HOUSE PLANS FOR FEDERAL RETIREMENT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP89-00066R000900080036-9
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 12
• Document Creation Date: December 22, 2016
• Document Release Date: January 14, 2011
• Sequence Number: 36
• Publication Date: February 20, 1985
• Content Type: MEMO

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~LL
OLL 85-0363/2
20 February 1985
FROM :
MEMORANDUM FOR: See Distribution
VIA: Acting, Chief, Liaison Division, OLL)(
Liaison Division, OLL
1. The House continues to view Federal retirement (the
existing Civil Service plan and a supplemental plan for new
hires) as elements of the total Federal compensation
package. Therefore, movement toward the design of a
retirement package is slow.
2. The first order of business in the House is to try
and block Administration proposals affecting Federal
employees and retirees.?'To this end, Congresswoman
Mary R.Oakar (D., OH), Clair of the Subcommittee on
Compensation and Employee Benefits of the House Post Office
and Civil Service Committee, will hold an oversight hearing
on the President's budget proposals on 26 February.
Witnesses invited to the hearing include: Mr. David A.
Stockman, Director of the Office of'Management and Budget;
Dr. Donald J. Devine, Director of the Office of Personnel
Management; Mr. Martin Dugan, Chairman of the Advisory
Committee on Federal Pay; Ms. Janet Norwood, Commissioner of
the Bureau of Labor Statistics; and Representatives of
Federal Labor, Postal, and Retiree Organizations.
3. After the hearings, the Post Office and Civil
Service Committee will likely recommend that all of the
Administration's proposals (including changes to the Civil
Service Retirement age, COLA, contribution and benefit
calculation) not be approved. The Committee membership has
a pro-Federal employee orientation and many members are
already on record as opposing the Administration's proposals.
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4. This Committee's recommendations will be reviewed by
the House Budget Committee which, in the past, ignored
Administration efforts to cut Federal benefits. Given the
mood in Congress to cut the Federal deficit, however,
compromises can be expected; the most likely changes are a
COLA freeze, high 3 to high 5, and an increase in employee
contributions from 7 to 9 percent. There is a growing
bi-partisan move in the House to stop all other changes at
least for the forseeable future.
Distribution:
1 - D/OLL
1 - DD/OLL
1 - AC/OLL/LD
1 - C/OLL/LEG
1 - DDA
1 - D/OP
1 - DD/EB&S/OP
1 - DD/PA&E/OLL
1 - Subject
1 - Chrono
1 - OLL Record
1 - OLL Chrono
OLL:LD w (20 February 1985)
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I. EST OR HAVE INDEPII~ DENP AWWRITY BUT FQLLOW TITLE 5
Although exempt from the Classification Act of 1949, as amended (see 5
U.S.C. ? 5102 (a) (1)(vi)), the Agency follows with only minor variances * the
position classification principles of Ch. 51 of Title 5, U.S. Code;-and the
General Schedule pay rates ** and rules for step increases under Ch. 53 of
Title 5.
Although exempt from the Title 5 provisions concerning prevailing rate
employees (see 5 U.S.C. ? 5342(a)(1)(E)), the Agency follows those principles.
Although not covered by the provisions of Title 5 pertaining to the
Senior Executive Service (see 5 U.S.C. ? 3132(a)(1)(B)), the Agency's Senior
Intelligence Service adheres to the SES rules concerning the ES-4 pay cap, the
ES-1 ceiling on aggregate fiscal-year compensation, amounts of and criteria
for performance awards and rank stipends, sabbaticals, etc.
Although exempt from the Title 5 rules concerning performance ratings
(see 5 U.S.C. ? 4301(l)(v)), the Agency essentially abides by the general
Executive-agency-wide principles and guidelines specified in Ch. 43 of Title 5.
Although the Agency possesses independent statutory authority under
Section 8 of the CIA Act to craft its own incentive awards program,
nonetheless, the Agency administers such awards in accordance with Ch. 45 of
Title 5, U.S. Code.***
The Agency, while not subject to the Inspector General Act of 1978, as
amended, has a vigorous and active Inspector General established by Agency
regulation.
Although "nothing" in the Federal Property and Administrative Services
Act of 1949, as amended, "impair(s) or affect(s) any authority of the CIA"
(see 40 U.S.C. ? 474(17)), the Agency's rules pertaining to procurement and
disposition of property closely track the general Government-wide practices,
with divergences only as necessitated by operational or similar intelligence
factors.
Notwithstanding the Agency's independent allowances and travel authority
in Section 4(b) of the CIA Act, the Agency adheres to the provisions of
Subchapter 2 of Ch. 57, Title 5 concerning domestic travel and domestic
relocation.****
* e.g., dual tracks for analysts, and the 'magnet' principle for
secretaries. yq~
Ir-fJ t"7 ~j'o
** GSO is a divergence,A as is pay banding experiment.
*** Language Incentive awards are under Section 8.
**** But note MIP and ATC.
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While Section 8 of the CIA Act authorizes the Agency to fashion a leave
system separate and distinct from that established pursuant to the Annual and
Sick Leave Act of 1951, as amended, the CIA leave system generally is on all
fours with the provisions of that Act.*****
Although Section 8 vests the Agency with broad independent pay authority,
the Agency follows Title 5 law with respect to overtime and premium pays under
Ch. 55 of that Title.
STAT *****
has no Title 5 counterpart or equivalent.
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II. USES OF SPECIAL AUrEDRITIES AND/OR E?CENIPTICt S
= Unlike the rest of the Executive agencies, the Agency pays Sunday
premium pay to part-time employees in certain narrowly circumscribed
situations when and as necessary to ensure the performance of time-
sensitive and critical intelligence activities [Section 8].
= The Agency is exempt from the "merit pay" provisions in Ch. 54 of
Title 5, and has not implemented or adapted any identical system as
a matter of policy.
= The Agency uses its independent authority to designate shortage-
category DODs entitled to EOD travel and HHE shipment at official
expense, without requirement for OPM approval [Section '].
= The Agency's special scientific and engineering pay schedules
do not follow dollar-for-dollar the OPM schedules under 5 U.S.C.
? 5303 [Exemption; Section 8].
= The Agency pays or lease-breaking and residence transaction expenses
incident to most foreign-to-domestic and domestic-to-foreign PCS
transfers; under Title 5, such expenses are reimbursable only for
domestic-domestic transfers [Section '].
= The Agency may provide thirty days' special leave and related travel
for employees overseas subjected as a result of official status to
unusual physical or psychological abuse, who are PNG'ed or whose
return is determined to be necessary by Headquarters [Section 4b].
= The Agency has mobility Incentive Pay and Addition to Compensation.
[Section 8...].
= Like the Foreign Service but unlike other agencies, the Agency can pay
for domestic retirement relocation moves [Section 8--erection 4b].
= A pay banding experiment is being conducted [Section 8].
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go/
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CIARDS ANNUITY FOR A GS-9 EMPLOYEE (PROJECTED TO 1995)
CURRENT AGE 40 WITH 15 YEARS SERVICE WHO WILL RETIRE AT
AGE 50WfTH 25 YEARS SERVICE
ANNUITY
20000
18000
16000
14000
12000
10000
8000
6000
4000
$ 8,697
8,047
50
0%
-
.
r
t 46.3%
2000
0
NO CHANGES NO SKLV HIGH 5 VS 5% PER YR ALL THREE
CREDIT HIGH 3 PENALTY CHANGES
UNDER 60
$17,394
$16
872
,
$16,592
100.0%
97.0%
95.4%
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^ ~ r. r Dc~ a ANN}Aj': ?:Mf Oter"E(P3JECTED CIAR
GS15 E,:PL E TO 995)
CURRENT AGE 40 WITH 15 YEARS SERVICE WHO WILL RETIRE AT
AGE 50 WITH 25 YEARS SERVICE
4,
ANNUITY
$60000
$50000
$40000
$30000
$20000
F $37,755
100%
$36,622
97.1%
$36,014
95.4%
46.3%
$10000
NO CHANGES
NO SKLV
CREDIT
ALL THREE
CHANGES
HIGH 5 VS
HIGH 3
$17,467
50.0%
5% PER YR
PENALTY
UNDER 60
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CI RDS A NU ;~:" ; ~;~ A ~~:~~'-..~..7 ~E ~t%JJECT`D TO 1995
CURRENT AGE 40 WITH 15 YEARS SERVICE WHO WILL RETIRE AT
AGE 50 WITH 25 YEARS SERVICE
$60000
$50000
$40000
$30000
$20000
$10000
ANNUITY
$49,904
100%
(48.4-07
97R
$47,603
95.4?
$24,952
$23,087
I 46.3%
NO CHANGES NO SKLV HIGH 5 VS 5% PER YR ALL THREE
CREDIT HIGH 3 PENALTY CHANGES
UNDER 60
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CSRS ANNUITY FOR A GS-9 EMPLOYEE (PROJECTED TO 1995)
CURRENT AGE 45 WITH 20 YEARS SERVICE WHO WILL RETIRE AT
AGE 55 WITH 30 YEARS SERVICE
ANNUITY
30000
25000
20000
$19,568
$18,942
$18,666
15000
10000
5000
100.0% ': 9 86 %
NO CHANGES NO SKLV
CREDIT
$ 9,784
$ 9,034
HIGH 5 VS 5% PER YR ALL THREE
HIGH 3 PENALTY CHANGES
UNDER 65
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`~Vit' EE CJEC T3 i 995)
C ~RRENT AGE 45 WITH 20 'YEARS SERVICE WHO WILL RE MIRE AT
AGE 55 WITH 30 YEARS SERVICE
260000
$soooo
ANNUITY
$42474
$40000
100%
96.8%
#40,516
$30000
$20000
$10000
95.49
$19,610
46.2%
$21,237
50.0%
NO CHANGES NO SKLV HIGH 5 VS 5% PER Y. ALL THREE
CREDIT HIGH 3 PENALTY
UNDER 65
CHANGES
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$60000
$50000
$40000
$30000
$20000
$10000
:,SRS A N N U L (r OR A Sim EMPLOYES (PROJECTr D TO 1995)
CURRENT AGE 45 WITH 20 YEARS SERVICE WHO WILL RETIRE AT
AGE 55 WITH 30 YEARS SERVICE
ANNUITY
$56,142
100.0%
$54,345
$53,553
96.8%
95.4%
$25,920
t 46.2% E
I s
NO CHANGES NO SKLV HIGH 5 VS 5% PER YR ALL THREE
CREDIT HIGH 3 PENALTY CHANGES
UNDER 65
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