LETTER TO WILLIAM V. ROTH, JR. FROM WILLIAM J. CASEY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP89-00066R000300040023-3
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 8
• Document Creation Date: December 22, 2016
• Document Release Date: March 4, 2011
• Sequence Number: 23
• Publication Date: September 6, 1985
• Content Type: LETTER

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Ccntral In6elligrnce
~wgonuciowa
The. Honorable William V. Rbth, Jr.
-airman
Committee on Governmental Affairs
United States Senate
Washington, D.C. 20510 ,1
Dear Mr. Chairman:
OLL: 85-2433/5
d sEr t~e5
As your Committee begins consideration of S. 1527, the
Civil Service Pension Reform Act, I want to thank you for your
invitation to submit written comments on this measure. We have
under consideration at OMB a legislative proposal which would
permit the Central Intelligence Agency to administer a
retirement program specially designed to meet the security and
management needs of this Agency. Until OMB completes its
deliberations, I believe it is premature to discuss this
proposal. Therefore, with all due respect, I must decline your
invitation to submit a statement for the record on S. 1527.
I do, however, take this opportunity to commend you and
Senator Stevens for the difficult task you have undertaken to
reform the Federal retirement system. As the head of an
Executive Agency, I am well aware of the great significance a
sound retirement system has~to every Federal agency's management
system. In the particular case of CIA, the specifics of a
retirement system weigh heavily on our ability to recruit and
retain top notch people, on our ability to maintain a high
degree of security, and on our ability to manage our personnel
with the flexibility and effectiveness necessary to carry out
our complex and difficult missions.
~I would hope that the subject of a retirement program for
the Central Intelligence Agency can be a matter of discussion
between us at an early opportunity. Until that time, I ask that
you keep us in mind as you proceed through your hearings on
S. 1527. With best wishes.
Sincerely,
William J. Casey
Director of Central Intelligence
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Distribution:
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DD/OLL:EIS:mlg (6 September 1985)
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~ POTENTIAL QUESTIONS FROM
e HOUSE POST OFFICE AND CIVIL SERVICE COMMITTEE
AT 25 APRIL HEARING
Question:
How many civilian employees are in your organization, and
how many are covered by Social Security.
Although we are getting into some areas which are
classified, I can say that about 9$ of our population is
now under Social Security.
Question:
What are you advising the new hires and has there been any
impact on your recruitment effort.
We are generally advising new hires that while their
retirement system is as yet undefined, every effort is
being made to provide them with a system which will provide
an adequate retirement benefit - one that is as close as
possible to the existing systems in terms of overall
benefits. We don't have any hard data to say specifically
that employees are turning us down because of this issue.
However, we do get a lot of questions about what is
happening on retirement with expression of concern. It is
definitely an issue of high interest to perspective
employees.
Question:
Has the retirement issue had any impact on morale within
the Agency.
Employees are keenly aware of what is taking place on
retirement and are following closely the developments.
There have been many expressions by employees that if
significant changes are made they would have to rethink
having a career with the Agency. We have also had a
significant number of inquiries for annuity estimates from
those eligible to retire. We thus have a potential for
losing not only experienced people but those who would be
developed and groomed in the future for senior positions.
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y POTENTIAL QUESTIONS FROM
! HOUSE POST OFFICE AND CIVIL SERVICE COMMITTEE
AT 25 APRIL HEARING
I~also believe most feel there is a moral contract between
themselves and the government to provide benefits available
at the time of their employment and which influenced their
decision to come to work for the government. They feel
changes would be a breach of that contract. This is not a
morale issue, but one of general uncertainty that if
changes are made now, will there be more the next year and
the year after that and so on.
Question:
What has been your recent experience with Voluntary
Retirements? If it has increased, is this because of fears
of changes to the Retirement Systems.
Voluntary Retirements have been higher, but as yet not
significantly so. I have nothing to verify that this is
the result of pending changes, but no doubt the concern is
there and could be a contributing factor.
UNIQUE EMPLOYMENT CATEGORIES
Question:
How should employees under unique categories (law
enforcement, fire fighters, air traffic controllers, and
the foreign service) be treated under the new supplemental
plan?
Response?
The unique categories cited are provided with special
retirement provisions and coverage based upon Congressional
recognition of the unique nature of the missions and
functions of the organizations involved and circumstances
of employee service in these types of special activities.
Supplemental plans must provide the same special provisions
for these unique categories as well as the Agency.
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s
: POTENTIAL QUESTIONS FROM
HOUSE POST OFFICE AND CIVIL SERVICE COMMITTEE
AT 25 APRIL HEARING
The CIA's mission imposes unique demands and employment
circumstances on all Agency employees, liable for service
anywhere in the world as Agency requirements dictate. In
recognition of these conditipns and the work force
management needs of the Agency,-the CIA needs special
provisions in future supplemental retirement system
coverages specifically tailored to our future CIARDS
employees and CSRS-type personnel.
Question:
Should current age and service requirements be continued
for these unique systems.
Response:
Unless these unique organizations confirm that changes are
needed the current eligibilities should be retained since
needs of these services must prevail. The fact that new
employees are required to have Social Security by reason of
the happenstance of the EOD date has no relevance to the
needs of the service.
Question:
If early retirement iS continued should we somehow
compensate early retirees for the fact that Social Security
benefits will not begin until age 62?
Response:
Yes. Early retirement must be accompanied by an adequate
annuity to sustain such retirements. If benefit levels are
to be maintained, a supplement must be provided until
Social Security benefits become available.
Question?
Is there a need for mandatory retirement provisions?
Response:
Yes but with criteria and authority for specific exceptions
when required by organizational requirements. Mandatory
retirement needs should be established where the nature of
the organizational mission and specific objectives require
availability of an employee pool of a specific average age
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~ POTENTIAL QUESTIONS FROM
t HOUSE POST OFFICE AND CIVIL SE~2VICE COMMITTEE
AT 25 APRIL HEARING
range. These factors might include such things as physical
apd psychological demands, maintenance of currency with
state of the art or technical knowledge and skills, ability
to meet medical standards for assignment to certain
locales, etc. The CIARDS requires - based on experiential
data - a mandatory retirement age of age 60 CIA does
not, because of existing voluntary retirement ages,
anticipate the need for a mandatory retirement age for our
career non-CIARDS (CSRS) employees since the current
patterns of voluntary retirement ages are appropriate to
meeting Agency work force requirements.
Question:
How much, if any, of the Social Security tilt should be
offset by the new supplemental plan?
Response:
We see no justification for totally offsetting the Social
Security "tilt". However, to provide appropriate annuity
levels to retirees, some offset may be required.
Question:
What should be the vesting requirement under the new
supplemental plan?
Response:
The current 5 year vesting has proven to be sufficient to
influence employees to stay on-board with CIA for the
desired full career needed.
The portability features of Social Security and defined
contribution plans would encourage greater turnover. A
high turnover rate creates security problems through
greater exposure to classified information to a larger
number of people and would put extreme pressure on our
ability to recruit, train, and maintain needed expertise in
the intelligence profession.
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~ POTENTIAL QUESTIONS FROM
HOUSE POST OFFICE AND CIVIL SERVICE COMMITTEE
AT 25 APRIL HEARING
Question:
What should the normal cost for the supplemental system be?
Response:
In order to recruit and maintain the type and quality of
both the CIA overseas and domestic employee cadres required
to effectively fulfill the Agency's unique intelligence
mission, CIA's current retirement systems have and must
continue to serve as critical management tools in
maintaining the characteristics of the Agency's total work
force.
The cost of the new coverage therefore should be based on
the cost flowing from the provisions required to maintain
the full effectiveness of the system in serving our
organizational needs.
EMPLOYEE CONTRIBUTIONS
Question:
Should employees under the new supplemental plan be
required to pay contributions, and, if so, what level of
contribution should be required?
Response?
We support a supplemental plan with an annuity base
established on the defined benefit concept with essentially
the same early retirement eligibility and benefit
provisions now in the current systems. We believe its
important and equitable that new employees contribute to
the retirement plan. The aggregate contributions to Social
Security and the retirement plan should equate to the
amounts contributed by employees covered by the current
systems.
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POTENTIAL QUESTIONS FROM
HOUSE POST OFFICE AND CIVIL SERVICE COMMITTEE
AT 25 APRIL HEARING
Question:
If the supplemental system is fully funded, should the
funding come from Agency appropriations or from the
Treasury? -
Response:
The present financing system which blends an organization's
appropriations to cover specific costs and Treasury funds
for others appears reasonable and we have no
recommendations for changing that system.
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