TENTATIVE HOUSE/SENATE COMPROMISE PLAN REGULAR CIVIL SERVICE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP89-00066R000300080001-3
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 67
• Document Creation Date: December 22, 2016
• Document Release Date: March 7, 2011
• Sequence Number: 1
• Publication Date: February 14, 1986
• Content Type: MISC

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ROUTING AND RECORD SHEET
STAToM:
STAT
TO: (Office
building)
Replacement Rates - Supplemental Retirement
"A/ADD/Pers/EBS
10.
DD/Pers/EBS
D/Pers
OFFICER'S
INITIALS
12 February 1986
COMMENTS (Number each comment to show from whom
to whom. Draw a Iine across column after each comment.)
Bob,
Attached are charts which
reflect replacement rates for the
version for CIARDS-types and come
very close to the original
Ford/Dakar plan. For regular
Civil Service, the total
replacement rates exceed the
original Ford/Dakar plan at time
of retirement--the change in the
Thrift Plan formula accounts for
this. The trade-off is a
reduction in COLA protection.
supplemental retirement plan bein
worked out by Senate/House
conferees. We have also attached
the briefing book used on the Hill
that show the effects of the.
Ford/Dakar, Roth/Stevens original
proposals and our 1.3% accrual
formula for CIARDS.
Note the compromise plan
provides over a 9% greater
replacement rate than the 1.3%
We are, of course, available ti
discuss if you so desire.
STAT "-
FORM 610 USE EDI -TIREVIOusONS
1.79
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'1't NI:kkI'IVL nuUJL/ JLIVHIL l.vl'ir"vi-il;1. r1AMLv
BASIC PROVISIONS
? 1% accrual X years of service X high 3
Age 55 Retirement
w
? Supplemental Annuity from retirement to age 62
Thrift Plan = Maximum 10% employee contribution: government
contributes 1% even if no employee contribution, then
matches in full up to 3% of any employee contributions and
one half of next 2% of employee contributions (Max govt
contribution - 5%)
AGENCY CSRS EMPLOYEES AGE 55 WITH 30 YEARS SERVICE
FINAL SALARY $30,000 $45,000 $60,000 $75,000
REPLACEMENT RATE AT 55
Pension
28%
28%
28%
28%
Supplement
16%
12%
9%
8%
Gov't 1%
to Thrift Plan
1.6%
1.6%
1.6%
1.6%
Total
45.6%
41.6%
38.6%
37.6%
Thrift Plan
14.4%
14.4%
14.4%
14.4%
Total *
60%
56%
53%
52%
Current CSRS
53%
53%
53%
53%
REPLACEMENT RATE AT 62
Pension
21%
21%
21%
21%
OASDI
17%
13%
10%
Thrift Plan
16%
16%
16%
16%
Total
54%
50%
47%
45%
* Employee Contribution
Social Security
Basic Pension Plan
Thrift Plan
TOTAL
to Achieve Total:
5.7%
1.3%
5.0%
12.0%
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TENTATIVE HOUSE/SENATE COMPROMISE PLAN
SPECIAL CATEGORIES y.t
Age 50 Retirement or 25 years service at any age
1.7% Accrual (1st 20 years); 1% (after 20) X years of
service X high 3
Supplemental annuity from Retirement to age 62
Thrift Plan - Maximum 10% employee contribution:
government contributes 1% even if no employee
contributions, then matches in full up to 3% of any
employee contribution and one half of next 2% of employee
contributions (Max gov't contribution - 5%)
? Reduced COLA
CIARDS EMPLOYEES RETIRING AT AGE 50 WITH 25 YEARS OF SERVICE
UNDER SPECIAL CATEGORY PROVISIONS
FINAL SALARY $30,000 $45,000 $60,000 $75,000
Pension Plan 37% 37% 37% 37%
Supplement 14% 10% 8% 6%
Gov't 1% to
Thrift Plan 1% 1% 1% 1%
Total 52% 48% 46% 44%
Thrift Plan 9% 9% 9% 9%
Total* 61% 57% 55% 53%
Current CIARDS 47% 47% 47% 47%
REPLACEMENT RATE AT 62
Pension Plan 33%
OASDI 15%
Thrift Plan 10%
Total 58%
*Employee Contribution
Social Security
Basic Pension Plan
Thrift Plan
TOTAL
to Achieve Total:
5.7%
1.8%
5.0%
12.5%
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PROPOSED CONFERENCE AGREEMENT - SUPPLEMENTAL RETIREMENT LEGISLATION
1. BASIC ANNUITY PLAN
B.
Employee
1.3% of pay in 1987,
contributions
0.94% in 1988-89, and
required
0.8% after 1989.
-------------------------
------------------------------------------ ----
d
d
C.
of retire-
e
5 years civilian service, provi
ded
f
ment benefits
.
un
employee's contributions are not re
D.
Salary base
Average of high-3 years salary.
Proposed conference agreement - May 14, 1986
A. Eligibility Federal civilian employees covered,by Social
Security (generally, those employees hired
after December 31, 1983).
------- ---------------------------------------------------------------
--------------------------------------
E. Retirement benefit 1% of high-3 pay times years of service, or
1.1% if retiring after age 62 & 20 years svc.
-----------------------------------
F. Eligibility for
retirement
1. Unreduced
Age 62 & 5 years service,
age 60 & 20 years service, or
"Minimum Retirement Age" & 30 years service--
Year of birth
Minimum Retirement Age
---------------------
Before 1948
55
1948
55
& 2 months
1949
55
& 4 months
1950
55
& 6 months
1951
55
& 8 months
1952
55
&10 months
1953 - 1964
56
1965
56
& 2 months
1966
55
& 4 months
1967
55
& 6 months
1968
55
& 8 months
1969
56
&10 months
1970 & after
57
2. Reduced Minimum Retirement Age & 10 years service.
3. Involuntary Age 50 & 20 years service, or any age & 25
years service.
4. Deferred Unreduced benefit at age 62, if employee had
vested 5 years civilian service at termination and
did not get refund of contributions. Reduced
benefit available at Minimum Retirement Age
to vested employee with 10 years service.
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1. BASIC ANNUITY PLAN (continued:
------------------ --------------
Proposed conference agreement - May 14, 1986
G. Amount of annuity
1. Unreduced Based on accrual rate, without reduction.
2. Reduced Reduced 5% for each year under age 62.
3. Involuntary Based on accrual rate without reduction. Sup-
plement paid from Minimum Ret. Age to age 62.
4. Deferred vested Full accrued benefit payable at age 62.
Reduced benefit can be elected at Minimum
Retirement Age by former employee with 10
years of service.
--------------------------------------------------------
H. Supplement payable Employee retiring after Minimum Retirement.
to age 62 Age with 30 years service, or age 60 with 20
years service, gets Supplement to age 62,
equal to estimated Social Security benefit
earned in federal service.
Supplement is subject to earnings test,
similar to the test used by Social Security
at age 62, reducing Supplement if retiree
has earned income in excess of an annual
exempt amount ($5,760 in 1986, wage-indexed'.
------------------------------------------------------------------------
I. Refunds Option to withdraw contributions at separa-
tion with benefits forfeited.
J. Cost-of-living
adjustments (COLAs)
1. Annual COLA Increase in CPI Annual COLA percentage
percentage, --------------- ----------------------
based on Up to 2. ................. Saas CPI increase
increase in 2% to 3. ...............2:
Consumer Price 3% or more ............. CPI increase minus i
Index (CPI) percentage point
2. Eligibility Regular retirees over age 62, or
for COLA disabled and survivors at any age.
E. Optional forms 1. Joint-&-survivor annuity, automatic if
of benefits married unless jointly rejected.
Employee's annuity is reduced 10: to
provide spouse with 50% survivor benefit.
2. Alternative options that are actuarially
equivalent and offered by Office of
Personnel Management.
r
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Proposed conference agreement - May 14, 1926
---------------------
A. Eligibility Every 6 months employees have an open season
to join the plan or reallocate investments.
Newly hired employees may join at the second
open season (6 to 12 months after hire).
------------------------------------------------------------------------
B. Contributions Employer automatically contributes 1 percent
by employer of pay into each employee's account.
and employees
First 3% of pay ........ $1.00
per
$1.00
Next 2: of pay.......
...
$.50
per
$1.00.
So employer contributes
for any employee.
at
most
5%
of pay
Employees may contribute up to 10% of pav,
with employer matching as follows--
Employees covered by CSRS also may contribute
up to 5% of pay, with no employer matching,
to invest in Fund A (government securities..
------------------------------------------------------------------------
C. Vesting Full and immediate vesting of all except the
1-of-pay automatic government contribution.
This automatic contribution becomes vested a-
3 years of service for career civil servants,
2 years of service for non-career SES and
political (Schedule C) appointees, Members
and Congressional staff.
------------------------------------------------------------------------
1. Employee may Fund A--Special government securities.
elect to invest
own account in: Fund B--Fixed-income securities, using
insurance company Guaranteed
Investment Contracts (GICs),
bank certificates of deposit or
other private-sector securities.
Fund C--Equities, using a stock index fund
(invested in proportion to a diversi-
fied common stock portfolio such as
the Wilshire 5000 Equity index:.
2. Management of The investment funds are managed by a Board
investment funds of 5 members appointed by the President,
taking into account one recommendation from
the Senate and one from the House. Executive
Director is responisible for investment
operations, employee recordkeeping, etc.
Voting rights in connection with common stock
owned by the Plan are not exercised.
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2. THRIFT-SAVINGS PLAN (continued)
Proposed conference agreement - May 14, 1986
D. Investments (continued)
3. Phase-in of
private-sector
investment option
in early years of
the thrift plan:
E. Payout of employee
retirement accounts
Percentage required to be
Contributions in government securities
year Employee Employer
--------- -------- --------
1987 100: 100
1988 80 100
1989 60 100
1990 40 100
1991 20 100
(After 1991, no funds derived from
employee contributions are required tc
be held in government securities.)
1992 0 100
1993 0 80
1994 0 60
1995 0 40
1996 0 20
(After 1996, no funds are required to
be held in government securities.,
Employee may elect
account balance:
1. As annuity for life or
2. In cash (at retirement
disability).
3. As rollover to IRA (at
employment).
for a fixed ter=.
age, death or
termination of
Active employees may not withdraw funds.
Program of loans to employees is
to be established by January 1, 1988.
l
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3. SURVIVOR BENEFITS
Proposed conference agreement - May 14, 1986
A. Pre-retirement At death of married employee with 18 months
death benefit of civilian service, surviving spouse gets--
to spouse or
former spouse 1. Lump sum of $15,000 (indexed to CPI) and
one-half employee's annual rate of pay
or high-3 average if higher. Spouse may
elect payment as an annuity.
2. Annuity equal to 50% of accrued annuity,
if employee had 10 years of service.
These benefits are paid in addition to any
Social Security, group life insurance or
thrift plan death benefits.
------------------------
B. Children's benefits, Annually adjusted amounts, offset by Social
payable at death Security children's benefits, varying by
before or after number of children & whether or not orphaned.
retirement In 1986 amount is about $2,800 per child, up
to 3 children, or $3,400 if orphaned.
Payable to unmarried child up to age 18,
age 22 if in school, or any age if disability
started before age 18.
C. Optional post- Employee's annuity is reduced 10, to provide
retirement annuity to surviving spouse.
death benefit
to spouse or Automatic if married unless jointly
former spouse rejected by both spouses.
Surviving spouse gets 'l 50: of employee's
unreduced annuity, and ;2 supplement payable
to age 60 if ineligible for Social Security.
At spouse's death, employee's annuity is
restored to unreduced amount.
D. Special provisions , Benefits are the same as for surviving
for surviving spouses, subject to elections, court
former spouses, orders and deposits in certain cases.
or new spouses
due to marriage
after retirement
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4. DISABILITY BENEFITS
Proposed conference agreement - May 14, 1986
A. Administration Disability benefit paid if employee has 18
and eligibility months of civilian service.
_ -------------------------------------------------------------
B. Definition of Employee must be unable, because of disease
disability or injury, to render useful and efficient
service in the employee's position.
Employee will also qualify for Social
Security benefits if unable to work in any
substantial gainful activity.
Employee may not decline reasonable job offer
in the same agency and commuting area, at the
same pay grade.
During disability, total income from work may
not exceed 80% of former job's current pay
level. Employee may be given physical exams.
----------------- ------------------------------------------------------
C. Disability benefit
amounts
1. In first year 60: of high-3 minus 100: of any Social
of payments Security benefit payable to the employee.
2. After 1st year,
up to age 62
40'. of high-3 minus 60: of initial Social
Security benefit payable to the employee,
increased by annual COLA percentage (same as
allowed for basic annuity at age 62 & over',
but not below annuity earned to date.
----------------------------------------------- b t
D. Retirement benefits
after disabled
employee reaches
age 62
Recomputed from basic annuity formula, u
limited to benefit payable to individual who
gets Social Security `40e-less-60: formula;.
Employee gets credit for years of disability
toward basic annuity formula, and salary for
purposes of the high-3 goes up at annual
COLA percentage.
t
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5. MISCELLANEOUS PROVISIONS
---------------------------
Proposed conference agreement - May 14,
1986
A. Credited service
i
ull
Pay rate increased f
a
nd
ce
1. Part-time serv
-ratedservice.
2. Unused sick leave
Not credited.
t credit for post-1956
T
military
service,
3. Military service
o ge
employee must deposit 3% of
for period of service, plus
military
interest
base
if
pay
deposit made more than 2 years after hire.
---------------------------------------------
----------------- ---------
B
Treatment of special
groups of employees
1.
Firefighters,
law enforcement
officers and
air traffic
controllers
Unreduced benefit at age 50 & 20 years of
service, or any age & 25 years service.
Annuity is 1.7% of high-3 pay times years of
service up to 20, 1.0. times years over 20.
Supplement paid to age 62, equals estimated
Soc.Sec. benefit earned in federal service,
earnings-tested above Minimum Retirement Age.
Annual COLA percentage applies at all ages.
Employees contribute additional 0.5: of pay.
2.
Military reserve
technicians
Employee separated due to termination of mil-
itary service after age 50 & 25 years service
gets unreduced annuity with Supplement to 62,
earnings-tested above Minimum Retirement Age.
3.
Members of
Congress and
Congressional
employees
Unreduced annuity for Members only at age 50
& 20 years of service, or any age & 25 years
of service.
Annuity is 1.7: of high-3 pay times years of
service up to 20, 1.0: times years over 20.
Earnings-tested Supplement paid from Minimum
Retirement Age to age 62.
No COLA to age retirees before age 62. These
classes contribute additional 0.5: of pay.
4. Employees of non- Not covered. Department of Defense is to
appropriated fund provide a study of how to give such employees
instrumentalities appropriate benefits and portability.
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5. MISCELLANEOUS PROVISIONS (continued)
---------------------------------------
Proposed conference agreement - May 14, 1986
C. Transfers of current Current employees may elect between entulyh1
employees covered by and December 31,
CSRS to new program new plan including Social Security-
Credit in current program stops, but the
high-3 pay continues to run.
-- All service counts toward years needed
to be eligible for retirement, disability
and vesting in both CSRS and new plan.
-- Employee gets survivor and disability
coverage from the new plan only.
-- Unused sick leave is credited under CSRS
based on the amount accumulated at date of
transfer, or date of retirement if lower.
-- Current law Social Security windfall
benefit reduction provision is retained.
-----------------------------------------
D. Treatment of employees
re-hired, who were
not covered earlier
by Social Security
1. Employees with Remain out of Social Security and are covered
break-in-service by CSRS. May transfer to the new plan
up to 1 year including Social Security coverage.
Employees with Covered by Social Security, and--
break-in-service a) Those with less than 5 years under CSRS
over 1 year are covered by the new plan.
b) Those with 5 or more years under CSRS are
covered by CSRS with 100% offset of Social
Security. May transfer to the new plan.
------------------------ -
1987
E.
Transition from
interim plan in
.
New plan's effective date is January 1,
effect 1984-86
1.
Employees newly
hired on or af.ter
January 1, 1984
Get credit for all service toward new plan.
Those covered on January 1, 1987 get credit
toward thrift plan of 1: of 1984-86 pay.
2.
Employees before
January 1, 1984.
covered then by
Social Security
mandatorily
These employees get CSRS benefits, offset by
Social Security benefits attributable to
federal service, and pay contributions at the
CSRS rate less Social Security (OASDI` rate.
They may transfer to the new plan.
3. Employees re-hired These employeep are treated the same as
during 1984_86_later re-hires (see D_above).--------
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DDA Talking Points - Senator Mathias
? ? Two year internal study to review and analyze Agency
retirement requiremen
.Conclusions reached from study:
(1) need a fu ~y eevre retirement system, (Agency
self-administered);
(2) need a retirement system that meets Agency management
requirements:
- Retain the Director's management flexibility and
authority to place employees where needed to meet surge
intelligence requirements
Retire individuals when in interest of U.S. Government
Adequate annuity to make early retirement feasible
Recognize and reward overseas service
Legislative Proposals by Congress:
? Roth/Stevens Bill (Black Binder Data)
Problems created for Agency:
Accrual rates insufficient (1% vs 1.3%)
No supplement from age 55 to 62 for non-CIARDS types
Does not provide Option B for non-CIARDS types
(oversight)
FBIS TCNs (non U.S. citizens or resident aliens) are
not covered
? Ford/Oakar Bill (Black Binder Data)
- Would meet Agency needs so long as self-administration
included
? Points of Emphasis
Agency retirement system - management tool
Difference in State versus the Agency
Self-administered retirement for all Agency employees
1.3% versus 1% accrual rate
Age 55 with supplemental for non-CIARDS types
CIARDS review during the next year
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an amendment numbered 978.
Immediately following title M. insert the
following:
TITLE IV--CENTRAL INTELLIGENCE AGENCY
RETIREMENT '
REFERENCES
Bye. 401. The Central Intelligence Agency
lire irement Act of 1964 for Certain Employ-
(78 Stat. 1043: 50 U.S.C. 403 note) is
aeaende-d-
(I t in section 111, by striking out "When"
and inserting in lieu thereof "Except as oth-
er' isr provided In section 302 of this Act,
'lull'
(-( b)? striking out "this Act" each place it
atatw?ars in title II except in sections 201 and
"$t)abtr from the Fund" each place it ap-
9tars in title Il.
TRIa(!TIONS TO THE CENTRAL INTELLIGENCE
r a'T arnREMEt(T AND DISABILITY SYSTEM
403 note) is amended-
(1) by inserting "Except as provided In
subsection (d)," before "7 percent" in the
first sentence of subsection (a): and
(2) by adding at the end thereof the fol-
lowing new subsection (d).
"(dXl) In the eon of a participant who
was a participant subject to this Act before
January 1. 19K and whose service-
"(A) is employment for the purposes of
title II of the Social Security Act and chap-
ter 21 of the Internal Revenue Code of 1954.
and
"(B) is not creditable service`.for any pur-
pose under title III of this Act or chapter 84
of title 5. United States Code..
there shall be deducted and withheld from
the basic pay of the participant under this
subsection during any pay period only the
amount computed pursuant to paragraph
(2).
"(2) The amount deducted and withheld
from the basic pay of a participant during
any pay period pursuant to paragraph (1)
shall be the excess of-
"(A) the amount determined by multiply-
Ing the percent applicable to the participant
under subsection (a) by the basic pay pay-
able to the participant for such pay period.
over
"(B) the amount of the taxes deducted
and withheld from such basic pay under sec-
tion 3101(a) of the Internal Revenue Code
of 1954 for such pay period.".
OFFSET OF ANNu&rx BY THE AMOUNT Or SOCIAL
SBCDRITY SENWrrs
Sac. 403. Section 221 of the Central Intel-
ligence Agency Retirement Act of 1964 for
Certain Employees (78 Stat. 1045; 50 U.S.C.
403 note) is amended by adding at the end
thereof the following new subsection:
"(p)(1) Effective on the first day of the
month in which an annuitant, Including a
survivor. becomes 62 years of age. the annu-
ity computed under the other subsections of
this section and payable to the annuitant
shall be reduced (but not below zero) by the
amount determined by multiplying the
amount of the old-age and survivors Insur-
ance benefits which the annuitant is enti-
tled to receive under section 202 of the
Social Security Act for the such month. If
any. by a fraction-
"(A) the numerator of which Is the total
of the wages (within the meaning of section
209 of the Social Security-Act) for service
which is referred to in paragraph (2) of this
subsection for years before the calendar
year in which such month occurs. and
"(B) the denominator of which is the total
of all wages (within the meaning of section
209 of the Social Security Act) and all self-
employment income (within the meaning of
section 211(b) of the Social Security Ac0-
"(1) of such annuitant, or
"(Ii) in the case of a survivor. of the par-
ticipant on whose service the annuity is
based.
"(c) Subsection (b) shall not apply to an
annuitant who becomes subject to title III
of this Act by reason of recall service.".
CONFORMITY SETWELN THE FEDERAL RETIRE-
MENT SYSTEM AND THE CENTRAL INTELLI-
GENCE AGENCY PENSION SYSTEM
Sac. 405. Section 292 of the Central Intel-
iigency Agency Retirement Act of 1964 for
Certain Employees (50 U.S.C. 403 note) Is
amended by adding at the end thereof the
following new subsection:
"(c) The President shall maintain, under
the same conditions and In the same
manner as provided in subsections (a). and
(b). existing conformity between the Feder-
al Retirement System provided in chapter
84 of title 5. United States Code. and the
Central Intelligence Agency Pension System
provided In title III of this Act.".
CENTRAL n.mLIGENCE AGENCY PENSION
SYSTEM
Sac. 406. The Central Intelligence Agency
Retirement Act of 1964 for Certain Employ-
ees (78 Stat. 1043: 50 U.S.C. 403 note) is
amended by . -a&-4he-end thereof the
follow
TLt In-CENTRAL INTELLIGENCE AGEI
/ PENSION SYSTEM
"ESTABLISHMENT
SEC. 301. (a) There is hereby establish
Central Intelligence Agency Pet
System.
"bXl) Except as
proor any other provision
of law, all participants in the Central Intel-
ligence Agency Pension System shall be sub-
ject to the provisions of chapter 84 of title
5, United States Code, and shall be treated
In all respects as persons whose participa-
tion in the Federal Retirement System pro-
vided in that chapter is required by section
8402 of such title.
"(2) Participants in the Central Intelli-
gence Agency Pension System may not
make an. election authorized by section
8418(c) of title 5. United States. Code, and
shall not be entitled to any benefits under
chapter 84 of such title which result from
such an election.
"Sze. 302. As used in this title, unless oth-
erwise specified-
"(1) the term 'annuity' means the annuity
which is described in subchapter II of chap-
ter 84 of title 5. United States Code, and Is
payable to a Pension System participant:
"(2) the term 'dynamic assumptions' has
the same meaning as provided in section
8401(9) of title 5. United States Code:
"(3) the term 'Fund' means the Central
Intelligence Agency Retirement and Disabil-
ity Fund maintained by the Director pursu-
ant to section 202:
"(4) the term 'normal cost' means the
entry-age normal cost of the provisions of
the System which relate to the Fund. com-
puted by the' Director in accordance with
generally accepted actuarial practice and
standards (using dynamic assumptions) and
expressed as a level percentage of aggregate
basic pay, and shall be used to value the
cost of the System for all purposes for
which the cost of the System Is required to
be determined:
"(5) the term 'Pension System participant'
means a person who participates in the Cen-
tral Intelligence Agency Pension System:
NO the term 'supplemental liability"
means the estimated excess of-
"(A) the actuarial present valbe of all
future benefits payable from the Fund
under this title, over
"(B) the sum of-
"(I) the actuarial present value of the
future contributions to be made on behalf
credited for years after 1936 and before the
calendar year in which such month occurs.
"(2) The service referred to in paragraph
(1XA) of this subsection is service which is
covered by amounts deducted and withheld
as provided in section 211(d), is service de-
scribed in subparagraphs (C) through (0) of
section 210(aX5) of the Social Security Act.
and is taken into account for the purpose of
computing the annuity to which paragraph
(1) of this subsection applies.".
TREATMENT OP CERTAIN RECALL SERVICE
SEC. 404. Section 271 of the Central Intel-
ligence Agency Retirement Act of 1964 for
Certain Employees (78 Stat. 1052: 50 U.S.C.
403 note) is amended by adding at the-end
thereof the following new subsection:
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November 7, 1985
CONGRESSIONAL RECORD - SENATE - 815043
ma. Mr. Jenkins, Mr. Gephardt. Mr. Russo.
Mr. Duncan. Mr. Archer, Mr. Vander Jagt,
Mr. Crane. and Mr. Frenzel.
From the Committee on Appropriations:
Mr. Whitten. Mr. Boland, Mr. Natcher. Mr.
Smith of Iowa. Mr. Purseil, and Mr. Loef-
fler:
From the Committee on Rules: Mr.
Pepper, Mr. Moakley. Mr. Derrick. Mr. Bell-
enson. Mr. Frost. Mr. Latta. and Mr. Lott.
Prom the Committee on Government Op-
erations: Mr. Brooks. Mr. Fuqua. Mr.
Waxman. Mr. Synar, Mr. Horton. and Mr.
Kindness.
From the Committee on the Budget: Mr.
Gray of Pennsylvania. Mr. Downey of New
Yoram Mr. Miller of California, Mr. Leath of
Texas. Mr. Kemp. and Mr. Gradison.
Appointed as additional conferees: Mr.
Foley, Mr. Ford of Michigan, Mr. Obey. Mr.
Aspin. Mr. Mints. Ms. Oskar. Mr. Panetta.
Mr. Faaip, Mr. Michel. Mr. Dickinson. Mr.
Cheney, Mr. Lewis of California, MIS.
Martin of Illinois. and Mr. Mack.
Mr. STEVENS. Mr. President. this
has been cleared with the distin-
guished leader on the Democratic side
of the aisle. I move that the Senate
insist on its amendments and agree to
the conference requested by the House
and that the Chair be authorized to
appoint conferees on the part of the
Senate.
The motion was agreed to and the
presiding- Officer [Mr. WALLOP] ap-
pointed Mr. PACKWOOD, Mr. DomEmcl,
Mr. RoTH, Mr. DAIn'oRTH. Mr. ARM-
STRONG, Mr. GRAMM, Mr. RUDMAN, Mr.
LONG. Mr. BmrrszN, Mr. CHItns. Mr.
LIMN. Mr. Boris. and Mr. HOLLIxGS
conferees on the part of the Senate.
FEDERAL REFORM
ACT
AMENDI92'rINO.9T9 (purpose: To amend the Central InteW-
=pr.genee Agency Retirement Act of 1964 for
Certain Employees to establish a new re-
tirement and disability plan for certain
employees of the Central Intelligence
Agency)
Mr. EAGIZION. Mr. President, I
have an amendment I send to the desk
and ask for Its immediate consider-
ation
The PRESIDING OFFICER. The
amendment will be stated.
The assistant legislative clerk read
as follows:
The Senator from Missouri (Mr. EAGLE-
Tonl, for himself and Mr. STEVENS, proposes
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S 15044 CONGRESSIONAL RECORD - SENATE November 7, 1955
of participants pursuant to section
305(b)(2)(A) of this Act: and
"(ii) the balance In the Fund attributable
to the System on the date the supplemental
liability is determined or to contributions
made under Section 204(b) or 205 of the
Federal Employees' Retirement Contribu-
tion Temporary Adjustor Act of 1983 (97
Sat. 1106: 5 U.S.C. 8331 note): and
"(7) the term 'System' means the Central
Intelligence Agency Pension System.
"PENSION SYSTEM PARTICIPANTS
"SEC. 303. (a) Except for persons excluded
by subsection (b), all officers and employees
of the Agency, any of whose service after
December 31. 1983. Is employment for the
purpose of title II of the Social Security Act
and chapter 21 of the Internal Revenue
Code of 1954 shall be Pension System par-
ticipants.
"(b) Participants in the Central Intelli-
gence Agency Retirement and Disability
System who were participants in such
system on or before December 31. 1983, and
who have not had a break in service in
excess of 1 year since that date, are not
made Pension System participants by this
section. without regard to whether they are
subject to title 11 of the Social Security Act.
"SPECIAL FULLS REIATING TO TIHZ ENTIfI EIiE1T
OF SECTION 203 EMPLOYEES TO ANXMTY
"2Ec. 304. (a) Any Pension System partici-
pant who is described in section 203 and re-
tires voluntarily or mandatorily under sec-
tion 102(c) of the National Security Act of
1947 (61 Stat. 498; 50 U.S.C. 403(c)) or sec-
tion 233 or 235 of this Act under conditions
authorizing an immediate annuity for par-
ticipants in the Central Intelligence Agency
Retirement and Disability System shall be
entitled to an immediate annuity computed
under subsections (aX2). (a)(3). and (c) of
section 8413 of title 5, United States Code.
The annuity shall not be subject to reduc-
tion under section 8414 of such title.
"(b) A Pension System participant who is
entitled to an immediate annuity under sub-
section (a) shall be entitled to receive an an-
nuity supplement while under 62 years of
age. The annuity supplement shall be based
on the total creditable service of the partici-
pant and shall be computed and increased in
accordance with section 8413(b) of title 5.
United States Code.
"(cXl) Any Pension System participant
described in section 203 may be retired
under the conditions specified in sections
233 and 235(a) and shall be retired under
the conditions specified in section 235(b).
Each Pension System participant so retired
shall receive benefits under this title.
"(2) For the purpose of this subsection-
"(A) the term 'participant', as used in the
sections referred to In paragraph (1). means
a Pension System participant described in
section 203; and
"(B) the term 'system'. as used In section
233. means the Central Intelligence Agency
Pension System.
"(d) Any Pension System participant de-
scribed in section 203 who is separated
under the conditions specified in section
234(a) shall be entitled to a deferred annu-
ity under section 8412 of title S. United
States Code. unless the Director determines
that the separation was based in whole or in
part on disloyalty to the United States.
"FUNDING
"Sec.. 305. (a) All payments under sub-
chapters II. W. and VII of chapter 84? of
title 5. United States Code, based on the
service shall be paid by the Director from
the Fund.
'-(bXl) All sums required to finance the
payments referred to in subsection (a) shall
be credited to the Fund. -
"(2) The Sums referred to In paragraph (1)
are-
"(A) amounts which are determined by
the Director to be necessary to defray the
normal cost of the benefits, other than dis-
ability benefits, payable under this title to
Pension System participants;
"(B) the sums which are transferred to
the Fund by the Secretary of the Treasury
to amortize over 30 years the supplemental
liability of the System which is attributable
to Pension System participants. as comput-
ed at the end of each fiscal year beginning
after September 30. 1987: and
"(C) the sums which are transferred by
the Secretary of the Treasury to the Fund
out of funds appropriated to the Depart-
ment of Defense for the purpose of paying
the costs incurred during any year which
relate to the creditable military service of
Pension System participants.
"(c) At least every 5 years, the Secretary
of the Treasury shall prepare periodic valu-
ations of the Central Intelligence Agency
Pension System and shall advise the Direc-
tor of (1) the normal cost of the System.
without regard to the cost of disability pay-
ments, (S) the supplemental liability of the
System, and (3) the amounts necessary to fi-
nance the costs of the System.
"THRIT SAVINGS PLAN
"Sec. 306. (a) The Director, in consulta-
tion with the Executive Director of the Fed-
eral Retirement Thrift Investment Board.
may-
"(1) maintain exclusive records relating to
Pension System participants' elections, con-
tributions. and accounts under the Thrift
Savings Plan provided in subchapter III of
chapter 84 of title 5, United States Code;
and
"(2) provide for investments under the
Thrift Savings Plan to be made and ac-
counted for by such Executive Director in
aggregate amounts for the Central Intelli-
gence Agency Pension System.
"(b) The Director may make the necessary
allocations of earnings, losses, and charges
to individual accounts of Pension System
participants under the Thrift Savings Plan.
"(c) The Executive Director of the Feder-
al Retirement Thrift Investment Board may
not exercise authority under subchapter III
or VIII of chapter 84 of title 5. United
States Code. in the case of the Central In-
telligence Agency Pension System to the
extent that the Director exercises authority
provided in subsections (a) and (b).
"DISABILITY
"SEC. 307. The Director, instead of the
Office of Personnel Management. may con-
tract with an administrator of benefits (as
defined in section 8441(1) of title 5. United
States Code), for the purpose of administra-
tion of benefits under subchapter V of chap-
ter 84 of such title with respect to Pension
ters to which section 306 of this Act applies)
relating to the Thrift Savings Plan provided
in subchapters III and VIII of chapter 84
title 5. United States Code, and matters
(other than matters to which section 307 of
this Act applies) relating to disability bene-
fits under subchapter V of such chapter.
The Director shall, with respect to the Cen-
tral Intelligence Agency Pension System.
perform the functions and exercise the au-
thority vested in the Office of Personnel
Management or.the Director of such Office
by such chapter 84, and -may issue regula-
tions for such purposes.
"(b) Section 201(c) shall apply to determi-
nations of the Director under the Central In-
telligence Agency Pension System which, if
made by the Office of Personnel Manag-
ment under chapter 84 of title 5. United
States Code. the Director of such Office. or
an administrator of benefits (as defined in
section 8441(1) of such title). would be ap-
pealable to the Merit Systems Protection
Board, to such Office, or to the Director of
such Office.
"TRaxsmow PROVISIONS
"SEC. 309. The Director shall issue regula-
tions providing for the transition from the
Central Intelligence Agency Retirement and
Disability System to the Central Intelli-
gence Agency Pension System. For this pur-,p
pose, the provisions of sections 8471, 8472,
and 8473 of title 5. United States Code, re-
lating to the Civil Service Retirement and
Disability System and contributions, depos-
its, pay computations, service credit, and
disability retirement under such system
shall be deemed to refer in like manner to
the Central Intelligence Agency Retirement
and Disability System and contributions. de-
posits. pay computations, service credit. and
disability retirement thereunder.
"RE,rERINCES IN OTHER LAWS
"SEC. 310. References made to participa-
tion in the Federal Retirement System in
sections 8113(c). 8475. 8704(a)(2), and
8705(e) of title 5. United States Code. sec-
tion 210(aX5XH) of the Social Security Act.
and section 3121(bXSXH) of the Internal
Revenue Code of 1954 shall be deemed to
refer to participation in the Central Intelli-
gence Agency Pension System.".
Redesignate the succeeding title and sec-
tions accordingly. .
Mr. EAGLETON. Mr President. the
purpose of this amendment is to revise
the current CIA Retirement and Dis-
ability System to provide retirement
provisions to personnel covered by
that system in the future, who were
first hired after December 31. 1983.
benefits comparable to the provisions
Senator LUGAR's amendment provides
to new Foreign Service personnel
hired after that same date.
I point out that when it was estab-
lished in 1964. the CIA system was
patterned after the Foreign - Service
System. Furthermore. the proposed
benefit provisions are the same as we
are providing for Federal law enforce-
ment officers.
AMENDMENT NO. 979
(Purpose: To improve the administration of
retirement benefits for officers and em-
ployees of the Central Intelligence
Agency)
Mr. DURENBERGER. Mr: Presi-
dent, I have an amendment at the
desk and I ask for its immediate con-
sideration.
The PRESIDING OFFICER. Is this
an amendment to the amendment?
Mr. DURENBERGER. This is an
amendment to the amendment by the
Senator from Missouri.
The PRESIDING OFFICER. Is all
time yielded back on the first amend-
ment?
Mr. STEVENS. All time is yielded
back.
Mr. EAGLETON. We yield back our
time.
The PRESIDING OFFICER. The
clerk will report.
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nation that they. In turn. will be able will match my record against any in Sm, 401. (a) Chapter $ Of title I of the
to depend on us. I urge that the this Chamber. I led the fight to elimi- Foreign Service Act of 1960 (94 Stat. 2102.
Senate support me In this effort and note the "I percent kicker" in 1976. I 22 U.S.C. 4041 et seq.) is amended-
adopt this amendment. led the fight to end the "look back" (l) by striking out the caption of such
th f the fol.
o
II
S 15046 CONGRESSIONAL RECORD - SENATE November 7, 1985
nature of this work is very exacting. eat of comity will revisit that issue In Mr. STEVENS. Mr. President. I ask
dangerous. and difficult. In short, it is the future. But our message is clear- unanimous consent that further read-
unlike any other work in government. we intend to work on this Issue next Ing of the amendment be dispensed
Mr. President. there is a great need year. We intend to do our best to with.
for a strong and effective human Intel- assure this cadre of professionals that The PRESIDING OFFICER. With-
Hgence service In today's international we understand and appreciate their out objection. it Is so ordered. .
environment. My service on the Select contribution. The amendment is as follows:
Committee on intelligence has made Mr. President, this amendment rests immediately following title III. Insert the
me well aware of how much we depend on the merits and should be passed. It following:
on the fine men and women of our in- does not violate the spirit of this legis- TITLE IV-FOREIGN SERVICE
telligence community. Their responsi- lation and it does not violate the spirit RETIREMENT
bilities are unique and their contribu- of reform. I have been involved in civil UDESIGNArtost or wrists saovtstoss or THE
lion Is unparalleled. It is my determi- service pension reform for years and soaa0ss sgavtcs ACT or 1980
eu ere
Mr. ROLLINGS. Mr. -President. I provision In 1980. I led the fight - end chapter and inserting in
rise in support of the amendment of the "dual COLA's" in ?1981. I know lowing:
the chairman of the Intelligence Corn-_ what good reform is and I also know ?,CHAPTER s-POREIGN SERVICE
mittee. the political price we. often have to RETIREMENT AND DISABILITY
The men and women who serve in pay back home to get it enacted. ' ?'SuRCaArrnt I-Foaston Soivscs
the Central Intelligence Agency are But let me tell you that the band- Razrsnsnrr AND DISAsnrTT STST)as"
some of the finest we have in public wagon for reform in this legislation (2) by striking out "this chapter" each
service. They are first class in terms of should not run over good solid public place it appears and inserting in lieu thereof
experience. expertise. and special policy. Our intelligence officers de- "this subchapter: and -
skillss. Their responsibilities are diffi- serve support now and in the future. I (3) by inserting -under this subchapter"
cult, unique. and often life-threaten- urge my colleagues to enact this after "payable from the Fund" each place it
Ing. And. their successes are never amendment. appears.
b808(d) of such Act t