CURRENT STATUS OF ACTION AND FUTURE ACTIONS REQUIRED RELATIVE TO THE DESIGN AND DEVELOPMENT OF A NEW RETIREMENT SYSTEM FOR CIA EMPLOYEES HIRED AFTER 31 DECEMBER 1983

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP89-00066R000900020001-3
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 3
• Document Creation Date: December 22, 2016
• Document Release Date: January 11, 2011
• Sequence Number: 1
• Publication Date: February 3, 1984
• Content Type: MISC

Sanitized Copy Approved for Release 2011/01/11: CIA-RDP89-00066R000900020001-3
Current Status of Action and Future Actions
Required Relative to the Design and Development
of a New Retirement System for CIA Employees Hired
After 31 December 1983
1. Current Status of Actions Already Initiated
1. Actions on Developing Elements of Our Agency Plan
STAT On 13 January 1984, presented his initial information
report to the Director of Personnel (OP) and the Deputy Director
of Personnel (DD/OP) outlining the comparative features of the
primary provisions of typical Federal, State, and private sector
retirement systems. This report included data on a wide array of
alternative provisions regarding treatment of early retirement, income
replacement formulas, casting methodology, actuarial valuations,
and techniques used for the integration of retirement plan annuities
with Social Security pension benefits. The results of this
presentation meeting are outlined in Tab A.
Which is to arrange with the Department of the Treasury actuary,
Mr. Gary Gilliam and Office of Personnel sources to provide current
actuarial valuations of the present system and other statistical data.
This data will permit him to develop a "base line" on costs to be
applied and to construct several combinations of possible
alternatives that might be considered as part of future proposals
STAT relative to the new retirement system. will maintain
contact and discussion with the OP working group as he develops
the data and constructs alternatives for consideration.
2. Other Actions
STAT
(OLL) is maintaining contact with the staffs of the
congressional sub-committee addressing their efforts to the design
and development of a government-wide supplemental retirement system so
as to monitor the on-going progress and views as they emerge.
Office of Personnel representatives are attending congressional
public hearings on retirement related subjects and are scheduled to
attend Senate and House public hearings on the supplemental systems.
These are set for the latter part of February.
II.
Future Actions to be Completed
STAT
1.
Review and Analysis of
Data and Actuarial Valuations
of Altern atives
STAT
As previously indicate
d will maintain close association
with the OP working group as he develops the actuarial valuation of
the current retirement systems based upon current retirement eligibility
criteria, income replacement rates, etc. This close contact will
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continue once this base data has been evaluated and is applied
to several combinations of provisions that might be considered
for both CSRS type employes and CIARDS types. These will include
current as well as different retirement eligibility criteria
(both age and service for each system), various annuity accrual
rates (2 1/2% for CIARDS, 2% for CSRS, etc.); income replacement
rates and actuarial valuations as to percentage of payroll costs
necessary to sustain level of benefits. In addition, he will
work up similar alternatives as regards disability and survivor
benefits. Included in these comparitive combinations,
will apply off-set formulas for Social Security pension benefits.
Once has completed this final phase of his efforts and
presents his report to the Director of Personnel (D/OP), decisions
can be made as to the provisions "most preferred", those acceptable
and those not considered acceptable in meeting Agency requirements.
2. Development of a Working Draft of the Basic Structure of a Proposed
CIA Supplemental Retirement Plan
Based on the data provided by and other reference
material, a working draft of the structure of a possible CIA
supplemental retirement plan should be constructed which includes
the "most preferred" provisions with footnote sets of less preferred
provisions for fall-back should this be necessary in the future.
Documentation must be developed to defend the need of the Agency to
establish an independent retirement system and any provisions in the
proposed plan that enhance or sustain equivalent provisions in the
current systems. Actuarial valuations and costs of various
proposals must be computed and available.
The basic working draft should be updated as necessary on an on-
going basis as more information is available as regards Congressional
or the Administration's outlook on the general supplemental retire-
ment issue.
3. Other Future Actions
A. Developing White House and Congressional Support for the
Agency Position
It is advantageous for the Agency at this early date to have under-
taken detailed studies and development of the primary elements of a
supplemental retirement system that would strongly support the unique
requirements and objections of the Agency.
At this point in time, however, the Senate and House committees
addressing the supplemental retirement issue are only in the early
stages of research and little is yet available on the precepts
or substance of elements of the new plan that will emerge. It is
anticipated that Congressional research and discussion will continue
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until the latter months of 1984 with legislative proposals submitted
in early 1985.
The Administration has not initiated any direct indications of
views on the supplemental retirement issue itself but are on record
in the recent past expressing concern for the excessiveness of
retirement benefits provided current Federal retirees. It must be
anticipated that when proposals are announced they will recommend
general reductions in benefit levels and the cost to government.
It is essential that understanding and support of the Agency's needs
be developed with both the Administration and the Congress. The
timing on initiating efforts to obtain this support is vital and
could be counter productive if initiated too early and fatal if too
late.
It appears propitious at this time, however, for "light touch"
solicitation of support with both the Administration and Agency's
oversight committees as to the Agency's concerns regarding the
retirement issue at large. More specific presentations should be
reserved to more appropriate times in the future but before
legislative momentum and proposals for a general system begin to
harden.
B. Monitoring Con ressional Progrsss in their Development of a
Supplemental System
It is essential that Congressional action be currently monitored
not only as regards tangibles of the provisions of a new system
but also perceptions, biases, and trends of thinking that will
emerge. These indicators will be most important in terms of
developing Agency strategy and timing for increasing support for
the Agency's interests and also useful in making adjustments in our
own draft proposals that appear appropriate.
Once the shape of the Congressional proposals begin to firm-up,
it is possible that the concepts and provisions of the new system
might, with some modification, meet the needs of the Agency or
only require special consideration for our CIARDS coverage.
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