AMENDMENT TO THE OMNIBUS BUDGET RECONCILIATION ACT OF 1982

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86B00338R000400620055-2
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 3
• Document Creation Date: December 21, 2016
• Document Release Date: September 16, 2008
• Sequence Number: 55
• Publication Date: September 9, 1982
• Content Type: MEMO

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? ? . - C
OGC 82-08235
9 September 1982
STAT MEMORANDUM FOR:
STAT THROUGH:
STAT FROM:
SUBJECT:
Deputy Director of Personnel
Chief, Legislatio Division, OGC
Legislation Division, OGC
Amendment to the Omnibus Budget
.Reconciliation Act of 1982
1. Attached for your review is a draft of an amendment
which seeks to remove participants in CIARDS from the provision.
in the Omnibus Budget Reconciliation Act of 1982 which reduces
by one-half the cost-of-living increase for annuities of..
individuals who retire prior to age 62.
2. Discussions with the Office of Management and Budget
(OMB) indicate that OMB is well aware of the inequitable impact
this provision has on individuals mandatorily retired before
age 62. OMB is also aware of the fact that CIARDS is not the
only retirement system which faces this problem. We have
learned that the military, FBI, DEA, Secret Service, and U.S.
Marshall's Service retirement systems also have mandatory
retirement prior to age 62. OMB is currently trying to decide
whether the Administration should seek a savings clause which
would apply to all mandatory retirees facing the reduction
penalty.
3. It was interesting to note that at the monthly
Intelligence Community legislation meeting yesterday several
attendees were not even aware of the penalty provision. Those
that were aware of it indicated that as of yet no ground swell
of opposition had become evident within their respective
agencies. It would appear that the existence of this penalty
provision is simply not that well known.
4. Rather than wait for OMB to take the initiative,
the attached amendment and sectional analysis have been drafted
as a means of beginning the process of deciding how and when we
,should seek a correcting amendment. We welcome any comments or
suggestions you may have concerning the amendment or our
overall strategy.
STAT
OGC:KAD:mw
Attachment
Distribution:
Orig - Addressee 1 - KAD Signer
-41"- 1.FD File: Cl.4RDS (permanent)
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 Approved For Release 2008/09/16: CIA-RDP86B00338R000400620055-2
97th Congress
2nd Session
? 0
To amend the Omnibus Budget Reconciliation Act of 1982.
1 Be it enacted by the Senate and House of Representatives
2 of the United States of America in Congress assembled, That
3 section 301 of title III of the Omnibus Budget Reconciliation
4 Act of 1982 (P.L. 97- ) is amended by --
5 (1) adding after paragraph (A) of subsection (a)(2) the
6 following new paragraph:. "(B) the individual did not retire
7 under the mandatory retirement provisions of section 235 of
8 the Central Intelligence Agency Retirement Act of 1964 for
9 Certain Employees.(50 U.S.C. 403 note);
10 (2) redesignating paragraph (B) as paragraph (C) and
11 paragraph (C) as paragraph (D); and
12 (3) inserting in subsection (c)(3) the word "Retirement"
13 following the word "Agency".
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SECTIONAL ANALYSIS AND EXPLANATION
The proposed amendment to section 301 of the Omnibus Budget
Reconciliation Act of 1982 is for the purpose of correcting
an inadvertent anomaly in the original Act. Section 301 of the
Act restricts the cost-of-living increase for annuities or
retired or retainer pay for early retirees under "any Government
retirement system" to one-half of the assumed increase in the
price index for fiscal years 1983, 1984, and 1985. Early
retirees are defined to be those individuals retiring before
the age of 62 years. Subsection (c) of section 301 defines
which Government retirement systems are covered by this restric-
tion and paragraph (3) lists the Central Intelligence Agency
[Retirement) Act of 1964 for Certain Employees (50 D.S.C. 403
note), commonly referred to as CIARDS. The inclusion of CIARDS,
within the provisions of section 301 creates a serious inequity
due to the fact that section 235(b) of CIARDS provides for
mandatory retirement at age 60 for covered individuals whose
rate of compensation is less than grade GS-18. In addition,
section 235(a) of CIARDS gives the Director of Central Intelli-
gence the authority to retire any participant who has served at
least 25 years or who is at least 50 years of age with a
minimum of 20 years of service. Therefore, under section 301
as it now reads, individuals retired under the mandatory
retirement provisions of CIARDS prior to age 62 would be
penalized in the same manner as individuals voluntarily
retiring prior to the age of 62.
To correct this inequity, it is proposed that the
definition of an early retiree be amended to add a new para-
graph specifically excluding those mandatorily retired prior
to age 62 under CIARDS. In this way, individuals under CIARDS
who voluntarily choose to retire before reaching age 62 would
be subject to the cost-of-living increase restriction in
section 301, while those who leave Government service under
the mandatory retirement provisions of CIARDS would not be
penalized.
The addition of "Retirement" to subsection (c)(3) of
section 301 is a technical amendment to correct the citation
to CIARDS.
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