the future and to what
further changes may lie ahead. It appears safe to assume
that further changes to the CSRS and to the Social Security
system will be made by this or future Administrations in the
coming years, and that these changes are unlikely to be
favorable from the standpoint. of individual employees. This
may, therefore, be the time for' CIA to attempt to secure its
own retirement system for all its employees. To establish a
new retirement system to encompass only those new employees
joining CIA after 1 January 1984 would leave 80 percent of
current CIA employees under the CSRS and subject to further
deleterious changes in that system, some of which probably
would be carried over onto the current CIARDS.. A new CIA
retirement system to cover all current and new employees,
established by amendments to CIARDS, might avert these
difficulties.
Purpose
This paper presents an initial examination of the
amendments to CIARDS which would be necessary to-establish
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a retirement system for all CIA employees. If a decision is
made to pursue this course of action, a more detailed
analysis will be necessary so that appropriate legislation
can be drafted.
OVERVIEW OF PROPOSED AMENDMENTS TO CIARDS
CIARDS is now structured to pertain to a limited number
of employees who qualify for participation and are so
designated by the Director. Several technical amendments
must, therefore, be made at the beginning of the Act to
establish CIARDS for all Agency employees. Then, a two-tiered
retirement system can be established within CIARDS. To
provide a retirement program for the 80 percent of CIA
employees who are not or will not be covered by CIARDS as we
know it today will require a separate and distinct plan
within the new amended'CIARDS. For the purposes of this
paper, the plan to cover the majority of CIA employees is
designated "Plan A" and the current CIARDS system for the
remaining 20 percent of Agency employees is designated
"Plan B."
Until now, the CSRS has been an adequate retirement
plan for 80 percent of CIA employees and has not interfered
with CIA personnel management needs. Plan A, therefore,
can be structured to resemble the current CSRS. However,
to prevent the necessity of having to oppose any future
detrimental changes to CSRS, Plan A should not reference
CSRS provisions in title 5. Instead, those provisions in
title 5 which we want to adopt for our own CIARDS plan A
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should be fully spelled out so as to have viability separate
and distinct from the CSRS. Plan B would incorporate most
of the current provisions within CIARDS and thus CIARDS as
we know it now would remain basically unchanged.
What follows is an outline of the amendments needed
to the current sections of CIARDS and an initial listing
of new provisions necessary to establish Plan A.
PROPOSED AMENDMENTS TO CIARDS
Technical Amendments
-- Amend the title of CIARDS, striking out "For Certain
Employees," so that it will read "Central Intelligence Agency
Retirement Act of 1964."
-- Amend the enacting clause at the beginning of the Act
so that coverage under CIARDS no longer applies to a limited
number of employees.
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TITLE I -- PART A
Section 101. Amend the title of the Act.
PART B
Section 111. Amend this section to include those definitions which
would apply equally to both Plan A and Plan B. As for the current
definitions --
(1) "Agency" -- remain unchanged;
(2) "Director" --remain unchanged;
(3) "Qualifying service" -- should be moved to definitional section
for Plan B: definition of "employee" could be inserted here;
(4) "Fund balance" -- remain unchanged;
(5) "Unfunded liability" --remain unchanged;
(6) "Normal cost" -- remain unchanged.
'TITLE II -- PART A
-- Section 201(a). Amend so as to give the Director the authority to
establish, nothwithstanding the provisions of any other law, a retirement
system composed of Plans A and B which together would cover all CIA
employees.
--Section 201(b). Remains unchanged.
-- Section 201(c). Strike and move to Title IV, Plan B.
-- Section 202. Remains unchanged.
-- Section 203. Strike and insert section 261 of CIARDS, amended as necessary.
-- Add a new Section 204 to consist of current section 262 of CIARDS.
New Provisions
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TITLE III -- CIARDS, PLAN A
-- Define Plan A participants as all CIA employees who are not otherwise
covered by the provisions of Plan B;
-- Define creditable service for purposes of Plan A, looking at the
provisions in 5 U.S.C. 8332 and current sections 251, 252, and 253 of
CIARDS;
-- Define eligibility for annuity (see 5 U.S.C. 8333 and section 204 of
CIARDS);
-- Establish amounts for deductions, contributions, and deposits (see
5 U.S.C. 8334 and sections 211, 221(h), 252, and 253 of CIARDS);
-- Establish age and other requirements for voluntary retirement (see
5 U.S.C. 8336 and section 233 of CIARDS);
-- Establish requirements for disability retirement (see 5 U.S.C. 8337
and section 231 of CIARDS);
-- Establish terms for deferred retirement (see 5 U.S.C. 8338 and section
234 of CIARDS);
-- Establish computation of annuities (see 5 U.S.C. 8339 and sections 221
(a), (b) (1), (4), (h), and (k) of CIARDS);
-- Establish cost-of-living adjustments for annuities (see 5 U.S.C. 8340
and section 291 of CLARDS);
-- Define eligibility for survivor annuities (see 5 U.S.C. 8341 and sections
221(b), (c), (d), (f), (g), and (h) of CIARDS);
-- Establish terms for lump-sum benefits (see 5 U.S.C. 8342 and section 234
of CIARDS);
-- Establish requirements and contributions for additional annuities (see
5 U.S.C. 8343 and section 281 of CIARDS);
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-- Establish terms for payment of benefits; cormnencement, termination, and
waiver of annuities (see 5 U.S.C. 8345 and section 221 of CIARDS);
-- Establish exemption from legal process and means for recovery of payments
(see 5 U.S.C. 8346 and sections 263 and 264 of CIARDS);
-- Establish terms for annuities and pay on reemployment (see 5 U.S.C. 8334
and section 271, 272, and 273 of CIARDS).
Current CIARDS
TITLE IV -- CIARDS, PLAN B
-- Define participants under Plan B using the current section 203;
-- Insert current section 201(c);
-- The rest of Plan B would consist of the present provisions of CIARDS
beginning with section 204 except for:
-- striking sections 261 and 262; and
-- striking Part K -- Conformity with Civil Service Retirement System.
Additional Considerations
There are presently instances where provisions and definitions in CIARDS
are similar but not identical to provisions in the CSRS. For example, the.
definition of "widower" in CIARDS is not identical to'-the definition used in
the CSRS. In developing legislation to establish a separate and distinct
retirement system for CIA, consideration will have to be given to the degree
of conformity desired with the CSRS for Plan A and, where feasible, between
Plan A and Plan B.
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