FEDERAL RETIREMENT REFORM ACT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP89-00066R000900010010-4
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 22, 2016
• Document Release Date: January 7, 2011
• Sequence Number: 10
• Publication Date: November 7, 1985
• Content Type: OPEN SOURCE

I Approved For Release 2011/01/07: CIA-RDP89-00066R000900010010-4
15 November 7, m n CONGRESSIONAL RECORD - SENATE - S150-13
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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. Pursell, 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.
From 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
York, 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. Mineta, Ms. Oakar. Mr. Panetta,
Mr. Fazio. Mr. Michel, Mr. Dickinson, Mr.
Cheney, Mr. Lewis of California, Mrs.
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. DoMmNlci,
Mr. ROTH, Mr. DANFORTH, Mr. ARM-
STRONG, Mr. GRAMM, Mr. RUDMAN, Mr.
LONG, Mr. BENTsEN, Mr. CHILES, Mr.
LEVIN, Mr. BoREN, and Mr. HOLLrNGs
conferees on the part of the Senate.
FEDERAL RETIREMENT REFORM
ACT
AMENDMENT NO. 978
(Purpose: To amend the Central Intelli-
gence 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. EAGLETON. 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-
ToN], for himself and Mr. STEVENS, proposes
an amendment numbered 978.
Immediately following title III, insert the
following
TITLE IV-CENTRAL INTELLIGENCE AGENCY
RETIREMENT '
REFERENCES
Sac. 401. The Central Intelligence Agency
Retirement Act of 1964 for Certain Employ-
ees (78 Stat. 1043; 50 U.S.C. 403 note) is
amended-
(1) in section 111, by striking out "When"
and inserting In lieu thereof "Except as oth-
erwise provided In section 302 of this Act,
when";
(2) by striking out "this Act" each place it.
appears in title II except in sections 201 and
264, and Inserting in lieu thereof "this
title": and
(3) by inserting "under this title" after
"payable from the Fund" each place it ap-
pears in title H.
CONTRIBUTIONS TO THE CENTRAL INTELLIGENCE
AGENCY RETIREMENT AND DISABILITY SYSTEM
SEC. 402. Section 211 of the Central Intel-
ligence Agency Retirement Act of 1964 for
Certain Employees (78 Stat. 1045; 50 U.S.C.
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):
"(d)(1) In the case of a participant who
was a participant subject to this Act before
January 1, 1984, 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 t.De 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 ANNUITY BY THE AMOUNT or SOCIAL
SECURITY BENEFITS
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
"(pXl) 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 Act)-
"(i) of such annuitant. or
"(ii) in the case of a survivor, of the par-
ticipant on whose service the annuity is
based, -
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 (G) of
section 210(a)(5) 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 OF 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:
"(c) Subsection (b) shall not apply to an
annuitant who becomes subject to title III
of this Act by reason of recall service.".
CONFORMITY BETWEEN THE FEDERAL RETIRE-
MENT SYSTEM AND THE CENTRAL INTELLI-
GENCE AGENCY PENSION SYSTEM
SEC. 405. Section 292 of the Central Intel-
ligency 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 INTELLIGENCE AGENCY PENSION
SYSTEM
SEC. 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 adding at the end thereof the
following:
"TITLE III-CENTRAL INTELLIGENCE AGENCY
PENSION SYSTEM
"ESTABLISHMENT
SEC. 301. (a) There is hereby established a
Central Intelligence Agency Pension
System.
"(b)(1) Except as otherwise specifically
provided in this title or 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.
J
"DEFINITIONS
"Svc. 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:
"(6) the term 'supplemental liability"
means the estimated excess of-
"(A) the actuarial present value 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
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 r?nXr~ n r-. r*~,., . .
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oI participants pursuant to section
305(b)(2XA) 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
Stat. 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 II of the Social Security Act.
"SPECIAL PULES RELATING TO THE ENTITLEMENT
OF SECTION 203 EMPLOYEES TO ANNUITY
"SEc. 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), (aX3). 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.
"(c)(1) 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 5. United
States Code, unless the Director determines
that the separation was based In whole or in
part on disloyalty to the United States.
'71JNDING
"SEC,. 305. (a) All payments under sub-
chapters II. IV, and VII of chapter 84,of
title 5, United States Code, based on the
service shall be paid by the Director from
the Fund.
"(b)(1) All sums required to finance the
payments referred to in subsection (a) shall
becredited 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, (2) the supplemental liability of the
System, and (3) the amounts necessary to fi-
nance the costs of the System.
"THRIFT 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
System participants.
"GENERAL AND ADMINISTRATIVE PROVISIONS
"SEC. 308. (a) The Director shall adminis-
ter the Central Intelligence Agency Pension
System except for matters (other than mat-
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
ember 7, 1985
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.
"TRANSITION 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-
' Bence Agency Pension System. For this pur-,,
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.
"REFERENCES 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(a)(5)(H) of the Social Security Act,
and section 3121(b)(5XH) 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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