RETIREMENT POLICY GROUP MEETING 22 JANUARY 1987

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP89-00066R000800080013-5
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 4
• Document Creation Date: December 27, 2016
• Document Release Date: December 13, 2012
• Sequence Number: 13
• Publication Date: January 22, 1987
• Content Type: MEMO

Declassified in Part - Sanitized Copy Approved forlefe-a-se-2-6-1-2212/13 : CIA-RDP89-00066R000800080013-5
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MEMORANDUM FOR THE RECORD
SUBJECT: Retirement Policy Group Meeting
22 January 1987
Summary: The meeting was held to bring people up-to-date on developments
since the last meeting on 7 November 1986. It was attended by
Office of General Counsel; Office of Finance;
the Comptroller;
, Office of
Retirement Working Group; Office of
Information Technology; Retirement Division, Office of Personnel;
and me. Each provided a report on one or more of the following issues.
1. Retirement Education Program - I briefly outlined the education
program on the new retirement system that the Office of Personnel would be
undertaking in the next year. I particularly emphasized the new program to
reach field personnel. The only question raised was the availability of the
comparison software to field personnel. I provided a copy of the general
outline of the program to all the members with the proviso that it not be made
generally available.
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2. Report of Working Group Chairman - discussed the activities 25X1
of the Working Group and advised on the following:
? The majority of the records transfered from OPM had been completed
prior to the Christmas holidays. A second trip to complete the
transfer would be conducted during the week of 2 February 1987.
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CONFIDENTIAL
Declassified in Part - Sanitized Copy Approved for Release 2012/12/13: CIA-RDP89-00066R000800080013-5
Declassified in Part - Sanitized Copy Approved forl-else 2012/12/13 : CIA-RDP89-00066R000800080013-5
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SUBJECT: Retirement Policy Group Meeting
22 January 1987
meeting
and that a
was
scheduled for 29 January 1987 with FBIS to finalize the
retirement and Thrift procedures for TCN's. The group was
advised that two of the Vendors, National FSI in Dallas and
ERISCO in New York had invited the Agency/Working Group to
their facilities for site visits to observe their Thrift
software packages. The group was advised that the trips were
tentatively being planned for mid to late February.
Finally, the Group was informed that
had worked together and had developed a prototype
software program which will compute the lump-sum option for
employees. Plans are for continued testing and review by tax
experts in OGC.
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3. Meetings with OPM - discussed his session with John Webster and 25X1
Jerome Julius indicating that details for the transfer of funds between
agencies had been worked out. He described the willing cooperation shown by
these officials. Because had not yet arrived, I described the 25X1
trip to to retrieve files and the problems that were encountered. I 25X1
also outlined Hythia Young's meetings with OMS and OPM officials on our
handling of disability cases. The meetings had been used to discuss OPM
procedures and criteria for handling disability cases; OPM had no problem with
our assuming responsibility in this area. I indicated that there was a
problem in our using fitness for duty as a criteria for declaring someone
disabled for retirement purposes. said that we would not want to 25X1
adopt OPM's practice in such situations. He said that we wanted to preserve
the Director's authority for dealing with situations of this type. Laws
providing these authorities would take precedent. He said that he would
assist us in developing legal justification for being at variance with OPM on
some disability cases; I asked 25X1
on these issues. 25X1
4. Status of Retirement Regulations - I described our efforts to get the
Agency's regulations approved so the Agency could begin using the Director's
new authority. I indicated that we had gotten OPM and Thrift Board
concurrence before we submitted them to the Intelligence Oversight Committee.
Their changes had been minor and primarily in the way of clarification. None
of the Agency authorities were questioned. The thirty day waiting period for
the regulations to go into effect was almost over and the regulations would
soon go into effect. I emphasized that these were interim regulations pending
some greater experience in using the Director's new authorities.
indicated that it would have been more proper to have sent the regulations to
OMB for approval before sending them to the Hill. He assured us that the
situation was taken care of. He explained to OMB that because there was such
little time before the regulations were to take effect that we sent items to
the Hill and OMB simultaneously.
CONFIDENTIAL
Declassified in Part - Sanitized Copy Approved for Release 2012/12/13: CIA-RDP89-00066R000800080013-5
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Declassified in Part - Sanitized Copy Approved for ITeie..;ie-T01.i/12/13 : CIA-RDP89-00066R000800080013-5
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SUBJECT: Retirement Policy Group Meeting
22 January 1987
5. Status of Automation Effort. - provided a status report on
OITs efforts to modify the payroll system to make the appropriate payroll
deductions for the various retirement systems. He indicated that some
problems had been encountered and that the system should be in operation by
payroll period three. Since employee deductions are all 7%, employees would
not be aware that their contributions might not be going into the proper
account. There would be retroactive adjustments that would put the money in
the right retirement system for those employees who were not properly coded.
said that the first test cycle of the special pay rates was
complete and if the second test cycle was successful then it would be
operational for the second pay period. With regard to the Thrift, the
specifications were completed and anticipated finishing the
programming in four weeks and that would allow five weeks for testing.
warned that unlike payroll deductions, if programming were not completed
on the Thrift, the employee would be immediately aware of the problem. I
asked to indicate if he thought he would have problems so we could
go to OIT management for additional resources. said that he would
let us know, but that there were not many people in OIT with the right
background to be of help. I asked to look at the legal implication
of not being able to make the correct deductions for Thrift in time for April.
6. Update on the Budget - indicated that the Deputy Director had
approved $2 million for retirement for fiscal year 87 and he felt sure that a
similar amount would be used primarily for automation provided in 1988.
said that the retirement initiative, however, covered only a request for
positions at this point since we were already performing functions and needed
money for automation today. The Deputy Director did not hesitate to approve
the money requested recognizing that it was something that had to be done.
also said that OMB had directed all Federal agencies to return all
money budgeted for CSRS retirement matters, but not used for that purpose.
OMB was afraid that agencies might receive a windfall of substantial members
of employees transferred to FERS. He said that this request posed a problem
for the Agency because the Agency did not identify retirement as a specific
budget item, but included it under a broad general heading. He said that he
would be working on this breakout.
7. Update on Thrift Savings - recounted some of the information
that he had learned from meetings of the Thrift Savings Plan Investment
Board. He cited the following items:
O A brochure that the Board will make available by the first open
season.
O The rate of return for the Government Security Investment Fund which
will be average rate of return for marketable Treasury securities
during the previous month.
O The issue of when new employees could begin participating in the
Thrift. It is still not clear if the Board will consider its first
open season as a regular one and if not, what impact that will have
on new 1987 employee participation.
O The Thrift Board will begin holding bi-weekly meetings with Agency
representatives to answer questions.
O Thrift Fund Statement will be mailed to all participating employees
every six months.
CONFIDENTIAL
Declassified in Part - Sanitized Copy Approved for Release 2012/12/13: CIA-RDP89-00066R000800080013-5
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Declassified in Part - Sanitized Copy Approved for Release 2012/12/13: CIA-RDP89-00066R000800080013-5
SUBJECT: Retirement Policy Group Meeting
22 January 1987
I promised to provide the members with a copy of a memorandum for the record
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8. Memorandum of Understanding with OPM - in discussing his 25X1
meeting with John Webster and Jerome Julius, mentioned their desire for more
on the responsibilities that we were assuming. I recounted the meeting that
had been scheduled with OPM officials to review their responsibilities but
cancelled by OPM. I mentioned the subsequent conversations with Jean Barber
and Mr. Webster in which they reiterated their desire for a Memorandum of
Understanding (MOU), but it was decided that a detailed MOU did not need to be
prepared immediately. indicated that a high level MOU which did 25X1
not go into a lot of detail would be sufficient at this time. Amendments
could be added later to cover specific activities, indicated that 25X1
he would take a try at drafting such on MOU. indicated that the 25X1
Office of Personnel should be the office officially responsible for holding
these MOU's and that none should be drafted unilaterally.
9. Policy Issues - No policy issues were reinforced, indicated that
a number of policy issues would be reinforced on the Thrift Savings Plan after
the Retirement Working Group had met to develop some recommendations.
10. NSA Contacts - I recounted some phone calls that had been received from
several NSA representatives, regarding our handling of in-house administering
Assistant Comptroller;
NSA ADP shop;
about how
of FERS. Calls had been received from
NSA's General Counsel's Office;
and NSA, Policy Analysis and Evaluation shop inquiring
the Agency was going to handle Thrift accounts for our employees.
said that he thought the calls were related to our policy discussion on
whether or not to seek similar authority to the Agency for administering
Thrift accounts for its people. It was agreed that all such calls should be
funneled to me and that I would assemble the appropriate office
representatives to meet with NSA officials to discuss these issues.
Associate Deputy Director of Personnel
for Employee Benefits and Services
CONFIDENTIAL
Declassified in Part - Sanitized Copy Approved for Release 2012/12/13: CIA-RDP89-00066R000800080013-5
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