LETTER TO FRANK DEGNAN (SANITIZED)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90B01390R000300380005-1
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 23, 2016
• Document Release Date: November 9, 2011
• Sequence Number: 5
• Publication Date: May 21, 1986
• Content Type: LETTER

Declassified in Part - Sanitized Copy Approved for Release 2011/11/09: CIA-RDP90BO139OR000300380005-1
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CENTRAL INTELLIGENCE AGENCY
Office of Congressional Affairs
Washington, D.C. 20505
Telephone: [phone]
TO: Mr. Frank Degnan
General Accounting Office
Washington, D.C. 20548
Frank:
Per our conversation this morning, enclosed
is a recent letter our Director of Personnel
forwarded to Representative Frank Wolf, addressing
the same questions as those posed in your
recent request.
The other requested briefing on Near East/
Southwest Asia Economics is scheduled for 28 May.
Executive Officer
21 May 1986
OBSOLETE
2.86M 1533 PREVIOUS
EDITIONS.
Declassified in Part - Sanitized Copy Approved for Release 2011/11/09: CIA-RDP90BO139OR000300380005-1
 Declassified in Part - Sanitized Copy Approved for Release 2011/11/09: CIA-RDP90BO139OR000300380005-1
Central In dk rncc Agncy
6
The Honorable Frank R. Wolf
House of Representatives
Washington, D.C. 20515
Dear Congressman Wolf:
This is in response to your letter of 29 January 1986,
requesting information on retirements at this Agency and the
potential impact from enactment of changes to income tax laws
affecting annuities.
First, I am sure you will appreciate that we are precluded
from providing in this format some of the specific figures you
have requested because they are classified. However, we can
provide some of the general data which may be useful. At
present, approximately seven percent of our Agency population are
eligible or will be eligible to retire by 1 July 1986. Far more
importantly, however, is the fact that over 36 percent of our
Senior Intelligence Service (the Agency's equivalent to the
Senior Executive Service) are currently eligible to retire as are
15 percent of our GS-14 and 15 officer cadre. In our very
important overseas oriented categories, these latter figures rise
dramatically to 57 percent and 31 percent, respectively.
In general, between 26 and 28 percent of employees eligible
to retire in a given year will do so. This ratio has worked well
for the`Agency in the past, allowing for the timely and proper
trainin,g and development of our up-and-coming junior officers.
Any significant deviation from this trend, particularly at the
senior levels, could have a very serious impact on our ability to
carry out our national intelligence mission. While we cannot
predict exactly how many additional employees would leave if the
tax laws affecting annuities are changed, I can tell you that our
employees are keenly aware of this issue and indications are that
a significant number would retire to avoid the changes. These
are officers who would not otherwise be leaving at this time.
The potential loss of experience in our intelligence cadre and
Declassified in Part - Sanitized Copy Approved for Release 2011/11/09: CIA-RDP90BO139OR000300380005-1
 Declassified in Part - Sanitized Copy Approved for Release 2011/11/09: CIA-RDP90BO139OR000300380005-1
senior officer core would require the premature elevation of
officers who would lack the desirable degree of experience to
equip them to handle the added responsibilities in the same
manner as their predecessors.
Although we cannot respond in full to your questions, I hope
the above is helpful to you. We are, of course, available should
you need any further assistance.
Sincerely
151
Robert W. Magee
Director of Personnel
Declassified in Part - Sanitized Copy Approved for Release 2011/11/09: CIA-RDP90BO139OR000300380005-1
 Declassified in Part - Sanitized Copy Approved for Release 2011/11/09: CIA-RDP90BO139OR000300380005-1
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We.-have been asked by Representatives Vic Fazio and
Michael D. Barnes to conduct a survey to evaluate the potential
impact on selected government operations of an increase in
retirements which might occur if Congress eliminates the 3-year
tax exempt period during which government retirees recoup their
retirement contributions. The Central Intelligence Agency was
among the agencies we were requested to include in the survey.
To fulfill this request, we need to talk with personnel and
operations officials and obtain information in the following
areas.
--The percentage of the agency's workforce currently
eligible to retire.
--The typical percentage of retirement eligible employees
who retire in an ordinary year.
--The additional percentage of employees who would be
expected to retire immediately before the effective date
of the proposed change, if it were approved.
--The -,J,&Yed impact on agency operations if a large
increase in the number of retirements occurs.
Declassified in Part - Sanitized Copy Approved for Release 2011/11/09: CIA-RDP90BO139OR000300380005-1