RETIREMENT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP89-00066R000900070008-1
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 10
• Document Creation Date: December 22, 2016
• Document Release Date: January 13, 2011
• Sequence Number: 8
• Publication Date: March 18, 1985
• Content Type: MEMO

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18 MAR 198;
NOTE FOR: Director of Personnel
STAT
Deputy Director of Personnel for Employee Benefits and
Services
SUBJECT: Retirement
Bob,
1. You asked that we provide you figures on how much of a
financial impact would result from incorporating Civil Service
retirees into an Agency-wide retirement system. The following
information gives you some appreciation for the dollar figures.
STAT
Total (if Agency administered entire program)
b. FY-86 CIARDS Unfunded Liability
FY-86 CSRS Unfunded Liability
Total (if Agency administered entire program)
C. FY-86 Total Budget for CIARDS:
7% contribution
Treasury Appropriation
a. FY-86 CIARDS Appropriation
FY-86 CSRS Appropriation
FY-86 Total Budget for CSRS:
7% contribution
Treasury Appropriation
Grand Total
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SUBJECT: Retirement
2. For your information, if the retirement systems were
fully funded (which we know they are not), the current combined
CIARD and CSR S stems at 40% cost of payroll would equal
The proposed Agency system that we have
recommended at 34% of payroll would cost
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C2 WEDNESDAY, MARCH 27, 1985
THE FEDERAL DIARY
Generous Pension Plan
By Mike Causey ^ If it can run the IRS gantlet,
Washington Post Staff Writer the OPM would also offer a
special tax-deferred savings
overnment employes plan. Workers could contribute
G would be offered a up to $5,000 into that program.
private sector-style That is more than twice the tax
pension package with generous saving available to persons
tax breaks under proposed under individual retirement
legislation being drafted by the accounts.
Office of Personnel ^ Workers would be vested in
Management. the new retirement plan after
Under the plan, which must one year. Money in their
still clear the Office of accounts could not be
Management and Budget, all withdrawn until they were at
federal and postal workers who least age 591/2. If they left the
are fully covered by Social government, money in their
Security (anyone hired since accounts would continue to
January 1984) would draw interest (but with no new
automatically go under the new government contributions) until
system. The earliest civil they could withdraw it.
service pension benefits would Employes would get annual
come at age 591/2, and reduced statements of the value of their
benefits would be available from accounts.
Social Security at age 62, or full ? There would be no such thing
benefits at age 65-the same as a formal retirement age,
requirements persons in the under the new program,
private sector have. although benefits could not
Employes covered by the begin until age 591/2. Currently,
current civil service retirement federal workers can retire as
program-which unlike the
OPM plan guarantees a level of service, srbut age in with 30 years'
in fact federal
benefits based on length of employes on the average work
service and salary-could until about age 61.
remain with it or elect to buy OPM officials say the new
into the new system. plan would cost the government
The package must clear a the equivalent of 19 percent of
number of political payroll, compared with the
hurdles-from federal unions to current plan, which costs 33
Congress-and be approved by percent of payroll.
the Internal Revenue Service, "It [the current system] is
which could be expected to take very generous only for the very
a dim view of some of its few who make a full career of
tax-deferred features. government," an OPM official
Under the proposal: said yesterday.
^ All contributions to the-civil
service retirement program NARFE Says -No
would be made by the The National Association of
government. Employes would Retired Federal Employees has
pay nothing. Currently, workers withdrawn its offer to join
contribute 7 percent of salary. Citizens Against Waste, the
^ Employes would keep the private sector group headed by
same salary they have now, but J. Peter Grace and syndicated
the government would columnist Jack Anderson.
contribute an amount equal to Last December NARFE
11 percent of each employe's President' Lud Andolsek agreed
salary into his or her individual _ to work with the group if it put
retirement account. Interest him on the executive board and
would be paid on those accounts provided the retiree organization
at the Treasury bill rate, which with a forum to explain and
runs about 10 percent. If OPM defend the federal pension
gets its way, that money would program. Yesterday, NARFE's
not be considered as income executive board voted 14 to 0 to
and subject to federal taxes withdraw its cooperative efforts.
until the employe retired or It charged that the citizens
withdrew it. group is "nothing more than a
^ All employes in the new mouthpiece" for the so-called
system would pay the full Social Grace Commission, which urged
Security tax. cuts in the U.S. retirement plan.
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FEDERAL EMPLOYEES' RETIREMENT SYSTEM (FERS)
(PROPOSED SUPPLEMENTAL PLAN OF OPM)
-mployee Pays:
3overnment Pays;
retirement Eligibility:
retirement Benefit:
)isability Benefit:
Durvivor/Benefits:
Nothing
11.6% of salary into Federal Employees
Retirement Fund.
Age 59 1/2 with one or more years of service
(Age 50 for law enforcement officers, fire
fighters, air traffic controllers.)
Accumulation of principle and interest in
employee's account in the FERS, payable at
employee's election as:
1.
Lump sum, or
2.
Annuity for fixed, term of years.
3.
Life annuity for employees and spouse
or
4.
Life
with
annuity for employee and person
insurable interests, or
5.
Annuity with COLA
(Law enforcement officers, fire fighters,
and air traffic controllers also received a
supplement equal to Social Security benefit
from date of retirement to date eligible for
Social Security.)
60% of salary if totally disabled, or
40% of salary if unable to perform current
position (must have 18 months service to be
eligible for disability benefits; benefits
begin 6 months after work ceases; benefits
are offset by any Social Security Disability
Benefits)
Surviving spouse of deceased employee with
18 months service is entitled to lump sum
payment or an annuity based on balance in
employee's FERS account. (Will be based on
one year's salary, if balance in account is
less than that amount.)
/oluntary Contribution Plan Employee may elect to deposit up to $5,000
per year in the Retirement Fund under
provisions comparable to those applicable to
IRA's. (No matching funds by government.)
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FEDERAL EMPLOYEES' RETIREMENT SYSTEM (FERS)
(PROPOSED SUPPLEMENTAL PLAN OF OPM)
Employee Pays: Nothing
Government Pays: 11.6% of salary into Federal Employees
Retirement Fund.
Retirement Eligibility:
Age 59 1/2 with one or more years of service
(Age 50 for law enforcement officers, fire
fighters, air traffic controllers.)
Accumulation of principle and interest in
employee's account in the FERS, payable at
employee's election as:
1.
Lump sum, or
2.
Annuity for fixed, term of years.
3.
Life
or
annuity for employees and spouse,
4.
Life
with
annuity for employee and person
insurable interests, or
5.
Annuity with COLA
(Law enforcement officers, fire fighters,
and air traffic controllers also received a
supplement equal to Social Security benefit
from date of retirement to date eligible for
Social Security.)
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Disability Benefit:
Survivor/Benefits:
60% of salary if totally disabled, or
40% of salary if unable to perform current
position (must have 18 months service to be
eligible for disability benefits; benefits
begin 6 months after work ceases; benefits
are offset by any Social Security Disability
Benefits)
Surviving spouse of deceased employee with
18 months service is entitled to lump sum
payment or an annuity based on balance in
employee's FERS account. (Will be based on
one year's salary, if balance in account is
less than that amount.)
Voluntary Contribution Plan Employee may elect to deposit up to $5,000
per year in the Retirement Fund under
provisions comparable to those applicable to
IRA's. (No matching funds by government.)
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 Sanitized Copy Approved for Release 2011/01/13: CIA-RDP89-00066R000900070008-1
FEDERAL EMPLOYEES' RETIREMENT SYSTEM (FERS)
(PROPOSED SUPPLEMENTAL PLAN OF OPM)
Employee Pays: Nothing
Government Pays: 11.6% of salary into Federal Employees
Retirement Fund.
Retirement Eligibility:
Retirement Benefit:
Age 59 1/2 with one or more years of service
(Age 50 for law enforcement officers, fire
fighters, air traffic controllers.
Accumulation of principle and interest in
employee's account in the FERS, payable at
employee's election as:
1. Lump sum, or
2. Annuity for fixed, term of years.
3. Life annuity for employees and spouse,
or
4. Life annuity for employee and person
with insurable interests, or
5. Annuity with COLA
(Law enforcement officers, fire fighters, and air traffic controllers also
received a supplement equal to Social Security benefit from date of
retirement to date eligible for Social Security.)
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Disability Benefit:
Survivor/Benefits:
60% of salary if totally disabled, or
40% of salary if unable to perform current
position (must have 18 months service to be
eligible for disability benefits; benefits
begin 6 months after work ceases; benefits
are offset by any Social Security Disability
Benefits)
Surviving spouse of deceased employee with
18 months service is entitled to lump sum
payment or an annuity based on balance in
employee's FERS account. (Will be based on
one year's salary, if balance in account is
less than that amount.)
Voluntary Contribution Plan Employee may elect to deposit up to $5,000
per year in the Retirement Fund under
provisions comparable to those applicable to
IRA's. (No matching funds by government.)
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ROUTING AND TRANSMITTAL SUP
Data
18 March 1985
M. (Name, office symbol, room number,
building, Agency/Post)
Chief, ESD
Initials
Date
L
File
Note and Return
Val
For Clearance
Per Conversation
R uested
For Correction
Prepare Reply
irculate
For Your Information
See Me
ment
Investigate
nature
rdinatfon
Justi
Attached is backaround on the sixteen awardees of
the Intelligence Star who retired under the Civil Service
Retirement System,
DO NOT use this form as a RECORD of approvals, concurrences, disposals,
clearances, and similar actions
C/Protocol
Room No.-Bldg.
7E 31 unc
Phone No.
OPTIONAL~yFOL...--..~
FAR (1 CF7q lof-11206
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