RETIREMENT ANNUITY TAXATION LEGISLATION

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP89-00066R000400070007-7
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 1
• Document Creation Date: December 22, 2016
• Document Release Date: January 10, 2011
• Sequence Number: 7
• Publication Date: March 1, 1986
• Content Type: MISC

Sanitized Copy Approved for Release 2011/01/10: CIA-RDP89-00066R000400070007-7
RETIREMENT ANNUITY TAXATION LEGISLATION
Provisions of House Bill:
--
Eliminate "Three-Year Rule" that allows tax-free period immediately after
retirement until employee contributions are recovered.
--
"General Rule" would apply to all annuities.
actuarial life expectancy of annuitant.
It pro-rates recovery over
--
Would be effective for annuities beginning after 1 July 1986.
Provisions of Senate Finance Committee Proposal:
--
Same provisions as House Bill with two exceptions:
A.
B.
Would be phased in over a two-year period;
Would be effective for annuities beginning after 1 January 1987.
--
Not yet approved by Senate.
Effect on Employees:
-- These bills could cause high-ranking employees to incur as much as $20,000
in additional tax liability in the first year of retirement. Lower
ranking employees could also incur additional tax liability.
PERCENTAGES ELIGIBLE TO RETIRE ON OR BEFORE 30 JUNE 1986
25X1 -- 7%
of all Agency employees.
of all SIS.
of all GS 14/15.
of all others.
-- 60 f all DO SIS personnel are eligible.
-- 28 of all GS 14/15 DO personnel are eligible.
BREAKDOWN OF ELIGIBLE RETIREES BY DIRECTORATE
25X1 DCI
DA
DI
DO
DS&T
Sanitized Copy Approved for Release 2011/01/10: CIA-RDP89-00066R000400070007-7