REPLY TO CONGRESSMAN WOLF'S LETTER

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP89-00066R000400060021-2
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 1
• Document Creation Date: December 23, 2016
• Document Release Date: December 29, 2010
• Sequence Number: 21
• Publication Date: February 4, 1986
• Content Type: MEMO

Sanitized Copy Approved for Release 2010/12/29: CIA-RDP89-00066R000400060021-2
ADMINISTRATIVE - INTERNAL USE ONLY
4 February 1986
MEM)RANDUM FOR: Chief, Retirement Operations Division, EBS/OP
STAT FROM:
Modeling & Forecasting Section, ARMB/OP
SUBJECT: Reply to Congressman Wolf's Letter
1. We have reviewed Congressman Wolf's request for information on the
impact of proposed legislation to tax annuities. Unfortunately, the short
time period available for response does not permit a comprehensive statistical
study. We think that inclusion of a specific, quantitative estimate would
lead to questions which we are unable to answer at this time. Indeed, data
limitations exist which may negatively affect the validity of our estimates
irrespective of the time devoted to a study.
2. There is however some evidence which could be used to support a
statement that you believe an increase in retirements would follow
implementation of a new tax law. Specifically:
a. There was a substantial increase in phone inquiries concerning the
retirement issue and annuity estimates following the 1985 announcements of
the new tax provisions;
b. Employees looking at the changes from a cost-benefits standpoint
are more likely to retire before the law takes effect;
c. There is a perception that this is yet another unfair burden being
placed on federal employees, and may stimulate a surge in retirements; and
d. A small sample of Agency employees and managers believe that many
of those eligible to retire will do so especially those in higher income
brackets who stand to lose more in the years immediately following the
law's enactment.
3. We believe the response to question five of Congressman Wolf's letter
could fairly be based on these points.
STAT
-11, Sanitized Copy Approved for Release 2010/12/29: CIA-RDP89-00066R000400060021-2